The green factor

Who could ignore the opportunity to design or manage a building in a way that would satisfy absolutely every one of the potential stakeholders in the project including client, funders, potential occupiers, managers, planners and neighbours? Surely no one. Growing evidence demonstrates that more sustainable building techniques can offer this opportunity.

The Government's emphasis on things sustainable is having a major impact on the construction and property sectors. As a client responsible for 40% of the total UK construction output it has a lot of clout. The Government Construction Client's Panel (GCCP) Sustainability Action Plan published last June commits it to stringent targets in procurement policies, including specific targets from certification schemes such as BREEAM and the Construction Industry Board's 'Considerate Constructors' scheme. Its 'Green Housekeeping Initiative' points towards similar targets on the property management side.

Revisions to legislation across the breadth of property related issues, all place sustainability high on the agenda. These include recent planning guidance revisions; current revisions to the Building Regulations; fiscal measures such as the Climate Change Levy, landfill taxes and revisions to vat. It is clear that Government does not see the issue of sustainability as a one-day wonder and, increasingly, neither does the business community – major blue-chip companies are lining up behind the same agenda. The construction industry must adapt to accommodate and even take advantage of this new agenda. It presents a real opportunity for the industry to innovate and discard its current negative image, low levels of productivity and poor profitability.

But what does sustainability mean?
The term sustainable development is generally defined as development that leads to economic growth and social improvement without harming the environment on which we ultimately all depend, and without depleting the Earth's reserves of resources. In construction this means designing, constructing and managing buildings in such a way that reduces their impacts to a minimal level or mitigates for them.

This is not likely to be achieved in any but the most exceptional examples. There is, however, a growing range of exemplar buildings, many occupied by major commercial organisations, which are based on sound economic and business decisions and, although not truly sustainable, make significant strides in that direction.

The DETR has set out its strategy for the construction industry in Building a better quality of life – a strategy for the construction industry published in June last year.

Industry and Government have established a number of initiatives to promote more sustainable approaches, but these are not focused on the benefits of sustainability to the key players. In order to encourage business to take up sustainability with enthusiasm, the industry must produce real evidence that it offers practical business benefits.

Cutting through the greenwash
There is plenty of greenwash and hype around the issue of sustainable construction. This is harmful to the promotion of practical steps that can be taken throughout the building stock, and it's hardly surprising that many are sceptical of the claimed benefits. However, increasing experience from clients, M4I demonstration projects and research, is dispelling the myth that sustainable options inevitably result in increased capital costs, reduced market appeal and lower occupier satisfaction. Tools such as BREEAM aim to motivate those involved in the maintenance and procurement of buildings to adopt best practice in their decision-making while there is a wealth of guidance around from BRE, BSRIA, CIRIA and others which can help.

There are many pressures and influences operating in our economy and society that influence the decisions made by businesses including those relating to property. These pressures can come from government, commercial markets, and investors. In terms of sustainability, investors are proving to be a force in influencing companies towards more environmentally sound investments. The relative importance of such drivers for change vary considerably from one country to another, but in most cases there is a general and long-term increase in the effectiveness and spread of these influences in relation to environmental concerns. Change can be initiated by any single factor, but rapid change occurs when pressures exist in several areas at the same time.

BRE's Centre for Sustainable Construction is researching the underlying business benefits of more sustainable design and management options in the new build, refurbishment and existing building sectors.

This two-year project aims to increase confidence in the benefits to be achieved from more sustainable design, construction and management solutions.

The industry must produce evidence that sustainability offers business benefits

The research is being part funded by the DETR under its Partners in Innovation scheme with industry participation. Other organisations supporting the research are BIFM, RIBA, BCO, Argent Property Group, BG Properties, Friends Ivory & Sime (the ethical investment arm of Friends Provident), the North British Housing Association and the Northern Ireland Housing Executive.

It is hoped that the results of this work will refine and support the business case for more sustainability in property related decision making. It should also provide enough evidence to convince the waverers and quieten the sceptics in the industry.

What benefits are we are looking for?
Initial research has drawn together a range of key benefits from existing work by BRE and others across the industry. This largely, but not entirely, theoretical research has highlighted the potential for benefits in the following areas:

• economic benefits – these are key drivers throughout the construction industry and its customers. There is significant evidence through experience of these being achieved through more sustainable buildings.
  
• social benefits – while social benefits are softer in business terms than economic ones, they can have highly significant effects on the performance of a business and its ability to attract and maintain customers and staff. Staff costs in a typical office are a factor of five higher than operating costs, so the economic impacts of these issues can be major.
  
• environmental benefits – these do not tend to be directly felt by the stakeholders in a particular project. They are, therefore, the focus for government and other non-government and industry bodies but are often removed from the decisions of the commercially minded stakeholders directly involved in individual building projects.

But there are ways in which the construction process can help achieve these benefits such as: reduced ozone depletion through lower emissions; reduced resource depletion with careful use of construction materials and land; improved biodiversity through habitat protection and enhancement. Table 1 shows a summary of this information.

The results of this initial research are available in the form of a downloadable summary report on the BRE projects website at www.bre.co.uk\projects.

But what is the use of theory?
Theory is all very well but will not convince clients, management boards, financiers and so on to innovate. They tend to listen to sound economic reasoning or external political pressures from government, the public or customers.

The second stage of BRE's work will study these benefits in a range of real-life projects and organisations. The aim is to produce a body of hard evidence which will present sustainability as a viable option for businesses, and not just a public relations tool.

Different players are interested in different parts of this list of benefits. The fragmentation of the industry often means that some key life cycle issues are omitted from the decision making process because they are not relevant to those making the decisions. Evidence from existing work on case studies has supported the view that buildings which have more sustainable features are often more acceptable and productive spaces to live, work and play in. This evidence is based on occupier surveys and a fair amount of gut feeling.

BRE's research will study a range of case studies where organisations have included sustainability into the decision-making for whatever reason. These will include examples where occupiers are in the driving seat as well as those where they are not. Case studies are being identified at present and all offers would be welcomed. The intention is to identify examples where sustainable techniques, policies or technologies have been adopted. The research will seek to identify the reasoning behind decisions and what the outcome and implications have been in reality. These will be published in the form of generic guidance at the end of the project. The objective is to provide a sound business case for sensible and practical steps that can be taken by each of the key players involved.