Business Productivity from Better Indoor Environment Quality

Dr Vyt Garnys

www.cetec.com.au

About Us

• Comprehensive scientific consulting and laboratory services since 1987

• Leading provider of multidiscipline and technical risk management solutions

• We continue to set service benchmarks inproperty & the built environment,occupational health and safety,environmental consulting, product & process and strategic commercial risk management for both the public and private sector

OVERVIEW – Business Costs

• Costs – Rent, Energy, Maintenance, Labour,

• Impact – Energy, IEQ

• Measurement – IEQ, Occupants

• Cases – Australia, India

• Developments – WGBC,UNEP, GBCA, NABERS

Familiar Complaints?

Integrated Sustainability

Colliers Office Tenant - Survey 2012

OVERVIEW – Costs

• Business Costs

- Rent, Energy, Maintenance, Labour

Annual Labour Costs in India

• Office Manager: Rs 400K (142K – 1025K)

• General Operations Manager: RS1250K(700-2500K)

• Administrative Officer: 300K (250-350K)

• Computer Operator: 150K (100-200K)

• Executive Assistant: 300K (250-500K)

• HR Generalist: 250K (200 – 350K)

• HR Manager: RS600K (350 – 750K)

• IT Industry: RS 750K ( 300 – 2500K)

• Assume average Green Office Salaries RS 500K/ year

UNEP. Towards a Green Economy (2011)

• Rapid growth of construction in developing countries

• A more proactive engagement between occupier and building ( CETEC calls it Facility Ecology)

• Average Electricity Cost

– US$/kWh, $30 (OECD), $12(USA), $8 (India)

• Property NPV20yr USA, US$/m2: Energy $62, Productivity and Health $400 - $600, Total $530 - $725.

– ie Energy = 10% of Property NPV in USA

Energy Consumption in Indian Commercial Buildings

Conventional Case:170 kWh/m2/year

Low Energy Strategy:110 kWh/m2/year Transport Corp, Gurgaon

Commercial Building –Energy Performance Index

• India kWh/m2/year 200 – 400, mean 300

– For 5m2/person and Rs 5/kWh= Rs7.50K mean/ person

• Europe/N.America/Australia Less than 150

Annual Rental Costs in India

• 85% of Occupiers consider productivity to be critical *

• 55% of occupiers focus on productivity *

• Indian Office Rental Averages (Rs/m2/year):

– New Delhi130K Mumbai 100K Gurgaon 70K

– Chennai, Bengaluru, Kolkata, Pune, Hyderabad 45K – 65K

• National office average Rs/m2/year: 50K

• Accommodation per person 5m2

• Office rental Cost (Rs/person/Year) 250K

OVERVIEW – Business Costs

• Impact

- Energy, IEQ

Comparison of Salaries to Energy Costs

Cost Nationally Occupancy Cost/m2/yr

Salaries Rs 500,000/p/yr 5m2/p/yr Rs 100,000

Oncosts Rs 1,000,000 5m2 Rs 200,000

Electricity Rs 5/kWh 300kWh/m2/yr Rs 1,500

Rent Rs 15,000/m2/yr Rs 15,000

IEQ Productivity + 5% Salary 2.5% Oncosts Rs 10,000

Energy Savings 10% Electricity Rs 150

Ratio of Benefits Energy/ Labour RS150/20,000 0.75 %

Why the focus on IEQ? Productivity Gains

.Extracted from blog published by Workplace Unlimited and presented at

Workplace Trends (UK, October 2013) by Dr Nigel Oseland

Predicted range in % improved performance - based on a literature review of more than 200 productivity research papers

OVERVIEW – Business Costs

• Measurement

- IEQ, Occupants

• Particulate Matter

• Airborne Microbials

• Carbon Monoxide

• Carbon Dioxide (Ventilation Effectiveness)

Indoor Air Quality

• Ambient Temperature

• Relative Humidity

• Air Movement Thermal Comfort

• dBA (tenant noise isolated)Acoustic Comfort

• Visual inspection and measurements as required Plant inspection

Indoor Air Quality

Includes (but not limited to): volatile organic compounds (VOCs), formaldehyde, particulate matter (dust), airborne microbials, carbon monoxide

Contributions include material selection, finishes and paints, ventilation effectiveness, outside air, plant and equipment (HVAC), etc.

Measured using handheld scientific equipment and adsorption tubes (measured over a period of time and analysed using GC-MS and other laboratory techniques)

Thermal Comfort

• Includes temperature, relative humidity, air velocity

• Parameters measured using logging equipment (BMS may be utilised for future studies)

• Measured at typical seating height

Lighting and Acoustic Comfort

• Lighting includes horizontal lux, vertical lux and lighting uniformity (measures of task illuminance)

• Acoustic comfort was assessed by measuring ambient sound levels (dBA) and incorporated both mechanical influences and tenant/behaviour influences

• Both measured using handheld instrumentation (NATA calibrated) and measured in both the morning and afternoon

Occupant Satisfaction

• Measured using the Centre for the Built Environment (CBE) at the University California Berkeley USA

– Compatible with the NABERS Validation Protocol

– Provides internationally benchmarked data

OVERVIEW – Business Costs

• Cases

- Australia, India

Typical Projects

IEQ

Post Occupancy Evaluation (POE)

IEQ assessment using NABERS

protocol

Occupancy Satisfaction Survey using international

benchmarked survey

NABERS IE rating

Ongoing collaboration with

change/design/HR/ sustainability team

Generally conducted 6 months following

occupation (to avoid relocation disturbance effect)

Occupant Satisfaction Pre and Post Remediation

Occupant Satisfaction Comparisons

Acoustics

Four Sydney Buildings

• Four Buildings -1,604 occupants, 34,521 m2

• Gain from IEQ Productivity, $59m2

• Total annual energy gains, $18m2

A Focus on the Indoor Environment: Indoor Environment

Quality (IEQ) Assessment of Batesford Community Hub

OVERVIEW – Business Costs

• Developments

–WGBC, UNEP, GBCA, NABERS

Knowledge Economies

• World focus on wellbeing and productivity for greater retention, satisfaction and output

IEQ is a Key Focus Internationally

NABERS Indoor Environment

• National Australian Built Environment Rating System

• Validation Protocol for Offices used as guide for projected hypothetical rating (whole building)

• 4 Star Whole Building Rating (projected)

• Potential Improvements

Thermal Comfort Air Quality Acoustic Comfort Lighting Quality Office Layout

30% 30% 20% 10% 10%

IEQ is now the Elephant in the Room

Business Productivity from Better Indoor Environment Quality

Dr Vyt Garnys

www.cetec.com.au