What are our buildings for exactly? They are partly about shelter, prestige and functionality, and many other things.They are also about a place where people can productively execute their jobs.
Harvard University research last year outlined that productivity of staff increased by 26% in green verified buildings. Why? Well they outlined that our brains functions at a higher level in better buildings. We process complex problems faster if we have good conditions such as better air quality, decent daylight and sound insulation.
This is important.
In the past the green community has banged on about better design reducing energy use. Opex savings are useful, there are some good savings, but they pale in comparison with benefits for employee well being. Let’s run some numbers.
If a business has 150 staff and an average cost per staff member of $90,000 per year (including all on costs) the annual staff costs are $13m. Let’s say, for sake of argument, that Harvard are overstating the benefits. Perhaps it is only 10% improvement in productivity per year. Valuing that productivity return at the salary rate provides a return of $1.3m per year, more than $7m over five years. This total vastly outstrips the costs of building green and energy savings.
The impressive thing about that calculation is that it is independent from the returns from less sick buildings syndrome or staff getting sick. It is solely the benefits in improved productivity.
Green building workers reported 30% fewer “sick building syndrome” symptoms, such as headaches and eye and respiratory irritation. They also had 6% higher sleep scores, showing that buildings really do impact us, even after the eight hours we are in there for our work day.”
The steering group of New Zealand tools has always stressed the importance of indoor environment quality. That is why ventilation, air change, thermal comfort, daylight, external views and daylighting, sound insulation, respite space, commissioning are such a key part of Green Star. They have real benefits for well being.
Tenants understand and recognise these benefits. Colliers International 2012 research found that 95% of tenants want to be in a green building.
Investors are also getting interested. Over $5bn of investment in Australia has been channelled through bonds meeting the Climate Bond Initiative standards. Moneys from this standard can be invested in many low carbon initiatives. The standard requires that buildings receiving investment are performing in the top 15% of buildings in that city. Green Star Performance – a new standard launching across New Zealand in November – is used by the funds to verify how well the buildings are performing.
Investor and tenant demand is fuelling a boon in green buildings in New Zealand. Green Star ratings are up 67% in the last six months.
So there you have it. Yes, lower carbon is great,…. but not only because it lowers operating costs.
Lower carbon is better for the health of our colleagues and teams
It is better for the health of our country
It is just better.
Today is the start of World Green Building Week. There are more than a dozen activities happening around the country. The green building movement in New Zealand is important and its growing. See what's on.