Sustainability Reporting Regulation in 2025
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Building Performance Standards (BPS)
are emerging across U.S. cities and states
as a tool to drive long-term reductions in
building-related emissions and energy
use.
BPS laws require owners and operators to
measure and report performance metrics
such as energy consumption, emissions,
water use, or overall efficiency and to
meet increasingly stringent targets over
time. These standards are not just
aspirational; they are enforceable
mandates that create a trajectory for
buildings to meet decarbonization goals
through upgrades, retrofits, and
operational changes.
As of early 2025, at least 13 U.S. cities
have enacted BPS policies, including New
York City, Boston, Seattle, Denver, and
Washington, D.C. Collectively, these
jurisdictions account for approximately
25% of all U.S. building floor space.
Moreover, over 30 additional cities have
pledged to implement BPS by 2026,
signaling a significant expansion of these
regulations nationwide.
For companies with extensive real estate
portfolios, compliance will require robust
data collection, investment in energy-
efficient technologies, and strategic
planning to meet escalating performance
targets. However, proactive engagement
can lead to operational cost savings,
enhanced asset value, and alignment with
broader sustainability goals.
Building Performance Standards: Required
Emissions Accountability at the Asset Level
