top of page

Upgrading to more efficient HVAC systems


Segment    Family    Class




SDG Alignment

9. Build Resilient Infrastructure, Promote Inclusive and Sustainable Industrialization and Foster Innovation

SDG Target


Target Description

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

Level of Effort

Level of Effort Scale


1 -Quick Wins: solution involves adding criteria for the good or service being purchased (ex: certifications), minimal internal process changes.

2 -Long Term Adoption: solution requires some changes to internal processes and/or more capital investment (ex: digital transformation to reduce paper use).

3 – Disruptive Opportunities: requires significant investment and changes to internal processes (ex: retrofitting building)

Category Assessment

ETCH Procurement Process .png


• Assess your current HVAC performance, the energy cost, the maintenance cost, and life expectancy. Perform cost analysis of upgrading to a new higher performance HVAC system.

• Identify whether your existing supplier offers the upgrade and if not proceed to identify new suppliers for this purpose.

• Estimate the cost and energy savings from upgrading to a new system and energy savings can be done using the Energy- and Cost-Savings Calculators for Energy-Efficient Products provided in the reference. The calculator can also be used for Commercial Heating & Cooling Systems, Lighting, Food Service (eg. ice machines) and Sanitary Equipment.
(a) the EnergyPlus tool provided in the reference can be downloaded and to model both energy consumption—for heating, cooling, ventilation, lighting and plug and process loads—and water use in your establishment.

Opportunity Identification 

Long term cost savings realized from more efficient HVAC system energy use.

Less energy consumed and reduce wasted energy from inefficient system and equipment.

Strategy Build & Execution

• Utilize the provided simulation tool to evaluate whether cost savings outweigh the investment and evaluate the results.

• Scope the market for suppliers to invest in an upgraded and more efficient HVAC.

• Proceed with an RFQ and confirm on the supplier to proceed with.

Supplier Negotiation & Contract

• Include a warranty clause in the contract to ensure HVAC equipment performance standards are met. Also, include a provision for discount towards replacing the latest technology post-warranty, if possible.

• Consider the inclusion of predictive and proactive maintenance policies (proper maintenance can reduce long term cost associated to system failures).

• Leverage the option of grouping the purchase, installation, and maintenance during the negotiation process and negotiate maintenance service levels accordingly.

• Ensure that the HVAC system applied for is ENERGY STAR certified and request the same from your suppliers.

Supplier Performance & Management

• Establish a baseline with the energy efficiency target to be acheived from the upgrade. Regularly monitor and record the efficiency and maintenance costs.

• On an annual basis, assess the commercial and environmental impact of the adopted change from the intial audit or baseline and request feedback/reviews from stakeholders. Compare recorded results with the baseline to identify whether a significant reduction in energy costs has been achieved from the upgrade.

• Request the supplier for HVAC installation certifications and ensure to have a strong point of contact for maintenance and emergency support.

Resource Links

bottom of page