compliantwww.8xfzy.com

www.
breeam.
comBriefingPaperEleniSoultiandDavidLeonardThevalueofBREEAMAreviewoflatestthinkinginthecommercialbuildingsector2The'value'ofsustainablebuildingsisatopicthatreceivescloseattentionfromawiderangeofindustryprofessionals.
Inresponse,numerouspublicationsinrecentyearshavesoughttoquantifythisvalueinitsvariousformsandwhatitmeansfordifferentstakeholdersincludingdevelopers,ownersandtenantsofsustainablebuildings.
ThisdocumentaimstobringtogetherthefindingsofsuchpublicationsandindoingsopresentthebusinesscaseformaximisingsustainabilitythroughBREEAMcertificationofnon-domestic(commercial)buildings.
ThecontentisorganisedunderthebusinessbenefitscategoriesidentifiedbytheWorldGreenBuildingCouncil(WGBC)reporton'Thebusinesscaseforgreenbuilding'andreferencesotherindependentorganisationsincludingtheRoyalInstitutionofCharteredSurveyors(RICS),BuildingServicesResearchandInformationAssociation(BSRIA)andtheUrbanLandInstitute(ULI).
Overview3BREEAMleadingthemarketforbuildingsustainabilityLaunchedin1990,BREEAMistheworld'sfirstandforemostsustainabilitystandardandratingsystemforthebuiltenvironment.
Onagloballevel,thereareover540,000buildingswithcertifiedBREEAMassessmentratingsandmorethantwomillionregisteredforassessment.
The2015RICSreport'GoingforGreen'foundthatBREEAMhasan80%marketshareacrossEuropeforsustainablebuildingcertification1.
Moreover,the2014reportbyinternationallawfirmDLAPiper'Towardsagreenerfuture',alsohighlightstheleadingpositionofBREEAMwithinthesector.
Betweenthefiveprincipalstandardsinvestigated2BREEAMwasthepreferredcertification,with60%ofrespondentsrankingit1st.
Inthesamesurvey,83%ofsustainabilityprofessionalsplacedBREEAM1st.
Duetoitslongandpioneeringpresenceinthesector,BREEAMpushestheboundariesofsustainabilitybyaimingforzerocarbon.
1ThisfigureisbasedoncertificationdataforthefivecertificationschemesCASBE,DGNB,LEED,BREEAMandHQEintheperiodApril2013toMarch2015.
2Thefollowingstandardswereinvestigated:USbasedLEED,BREEAM,CASBEfromAustralia,theFrenchHQEandtheGermanDGNB.
Thebriefingpaper'AssessingcarbonemissionsinBREEAM'publishedin2016demonstratedthattheaverageCO2savingforaBREEAMassessedbuildingis22%,whilstaBREEAMExcellentbuildingisexpectedtoreducecarbonemissionsby33%.
ThefollowingparagraphshighlightthebenefitsofBREEAMfromabusinessperspective.
Benefitscanbeidentifiedforthreemaincategoriesofstakeholders;namelythedevelopers,theownersandthebuildingtenants.
GoodVerygoodExcellent32%66%15%10%OutstandingCO2emissionssavingsAverageCO2emissionssavingsassociatedwithdifferentBREEAMratingsBREEAMishighlyrecommended:A2012BSRIAreportcapturingtheindustry'sperspectivewithregardstoBREEAM,foundthat96%ofthesurveyrespondentswoulduseitagain;88%statedtheywouldrecommenditsusetoothers.
4Thedeveloper'sperspective:The'TargetZero'reportfundedbyTataSteelandtheBritishConstructionalSteelworkAssociationin2011analysedtheadditionalcostofachievingBREEAMratings,basedonthe2008schemeavailableatthetime.
Theincreaseincapitalcostsfordifferentbuildingtypesandcertificationlevelsissummarisedinthetablebelow.
ThereportnotestheinclinationtoallocateallcostsrelatedtoBREEAMcreditstothecostofBREEAMbutthata'standardpractice'baselinemustbeusedtoenableanaccuratecomparison.
