global sustainability perspective october 2011 final

8/3/2019 Global Sustainability Perspective October 2011 FINAL

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COPYRIGHT JONES LANG LASALLE IP, INC. 2011. All Rights Reserved 1

stainability Perspective

October 2011

Global Su


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Global Sustainability Perspective, October 2011

Trends in Sustainability Communications and Reporting

Throughout 2011, Jones Lang LaSalle sustainability professionals have been reflecting on global su

and communication trends, a

stainability reporting

s well as the latest developments of specific interest to the real estate sector. A summary

ho

t the pos

hold

h the

m

ral cha

eature

bout

ects of Timberlands Responsibility strategy and Sustainability

ose more consumer-

ut the concept of

ng to reach all of

he real estate sector,

we are already seeing a split between:

Environmental and social accountability to investors, major tenants and employees through corporate-level

r stakeholders at an

expansion of digital media brings new opportunities, it also poses challenges. Brand value is becoming

at concerns about a

s of trust inange.

l information or

e public. However,

level of transparency about impacts on society and the environment can help to reduce these risks

significantly.

Inviting stakeholders to post direct feedback on a companys website (such as in the Timberland example mentioned

above) is one way in which companies are increasing openness and transparency. Another way is to use stakeholder

panels composed of external experts, inviting members of the panel to provide critical feedback in a Sustainability

Report. Examples here includeLafargeandBalfour Beatty. And when it comes to reporting, readers do not expectperfect performance but they are impressed when companies tackle sensitive issues head on rather than avoiding

them. A leading example here isMarshalls, a British landscaping company, who have taken a very honest and upfront

approach to child labour.

of these trends is provided below.

Trend 1: Use of Web 2.0 applications to engage with stake

Companies are, in an innovative way, beginning to exploi

lders

sibilities

er groups

m.

panies to

nge. For

called

different

Web 2.0 refers to wethat facilitate informatiuser-centred desion the World Wideapplications allowand collaborate wsoc

b applicationson sharing,

gn and collaborationWeb. Web 2.0

users to interactith each other in a

ial media dialogue, in contrast tostatic web content created for passive

viewing only. Examples of Web 2.0ing, blogs and.

offered by Web 2.0 applications to reach out to different stake

in particular their customers - and to engage in dialogue wit

Encouraging dialogue can attract attention. It can also allow co

gain useful feedback and, potentially, to promote behaviou

example, Timberlands Responsibility Website includes a f

Voices of Challenge where stakeholders can add comments a

asp

performance. In the property sector, use of Web 2.0 applications has

focused on videos and blogs. Examples include Jones Lang LaSalles

global Green Blogand European property companySEGROs Sustainability

live.

include social networkvideo sharing sites

Of course, we may find that Web 2.0 applications are not as useful for real estate players as for th

facing sectors. In real estate, customers are of course tenants rather than individual consumers. B

developing different sustainability communications for different stakeholder groups rather than tryi

them in one Sustainability Report is definitely as relevant for this industry as any other. And in t

1communications

2 Sustainability engagement with tenants, local communities, local authorities and otheindividual property or development level.

We expect this trend to accelerate throughout the remainder of 2011 and beyond.

Trend 2: Transparency and trust are crit ical

While the

increasingly difficult for companies to control as the fast-growing use of social networks means th

company can quickly be publicised to a large audience. Coupled with this, there is a pervading losgovernments and business in the wake of the global economic crisis and concerns over climate ch

There is no trust without transparency, and if companies are perceived to be withholding materia

reporting only selectively on their performance, then their trustworthiness will suffer in the eyes of th

demonstrating a high

http://www.lafarge.com/wps/portal/2_5_4-Panel_parties_prenanteshttp://www.lafarge.com/wps/portal/2_5_4-Panel_parties_prenanteshttp://www.lafarge.com/wps/portal/2_5_4-Panel_parties_prenanteshttp://www.balfourbeatty.com/index.asp?pageid=155http://www.balfourbeatty.com/index.asp?pageid=155http://www.balfourbeatty.com/index.asp?pageid=155http://www.marshalls.co.uk/sustainabilityhttp://www.marshalls.co.uk/sustainabilityhttp://responsibility.timberland.com/voices-of-challenge/http://www.joneslanglasalleblog.com/greenblog/http://www.joneslanglasalleblog.com/greenblog/http://www.joneslanglasalleblog.com/greenblog/http://blog.segro.com/wordpress/http://blog.segro.com/wordpress/http://www.marshalls.co.uk/sustainabilityhttp://www.balfourbeatty.com/index.asp?pageid=155http://www.lafarge.com/wps/portal/2_5_4-Panel_parties_prenanteshttp://blog.segro.com/wordpress/http://www.joneslanglasalleblog.com/greenblog/http://responsibility.timberland.com/voices-of-challenge/


