Orient - The Official Magazine of the British Chamber of Commerce Singapore - Issue 71 April 2019
governments may be struggling to find the right balance between the imposition of interventions (which can be controversial) and the introduction of an effective portfolio of incentives to spur development. In 2017 alone, for example, 31 countries introduced new green building policy changes2.
Benefiting from evolving compliance pathways
As a form of compliance pathway, assessment often revolves around formal green building rating systems, such as the WELL Building standard, which is the world’s first building standard focused exclusively on human health and wellness. Other tools to achieve a global standard include a common global Green Building rating tool, a global set of international standards for Green Buildings and a standard international valuation system for Green Buildings under the IVSC.
The WELL Building standard is particularly relevant, with its focus on how the built environment can be harnessed as a vehicle to support human health and well-being. For other benchmarking tools, the UK was the first to adopt BREEAM in 1990. BREEAM laid the original foundation for the development of rating schemes such as LEED in the US, Green Star in Australia, and BCA Green Mark in Singapore.
All the above efforts are starting to bear fruit, with 1.24 billion m2 of global green building space being certified by Green Building Councils in 2017. Nevertheless, many market participants continue to remain on the side-lines, with an eye on the value maximisation equation as demanded by their shareholders.
A Changing Workplace
The office model has undeniably been shaken up in recent years. Numerous headlines focus on the new players in the market, particularly those who offer a flexible, co-working approach. Increasingly, occupiers are looking for smart buildings where comfort systems are linked together by the connective tissue of code to create a high functioning product that is greater than the sum of its parts; and in which greater control is devolved to the individual user3.
These changes in the market present an opportunity for the green building sector to move away from being viewed in isolation as extraordinary pilot projects, supported directly or indirectly by the host country. Instead, sustainable features could be aligned with the future of work. Proponents of green buildings could be seen to embrace occupier aspirations and to deliver improved user productivity, alongside the improved efficiency and the reduction of costs promised by other forms of smart buildings.
Conclusion
The relationship between green buildings, and the strategic performance of their occupiers, has the potential to drive market demand for green buildings. But how can the industry address issues of standards, valuations, industry definitions and regulatory uncertainty and complexity?