As CEO of Legence, Jeff Sprau is helping to prepare built environment spaces–and people–for a climate-resilient future.
When looking across the business landscape in 2025, one reality stands out: Sustainability has evolved into a core business function. It’s no longer just about appearing environmentally conscious—it’s about managing risk and operational excellence. The most forward-thinking executives understand that environmental performance and business success now travel together.
Markets evolve, but certain truths persist. The Conference Board recently revealed that American CEOs consistently rank climate risk and sustainability among their top concerns, with 42% of executives now ranking climate change as a “top-three issue” for their organizations. Why? Because they’ve witnessed how these factors directly impact operations and long-term prospects. This isn’t about following trends—it’s a practical assessment of what affects the bottom line.
The financial argument strengthens every quarter. PwC’s work with the World Economic Forum’s International Business Council shows global energy consumption could be reduced by 31% without sacrificing economic output. That translates to over $2 trillion in annual energy savings—an efficiency opportunity that cannot be ignored. The impact on valuation is clear: Companies that measure, report and set validated emissions reduction targets are up to 1.9 times more likely to realize substantial financial gains, underscoring the strong link between decarbonization and value creation.
In the mission-critical built environment of data centers, hospitals, schools and more, the benefits extend beyond cost reduction:
• Energy-efficient buildings sell for premiums between 1% and 31% higher than standard properties.
• Landlords can charge 3% to 16% more in rent for these properties.
• Occupancy rates climb up to 10% higher in energy-efficient spaces.
• High-performance buildings save approximately $0.60/sq ft annually on operations and maintenance costs.
Just last year, the Energy Star program helped businesses avoid $14 billion in energy costs and conserve 230 billion kWh of electricity. This efficiency drive is accelerating—LED lighting in U.S. commercial buildings increased from just 9% in 2012 to 44% in 2018 and is projected to reach 72% in 2025.
As another example, my company recently upgraded a 320-ton cooling system located in its 7,500-square-foot manufacturing cleanroom, which resulted in an estimated $8,000 in annual energy savings and 15% in carbon emissions reductions.
How Businesses Can Use Sustainability To Their Advantage
In today’s volatile markets, energy efficiency creates real competitive advantage. When energy prices fluctuate or supplies face disruption, efficient operations weather the storm while competitors scramble. This resilience extends to climate risks as well—buildings lower their loss exposure by $105 for every dollar spent on hurricane protection measures, with one Florida resort reducing annual insurance premiums by $500,000 through climate resilience investments.
Meanwhile, disclosure regulations continue to tighten. True business leaders must not treat sustainability as a cost center, but rather weave it into their core strategy to outperform rivals, spark innovation and open new markets.
Leaders can do this by mapping out their company’s footprint across their entire operations and supply chain. From there, they should determine measurable and achievable goals, such as reducing energy consumption and increasing the use of renewables. Consider investing in digital tools like energy management systems to help identify inefficiencies in their systems and look for opportunities to optimize performance.
However, this change might not come easily at first. A common challenge I like to make leaders aware of is internal resistance to change, especially when sustainability initiatives are perceived as costly investments or disruptive to the status quo. To change the tone of the conversation, be sure to communicate the long-term value of sustainability, including the long-term cost savings, investor appeal and improved brand reputation.
For companies to thrive now, they must accelerate sustainability investments, especially in energy efficiency. This requires policymakers and utilities to create accessible incentives that break down barriers. Any successful transition must be both practical and inclusive, recognizing that about 80% of today’s buildings will still exist in 2050.
The winners in 2025 will be companies that treat sustainability as strategic, not just compliance, infusing environmental thinking across supply chains, product development and operations. This approach delivers multiple advantages: lower costs, stronger brand reputation, engaged employees and loyal customers. The stakes are high: 45% of investors have encountered significant deal implications due to decarbonization factors, with more than half of these resulting in deal termination.
Conclusion
The verdict is clear: Sustainability has transformed from a checkbox to a business necessity. Companies that make it fundamental to risk management and operations build resilience, drive innovation and create lasting value. This isn’t a fad—it’s reshaping how successful businesses operate amid rapid change. Those who act decisively will thrive; the rest will struggle to remain relevant.
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