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Trend 4: Real estate sector specific reporting standards - EPRA and GRI guidance

In the March 2011 edition of Jones Lang LaSalles Global Sustainability Perspective we reviewed key developments in

h important implications for the property sector: the launch of

EPRAs Best Practices Recommendations on Sustainability Reporting and the launch of the Global Reporting InitiativesConstruction and Real Estate Sector Supplement (GRI CRESS).

corporate ESG reporting requirements at a global level and in different regions worldwide.

Since then, two key developments have taken place wit

EPRA Best Practices Recommendations (BPR) on Sustainability Reporting was launched during the

Conference in London in September 2011. EPRAs aspiration is for its sustainability BPR to provide

EPRA Annual

a consistent way of

ke the financial

ility BPR are based

The EPRA Sustainability Performance Measures (the current version of the BPR covers environmental indicators but Core recommendations for sustainability reporting which should be adhered to by all EPRA members, alongside

e observations coverion (e.g. kWh/m2);

ed real estate sector

BPR from 2012 onwards.

ers the worlds most widely used sustainability reporting framework. In

plement (CRESS), a version of thed real estate sector. The CRESS includes

neral guidance on the Guidelines content, so as to ensure that sustainability reports by

ively cover the sectors key issues. It also introduces eight new sector-

In particular, the CRESS covers the following key issues for the sector, expanded from the G3.1 Guidelines:

Design, operation and retrofitting of buildings Building energy intensity, water intensity, and GHG emissions relating to buildings in use Green building certifications Management and remediation of contaminated land Economic legacy impacts from activities and provision of facilities for local communities Policies and practices regarding resettlement and displacement

measuring sustainability performance in the same way that EPRA BPR on financial reporting ma

statements of listed real estate companies in Europe clearer and more comparable. The sustainab

on GRI CRESS guidelines, and comprise two key components:

the scope of the BPR is likely to broaden in years to come)

additional recommendations which are based on EPRAs observations of good practice. Thesissues such as: reporting by meaningful segmentation (e.g. by country or asset type); normalisatlike-for-like analysis; and landlord and tenant consumption arrangements

EPRA also introduced the EPRA Sustainability Awards to annually assess compliance by the list

against the Sustainability

The Global Reporting Initiative (GRI) off

September 2011, the GRI launched its Construction and Real Estate Sector Supeporting Guidelines tailored for the construction anGRIs G3.1 Sustainability R

new requirements and ge

construction and real estate companies effect

specific performance indicators.

http://www.globalreporting.org/NR/rdonlyres/DFA9ED89-F0BD-4388-8163-A6874AAC8C3F/0/ConstructionAndRealEstateSectorSupplement.pdfhttp://www.globalreporting.org/NR/rdonlyres/DFA9ED89-F0BD-4388-8163-A6874AAC8C3F/0/ConstructionAndRealEstateSectorSupplement.pdfhttp://www.globalreporting.org/NR/rdonlyres/DFA9ED89-F0BD-4388-8163-A6874AAC8C3F/0/ConstructionAndRealEstateSectorSupplement.pdfhttp://www.globalreporting.org/NR/rdonlyres/DFA9ED89-F0BD-4388-8163-A6874AAC8C3F/0/ConstructionAndRealEstateSectorSupplement.pdfhttp://www.globalreporting.org/NR/rdonlyres/DFA9ED89-F0BD-4388-8163-A6874AAC8C3F/0/ConstructionAndRealEstateSectorSupplement.pdf


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Assessment of negative and positive impacts on local communities and community engagement at each stage of thef labour and health and safety impacts in relation to the total workforce, including contractors and

process which wased included

con, the United

our Organization (ILO).

two guidance documents, we hope to see greater consistency and transparency in the

reporting of sustainability impacts in the real estate sector.

ty Legislation for the Real Estate Sector

keep you up to date on major energy, carbon and related sustainability legislation in the major

markets, below are the lates al estate investments

you are holding.

Global / United Nations

eetings held since

on of the Durban

ntended to help

e Durban meeting at

onvention on Climate

Panama meeting that

Governments have recognized very clearly that the current level of effort is not

ission controls on

to climate change.

ar Green Climate

hanisms between

ialised and emerging economies.

2012. Opinions on

eting and some countries propose to delay

any decision until 2015. Currently, only the European Union stands firmly behind the Kyoto Protocol prolongation beyond

2012. The U.S. government continues its refusal to commit to any binding carbon reduction targets, as long as major

emitters - such as China, India or Brazil - are not joining the collective global effort in combating climate change.

Canada, Russia and Japan have announced they are not in favour of prolonging the Kyoto Protocol at the meeting in

Durban.

In our next edition of the Global Sustainability Perspective we will provide you with feedback from the Durban Climate

Change Conference (COP17) being held in South Africa from 28 November to 9 December.

property lifecycle

Reporting osubcontractors

The content of the CRESS was developed over a two-year period through a multi-stakeholdersupported by Jones Lang LaSalles in-house experts on sustainability reporting. Organisations involv

ProLogis, Lend Lease, Oxford Properties, Hermes, Hindustan Construction Company (HCC), City

Nations Environment Programme (UNEP) and the UNs specialised agency, the International Lab

With the introduction of these

measurement, monitoring and

Legislative Update

Sustainabili

Making sure that we

t changes that may impact the office space you are managing or the re


At the beginning of October, Panama hosted the last of three m

the Cancun Climate Change Conference last year in preparati

Conference starting at the end of November. The meetings are i

governments prepare their negotiation positions going into th

the end of November.

The Executive Secretary of the United Nations Framework C

Change (UNFCCC), Christiana Figueres, stated during the

enough and that it is important to increase both the level of em

greenhouse gases as well as the capacity of countries to adapt

However, there were some positive outcomes in Cancun, notably the creation of a $100 billion a ye

Fund to help developing nations adapt to climate change and to facilitate technology transfer mec

industr

But the key issue remains prolonging the Kyoto Protocol for a second commitment period beyond

how this goal may be achieved diverge in the preparation for the Durban me


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UK

Introduced in March 2011, the UK Energy Bill aims to encourage investment in energy efficiency me

and commercial real estate. This September, the Bill went through the Report stage and Third Read

Commons, and in October it will go through the Consideration of Amendments in the House of Lord

Royal Assent. The June amendment - supported by

asures for homes

ing in the House of

s prior to receiving

a number of organisations such as the UK Green Building Council

uildings was not

K government-wide plan

on climate change that sets out initiatives and deadlines for the next five years, its commitment to extend DECs

ercial green

K government also intends to launch a number of consultations this autumn on energy performance certificates as

. Here are the main

ployees to report

law also applies to public

sidents and to central government. The report

terials and products in

onstruction. The new decree will no longer allow urban planning laws to prohibit the use of eco-friendlyconstruction materials or installations, such as photovoltaic installations on building roofs.

rging stations in new and

ing's car parking capacity,

cycle storage

ernments, a

rowth and fuellosed by the

d an energy saving

26% increase in total

energy consumption by 2015.

As an advisor to developers of large construction projects, we expect the central government to ramp up efforts to

control energy intensity. Though new construction has slowed somewhat in the more developed Eastern regions of the

country, the volume of new projects in these areas is still extremely high by any Western countrys measure. In the less

developed Western cities and central tier 2 cities, new construction growth is accelerating, following the path of leading

cities like Shanghai and Beijing. With so much new property and the consequential energy demands pulling from an

already pressured electricity grid, energy efficiency has become the urgent need of a nation which requires fast growth(8% to match population growth) with strained domestic energy supplies.

and the British Property Federation - to require Display Energy Certificates (DECs) for commercial b

retained by the UK government during the September session.

The question therefore remains if the UK government will put into practice the Carbon Plan, a U

of action

to commercial buildings by October 2012, and what the next step will be to boost the uptake of comm

buildings.

The U

well as building regulation changes.

France

A continuing stream of decrees is being published as part of the French Grenelle Environment Laws

updates since our last Global Sustainability Perspective edition.

A decree on what to report in greenhouse gas inventories requires companies with over 500 em

greenhouse gases from direct and indirect emissions (electricity and district heating etc.). The

institutions with headcounts over 250, to municipalities with over 50,000 re

needs to include reduction measures and goals for a three-year planning period.

The urban planning law will contain a new requirement to further the use of eco-friendly ma

building c

The building code receives a new obligation for building owners to install electric vehicle cha

existing buildings. Electric charging stations must be installed and cover at least 10% of a build

for new buildings from 2012 and existing buildings from 2015. A similar obligation applies for bi

installations.

China

China is studying how to enforce a total cap on energy consumption by setting targets for local gov

government report stated in August. The proposed total energy gap is intended to slow emissions gconsumption by setting quotas, and some details of how China could enforce the cap have been disc

National Development and Reform Commission (NDRC). Any proposed projects that have not passe

assessment will not be approved for construction, it added. However, the cap would still allow for a

http://www.decc.gov.uk/assets/decc/What%20we%20do/A%20low%20carbon%20UK/1358-the-carbon-plan.pdfhttp://www.decc.gov.uk/assets/decc/What%20we%20do/A%20low%20carbon%20UK/1358-the-carbon-plan.pdf


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However, it is also important to bear in mind Chinas typical process for introducing new regulation

the recent tax overhauls. Before introducing sweeping reforms which add cost to companies, gove

pilots a variety of different execution strategies in select cities such as Shenzhen, starting with i

align with existing best practice before tweaking the regulations and increasing the standards. S

forward with firm caps, it can be expected that imp

s as demonstrated by

rnment traditionally

nitial standards which

hould China move

lementation will be conveyed well in advance and the impact to

-in tariffs for solar

ce of about $0.15 per

slightly higher.

mise to use non-

fossil fuels amid nuclear development setbacks, and feeding its hungry solar manufacturers for whom overseas markets

onger sufficient. Up to now, China has lacked efficient financial incentives to nurture its own solar energy use. In

decent investment return.

ements of the

esigned to improve the

l capacity from 1

From 1 November 2011 a full Building

gible property transactions. The BEEC needs to be

provide e sale, lease comme ce greater than 2,000 sq m with only limited

excep mple new cupan less than h BEEC will be a

ocument that can b ownloaded fr cbd.gov.au

ency Certif e (BEEC) comprise following:

developers of the highest quality properties will be marginal.

On the renewable energy front, there has been an important change with the introduction of feed

power. Since August, project developers can now sell solar-generated electricity to utilities at a pri

kilowatt hour. And in some cases, depending on the timing and location of solar projects, the price is

Analysts attribute the birth of this long-awaited scheme to two urgent needs: keeping the nation's pro

are no l

many cases, analysts say, project developers here could barely break even, let alone get a

Australia

On 1 November 2011 the Australian property industry will be subject to the full disclosure requir

Commercial Building Disclosure (CBD) program that started in the summer of last year and is d

energy efficiency of Australias large office buildings. The program was operating in a transitiona

November 2010 with only a NABERS Energy rating required at transaction.

Energy Efficiency Certificate (BEEC) will be required during eli

d during th

tions (for exa

or sub-lease of

buildings with an oc

rcial office spa

cy certificate twoyears old). Eac

publicly available d e d omhttp://www. .

The Building Energy Effici icat s the

Disclosur


e

Requirements

Transition Period

1 Nov 2010 1 Nov 2011

Full Disclosure

Requirements Completed by Whom?

From 1 Nov 2011

NABERS Energy rating Yes Yes Accredited Assessor

Tenancy lighting energy efficiency

assessmentNo Yes Accredited Assessor

Department of Climate Change &Energy efficiency guidance No Yes

Energy Efficiency (DCCEE)

A limited number of exemptions apply for genuine cases wherein disclosure requirements cannot be satisfied:

Exceptions (granted automatically no action required)

New buildings (occupancy certificate < 2 years old)

Strata title properties

Sale through shares, units or partial interest

Short-term lease (< 12 months including options to extend)

Mixed-use buildings < 75% office (of the NLA)

Exemptions (Appl ication requi red. Exemptions are granted at the discretion o f DCCEE)

Police or security operations

Where NABERS rules cannot be applied
http://www.cbd.gov.au/http://www.cbd.gov.au/http://www.cbd.gov.au/http://www.cbd.gov.au/http://www.cbd.gov.au/http://www.cbd.gov.au/http://www.cbd.gov.au/


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Holistic Evaluation of Sustainability Investments

The environmental and social impacts of property are rapidly becoming central to its overall performance, as investors

ness.

d a consensus within the sector about the mostle property stakeholders

e of open plan

environments and a general move away from private cellular space to more agile and flexible workplaces. The goal is

odate activity growth at minimal expenses and create a collaborative space that, at

productivity.

