The Green Advantage

1. The Green Advantage Business Considerations and Marketing Benefits of Green Buildings

2. International Rating Systems LEED (US) BREEAM (UK) HQE (FRANCE) CASBEE (JAPAN) GREEN STAR ITACA (ITALY) HK BEAM GREEN GLOBES (AUSTRALIA)(HONG KONG) (CANADA)

3. International Rating Systems • BREEAM – 1990 UK (Building Research Establishment Environmental Assessment Method). • LEED – 1998 USA (Leadership in Energy and Environmental Design). • DGNB – 2007 Germany (Deutsche Gesellschaft für Nachhaltiges Bauen e.V.) • HQE – 2005 France (Haute Qualité Environnementale) • ITACA – 2003 Italy (Innovation and Transparency of the Contracts and Environmental Compatibility ). • Green Globes – 2000 Canada • Green Star – 2003 Australia • CASBEE – 2002 Japan • BEAM – 1995 Hong Kong

4. Comparing the Systems

5. The World GBC was founded in November of 1999 in California, USA with 8 countries in attendance: 1.     U.S. Green Building Council 2.     Green Building Council of Australia 3.     Spain Green Building Council 4.     United Kingdom Green Building Council 5.     Japan Green Building Council 6.     United Arab Emirates 7.     Russia 8.     Canada Vision • Through leadership collaboration, the global construction industry will transform traditional building practices and fully adopt sustainability as the means by which our environments thrive, economies prosper and societies grow to ensure the future health of our planet. Mission • Ensure Green Building Councils are successful and have the tools necessary to advance. • Stand as the premier international voice for green building design & development. • Foster effective communications and collaboration between Councils, countries, and industry leaders. • Support effective green building rating systems. • Share best practices globally. Goal • Buildings and Communities will enhance the health and vitality of life within a generation.

6. How do buildings respond to the principles of sustainability? The design of our buildings is a key contributor to the quality and sustainability of our built environment. The factors that relate to the design of our buildings are varied and wide-ranging, and include:

7. Site and Neighborhood The goal is to reduce the impact of the building on its surroundings and the surroundings on the building. By improving the separation and interconnectivity between buildings; considering the way in which the use of the site/layout influences microclimate, wind velocities and temperatures around the building (heat island effect); provision of neighborhood amenities, public services and recreational facilities; respect for cultural heritage; overshadowing and view protection; opportunities for site greening; enhancement of ecology and biodiversity; landscaping; and air, water, noise and light pollution.

8. Materials and Waste The use of "green materials" is becoming increasingly important, as is the enhancement of systems to maximize waste reduction and recycling. This is important across the full life cycle of buildings and starts with good design, and then use of innovative construction practices. Flexible design should be used to reduce internal demolition and rebuilding over the building's lifetime. Increased emphasis is being placed on the use of recycled, non-harmful, low energy, reusable and recyclable building materials. Another important design factor is the provision of space and facilities for "at source" waste separation and recycling by building occupants. Water Conservation Water consumption and waste is heavily dependent on the design of our buildings. Inclusion of water saving devices (faucets, showers, toilets, etc), recycling / reuse of grey-water (from bathing and washing) and rainwater, and water metering and leak detection, can all help to optimize the use of water, which is an increasingly scarce resource. Site drainage, effluent management, low-maintenance native plants, and efficient irrigation systems can further reduce the water footprint of a building.

9. Energy and Climate The increasingly accepted goal is to create buildings, which are energy efficient and low carbon in nature. Key design considerations include the building shape and orientation; size and type of glazing; wall and roof insulation; shading; natural ventilation; day-lighting and permeability, to ultimately create "passive low energy" buildings. At a service level, the aim is to achieve energy efficiency of air-conditioning, ventilation, lighting, lift, escalator, water heating and other building systems, and to maintain effective controls and metering provisions to help users monitor and control their energy consumption. Increasing emphasis is also being placed on the incorporation of on-site renewable energy (solar heating, photo-voltaic panels, wind, etc) and ultimately to consider the "embodied energy", i.e. the energy used in the manufacture, transportation and installation of building materials. Indoor Environment The goal is always to create a safe, healthy and comfortable home or workplace for the occupants. Key design considerations include: thermal comfort, indoor temperature, humidity and air movement, natural ventilation, day-lighting and views, indoor air quality, avoidance or removal of outdoor and indoor pollutants, health and hygiene in plumbing, drainage and refuse collection systems, indoor noise, acoustics and vibration, accessibility for the young, aged and people with disabilities, and amenities for building users and public.