Forexample,theBSRIAreportexplainshowinstallingbuildingtechnologiesandactiveenergymanagementisbecomingstandardpractice,withlessthan30%ofthesurveyrespondentsdoingthissolelytoachieveBREEAMcredits.
ThemorerecentresearchbyBREandSweettGroup,'Deliveringsustainablebuildings'hasquantifiedthecostofachievingBREEAMcertification,basedonthe2011scheme,fordifferentsitesandbuildingtypes.
Itconcludesthattherearemanysustainabilitymeasuresthatcanbeimplementedforlittleornoadditionalcapitalcost,butwithapositiveeffectonoperationalcosts.
AchievingBREEAMcertification,rangingfroma'Pass'toan'Excellent'rating,isshowntoincuranincreaseincapitalcostfrom0%to1.
71%forofficeandschoolbuildings,andupto5.
51%forahealthcarebuildingina'poor'locationtoachieveanExcellentrating.
Thesameresearchshowedthatduetothesavingsinoperationalcosts,a2%highercapitalcostcanbepaidbackwithintwotofiveyears.
Finally,the2016updatetotheBREandSweettGroupresearchrevisedthenumbersforanofficecasestudycompliantwithcurrentBuildingRegulations(PartL2a2013)andachievingaBREEAMExcellentratingundertheBREEAMUKNewConstruction2014.
ThecostupliftduetoBREEAMwasfoundtobeonly0.
4%.
Althoughtheaforementionedreportsareindependentworkswithdifferentassumptionsandcasestudies,theyprovideconfidencethatthecostofachievingBREEAMhasreducedinrecentyears.
DeveloperWhywouldIwanttobuildthisgreenbuildingTenantWhywouldIwanttoleasethisgreenbuildingOwnerWhywouldIwanttoownthisgreenbuildingSlowerdepreciationRapidreturnoninvestmentCorporateimageandprestigevalueLoweroperatingcostsLowerrefurbishmentCostsLowermaintenancecostsIncreasedproductivityHealthandwellbeingReduceddowntimeLowertransactionfeesCompliancewithlegislationandCSRrequirementsAbilitytosecurenanceLowerdesignandconstructioncostsHighersalespriceIncreasedmarketvalueIncreasedoccupancyratesReducedvacanciesQuickersalesLowerexityieldDesignandconstructioncost:dispellingmythsaboutcostIncreaseincapitalcostsfordifferentbuildingtypesandcertificationlevelsEducationIndustrialRetailOfficeMixedUseRatingSchoolIndustrialRetailOfficeMixedUseVeryGood0.
2%0.
1%0.
2%0.
2%0.
15Excellent0.
7%0.
4%1.
8%0.
8%1.
5%Outstanding5.
8%4.
8%10.
1%9.
8%4.
8%Source:TataSteel,BritishConstructionalSteelworkAssociationLimited,AECOM,CyrilSweett,TheSteelConstructionInstitute,DevelopmentSecuritiesPLC,2012.
Source:WorldGreenBuildingCouncil,20135Assetvalue:increaseinrental/salepricesandpreserving/increasingpropertyvalueThedeveloper'sperspective:The2013reportbytheWorldGreenBuildingCouncilmakingthe'Businesscaseforgreenbuilding',suggeststhatcertifiedgreenbuildingshavesalepricesincreasedbyuptoapproximately30%comparedtoconventionalcode-compliantbuildings.
Theowner'sperspective:Accordingtothesamereport,BREEAMcertificationcanincreaserentalratesforbuildingsbyupto24.
9%comparedtoconventional,code-compliantbuildings.
The2014DLAPiperreportsuggeststhat38%ofthesurveyparticipantsidentifiedvaluepreservationorincreaseastheprimebenefitofsustainablerealestate,followedbyreputation(18%)andreductionofenergycosts(15%).
Operatingcosts:reducinglifecyclecostsThetenant'sperspective:Theresearchpaperon'Benchmarkingenergyuseofbuildingenvironmentalassessmentschemes'analysesthecharacteristicsofdifferentcertificationschemesandshowsthatBREEAMtakesintoconsiderationoperationandperformancedata;thisisacharacteristicthatdifferentiatesBREEAMfromitscompetitors.
Moreover,BREEAMistheonlyone(amongstthefiveschemesconsidered)thataddressesmanagementwithregardstofunctionalityandcontrollabilityofbuildingsystems.
43%oftheBSRIAValueofBREEAMsurveyrespondentsidentifiedoperationalcostsavingsamongthebenefitsofBREEAM.
Inparticular,thisreportemphasiseshowBREEAMencouragestheuseofintelligentcontrolsandsmartmetering,whichcanfacilitatemaintenanceandperformanceandthusreduceassociatedcosts.
Valuepreservation/increaseReductionofoperatingcostsEmissionreduction/environmentalprotectionImprovedworkingatmosphere/enhancedcomfortandconvenienceReductionofenergycostsReputation13%15%18%38%11%5%0100,000200,000300,000400,000500,000EnergyWaterEnergyWaterEnergyWaterOffice(GFA13,800m2)Secondaryschool(GFA8,716m2)Communityhealthcarecentre(GFA2,710m2)Operatingcostsavings()minimumaveragemaximumWhatdoyouconsidertobetheprimebenefitofsustainablerealestateSource:DLAPiper,2014.
6Thetenant'sperspective:SomeofthemostimportantbenefitsassociatedwithachievingspecificBREEAMstandardsarerelativelyintangibleanddifficulttoquantify,suchasthoseassociatedwithimprovedacousticperformanceordaylighting.
However,anincreasingbodyofevidencepointstotherelationshipbetweenbuildingdesign,occupantwellbeingandfinancialoutcomes.
TheWorldGreenBuildingCouncilreporton'Health,WellbeingandProductivityinOffices'citesfactorssuchasindoorairquality,thermalcomfortandlightingashavingasignificantfinancialimplicationforemployersthroughtheirimpactonstaffproductivityandabsenteeism.
'Staffcosts,includingsalariesandbenefits,typicallyaccountforabout90%ofabusiness'operatingcosts(asthediagramshows).
Itfollowsthattheproductivityofstaff,oranythingthatimpactstheirabilitytobeproductive,shouldbeamajorconcernforanyorganisation.
'(TheWorldGreenBuildingCouncil.
Health,Wellbeing&ProductivityinOffices:Thenextchapterforgreenbuilding;2014.
)ImprovingindoorenvironmentalqualityandoccupanthealthhasbeenoneofthemainobjectivesofBREEAMforover25years.
Accordingtothejournalpaper'Developanenvironmentalassessmenttechniqueforhumancomfortrequirementsinbuildings',whichcomparedtheapproachesofmultiplecertificationschemes,BREEAMhighlyprioritiseshumancomfortrequirements.
Ananalysisofasampleof554projectsregisteredundertheBREEAMUKNewConstruction2011scheme,showsthat91%,57%and77%ofthoseprojectsachievedcreditsforimprovingtheirinternalandexternallighting,theindoorairqualityandthethermalcomfortoftheiroccupantsrespectively.
Meanwhile,theBSRIAreport'ThevalueofBREEAM'placesimprovedoccupantsatisfactionamongthemostsignificantsocialbenefitsofBREEAM.
1%Energycosts9%Rentalcosts90%StaffcostsinsalariesandbenetsWorkplaceproductivity,buildinguserexperienceandhealthThereareanumberofgoodexamplesofpositivetenantfeedbackfromBREEAMcertifiedbuildingsaroundtheworld.
ForexampletherecentBREEAMOutstandingcertificationofCoca-ColaFrance'scorporateheadquartersinParisgeneratedthefollowingfeedback:TheBREEAMFit-OutOutstandingcertificationshowsourlevelofdedicationregardingenvironmentalissues.
