| Submission Entry: | 1.) What systemic transformation are you able to report as an ESCO?
- Whilst ESCO projects typically involve achieving greater energy efficiency and water-use optimisation, what have you done to ensure better IEQ, either as a collateral or direct benefit?
- Have you evolved a way of showing fiscal benefits of better IEQ, which in turn, has allowed you to stay true to the ESCO model of making money through savings achieved, and the like, in the case of better IEQ?
- Have you established or strengthened your company policy towards addressing the bigger picture (of helping in the effort to limiting global rise in temperature or improvement in IEQ, etc.) and working in an interconnected manner with other stakeholders?
(188)Answer: i) In our ESCO projects, improving Indoor Environmental Quality (IEQ) and client comfort is always an integral part. When optimizing HVAC systems, we prioritize enhanced air quality while reducing energy consumption by doing the following:
o Demand control ventilation: Fresh dampers which regulates air flow is installed and is operated based on CO2 sensors installed, for example: in corridors, car parking, etc. The stale air is extracted from closed spaces to maintain air quality.
o Air filters and humidity control: The fresh air handling units (FAHU) are equipped with air filters to filter the fresh air being supplied to the buildings. Adequate humidity levels are also maintained in FAHU’s and AHU’s.
o Building management systems (BMS): Integrate smart sensors for temp, CO2, and humidity, and link them with HVAC controls. This allows the system to adjust air exchange and purification rates based on real-time IAQ levels, optimizing both air quality and energy usage.
o Regular HVAC Maintenance: Ensuring clean and well-maintained HVAC systems prevents inefficiencies, keeping energy consumption low while delivering high indoor air quality for building occupants.
ii) We have integrated various strategies within our ESCO framework to align improvements in Indoor Environmental Quality (IEQ) with measurable savings:
o Energy Efficiency from Optimized Ventilation: By implementing demand-controlled ventilation (DCV), we reduce energy use for heating, cooling, and ventilation while ensuring optimal air quality. These energy savings are easily quantifiable and contribute directly to the ESCO model.
o Reduced Maintenance and Operational Costs: Efficient HVAC operation, through better filtration and regular maintenance, lowers operational costs by reducing system strain, preventing breakdowns, and extending equipment life.
o Client comfort: Enhanced IEQ contributes to better occupant productivity and improved client comfort which translates to a better working environment.
iii) Our company policy from the start was to address global issues such as limiting temperature rise and improving Indoor Environmental Quality (IEQ) by energy efficiency projects.
o Commitment to Sustainability Goals: We align our work with global climate objectives, including the UAE’s Net-Zero 2050 target, by delivering energy-efficient solutions that reduce carbon emissions and promote renewable energy. A key example is our partnership with the Abu Dhabi Department of Culture and Tourism (DCT), where we audited 159 hotels in Abu Dhabi, helping optimize energy and water use across the hospitality sector.
o Collaboration with Stakeholders: Through partnerships with our shareholders Alliance for global sustainability (AGS), climate change leaders like, UAE independent climate change accelerator (UICCA), and with government entities, like DCT, we deliver integrated solutions. Our participation in COP28 and accreditation with TAQA energy services, RSB and RAK municipality further demonstrate our commitment to global and regional climate action.
2.) Given that buildings consume 40% of global energy, within which at least 40% is consumed by HVAC systems, how has the goal of 1.5 C additionally impacted your project opportunities? What specific design or equipment/ controls selection retrofits have you incorporated in your projects in order to support the 1.5 goal? (189)Answer: - At RESET, we understand that to contribute effectively to the 1.5°C temperature reduction goal, we must target the most energy-intensive systems in buildings—primarily HVAC. Our energy retrofit projects focus on implementing advanced energy conservation measures (ECMs) related to HVAC systems, incorporating a wide range of controls and technologies for maximum efficiency. We focus our retrofits on the below listed ECM’s, but not limited to:
o Chiller replacement
o Pump replacement
o Adiabatic cooling system
o FAHU replacement & retrofit
o AHU replacement & retrofit
o EC fan retrofit
o DX units’ replacement & retrofit
o Energy saver for ducted split units
o Ventilation fan retrofit & replacement
The following controls are proposed with the above-mentioned fans and pumps in our project:
o Variable frequency drive (VFD) for
o Set back logic (Operational schedule)
o Building management systems (BMS)
o Guest room management systems (GRMS)
o Demand controlled ventilation
3.) What is your ESG and energy-efficiency policy as an ESCO? (190)Answer: As an ISO 9001:2015 Certified ESCO, our ESG and energy-efficiency policy is centred around sustainable development goals 7. Affordable and Clean energy and SDG 13. Climate Action.
Environmentally, we reduce carbon emissions through energy-efficient retrofits, such as HVAC optimization, renewable energy integration, and water conservation, supporting long-term climate goals like UAE’s Net Zero 2050.
Our social initiatives emphasize creating positive impacts for clients by lowering energy costs, enhancing indoor environmental quality (IEQ), and fostering healthier, more comfortable spaces for occupants. We have a partnership for plastic bottle recycle with RECAAP. We are also evaluating the possibility to either signing an agreement with Iron Mountain for paper recycling or go paper less at the company. This is part of the new initiatives we want to implement next year.
