Wallenstam: Energy retrofit – boosting operating margins and the climate

Real estate company Wallenstam was founded in 1944 in Gothenburg by builder Lennart Wallenstam. Over the years, the company has evolved from building residential and commercial properties to also owning, managing and developing such properties.

Wallenstam is something of a sustainability pioneer. In 2008 the company’s first wind power station was deployed and it has been self-sufficient in renewable electricity since 2013. 

 “Today all major companies have realised the necessity of addressing sustainability issues, but we were definitely a frontrunner. For us, the early investment in wind power together with other targeted long-term investments is a way to assume responsibility for reducing our climate impact. Optimisation of our properties, installation of solar panels, modernisation of district heating centres and planning-stage climate calculations are all measures that contribute to cost savings and long-term profitability in terms of operations as well as construction,” says Karin Mizgalski, Head of Sustainability at Wallenstam. 

Energy retrofit – boosting climate, finances and staff

Today, Wallenstam is active in the Stockholm and Gothenburg areas, offering high-quality residential properties in many locations. However, the company only has commercial properties in Gothenburg. 

Sustainability is integrated into its operations and has become increasingly important in recent years. Energy optimisation, energy efficiency and green property certifications have become bigger focus areas. This is also something that is in demand, first and foremost among commercial property tenants, and at the same time helps to reduce the impact on the environment. 

“Energy retrofits reduce the climate footprint and lead to lower costs, higher operating margins and increased property value. We also work with green property certifications, which serve as tangible proof for our employees that we as a company are going in the right direction. We’ve managed to get the whole organisation on board surprisingly fast, and today everyone talks about sustainability,” says Henrik Olsson, Head of Operations of the Gothenburg region at Wallenstam. 

Energy optimisation of properties requires extensive work. The results and savings potential for each company depend on its starting point, that is, how actively the company has worked on this issue previously. 

 “You need to start with things you can manage. If you haven’t worked on these issues before, switching to LED lighting could, for instance, offer big savings,” says Henrik Olsson.

Good control and measurements – a key condition for energy efficiency

To achieve energy efficiency you need to make an energy audit and that requires good control and measurements.

“Sufficient measurement data are essential. You need a detailed audit of your energy consumption to develop targeted actions and cut consumption. As a first step we recommend making an energy audit of all property systems,” says Henrik Olsson. 

 For some, it may be a good idea to start with optimising their energy consumption, but for the more advanced, the next step could be an energy retrofit. In both cases, however, it is essential to start with something that the organisation can manage. 

“You need to establish a set-up that can be used across the company; set your ambitions and targets and be guided by them,” continues Henrik Olsson.   

An energy retrofit can be anything from changing the ventilation system to installing new windows, additional insulation, heat pumps or a wastewater heat exchanger. 

“Some heat exchangers have an exciting feature that allows them to pre-heat hot water using wastewater. This will reduce the need to buy district heating, which is an advantage during periods with rising prices of heat supplied from district heating,” continues Henrik Olsson.

Green financing opportunities

Energy efficiency improvements also enable Wallenstam to classify its properties as green in accordance with the EU taxonomy, which is also a condition for obtaining green financing. Today, Nordea is financing Wallenstam through a number of green loans. 

“A green loan is an acknowledgement that it’s not just the property that is green, but also the financing. This makes the whole flow green,” says Niklas Rydberg, business sustainability expert at Nordea.

However, current economic conditions can make energy retrofits more difficult. Henrik Olsson underlines how important it is to have the whole organisation on board throughout this journey and to aim at long-term targets.

 “To succeed you need commitment from staff and management and clear targets so you can adopt a long-term view and see what you want to achieve,” Henrik Olsson concludes.