Wewantedthesespacestopromotehealthandwellbeingforouremployees;thedesignaimstoencouragepeopletowalkacrossthedifferentspacetypesavailablethroughouttheday,andtoprovokecreativity,serendipityandcooperation.
SophieDigard,HRStrategicBusinessPartner,Coca-ColaFranceSource:WorldGreenBuildingCouncil,2014.
7RiskmitigationThedeveloper'sperspective:AccordingtotheUrbanLandInstitute,future-proofingassets,improvingresilienceandreducingrisksisvitalfortherealestateindustry.
Theirreporthighlightsthatthehighinsurancecostsforvulnerablebuildingsprovideareasontoinvestinresilienceandinclimatechangerelatedriskmitigation.
IssueswithintheBREEAMcertificationschemeforNewConstruction,suchas'Designingfordurabilityandresilience'and'Adaptationtoclimatechange'addresstheseconcernsthroughencouragingtheimplementationofappropriatestructuralandfabriccharacteristicsforresilience.
TheInnovateUKTechnologyStrategyBoardhasproducedareporton'Thebusinesscaseforadaptingbuildingstoclimatechange'basedontwoexpertpanelmeetings.
Thereportrecognisedthe'explicitattentiontoclimatechangeadaptation'introducedinthe2014versionofBREEAMNewConstruction,aswellastheroleofBREEAMindrivingindustrytransformationby'bridgingthegapbetweeninnovativeandmainstreampractice'.
Fromthe2016GRESBdebtassessmentparticipants,morethan90%considernaturalhazardsandenergyratingsaspartoftheirriskmanagementprocess.
Greenbuildingcertificationsalsocomeataveryhighplace,withapproximately70%oftheparticipantsincludingthemwithinriskmanagement.
Source:2016GRESBReport:https://gresb-public.
s3.
amazonaws.
com/2016/content/2016_Debt_Snapshot.
pdf8Developer,Owner,andTenant:TheInnovateUKTechnologyStrategyBoardreport,suggeststhatBREEAMgivesclients'awaytodifferentiatethemselvesinacompetitivemarketwithahighlyvisible,authoritativeandinternationallyrecognisedqualitymark'.
Morespecifically,thesurveyconductedbyBSRIAontheValueofBREEAM,suggeststhat,froma'socialperspective',industryrecognitionisthemostsignificantbenefit,followedbyadvantagesinpublicrelationsandCorporateSocialResponsibility(CSR).
Infact,approximately40%ofthedeveloperssurveyedconsideredCSRoneofthemainreasonstopursueaBREEAMcertification.
0102030405060708090100PercentageofrespondentsRecognitionorindustrystandingPublicrelationsCSRCommunitybenefitImprovedemployeeretentionImprovedemployeeproductivityImprovedoccupantsatisfactionImprovedoccupantcomfortCorporateimageandcompliancewithCSRrequirementsc.
40%ofthedeveloperssurveyedconsideredCSRoneofthemainreasonstopursueaBREEAMcertificationSource:ParkerJ.
BSRIA,2012.
9RegardlessoftheperceivedchallengesrelatedtotheachievementofBREEAMcertification,therearewaysoffacilitatingitsimplementationinpracticeandthereforemaximisingthevaluegainedfromthecertificationprocess.
Examplesofkeyfactorsincludeearlyconsideration,settingrealistictargetsandinvolvingBREEAMexperts.
Thefollowingdocumentsaresomeofthesourcesprovidinginformationinthisarea:ParkerJ.
TheValueofBREEAM.
London:BSRIA;2012.
BREEAMGuidanceNote19.
BRE;2014.
TataSteel,BritishConstructionalSteelworkAssociationLimited,AECOM,CyrilSweett,TheSteelConstructionInstitute,DevelopmentSecuritiesPLC.
TargetZero:Guidanceonthedesignandconstructionofsustainable,lowcarbonofficebuildings;2012.
