Energy Star Portfolio Manager — the software platform for benchmarking and managing building energy use — has powered the real estate industry’s approach to sustainability for years. It’s helped building owners access low-interest rate loans, comply with regulations (like New York City’s LL97 building performance law), take advantage of rebates and earn recognition that distinguishes their energy efficient building from the one next door. 

What’s more, it’s helped building owners put money in their pockets by returning an average ROI of $350 for every $1 invested, according to the U.S. Environmental Protection Agency, which administers the program. Today, 330,000-plus buildings with 35 billion sq. ft. in North America are more efficient because of it — all for free, thanks to taxpayers who fund the government program. 

But the Trump administration in its fiscal year 2026 budget request has proposed eliminating Energy Star and, with it, Portfolio Manager. That raises a question: How will building operators benchmark energy and sustainability if the ESPM software platform disappears?

A way forward

In the absence of ESPM, what should benchmarking look like? First, not measuring energy performance isn’t an option; knowing building efficiency is more than a reporting exercise — it’s integral to long-term property value, capital access and compliance, with energy-efficient retrofits capable of yielding a substantial return on investment. The performance of BXP, the world’s largest publicly traded office REIT, is a case in point. It’s reported saving $1.4 million annually in energy costs since 2017, according to an analysis our company has done.  

ESPM underpins this kind of success. If the status quo doesn’t hold and we need something to replace it, what should that look like? To figure that out, we talked with customers, some of them among the world’s largest real estate organizations. Here’s what’s on their minds:

• Funding: Should we depend on taxpayer-funded tools to manage mission-critical software products and solutions?
• Benchmarking: Should performance standards be based on the Commercial Buildings Energy Consumption Survey, a federal benchmarking tool that is updated every several years and based on a relatively small sample size?
• Politics: Should building data be placed in government programs vulnerable to shifting politics?
• Globalization: Should tools be North American-centric when real estate is a global business?
• Innovation: Can government offerings keep pace with dynamic regulatory and operational demands?

My takeaway from listening to the industry is this: the proposal is forcing real estate professionals to confront systemic gaps in what’s driving sustainability as a value generator. These gaps need addressing whether ESPM stays or goes.

A blueprint for what’s next

I’ve distilled these questions and proposed solutions into five principles that can pave the way to a better benchmark and an improved business case for sustainability overall.  

1. For industry, by industry. Industry tools and data should be governed by software users and data providers. 
2. Market-driven innovation. Tools must evolve and improve at pace with the market. AI, automation, and dynamic benchmarking are all table stakes.
3. Globally referenceable. Metrics should be consistent and comparable across portfolios and regions, to reduce regulatory friction, and investor confusion. 
4. Agnostic. Alignment is key in an industry of real estate’s scale. Any organization that contributes or adds value to data should be able to participate.
5. Sustainable business model. Access to tools like data management, benchmarking and reporting should remain free. To ensure the solution is durable and drives the pace of innovation and ROI, the platform must have transparent revenue streams.

Bridging the gap

The potential end of Energy Star forces fundamental questions around what should come next, why and on what terms. Those are healthy questions to ask at any time, but today, they’re critical for commercial property as an industry to move forward. The principles defined above will help us get there.