James Fisher, head of strategic partnerships at the Building Research Establishment, argues sustainability in the built environment is shifting from only design-stage ambition to measurable, in-use performance – and that digital innovation is central to delivering and evidencing that change
Built environment sustainability has entered a new phase. Performance is no longer assessed at the point of design, but on measured, in-use outcomes. For developers, investors and occupiers, it is no longer a differentiator but a baseline expectation, linked to asset value – and digital technologies are playing a central role in enabling that shift from projection to proof.
Regulatory pressure, investor scrutiny and occupier demand have converged to make measurable environmental performance a core component of commercial viability. In this context, digital innovation and PropTech are more than efficiency tools; they are driving sustainability standards across the built environment.
Government-commissioned research published in 2025 found the PropTech sector has raised more than £14bn to date and employs over 40,000 people. Yet its importance goes beyond just economic value. The report states that some commercial buildings have already seen energy use reductions of up to 45% thanks to PropTech solutions.
This transformation is not driven by AI alone. While it rightly dominated industry dialogues last year, sustained innovation occurred across a range of digital technologies, paving the way for AI solutions to be properly embedded and drive value within the sector.
Smart building systems continue to expand significantly. IoT sensors installed throughout buildings monitor energy use, water flow and air quality in real time. This enables asset managers to identify inefficiencies, reduce waste and improve in-use environmental performance.
This data is increasingly centralised through cloud-based performance platforms, allowing managers to control and access building systems remotely. AI integration can go one step further and enable predictive maintenance and automatic adjustments, reducing workloads across large portfolios.
The growth potential is significant: Fortune Business Insights predicts the smart building market to achieve a Compound Annual Growth Rate (CAGR) of 21.8% until 2032 with a final market valuation of over $568bn. While market expansion does not automatically translate into sustainability gains, it reflects sustained investment in the digital infrastructure required to measure and optimise performance.
Recalibrating sustainability
This emphasis on operational data reflects a broader recalibration across the property sector. For years, sustainability performance was often assessed at the point of design, supported by modelling and predicted outcomes. Mounting evidence of the performance gap – the difference between anticipated and actual energy use – has eroded confidence in relying on these projections alone. ESG disclosure requirements and net zero commitments are also becoming more exacting, necessitating detailed and verifiable reporting.
Increased computational demand carries its own energy and material impacts. However, given the scale of emissions associated with the built environment, 40% of global emissions, even modest reductions in operational energy use can generate substantial carbon savings. Where digital tools demonstrably narrow the performance gap and improve efficiency on a portfolio scale, the net environmental benefit should be significant.
For asset owners and developers, the in-use performance shift carries material implications. Capital is increasingly directed towards assets that can demonstrate credible operational performance, while underperforming buildings face growing risk of diminished investor confidence.
Digital monitoring and analytics tools therefore now extend beyond efficiency improvements and are increasingly central to evidencing operational performance.
The BREEAM Awards 2026 are recognising this transition through the introduction of the Digital Sustainability Innovation category. The category recognises projects that harness digital technologies and PropTech to transform sustainability in the built environment, enhancing building performance and streamlining certification. In doing so, it reinforces a broader industry movement: innovation must demonstrate outcomes, not simply ambition.
As the range of available digital tools continues to expand, the priority is effective application. Recognising credible, data-led approaches helps establish benchmarks, share best practice and build confidence in technologies that are reshaping how sustainability is delivered and verified across the built environment.
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