The Green Angle
The Business Case For Green Building A
comprehensive new report from the World Green Building Council (WorldGBC), Toronto, highlights a large number of compelling benefits from green buildings for different stakeholders throughout the life cycle of a building. The report, The Business Case for Green Building: A Review of the Costs and Benefits for Developers, Investors, and Occupants, examines whether or not it’s possible to attach a financial value to the cost and benefits of green buildings. Today, green buildings can be delivered at a price that is comparable to conventional buildings, and investments can be recouped through operational cost savings and, with the right design features, create a more productive workplace. “This report synthesizes credible evidence from around the world on green buildings into one collective resource, and the evidence presented highlights that sustainable buildings provide tangible benefits and make clear business sense,” said Jane Henley, CEO of WorldGBC. “From risk mitigation across a building portfolio and city-wide economic
EPA Names Cities With Most Energy-Star Buildings T
he U.S. Environmental Protection Agency (EPA), Washington, has released a list of U.S. metropolitan areas with the most EnergyStar-rated buildings in 2012, highlighting how owners and managers of commercial buildings across the country are taking action on climate change while delivering real financial savings to the bottom line. Los Angeles ranks first for the fifth consecutive year with more than 528 Energy-Star buildings. Washington landed in second place with 462 buildings. Chicago has risen through the rankings each year, increasing the number of buildings certified by an average of 32% annually. Phoenix broke into the top 10 for the first time. Nationally, more than 20,000 Energy-Starrated buildings across America helped save more than $2.7 billion in annual utility bills while preventing greenhouse-gas emissions equal to those from the annual electricity
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COMMERCIAL BUILDING PRODUCTS
MAY 2013
benefits to the improved health and well-being of individual building occupants, the business case for green building will continue to evolve as markets mature. Indeed we have already seen this momentum grow globally.” Key findings of the report include: • There has been an overall trend toward the reduction of design and construction costs associated with green building as building codes around the world become stricter, supply chains for green materials and technologies mature, and the industry becomes more skilled at delivering green buildings. • Buildings with better sustainability credentials will have increased marketability as investors and occupants become more knowledgeable about the environmental and social impacts of the built environment. Additionally, there is a demonstrated link between the green characteristics of buildings and the ability of these buildings, in some markets, to more easily attract tenants and to command higher rents and sale prices. • Green buildings save money through reduced energy and water consumption and
lower long-term operations and maintenance costs. The energy savings alone typically exceed any cost premiums associated with their design and construction within a reasonable payback period. • An emerging body of evidence suggests that the physical characteristics of buildings and indoor environments can influence worker productivity and occupant health and well-being, resulting in bottom-line benefits for businesses. • Sustainability risk factors can significantly affect the rental income and the future value of real estate assets, in turn affecting their return on investment. Regulatory risks have become increasingly apparent in countries and cities around the world, including mandatory disclosure, building codes, and laws banning inefficient buildings. The report concludes that, by greening the built environment at the neighborhood and city scales, the green-building industry can deliver on large-scale economic priorities such as climate-change mitigation, energy security, resource conservation and job creation, longterm resilience, and quality of life.
The business case for green building will continue to evolve as markets mature. We have already seen this momentum grow globally.
Energy-Star-Certified Buildings 2012 Rank
Metro Area
Energy-Star -Certified Buildings in 2012
Total Floor Space (million sq. ft.)
Annual Cost Savings (millions)
Emissions Prevented (equal to number of homes’ annual electric use)
1
Los Angeles
528
113.0
$134.8
52,300
2
Washington
462
116.1
$127.4
83,100
3
Chicago
353
130.4
$92.3
118,400
4
New York
325
111.5
$144.6
63,600
5
Atlanta
304
63.6
$52.3
55,500
6
San Francisco
291
70.1
$106.5
39,300
7
Houston
241
88.6
$73.8
72,900
8
Dallas-Fort Worth
214
59.0
$47.3
48,400
9
Phoenix
202
31.6
$34.4
32,500
10
Boston
188
45.5
$ 67.5
25,000
The list of the top 10 cities for Energy-Star-certified buildings. Note that the rankings would have a different order if they were rated by the total number of square feet in the buildings, the annual cost savings, or the emissions prevented.
use of more than two million homes in 2012. Energy use in commercial buildings accounts for 17% of U.S. greenhouse-gas emissions at a cost of more than $100 billion each year. Commercial buildings that earn EPA’s Energy Star must perform in the top 25% of similar buildings nationwide. Energy-Star
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buildings use an average of 35% less energy and are responsible for 35% fewer greenhousegas emissions than traditional buildings. visit our digital magazine at www.cbpmagazine.com/digital/may2013 and click on the icon.
