DAILY NEWS Nov 23, 2012 9:52 AM - 0 comments

Green building accelerates globally through economic downturn: McGraw-Hill

TEXT SIZE bigger text smaller text
New York, NY 2012-11-23

Around the world, the green building marketplace is accelerating, according to a new study by McGraw-Hill Construction in partnership with United Technologies. The study indicates a shift in the global construction market, now viewing green as a business opportunity rather than a niche market. Overwhelmingly, firms report that their top reasons to do green work are client demand (35 per cent) and market demand (33 per cent)—two key business drivers of strategic planning. The next top reasons were also oriented toward the corporate bottom line—lower operating costs (30 per cent) and branding advantage (30 per cent). In contrast, the top reason in 2008 motivating the green building market was doing the right thing (42 per cent) and market transformation (35 per cent), followed by client and market demand.

“This research confirms that green building advances environmental stewardship while providing value to the market,” said Geraud Darnis, president and CEO, United Technologies Climate, Controls & Security.  “It also confirms that we now see more pull than push for green buildings.”

In the next three years, the sectors with the largest opportunity for green building around the world include new construction and renovation projects. Sixty three per cent of firms have green work planned in new commercial projects and 45 per cent in new institutional projects by 2015, and 50 per cent have plans for green renovation work. In the United Kingdom and Singapore, green renovation projects were planned by the greatest number of firms at 65 and 69 per cent respectively. In Brazil and UAE, new projects pose the largest opportunity. In Brazil, 83 per cent of firms are planning to work on new green commercial projects over the next three years, and in the UAE, 73 per cent have new green institutional projects planned.

“It is notable that over the next three years, firms working in countries around the world have green work planned across all building types, incorporating both new construction and renovation,” said Harvey M. Bernstein, vice president, Industry Insights and Alliances for McGraw-Hill Construction. “The existing building market is a ripe opportunity for green building, and we are seeing that play out in the market. It is clear that green is becoming an important part of the future landscape of the global construction marketplace, and firms will need to be prepared for that transition.”

Green buildings are also expected to garner business benefits for building owners. For new green building projects, firms report median operating cost savings of 8 per cent over one year and 15 per cent over five years, as well as increased building values of 7 per cent (according to design and construction firms) and higher asset valuation of 5 per cent (according to building owners).

For green retrofits, operating savings are higher than for new buildings with operating costs reported to decrease by 9 per cent over one year and 13 per cent over five years. Asset valuation is also expected to increase, though at more moderate levels than for new green buildings—design and construction professionals expect 5 per cent increased building value from green retrofits, and owners expect higher asset valuation of 4 per cent. For green projects, payback on efforts is expected within 8 years for new projects and 7 years for retrofit/renovation work.

Other significant findings include:

•           Human factor benefits are driving green building more today compared to three years ago—55 per cent cite greater health and well-being as the top social reason for green (tied with encouraging sustainable business practice), up from only 29 per cent in 2008.

•           Energy use reduction tops the environmental reasons for green building—72 per cent say it is the important environmental reason to engage in green building.

•           Water use reduction is more important today. 25 per cent of study respondents cite reduced water consumption as the top reason, up from only 4 per cent in 2008. It is particularly important in the UAE (64 per cent cite it as a top reason), Brazil (39 per cent), and the U.S. (32 per cent), ranking as the second most important environmental factor in these countries.

•           Improved indoor air quality is also more important today—17 per cent cite it as a top reason to engage in green building, up from only 3 per cent in 2008.

•           For firms not currently doing any green project work, the primary driver that they think will motivate future green activity is the desire to do the right thing. This is in sharp contrast to those involved, suggesting this market is not as familiar with the business case for green building.

“We’ve been on the ground watching the markets shift to green around the world. Today, there are green building councils in 92 countries around the world—more than double what it was when we first looked at the green building market globally in 2008,” said Jane Henley, president of the World Green Building Council. “The business case is helping move the markets, and this study underscores the importance of measuring and reporting those benefits.”

“This study validates what we’ve experienced the past couple of years — that the business community has fully embraced green building as a strategic business imperative that also happens to have a strong societal benefit.  We see this as a success of LEED and all the rating systems that have helped drive green building movement globally,” said Rick Fedrizzi, president, CEO and founding chair, U.S. Green Building Council.

Photos

Facade-integrated photovoltaics project in Vienna. copyright ATB Becker
Larger photo & full caption

File size: 135.1 KB (1024px X 768px)
Caption: Facade-integrated photovoltaics project in Vienna. copy...


Horizontal ruler
Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that Canadian Interiors has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields