key drivers & barriers to the sustainable development of
TRANSCRIPT
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Key Drivers & Barriers to the Sustainable Development of Commercial Property in NZ
Professor Sandy Bond
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Format for this Session
Carbon Emissions from buildings Definition: sustainability Sustainable buildings: initiatives Green Rating Tools Cost as a barrier Economic argument for Research: Drivers & Barriers
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Sustainability in the Built Environment
Buildings account for ~33% of GHGe NZ 17%, AU 23%, US 38%, UK 42%
Emissions by Source - Commercial sector: 89% from electricity
Cooling (28%) Air handling (22%) Lighting (21%) Heating (13%)
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GHG emissions from Buildings
Buildings in NZ account for 17% of the country’s GHGe’s
While the building sector is not the largest contributor to GHGe’s, it is one of the fastest-growing
Unfortunately, NZ’s emissions since 1990 have increased by 25% Unique GHG profile: Ag. & transport
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Sustainability
Sustainable development is defined as: “development that meets the needs of the
present without compromising the ability of future generations to meet their own needs”
World Commission on Environment & Development (1987)
Similar to goals of the RMA 1991
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Demand Drivers Govt. Policies
In 2001, the NZ Government introduced The NZ Energy Efficiency and Conservation Strategy (NZEECS) a detailed action plan for increasing the uptake of energy efficiency,
Barriers to uptake they identified: Lack of information Weak price signals Access to capital Split incentives between landlords & tenants
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Demand Driver: Energy Efficiency Strategies
Australia (Labour) NZ (National) Offices: Government requires 4.5* NABERS or 5* Green star
Government removed requirement for green star!
Mandatory disclosure – homes & offices from 2012
No Mandatory disclosure
Incentives, rebates, grants: e.g. Green Loan program, water tanks, PV, Solar HW
2009 Warm up NZ: Heat Smart (insulation & clean air)
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Green Rating Schemes The prominent rating systems worldwide:
Rating Tool Year Country
BREEAM 1990 UK LEED 1998 USA Green Star 2003 Australia CASBEE 2004 Japan NABERS-AU 2005 Australia Green Star 2007 NZ NABERS-NZ 2013 NZ
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Initiatives to encourage environmental sustainability
The EECA is also the principal sponsor for the introduction & use of the NABERS Rating System in NZ (2013)
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National Australian Built Environment Rating System
(NABERS - NZ)
Rating tool for existing commercial office buildings
Helps building owners & tenants benchmark their greenhouse performance
Rates buildings 1-5 stars - with 5 stars representing exceptional performance
Voluntary Rates a building on actual performance
over 12 months’ energy data
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As Built Ratings Proof in performance
Australia: 81/479 = 16.9% of rated buildings NZ: 5/49 = 10.2% of rated buildings Reasons for low %: Cost too much in $ & time
Requires collating 12 months energy & water use data
Pay back not worth it once building rented/sold
= Suggests ratings been used to market buildings primarily
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Green Star http://nzgbc.org.nz/main/greenstar/elaboration/about
Assesses: Energy 25% Indoor Environment Quality 20% Water 14% Materials 14% Management 9% Transport 8% Emissions 5% Ecology 5% Innovation +5%
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Elements of Sustainability Measured by Green Star
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Elements of Sustainability
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Elements of Sustainability
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Elements of Sustainability
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Green Star
Green Star Certified Rating: 4 (score 45-59) “Best Practice” 5 (60-74) “NZ/Oz Excellence” 6 (75-100) “World Leadership”
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Cost as a barrier
Common argument against “going green” is that it costs more than a comparable conventionally designed building
Davis Langdon (2007) found that the initial impact on construction costs is likely to be only 3 – 5% for a 5 Star solution
Cases in 2009: no cost premium
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Tenant requirements
Reduced OPEX via energy savings Versus
Increased Productivity The cost of employees to a business is said
to be approx. 10x larger than the cost of property
Tenants now placing a higher value on intangible benefits: Productivity Staff attraction & retention (esp. Gen Y) Reduced sick leave & absenteeism
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Tenant requirements
Increased Productivity Difficult to collect data on productivity esp.
