Real Estate Investor Magazine South Africa September 2013 | Page 17

UPFRONT
increasingly unable to compete with the trailblazers who benefit from massive costsavings and eff iciencies, and the laggards will eventually find themselves trying to play catch-up, or will simply be left behind. “There has been a great deal of debate around cost,” explains Heidi Franck, COO of One Property Holdings. “Certain methods and products utilised may have high capital costs but will provide long-term savings in electricity and other operating expenses. New technology is generally more costly, but one must weigh these upfront costs against lifetime savings. And of course, the environmental payoffs cannot be quantified from a financial perspective.” about giving up the luxuries we have become so used to and dependent on. It is about enjoying these luxuries in a responsible and sustainable manner, so future generations can enjoy them too. Unfortunately, there is no silver bullet solution that can make your buildings green overnight. Fortunately, legislators, investors and tenants don’t expect a building to be 100% green, nor do they expect sustainability to be achieved overnight. But what is certainly expected is a clear intent to go green, manifested in a clear, practical plan towards ever-greener operations which is implemented with vigour and measured to determine success. Going green – as the phrase implies – is not a destination: it is rather a long-term journey of imbuing every aspect of your building and its operations with a green hue and then, over time and with a practical plan, deepening the shade of green for each activity. It is a never-ending process of continuous, incremental improvement, because while buildings and their occupants are consuming scarce natural resources in any form and/or are producing waste in any form, there remains room for going even greener. It is generally accepted that green companies tend to focus on two overarching goals: 1. Optimising efficiency, and 2. Increasing the use of alternative energy and sustainable technologies. So, we could define a green building as one that is proactively and continuously reducing its impact on the environment through a range of activities that are aimed at optimising efficiency and increasing the use of alternative energy and sustainable technologies. The concept of incremental improvement means that between where your building is now in terms of environmental performance and the vision of a green building operated efficiently and responsibly, there are a range of strategies and activities that could be implemented to bridge the gap step-bystep over time.

Bottom line: more profitable business
All these factors add up to one conclusion: green business is more profitable business. There are many thousands of green case studies and success stories across the globe. To mention just one, close to home, Woolworths has saved more than R100 million since 2004 through their sustainability strategy – referred to as its Good Business Journey – which is globally regarded as one of the most innovative and encompasses an array of energy-saving measures across its stores, offices and distribution centres. The savings have mainly been achieved through employee education and intelligent technology from lighting to refrigerators. And increasingly property owners, landlords and tenants are recognising the massive benefits of green buildings, as detailed in the figure below.

“Woolworths has saved more than R100 million since 2004 through their sustainability strategy”
Sean Liebenberg, new business executive at Excellerate Facilities Management adds: “One of the other key factors to be considered when changing a business unit or building from traditional to sustainable is to carry out a costbenefit analysis. The purpose of this is to make sure that the investors weigh the costs of doing business the usual way against the costs of keeping the environment in mind when conducting business. It is imperative to consider the social implications of implementing a sustainability programme into your business and how your organisation will reap the future rewards. Previously, when a person termed an organisation as being sustainable, one would have considered the steady increase in the earnings of that particular organisation, but in more recent times, sustainability of an organisation may refer to a strategy to save costs in order to drive the bottom line, thereby making good business sense. “There is a perception that implementing green methodologies costs more and is therefore not suitable for the average property owner. However, research has shown that the costs versus benefits of green building have a modest initial cost premium, but that long-term benefits far exceed the incremental capital costs. In addition, research has proven that if green methodologies are incorporated during the design phase of a project, it is far more cost effective than implementin rw&VV????F?F?fW2??6RF?R'V??F??r?2FWfV??VB?( ??6?W&6S??4w&r????6??7G'V7F????#0????vW"?W&F??r6?7G2?Vr?V?W&w?6?7G2?F?F??fV7?6?R6?7G2?sbR??v?W"'V??F??rf?VRB???B?b6?RCBP??3?P??3bRVGV6F????b?67W?G2&?WB7W7F??&??G?3R??vW"&V?F?&FW2#rR??7&V6VBFV??B&?GV7F?f?G?#RR??v?W"?67W?7?&FW2#RP??7F'B?W&R????F?R&?6W727F'G2v?F??V7W&??r??W"7W'&V?BW&f?&??6R?BF?V?6WGF??r&V?7F?2?&7F?6?v??2F???&?fRV?f?&???V?F?W&f?&??6R??7&V?V?F???fW"F??R??V7W&??r7W'&V?BW&f?&??6R&?f?FW27F'F??r???B?B&6V??Rv??7Bv??6?F??6WFV?&W"#24&V?W7FFR??fW7F?"P??F?R6?7B?&V?Vf?B??6?0???F?V?'??F?V??v???rw&VV??W7V6?????'V??F??w2?6?V?G2??RF?R???v?F?v??'WBv?B&RF?R6?7G2??f??fVC??wwr?&V??r?6?????6???rF???Rv?w&VV???FW7?FR6??R?7W&6WF???2?v???rw&VV??2??@???