Report reveals the business case for green building

The World Green Building Council (WorldGBC) has published The Business Case for Green Building - a comprehensive report into the economic worth of sustainable building.

The business case synthesises the findings of more than 100 international peer-reviewed studies and reports on green building. Its findings include:

• The cost premium for the majority of certified green buildings is 0% to 4% - markedly different to the perceived cost premium of up to 29%.
• Building green doesn’t need to cost more - particularly when cost and environmental strategies are integrated into the process from the start.
• Design and construction costs of green building globally are trending downwards as the industry matures.

Recent New Zealand research found that the construction costs of 17 Green Star buildings were in general no higher than conventional buildings, with some costs up to a third less. Where there is a cost premium, the report says savings in energy, water use and maintenance typically make up for it, reducing long-term operating costs.

Sustainable buildings have also been found to deliver improvements in staff productivity, health and wellbeing, all of which impact positively on business bottom lines. Studies show productivity gains of up to 11% through better ventilation, up to 23% through better lighting and up to 18% through views and access to the natural outdoors.

Green buildings are also shown to be more highly valued, generating higher sales prices, higher occupancy and better returns for owners. In fact, in markets where green building is more mainstream, there is evidence of emerging ‘brown discounts’ for non-green buildings.

“This report synthesises 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 WorldGBC CEO Jane Henley.

“From risk mitigation across a building portfolio and city-wide economic benefits, to the improved health and wellbeing of occupants, the business case for green building will continue to evolve as markets mature. Indeed, we have already seen this momentum grow globally where, in more and more places, green is now becoming the status quo.”

Henley will talk about the key findings of the report at an event on 26 September in Auckland. She will be joined by Richard Palmer, Associate Director, WSP Built Ecology, who will talk about Green Leasing - Contract and Financial Frameworks for Green Buildings; and New Zealand Green Building Council CEO Alex Cutler, will give an update on green building issues in New Zealand.