AchievingBREEAMinpracticeFuturedevelopmentAllBREEAMschemesareupdatedonaregularbasisinresponsetostakeholderfeedbackandchangesinindustrypractice.
BREEAMcertificationwillthereforecontinuetoprovidevalueinrespecttothethreepillarsofsustainability;enablingimprovedenvironmental,economicandsocialoutcomesforthebuiltenvironment.
10ReferencesAbdulY,QuartermaineR.
FB63:Deliveringsustainablebuildings:savingsandpayback.
BRE,SweettGroup.
IHSBREPress;2014.
BienertS.
Extremeweathereventsandpropertyvalues:Assessingnewinvestmentframeworksforthedecadesahead.
London:UrbanLandInstitute;2014.
Deloitte.
LondonOfficeCraneSurvey:Gearingupforthenextphaseofconstruction;2014.
DLAPiper.
Towardsagreenerfuture;2014.
FekryAA,ElZafaranyAM,ShamseldinAKM.
Developanenvironmentalassessmenttechniqueforhumancomfortrequirementsinbuildings,HBRCJournal.
2014:10(1):1-9.
LeeWL.
Benchmarkingenergyuseofbuildingenvironmentalassessmentschemes.
EnergyandBuildings.
2012;45:326-334.
ParkerJ.
TheValueofBREEAM.
London:BSRIA;2012.
TataSteel,BritishConstructionalSteelworkAssociationLimited,AECOM,CyrilSweett,TheSteelConstructionInstitute,DevelopmentSecuritiesPLC.
TargetZero:Guidanceonthedesignandconstructionofsustainable,lowcarbonofficebuildings;2012.
ThompsonM,CooperI,GethingB.
Thebusinesscaseforadaptingbuildingstoclimatechange:NicheormainstreamInnovateUKTechnologyStrategyBoard;2015.
RICS.
GoingforGreen:SustainableBuildingCertificationStatistics.
2015.
WorldGreenBuildingCouncil.
Thebusinesscaseforgreenbuilding:AReviewoftheCostsandBenefitsforDevelopers,InvestorsandOccupants2013;2013.
WorldGreenBuildingCouncil.
Health,Wellbeing&ProductivityinOffices:Thenextchapterforgreenbuilding;2014.
11123864BREGlobalLtd2016BREGlobalLtd2016Permissionisgrantedforthisreporttobedistributedonlyinitsentirety,withoutamendment,andwithcopyrightattributiontoBREGlobalLtd.
Everyefforthasbeentakentoensuretheaccuracyofthisreportbutnowarrantyismadeinrespectofanyconclusionsoropinionsexpressedherein.
BREGlobalLtd'sliabilityinrespectofthisreportandanyreliancethereuponisdisclaimedandBREGlobalshallhavenoliabilitytothirdpartiestotheextentpermittedinlaw.
BREEAM(BuildingResearchEstablishment'sEnvironmentalAssessmentMethod)istheworld'sfirstsustainabilityratingschemeforthebuiltenvironment.
Throughitsapplicationanduse,BREEAMhelpsclientstomeasureandreducetheimpactsoftheirbuildingsandindoingso,createhighervalue,lowerriskassetsthatarebetterforpeopleandtheenvironment.
Overthelast25yearsBREEAMhasevolvedandgrowntoreflectadvancesinscience,technology,policyandbusiness.
BREEAMistheworld'sleadingsustainabilityassessmentmethodforbuildingsandcommunities,withmorethan530,000certificatesissuedandaglobalreachencompassingmorethan70countries.
FindoutmoreaboutBREEAM'sachievementsoverthelast25yearsbyvisitingourdedicatedmicrositewww.
breeam.
com/breeam25Photoscourtesyof:1BroadgateEstates(FrontCover,BackCoverandPages2,9&11)fromtheBREEAMOutstandingTheHub,Londonwww.
breeam.
com/thehub2Coca-ColaFrance(Pages6/7)fromtheBREEAMOutstandingNodabuilding,Pariswww.
breeam.
com/noda