10. Cost benefits The most obvious benefit to an occupier of a sustainable building is that of reduced utility costs (both energy and water). In an era of increasing oil prices this benefit can be expected to increase. The less obvious, but more important benefit is that studies are beginning to show that ‘green buildings’ offer improved health and well being of the staff, resulting in reduced sick days and increased productivity. The benefits are typically expressed in percentage improvements, however, if one reviews these in terms of €’s saved by the occupier in a year, then the true financial benefit can be reviewed. On a typical office building with staff on an average Western European consultancy practice wage the financial savings of occupying a green building could be in the region of €900 per m2 per year. Energy saving €24/m2/year Water saving €1/m2/year Sickness reduction (39% reduction) €180/m2/year Productivity improvement (5% increase) €690/m2/year TOTAL €895/m2/year Other benefits: Marketability, corporate image, longer life, stable cash flows.

11. What are the Costs? MYTH: Green Buildings are more expensive to build! FACT: Correctly managing the sustainability requirements on a project can bring down the capital costs. FACT: On a well-managed commercial project with early input on sustainability, project costs aimed at achieving a sustainability accreditation rating (BREEAM/LEED) can be reduced from more than 10-12% down to 3-5%. FACT: In the future, market values are going to be significantly affected by the sustainability rating. Evidence has started to suggest an increased rental values of 3-8% and higher sales values of 5-10% for internationally accredited (BREEAM/LEED) sustainable buildings.

12. Other Considerations The cost of getting a building BREEAM/LEED certified should be considered a marketing cost and not a construction cost because the certification raises awareness about a building, leading to publicity and tenants who move in because the building is “green”. Studies have shown that owners and developers who choose not to have green buildings or ignore certification will find that potential tenants aren’t interested in their buildings in a matter of a few years. 14.83%. In a 2009 report entitled "Who Pays for Green? Economics of Sustainable Buildings," CB Richard Ellis Group found that basic "green" certification levels in the UK add about two to three percent to the overall construction costs, while higher levels of accreditation add between five to seven percent. And while both the CB survey and a recent CoStar report showed higher rental, sales and growth rates among LEED certified buildings in the U.S, the former showed the gains to be more or less on par with the extra costs. Further, the CB Richard Ellis report also found that energy savings could be anywhere from 10 to 50 percent and up - a huge margin that might be too often overlooked.

13. Importance of Sustainable Building Management Practices in Lease Renewals VERY IMPORTANT 14.83% IMPORTANT 55.96% NOT IMPORTANT 29.21% Source: CBRE and USD Survey Data 2009

14. Where do investments have more value? The value case for sustainable building is compelling: For owner occupiers, a 20-year whole-of-life cost view indicates the marginal cost increase of sustainable building is likely to be repaid between five or six times by operating cost savings alone. For tenants, the probable 20-year rental premium for sustainable buildings is likely to be repaid by a factor of approximately three from operating cost savings only. For owner occupiers, developers and investment funders, a residual land value analysis shows a sustainable office building may have a land value of 40% more than that of a conventional building. Its true worth is nearly 40% more than a conventional building. The case studies show that to achieve the above investment returns, the difference in the initial capital cost of sustainable buildings compared to conventional good quality buildings varies from 15% less to 11.5% more, with sustainable features initially costing an average of 2-6% more. Sustainable buildings are intrinsically more economic to run over their whole lifetime. They reduce waste and are much more efficient in their use of key resources such as land, energy, water and materials. They can also be healthier and more comfortable, and support greater productivity, with improved levels of natural light, cleaner air and a higher degree of personal control. They are also adaptable and durable enough to meet the requirements for flexibility and needs of future generations of building occupiers. Reference: D Fullbrook and Q Jackson, e Cubed Consulting Ltd North Harbour, Auckland, New Zealand G Finlay Warren and Mahoney, Christchurch New Zealand

15. How do we measure a Green Building? There are basically 6 criteria to consider: • energy efficiency • indoor environmental quality • sustainable site planning and management • materials and resources • water efficiency • innovation

16. THANK YOU FOR YOUR ATTENTION Carlo Marzot Managing Director