1. Green building is sensible.
Building green means being sensible. By implementing green standards you can construct a better quality product for the costs of a normal building.
2. You can produce less waste and use saved resources to invest in new opportunities.
Why should you waste money using unnecessary energy, or depleting the earth’s natural resources when it can be recycled? Building energy efficiency and recycling systems into your assets will help to survive through the bad times and prosper in better economic conditions.
Efficient use of resources provides capacity to capture new opportunities and gain momentum.
3. The Triple bottom line: sustainability takes care of People, the Planet and Prosperity
The holistic approach pays back by workforce commitment, better productivity, risk reduction and improved relations with authorities and reputation. Social responsible and sustainable business reach untapped market potential – by improving efficiency and offering new services. And the most important outcome of this approach is long-term business sustainability. The top Fortune 500 corporates all have Corporate Social Responsibility programmes to improve the health and wellbeing of its employees including reducing energy and carbon.
4. Sustainable design improves the standard of real estate, from cradle to grave.
A vast potential to improve the state of the development cycle lies in implementing green building certification. Better management system, improved material selection and innovation help to produce buildings which would be a better value in five years. When you look at your property – think of its whole lifecycle, notjust next 5 years. This is the way how your future buyer would think of it. Green building standards have a minimum building operational lifecycle of 25 years. By making 0-6% more capital investment now you save millions of future investment. Green building certifications such as BREEAM are becoming the worldwide accepted standard. Certification will reflect in rent rates and add points to your brand value. Estimated increase of rent rates for green office is 3-8% higher than usual stock of the same grade, increase in value – 7,5 – 8,2%.
5. The biggest saving in sustainable, well designed buildings, is the increase in productivity of the workforce, the biggest cost to any employer.
For certain businesses labour costs reach 80-90% of their operating costs. If we use thr law of big numbers and calculate how much money we spend on our workers sick leave – we receive stunning figures.
6. Untapped demand for green building
Foreign businesses require same standard of space they are used in the West. Sustainability criteria are a requirement for such companies as Marks and Spencer, Wal-mart, IKEA, City Bank, Philips, Siemens, Deutsche Bank and many others. These companies represent a large pool of financially secured and long-term tenants. Estimated occupancy of green buildings increases by 3,5%. Implementing green building standards shows your tenants that you care and they would respond by commitment and loyalty.
7. Sustainability promotes and encourages new innovative technologies, new jobs and renewable sources of energy.
According to the Global Green Building Market report (45 countries, industry professionals) green building is achieving vast market adoption at dramatic rates at every region of the world. 67% of respondent firms confirmed that they are dedicated to green on at least 16% of their projects.
8. Governments around the world are using legislation to reduce carbon and energy use in real estate and construction, and to drive ever increasing standards.
The Government started to discover amazing potential for economic growth from energy efficiency. The first signal to this is by Dmitriy Medvedev`s policy to improve energy efficiency. On the 23rd October 2009, the Energy Efficiency bill passed it`s second reading. Russia has now officially announced that energy most reduce by 15% by 2020.
9. Institutional investors will seek the most sustainable developments in the future. Entire portfolio’s will become obsolete if not upgraded.
Two main drivers foster this development. First, the concept of corporate sustainability is attractive to investors because it aims to increase long-term shareholder value. Since corporate sustainability performance can now be financially quantified, the sustainability concept is in demand. Second, sustainability leaders are increasingly expected to show superior performance and favourable risk/return profiles. A growing number of investors are convinced that sustainability is a catalyst for enlightened and disciplined management, and, thus, a crucial success factor.
Dow Jones Sustainability Index includes such companies as BMW, Panasonic, Unilever, Nokia, Swiss Re.
10. Real estate and construction make up to 40% of carbon emissions, directly and indirectly. Making buildings more efficient will reduce carbon.
On November 5, 2004, Russia ratified the Kyoto Protocol, and the Protocol came into force in February 2005. The target for Russia is that the country’s combined emissions of Kyoto gases should not exceed five times their combined 1990 levels during the period 2008-2012. This target is generally expressed in annual terms: on average, Russia’s annual emissions of the six Kyoto gases should not exceed their 1990 level over the period 2008-2012. Since 1999, Russia’s economy has grown at a pace of more than 6 percent per year, calling into question whether Russia will stay within the borders set by the Kyoto Protocol for the period beyond 2012.
Prepared by Ksenia Agapova, RuGBC