uming practices, toGoing beyond the low cost

to identifying those

g techniques should

ly to currently impact on the commercial viability of sustainability

s.

at certain investments

e rental values or reduced vacancy rates, by virtue of better future-

he net present value (NPV)hen be grouped according to their value potential to

property stakeholders with differing investment horizons.

e known as the split incentive (where the owner pays for the capital

One example are the so-

nd benefits of

fundamentally

termining its commercial viability. Planning for sustainability investments as an intrinsic part of

any propertys asset refurbishment cycle allows the sustainability measures to be integrated within existing capital

budgets by aligning the planned preventive maintenance (PPM) schedules and Asset Replacement interventions.

Holistic property performance must include consideration of sustainability. It also emphasises the important role that

changing property usage, including the move towards flexible working policies, can play in reducing propertys exposure

to rising energy prices and carbon liabilities. There is a need for robust financial models to systematically factor in

complex environmental and economic parameters in the appraisal of value that can be generated from investments in

sustainability improvements.

and occupiers alike recognise the importance of sustainability to the long-term viability of their busi

Several efforts have been made during the past few years to help builappropriate sustainability metrics to use. A number of industry initiatives have emerged to enab

to track this important aspect of environmental asset efficiency in meaningful ways.

One of the most significant emerging trends in property is the shift towards an increased acceptanc

to reduce occupancy costs, accomm

the same time, increases staff

Sustainability investments and ROI

A well-managed property requires regular scrutiny of its plant and equipment, and of energy-considentify further savings that might be achieved through sensible and timely improvements.

quick wins and behavioural changes, one should involve a robust investment appraisal with a view

sustainability improvement measures that offer the best value per invested dollar. Financial modellin

certainly account for important variables that are like

solutions; for example, rising utility prices, carbon emission related taxes or rising insurance premium

More challenging criteria to be factored into the financial model are the upside value potential th

might secure for the property owner, such as attractiv

proofing the asset to changing investor/occupier requirements.

Whatever the financial modelling technique utilised, the aim should invariably be to evaluate tof sustainability improvement measures. Such measures can t

Innovative ways of overcoming what has becom

improvement and the tenant recuperates the associated operating cost saving) are emerging.

called green leases where both landlords and tenants agree on how to share some of the costs a

sustainability upgrades and ensure transparency around performance data.

Planning sustainable investments into asset lifecycl es

The timing at which a particular sustainability initiative is considered within an assets lifecycle is a

important criterion in de



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Stop Press: Jones Lang LaSalle CSR Report 2010


Our 2010 CSR Report is now pub lished - learn how our sustainability performance can benefit you

l Responsibility (CSR)

w Jones Langignificant strides

towards integrating CSR and sustainability into our business. It also profiles ae as experts in real

nd tomorrow focusesellence; greenand diversity. It

ght into the success of Jones Lang LaSalles own CSRT: A Cleaner

ents related to work

ort tells the story of ourctivities will alwayscan inspire efforts

ities where we dobusiness.

RI) to an initial,closure level C. Additional information is available from Jones Lang LaSalles dedicated CSR website

and from apodcast where our Global Chief Operating and Financial Officer, Lauralee Martin, discusses our CSRcommitment.

our overall sustainability and CSR strategy. Tok forward to hearing from you as we aim to improve

tate sector over the last 10 years. The future is

s Offices 2020ffice market betweenurope on the keyp issues facing

explores the shape of offices to come and covers issues and challenges including sustainability, location,asset management, technology, fit-out and finance.

In this summary, we are providing you with the key findings that concern the sustainability issue in the officescontext. Based on a preliminary survey by Jones Lang LaSalle, 83% of real estate professionals thinksustainability is currently the most pressing issue facing office real estate and will be for the next 10 years.From almost nowhere a decade ago, this subject has raced to the top of our worry list. In seeking tounderstand sustainability and its impact on the offices sector, we have identified five significant drivers. For

Jones Lang LaSalle released its annual Corporate Socia

Report at the beginning of September. The Report shows hoLaSalle and LaSalle Investment Management have taken s

range of industry-leading initiatives that add value to our rolestate.

The new Report, entitled Where we stand: Building beyoon five material areas: energy and climate; client service excbuildings; community commitment; and workplace, wellbeingprovides a robust insicommitments through our internal sustainability program, ACTomorrow, as well as the numerous sustainability achievemwith our clients around the world.

Colin Dyer states in his opening message: Our CSR Repachievements and challenges throughout 2010. Our CSR abe a work in progress, but we believe reports such as this

toward being first for our people, first with our clients and shareholders, and first in the commun

Jones Lang LaSalles 2010 CSR Report is based on guidelines from the Global Reporting Initiative (Gself-evaluated dis

We welcome your feedback on this edition of our CSR Report and onretrieve your comments, we have createda five-minute survey. We looour approach to CSR.

Research - Sustainability and Offices in 2020

There has been considerable change in the office real es

difficult to predict but the worst position one can take is not to even try. Jones Lang LaSalleresearch aims to go beyond the existing forecasts and to establish new insights into the onow and 2020. As part of this endeavour, we have polled a selection of industry experts in Efuture issues perceived as most pertinent to them today. The programme will consider the tooffice real estate investors, developers and occupiers across Europe, the Middle East and Africa. Offices 2020
http://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/Pages/default.aspxhttp://www.joneslanglasalle.com/csr/Pages/default.aspxhttp://www.joneslanglasalle.com/csr/Pages/default.aspxhttp://www.youtube.com/watch?v=r54zSrhRB9Y.http://www.youtube.com/watch?v=r54zSrhRB9Y.http://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.zoomerang.com/Survey/WEB22DCTXJ9GDJhttp://www.zoomerang.com/Survey/WEB22DCTXJ9GDJhttp://www.zoomerang.com/Survey/WEB22DCTXJ9GDJhttp://www.zoomerang.com/Survey/WEB22DCTXJ9GDJhttp://www.zoomerang.com/Survey/WEB22DCTXJ9GDJhttp://www.youtube.com/watch?v=r54zSrhRB9Y.http://www.joneslanglasalle.com/csr/Pages/default.aspxhttp://www.zoomerang.com/Survey/WEB22DCTXJ9GDJhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdfhttp://www.joneslanglasalle.com/csr/SiteCollectionDocuments/CSR_Full_Report.pdf


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the most part these are interconnected, self-reinforcing and require continual vigilance as they evolve andspearhead the developments in office real estate.

ese days. Acid rain, holes in the ozone layer, globald ground pollution,

ly at first, and subsequently with a torrent of environmentalthe issues have been discussed at the very highest political level

al and local levels. Two key obligations are:

they do it. Ethicalur, workers salaries in

ing world, and health and safety issues in the Middle East. In short, the business of business is no longer

another way toess. Whether cynical or enlightened, the fact is that being green is now business

on employees' comfortatisfied to work

sustainable buildings and, in an age where finding and keeping talent and commitment is a regular HR nightmare,

offices have an increasing role to play.

that the green agenda will continue to grow and grow over the decade. Many

oses new

es. Here is just a selection of some of the trends we can

- every new piece of legislation at a European or national level will have the power to surprise on

t programmes will giveuildings a boost towards eventual conformity with legislation

be more imposing

Occupiers will be likely to push the boundaries further with a demand for second-hand furniture and non-toxiccleaning products

The list of trends is long and exhaustive. One of the things we can ascertain is that a sustainable building will quite

quickly come to mean a quality building. Given the forceful, accelerating drivers and the emerging trends, it is clear that

organisations would be wise to keep up with the pace of change. On the other side, there are very few inhibitors to thisdynamic, if any. Those who succeed will recognise sustainability as a force for rapid change that stirs upmuch in the

industry and which offers opportunity rather than constraint. Click here for more Offices 2020 research.

The key drivers of sustainability

Environmental Change - This needs little commentary thwarming, damage to ecosystem services, climate change, resource depletion, air water andeforestation, wasteful practices the list is long and compelling.

Legislation - Governments have responded, slowlegislation. From Kyoto, Copenhagen to Cancun,and policy decisions taken at supra-governmental, regional, nation

by 2020 all new buildings need to be nearly zero energy by 2050 emissions from all buildings need to be as near to zero as possible

Ethical Business - many corporations have radically revised their view of what they do and howconcerns have spread well beyond ecological issues, of course, to include things like child labothe developbusiness, but profits, social and environmental the triple bottom line.

Cost Control - Finance Directors have been quick to understand that the sustainability agenda is yetsqueeze costs inside the busincommon sense.

