Real Estate Investor Magazine South Africa September 2013 | Page 15
UPFRONT
The recent World Green Building Trends SmartMarket Report published by McGraw-Hill Construction and United Technologies found that 28% of architects, engineers, contractors, building owners and building consultants around the world report that they are focussing their work on sustainable design and construction, by doing at least 60% of their projects green. And continued growth is expected, as 51% of firms report that they expect to be at high levels of green activity in just three years. The most notable part of the results is that this trend is not localised to one part of the world or to developed countries. From 2012 to 2015 the number of firms anticipating that more than 60% of their work will be green will more than triple in South Africa, more than double in Germany, Norway and Brazil, and will grow between 33% and 68% in the US, the UK, Singapore, the United Arab Emirates and Australia. Over the past decade, green building has emerged as a growing trend among a vigorous interest group to create high-performance, energyefficient structures that improve tenant and/or owner-occupier comfort and well-being while minimising environmental impacts, says Sean Liebenberg, new business executive at Excellerate Facilities Management. “With support structures in place by organisations such as the South African Property Owners Association (SAPOA) and the GBCSA, both public and private entities are increasingly pursuing green buildings in the institutional, commercial and residential sectors. Landlord and tenant mindsets are changing and progress in achieving greener standards is becoming noticeable,” he says.
The right thing to do
There can be no doubt that going green is the right thing to do. Our current rate of consumption of the planet’s natural resources is nothing short of gluttony, and at this pace, our generation will exhaust - in just one lifetime much of the resources that have been created over billions of years. The wise Native Americans tried to warn us: “We do not inherit the Earth from our ancestors, we borrow it from our children.” What are we leaving for our children and their children and the generations who will live on this planet 200 years from now? And those who are not willing to do the right thing merely for moral and ethical reasons will be forced by a growing number of ecoconscious consumers and ever-tightening legislation to do so.
The driving factors
“Green business is intelligent business,” comments Peter Townshend, co-founder of Know More, a workplace and environmental consultancy. “One particularly interesting stat from The World Green Building Trends SmartMarket Report is that the top trigger driving future green building activity in South Africa is ‘It’s the right thing to do’, followed closely by ‘Lower operating costs’. Despite the tremendous benefits of embarking on a green journey, it seems that South Africans see greening as a moral issue – more so than in the rest of the world.”
Top Triggers Driving Future Green Building Activity in South Africa South Africa Global Respondents Right Thing to Do 44% 26% Lower Operating Costs 42% 30% Environmental Regulations 34% 23% Healthier Neighbourhoods 26% 11% Client Demand 24% 35% Higher ROI 21% 7%
Green consumerism (Client demand)
A silent revolution known as ‘green consumerism’ is rapidly gaining momentum around the world. The most recent Ogilvyearth Sustainability Survey reveals that a whopping 88.2% of consumers would boycott a company or brand if they believed it was acting irresponsibly in the world. A huge number of people (92.1%) want to know about the actions of businesses and brands towards people and the environment and this will then influence their buying habits. The majority of people (85.4%) feel that not enough attention is given to water conservation and a massive 96% are concerned about whether a product is made from renewable resources. The survey also revealed that nearly 60% of the survey sample say they can’t trust green claims made by brands and businesses and nearly 70% think that ‘green claims’ are just another money spinner. “This just demonstrates how important it is for business to do the right thing; they have to be transparent and honest about their operations and how they do business,” says Melissa Baird, strategist for Ogilvyearth. “If they get it right, they can secure loyal consumers for years to come.”
South Africa in the lead
South Africa features strongly in the report, which reveals that green building is rapidly taking hold in the country, with its share of firms that are highly dedicated to green building growing at a faster rate than in any other part of the world. It certainly is great news that South Africa is taking its place among the leaders in green building. Overall, 16% of South African firms report heavy levels of green in 2012, an eightfold increase in just three years. And they expect levels to more than triple in the next three years. In respect of new commercial buildings, 60% if firms report that they have future green plans, while 58% of firms reported plans for retrofitting existing buildings. Notably, South Africa is one of the only countries with a high level of reported green activity in the residential space, with over a third (36%) of firms reporting planned green activity for low-rise residential projects. Their findings are corroborated by those of local property experts. June 2013 proved a bumper month for green building certifications in the country, with a total of six new buildings receiving a Green Star SA rating from the Green Building Council South Africa. “This upsurge further substantiates that the green building movement is rapidly gaining ground in South Africa as developers and progressi ?H?\?[?\??\?[??X\?[?? H[X??X?H ?\?Z[?X?H?Z[[?? ?X?X?\?8?'H??[Y[? ???X[??[?[????S?? H?Y[??Z[[????[??[??]Y??X?H
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