In governance, we prioritize transparency and accountability by regularly reporting project outcomes and adhering to industry standards.
4.) In the past one year, how many of the ESCO projects you have worked on, have secured a Green Building certification? And under which rating systems and at what levels of certification? Please highlight also the carbon emission reductions achieved on these projects. (191)Answer: In the past year RESET has audited 500+ buildings. We have successfully completed two energy retrofit projects for ADCB facilities in Abu Dhabi and for FAB properties in Dubai. However, these buildings have not secured a Green building certification. Moreover, we have been awarded the biggest energy retrofit project in UAE with ADNOC to retrofit 300+ buildings, implementation phase is ongoing. Similarly an energy retrofit project with Mubadala is also in its implementation phase. In collaboration with Department of culture and tourism (DCT) we had conducted energy audits for all the hotels in Abu Dhabi in 2023 to identify the potential of CO2 reduction.
ADCB – 3 facilities: After 7 months of operations, RESET was able to achieve 1,893 MtCO2 reduction.
FAB properties: After 3 months of operations, RESET was able to achieve 281 MtCO2 reduction.
DCT – 169 hotels: RESET estimated potential CO2 reduction of 130K MtCO2 reduction.
5.) Please describe your corporate policies for employee motivation and retention - in terms of rewards, etc.? And what is your retention profile? Clients often insist on specific CVs of the service provider’s team to work on a project. Are you facing this issue as a norm, or are you able to assign a team of your choosing, quality-wise, to a project? Does employee-churn have an impact on satisfying clients’ expectations? (192)Answer: Our corporate policies for employee motivation and retention emphasize recognition, professional development, and a supportive work environment. Key strategies include:1. Career Growth & Development: We provide continuous training, skill development programs, and opportunities for advancement to support employees' career aspirations, enhancing job satisfaction and retention.
2. Work-Life Balance: Flexible working hours, remote work options, and wellness programs help maintain a healthy work-life balance, promoting long-term employee commitment.
3. Inclusive Culture: We foster a collaborative, inclusive culture that encourages open communication, team spirit, and shared success.
In terms of retention profile, we aim for high retention rates by maintaining an environment where employees feel valued and empowered, with a clear path for career progression. This reduces turnover and builds long-term loyalty. We retained 100% of RESET employees since the inception of the company.
6.) What management strategies and guidelines have you established to counter payment delays and other such instances, which are affecting your cashflow as an ESCO, and are preventing an ideal building construction eco-system (involving all stakeholders) from forming? What creative strategies are you utilising to circumvent/overcome cash flow challenges? (193)Answer: To counter payment delays at RESET the following strategies and guidelines:
o Payment terms: Agree on payment terms in which 30% of the amount is paid upfront, this resolves cash flow issues in case of delays in payment. Late fees is introduced in contracts to avoid payment delays.
o Milestone based payments: Implement milestone-based payment terms tied to the completion of specific phases of a project. This helps ensure payments are made regularly throughout the project rather than waiting for completion.
o Client credit assessment: We assess clients' financial health and conduct risk assessments before entering into contracts to avoid high-risk projects that could affect cash flow. We have a diverse project portfolio with clients across different sectors to avoid over-reliance on one payment source.
7.) How can digitalisation ensure transparency, ensuring timely receivables? What other mechanisms would you recommend to ensure you receive monies owed you? (194)Answer: Digitalization can greatly enhance transparency and ensure timely receivables by streamlining financial processes and providing real-time visibility into operations and transactions. At RESET we implemented an Energy Management Center in RESET head office. This platform plays a crucial role in tracking our projects utility cost savings whilst helping our projects and clients reduce their operational expenses and utility consumptions even further. This platform highlights transparency of our operations, however this is always cross verified with the utility bills. We use customized tools, where project performance data (such as energy savings) is easily inputted, automatically calculating the savings achieved and the corresponding receivables. This helps provide clear and accurate reports that can be immediately shared with clients, ensuring they have full visibility into the project’s financial performance. This reduces human error caused by paper invoices and mitigates delays. To further ensure timely payments, contractual agreements should clearly define payment terms.
8.) Have you incorporated changes to organisational culture and behaviour that enable a sustainable development approach? Specifically, what measures do you have in place to ensure ethical procurement practices across the entire chain of command and decision-making in your organisation? (195)Answer: At RESET, we have fostered a culture of sustainability and ethical responsibility throughout the organization, ensuring alignment with our sustainable development goals. Our approach to driving sustainable organizational behavior includes both internal initiatives and ethical procurement practices across the entire chain of command.
We ensure ethical procurement across all decision-making levels by maintaining a clear and transparent procurement process. We collaborate with all relevant suppliers and contractors who adhere to the same standards as required. Our procurement process includes:
• Fair and transparent bidding processes, ensuring equal opportunities for all potential partners while maintaining rigorous standards of compliance and ethics.
• Suppliers are scored according to their compliance to the RFP requirements. Selections of the supplier is a transparent process in which senior management and client is involved.
• Prioritizing local procurement to reduce transportation-related emissions and support local economies.
• As we are part of a large group, we have a centralized procurement team, who participate in the review and approval process.
These measures ensure that our entire organizational culture and procurement practices reflect a commitment to sustainability, ethical behavior, and transparency, which in turn supports our long-term vision for sustainable development.
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