Management Levers - Sustainability is such a powerful force in our society that its influenceand motivations has not been lost on HR and business managers. Overall, employees seem more sin

These sustainability drivers will ensure

new trends linked to sustainability will emerge and continue to change the landscape. Each trend p

management challenges and new risks but also new opportuniti

foresee:

Stricter legislationthe downside, leading to investor frustration

While the vast majority of buildings remain 'non-green', a trend towards 'light' refurbishmenmany more b

Green leases or at a minimum Memorandums of Understanding Continual technological innovation Green city governance Occupiers will become far more educated about their sustainability requirements and

http://www.joneslanglasalle.eu/EMEA/EN-GB/Pages/offices-2020.aspxhttp://www.joneslanglasalle.eu/EMEA/EN-GB/Pages/offices-2020.aspxhttp://www.joneslanglasalle.eu/EMEA/EN-GB/Pages/offices-2020.aspxhttp://www.joneslanglasalle.eu/EMEA/EN-GB/Pages/offices-2020.aspxhttp://www.joneslanglasalle.eu/EMEA/EN-GB/Pages/offices-2020.aspx


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Certification Updates: LEED 2012 (USA); HQE 2011 (France)

LEED Certification Recast Ready for 2012

The U.S. Green Building Council (USGBC) periodically reorganizes its LEED rating system in respon

green building practitioners as more is learn

se to feedback from

ed about best practices to reduce the impact of building design, constructionization will introduce

aries of strategies

e manner. As green building knowledge and practices improve and the cost of

o that LEED

nment. The 2012

stem toward that goal.

USGBC has received

tegories to ensure

n of location and

15, in

rtification.

nstruction (NC) and Core & Shell

include a range of

lity and healthcare.

rty types except

e Interior Design & Construction (ID+C) standard covers not only commercial interiors but also retail

ria.

systems. Whereas in

h more uniformity in

the proposed 2012 system. Also, in some situations two or more existing credits have been combined into one more

rom other rating systems, during

this first public comment period, no point values have been assigned yet. The main focus of the comment period is to

evise the credit requirements. This brings up the obvious question if the proposed rating system will raise

achievable in LEED from 110 to higher total, or if credits will start being counted at point values.

stem instead of

equire more evaluation, calculation and

ce.

Our perspective

Although the comment periods were the most appropriate times to offer opinions on specific changes, our extensive

work with building owners, investors and tenants worldwide - as well as the hundreds of LEED buildings we have helped

certify, lease and/or manage - gives us a unique perspective on where the system is headed.

In general, the changes under discussion do an admirable job of addressing most of the concerns that we hear about

LEED. In particular, the emphasis on measurement and verification and the introduction of credits for following an

and operations on the environment. The last major reorganization was in 2009. The 2012 reorgan

the most sweeping changes since the system began.

The USGBCs original goal was to minimize the environmental impact of buildings within the bound

that could be carried out in a cost-effectiv

LEED has become negligible compared to the benefits, the USGBC now seeks to evolve the system s

certification eventually recognizes buildings that have a neutral or even positive impact on the enviro

version aims to move the sy

In addition, each successive reordering of the LEED system has addressed the feedback that the

from green building practitioners.

One of the biggest proposed changes is the increase in credit categories from 7 to 10, with new ca

practitioners follow an integrative process to measure building performance, as well as the separatio

transportation credits into their own category. The number of prerequisites may also increase from 9 to

recognition of the additional baseline criteria that every building should have to be worthy of ce

Another major change is the realignment of the types of LEED. The existing New Co

(CS) certifications will be rolled up into a new Building Design & Construction (BD+C) system that will

property types: commercial, schools, retail, data centers, warehouse and distribution centers, hospita

The Existing Buildings: Operations and Maintenance (O+M) system also includes all those prope

healthcare, and th

and hospitality properties. Systems for homes and neighborhoods continue to have their own crite

A welcome change for many practitioners is a closer alignment of credits among the different rating

the past versions similar credits had different names requirements in different systems, there is muc

comprehensive credit.

