Not long ago, energy performance was a nice-to-have. A green label on your building said something about your values, but rarely influenced whether tenants signed a lease or investors backed up your portfolio. Today, it’s a different story. Across Europe, managing energy usage is no longer just a bonus – it’s a regulatory baseline. And for the business sector, whether it’s offices, the hospitality industry or retailers, that baseline is moving fast.

The laws driving change

At the heart of this shift are two legislations from the European Union: The Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED). Together, they form the backbone of the EU’s strategy to decarbonize one of its most emissions-heavy sectors: buildings. According to the European Commission¹, buildings are responsible for 40% of the EU’s energy consumption and over one third of the EU’s energy-related GHG emissions come from buildings.

¹ Source: Energy Performance of Buildings Directive

The aim of the EPBD is to achieve a fully decarbonized building stock by 2050 to contribute to the EU’s energy and climate goals. Of course, this doesn’t happen overnight and there are several steps to take in between to get there. From 2030 onwards, all newly constructed buildings must be zero-emission. For public buildings, that deadline comes even sooner: 2028. And for the vast majority of existing office stock across Europe, national governments are rolling out mandates to push renovations of the worst-performing buildings.

It doesn’t stop there. The EED adds another layer of urgency, compelling public authorities to renovate 3% of their building stock² every year – expanding the obligation to all public buildings, including those at local and regional levels. As part of a broader energy savings target, the expectation is clear: doing nothing isn’t an option.

² Source: Public buildings

Rethinking the building space

Reaching compliance can seem like a daunting task, but everyone in the sector should see it as an opportunity to drive transformation. It’s not just about meeting new rules, but it is an invitation to rethink how buildings should function in a world that demands more: from energy, from resources, and from the working environments we create.

And it’s not just a technical challenge, it’s also about meeting tenants’ needs. Today, they are asking more questions and corporate users are under their own pressure to make continuous progress in their net-zero roadmap. A high-performing energy label is no longer a vanity metric; it’s part of their ESG reporting and a growing factor in their leasing decisions. Buildings that don’t keep up risk falling out of favor, or off the market altogether.

Furthermore, suppliers like Samsung Climate Solutions are continuously driving innovation to support building owners and facility managers. Not just in terms of the latest modern HVAC systems but also when it comes to smart technologies. For example, we recently introduced our SmartThings Pro software solution which enables business owners and site managers to monitor and control climate control devices in commercial buildings. Its user-friendly interface lets users check the status of various IoT devices across different locations³. The dashboard is equipped to improve the efficiency of managing additional facility equipment with device status checks and remote-control options. This will help owners and managers enhance the tenant experience and improve the long-term value of their portfolios.

³ Is only available with SmartThings Pro Advanced License model codes: HD-DASHBDST1A1 and HD-DASHBDST2A1.

The retrofit reality

Of course, not every building is easily upgraded and the reality is more complex. Did you know that 85% of buildings in Europe were built before 2000 and amongst those, 75% have a poor energy performance? Emphasizing that action is needed. However, the fact is that Europe’s office landscape is filled with aging, space-constrained, or architecturally protected structures where a full revision isn’t always straightforward.

Compact systems which are optimized for energy efficiency⁴ – like Samsung’s HVM Chiller systems – offer a modular concept, allowing building owners to connect up to 16 outdoor units to meet their needs. Since they have a compact and lightweight design, it’s possible to combine and install multiple units even when space is limited. And its flash injection technology and a highly efficient heat exchanger increase the heating performance during heating mode in low ambient conditions. Helping building owners make critical upgrades to their buildings.

⁴ HVM Chiller outdoor units have a SEER (Nominal Cooling) of 5.7 and SCOP (Nominal Heating) of 4.3. Tested based on the AG042 model at test conditions: Water 35 without pump input. Results may vary depending on environmental factors and individual use.

Leading by example

There is a lot of work to be done, but this transition isn’t fully uncharted territory. Across Europe and Asia, forward-looking building owners have already embraced integrated systems that connect climate solutions with smart building management. By combining modular retrofits with integrated climate platforms, they’re proving that transformation is not only feasible — it’s happening now.

One of the examples is the Warsaw Hub, a multifunctional office complex in Warsaw, Poland, combining office spaces, collaboration hubs, and hotels. Two connected towers, standing at 130m and 86m respectively, house advanced building management systems, including Samsung’s DVM S Water for centralized cooling. A total of 2,101 indoor units have been installed throughout the building, ensuring seamless integration with a variety of systems. Samsung’s b.IoT solution was used here to enable monitoring and control of the HVAC systems, optimizing energy use and providing ease of operation. Samsung’s cutting-edge algorithm-driven system meets the demands of large-scale centralized AC systems.

This is just one example, but there are countless more to show others have paved the way and you don’t have to reinvent the wheel. Besides, it’s important to keep the benefits in mind: buildings with optimized climate solutions are more comfortable to work in, easier to lease, and increasingly attractive to tenants with their own corporate responsibility goals. They suffer less downtime, and send a clear message to the market: we are ready for the future.

A structural shift, not a passing trend

The regulatory shift currently sweeping through Europe is not a passing storm. It’s a structural transformation of the built environment, and it’s moving faster than many expected. But amid the pressure lies an enormous opportunity. For those ready to invest, adapt, and lead, this moment can mark the beginning of a modern and more resilient office portfolio.