where the work is of “knowledge” workers Indirect measures are commonly used: Absenteeism Hours worked Employee turnover + subjective data collected using surveys
from employees (self assessment)
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Increased Employee Productivity
Many studies about health & productivity benefits resulting from adopting green design strategies
8-25% ↓ in symptoms of allergies & asthma 20-50% ↓ in Sick Bldg Syndrome symptoms
Total: annual productivity gain $30/m2/worker Fisk, W, (2000), "Health and Productivity Gains from Better Indoor Environments and Their Implications
for the U.S. Department of Energy", Annual Review of Energy and the Environment, Vol. 25: 537-566 http://www.rand.org/scitech/stpi/Evision/Supplement/fisk.pdf
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Increased Employee Productivity
Relevant attributes in green buildings that promote healthier work environments (& measured by GBCA *s)
Less toxic materials
Significantly better lighting quality
Improved thermal comfort
Better ventilation (incl. opening windows; greater % fresh air)
CO2 monitoring, etc
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The Business Case
Australian part of a global study: Doing Well by Doing Good? Green Office
Buildings (2008) Eichholtz, Kok, & Quigley US-based study of office buildings
First credible evidence on the economic value of certification of “green buildings”
Investigates the relationship between investments in energy efficiency in design & construction & the selling prices commanded by these properties
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The Business Case in Oz New Research Australia 2010/2011:
Newell & McFarlane (UWS) Method:
Obtain databases of Green Star rated buildings (GBCA) & Energy Efficiency (NABERS) rated buildings
Obtain sale prices or values from IPD data/PCA
Compare sales prices/values of rated buildings versus non-rated buildings
Hypothesis: a premium is paid for energy efficiency or green ratings
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The economic argument for Green
Value Premiums NABERS energy rating 5NABERS energy rating
9% green premium in value 3 - 4.5NABERS energy ratings
2-3% green premium in value The Green Star 12% green premium in value
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The economic argument for Green
Rent Premiums NABERS Lesser impact in rent premiums
Green Star A 5% green premium in rents
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Greening the Empire State Bldg
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Greening the Empire State Bldg
Anthony Malkin, President of Malkin Holdings owns the Empire State Building wanted to reposition the bldg
A team of consulting, design, & construction partners incl., Johnson Controls Inc., Jones Lang LaSalle, Rocky Mountain Institute (RMI) completed an 8-month modeling & analysis project which will save 38% of the building's energy & $4.4million (US) annually
https://www.esbnyc.com/documents/sustainability/presentations/san_francisco_010710.pdf 28
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Drivers & Barriers to Sustainable Development in NZ
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Research Aims
Identify methods to increase the uptake of sustainability practices that will help improve building performance & reduce GHG emissions
Investigate industry perceptions of the
drivers & barriers to the uptake of sustainable building practices
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Methodology:
1. Interview CEO of the GBCNZ 2. Survey property professionals:
Developers & investors Architects Building Contractors Property & project managers, Property consultants
Online survey developed Email to 300 practitioners with survey link
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Response Rate Online Survey: 18.7% Respondent Profile:
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Respondent Profile Office Location & Property Type
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Reasons Respondents not involved
in Green Building
Green building is seen as a nice to have but not essential at this point
Green building is a “fad” A matter of economics
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Reasons for involvement in Green Buildings
Source of Demand: 47% said demand comes from the
client
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Preferred sustainable features
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Building Design & Materials
Plumbing/Water Heating/Cooling Ventilation Air Quality
Lighting Daylight
Specialised glazing (e.g. Low E; double glazing)
Flow restrictors &/or efficient fixtures/fittings
Specialised glazing (Low E; double)
Low volatile organic compound materials
Specialised glazing (Low E; double)
Solar passive Waterless urinals Chilled beams Fresh air T5 lighting Large floor plates/campus style
Rainwater capture External & Internal shading blinds
CO2 levels constantly monitored
Maximise natural light by siting of building
Recycled timber; or sustainability harvested timber
Leak detection systems
Multi-zone tenant controlled
Opening windows
Ext & Int shading blinds (some sensor controlled)
Recycled materials
Sensor taps Thermal massing (e.g. limestone wall)
Indoor plants Motion light sensors
Reduction in use of PVC piping
Multi cycle systems for cooling towers
Perimeter water pipes to assist cooling
Low volatile organic compound materials
Solar chimneys (heat extraction & draw fresh air in);
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Results: Green Initiatives
Note: Features selected are motivated heavily by the GBC
rating tools & desire to achieve a certain Green *
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Campus style offices Plants (1 per employee) Interconnecting floors Open atrium - heat
chimney
Typical Green Features
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Black water treatment plant
Public display of energy/water use Self monitoring
incentive Recycling
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PV Arrays Wind turbines
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Air Con
Chilled beam technology Use up to 30% less energy
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Results: What worked? Reducing heat at the façade
Low-E glass blocks long wave radiation (e.g. infrared heat) & lets in short wave radiation (e.g. visible light)
80% more light No need for artificial lighting Daylight factor of 5
Inside Outside
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CH2 Melbourne, Australia Built 2006 6* As Built 2010
Source: http://www.melbourne.vic.gov.au/rsrc/PDFs/CH2/CH2PostOccupancySummary.doc [accessed 21 Sept. 2009]
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Existing Building: CCC Civic Building 6* Green Star
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Existing : CCC Civic Building
Redevelopment of Old 1970s P.O. Building
Tri-Generation system Generates electricity from
biogas from landfill site Solar hot water Automatic daylight
sensors Double-skin façade – CO₂ monitoring system
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Barriers to incorporation of sustainable features
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Drivers for Building Green
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Perceived Benefits of Green
Acceptable Cost Premium: 52.9% - clients would accept up to 5% 24% - a 5 to 10% additional cost
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Summary: Most Successful Approaches
An integrated approach to design Adopting tried & tested technologies Having a sophisticated Building
Management System (BMS) & skilled facilities management team to closely monitor the building to achieve peak performance
Ensuring the interior fit-out matches the base building
A building user guide & tenant education of how to use the building optimally
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The Impacts of the Canterbury Earthquake on the
Commercial Office Market
Professor Sandy Bond
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Costs of the Quakes Lives Lost: 185 Cost of the quakes: NZ$15 billion + Half of CBD buildings collapsed or unsafe 15,000 homes non re-buildable
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Draft City Plan
Central Christchurch to be redeveloped as a low-rise, resilient, safe & sustainable city
http://cdn.ccdu.govt.nz/video-gallery/introducing-the-christchurch-central-recovery-plan
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Key Projects: Cathedral Square
The greening of the civic & cultural heart of Christchurch: Cathedral Sq
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Build Green Christchurch The draft Central City Plan proposes that
new office & mixed use buildings within the Central City must achieve a ‘Pass’ score under Build Green
http://www.nzgbc.org.nz/images/stories/downloads/public/Initiatives/Part_1_-_Overview_-__final_-_Build_Green_Christchurch-v6.pdf
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