While there are a number of new credits being introduced and several being reused f

evaluate and r

the total points

The proposed draft also moves closer to USGBCs goal of developing a performance-based rating sy

prescriptive requirements. While a performance-based system will obviously r

documentation by the project team, it will also allow more opportunities for alternatives to complian



12/14


integrative process will help ensure that LEED certification signifies a high-performing building, which was not universally

etail and hotel owners

or those property

er property types,

ms for property types with very different issues and goals. Creating one system for

y owners from

the easy to get

erequisites. Many owners already tell us that LEED is too difficult for them to get,

ildings. However, we

g certification more

uildings greener. In the

s - and even existing

conform to LEED standards. This has already created some confusion as some

nger conforms

ringent. To put it

consistent with the idea that every

building must achieve that benchmark.

standards should remain frozen in time. One of the best things about

GBCs process for

onnementale or

epending on the building

lifecycle and the building type that was to be certified. As such, in France there exists a separate reference framework

would certify

e time offices, retail

ssment categories.

gement that included an

g project stakeholders and the documentation

d effort, the French

d developments it proposes to use a generic

assessment framework that applies to all different asset types that form part of the development programme. And for

each different asset type, it uses a building specific analysis that comes in addition to the generic framework. In addition,

if there are several separate activities in the same building, then a developer can choose to apply the assessment

framework to the activity-specific portion of a building to which it corresponds most.

In contrast to the existing assessment methodology, where a building was only certifiable if a reference framework

existed for that specific type, from now on a building with any kind of activity it houses can be assessed, using a system

of equivalent points that Certivea may provide based on custom-made audits.

the case in the early days of the system.

We are pleased to see the inclusion of retail and hospitality properties in the new version. Many r

we work with have expressed an interest in certification, but the existing systems do not work well f

types. It is an interesting decision for USGBC to develop one system for retail, hotel, office and oth

rather than creating individual syste

all property types has clear advantages, but it may create challenges that prevent retail and hospitalit

adopting LEED as quickly as we would like.

Another trade-off lies in USGBCs decision to raise the bar on certification overall, by eliminating most of

credits and increasing the number of pr

and these changes may prevent more owners from maximizing energy and sustainability in their bu

recognize that LEED is designed to be an elite standard indicating superior performance, and makin

difficult to achieve serves that purpose well.

A question in our minds is how changing LEED standards will affect legislative efforts to make b

U.S., many states and cities have passed laws that large commercial new-construction project

buildings in some cases - must

legislation contains language that conformed to the LEED standard at the time of passage, but no lo

today. These points of confusion will surely increase as certification requirements become more st

another way, the evolution of LEED as a benchmark for high performance is in

These points are not meant to suggest that LEED

LEED is its evolution as an effective worldwide standard, and that it requires the will to change. US

getting feedback from the market and acting on that feedback, is vital to its continued success.

French Green Building Certification System HQE recast

Since its beginning in 2005, the French green building certifications system HQE (Haute Qualit Envir

High Environmental Quality) for commercial property has built separate reference frameworks d

for office and educational buildings for new construction or for their in-use phase. Another framework

warehouses or hotels etc. When there was a development programme that contained at the sam

and, for example, hotel buildings, each asset had to be certified independently across all the 14 asse

On top of building-specific criteria, there was a complementary assessment of the project mana

analysis of the project management quality, the communication amonprocess.

In order to streamline the certification system for new mixed-use developments and to reduce time an

certifying body, Certivea, is introducing an assessment recast. For mixe



13/14


This new method allows, for example, for only having to assess the construction method and the site o

one and the

nce, if it concerns

same mixed development programme. As a consequence, only the individual asset specific categories need

urrently being fine

tuned, taking into account the comments and feedback from various working groups. It is expected to come into force

some time in October 2011.

to be analysed.

After a public consultation period that lasted from May to June of this year, the new methodology is c



14/14


ergy and Sustainabil acts:Global En

ity Services Cont


Dan Probst Julie Hirigoyen

Chairman, Energy &

Sustainability Services

[email protected]

Sustainability Services

+44 (0)20 7399 5330

EMEA Head of

[email protected]

& Sustainability Services

+61 2 9220 8735

Peter Hilderson

Asia Pacific Head of Energy

[email protected]

& Su

+1 213 2

Peter Belisle

Americas President of Energy

stainability Services

39 6033

[email protected]

COPYRIGHT JONES LANG LASALLE IP, INC. 2011.

This report has been prepared solely for information purposes and does not necessarily purport to be a complete analysis of the topics discussed, which are inherently

unpredictable. It has been based on sources we believe to be reliable, but we have not independently verified those sources and we do not guarantee that the information in

the report is accurate or complete. Any views expressed in the report reflect our judgment at this date and are subject to change without notice. Statements that are forward-looking involve known and unknown risks and uncertainties that may cause future realities to be materially different from those implied by such forward-looking

statements. Advice we give to clients in particular situations may differ from the views expressed in this report. No investment or other business decisions should be made

based solely on the views expressed in this report.
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