Sustainable Facilities Now A Business Success Imperative

Global climate change is bringing the onset of a remarkable change to business strategy. Corporations that differentiate themselves with sustainable, integrated organizational strategies will realize competitive advantage in today's marketplace.  More than just a passing fad, sustainable facilities are now an imperative for business success.

The built environment has a profound impact on our natural environment, economy, health, and productivity. Buildings in the United States annually account for 39% of total energy consumption, 71% of electricity consumption, 39% of greenhouse gas (CO2) emissions, 30% of raw materials use, 30% of waste output, 12% of potable water consumption. Worldwide, buildings account for 17% of fresh water withdrawals, 25% of total wood harvest, 33% of greenhouse gas (CO2) emissions, and 40% of material and energy use (45% in China).

The concept of sustainability and green building emerged more than twenty years ago and is today regarded as one of the leading drivers of building design and construction. The positive effects of green building can be linked directly to reducing greenhouse gas emissions and offsetting global climate change.

Worldwide, green building has enjoyed a tremendous impact on the way buildings are designed and constructed. However, it is the next generation's perspective that will link green building directly to the bottom line of corporations. A study by the United States Green Building Council  (USGBC) states that 89% of the next generation of consumers will choose brands aligned with social cause, 74% listen to brands aligned with social cause, 69% shop for brands aligned with social cause, and 66% of consumers recommend brands aligned with social cause.

Furthering the research into social cause and consumer trends, leading global consulting firm McKinsey & Company conducted a worldwide survey of business executives and consumers aimed at quantifying the relationship between organizational strategy and consumer behavior.  The survey identified that business executives now consider the environment as the leading sociopolitical issue that will attract the most attention from the public and politicians for at least the next five years. It also implicitly concluded results similar to those of the USGBC study linking corporate social responsibility to consumer buying habits and trends. The four major industries most affected by these trends, as indicated by the survey will be food and beverage, high_tech, petroleum, and retailing.  Businesses must act on global warming to narrow a general trust gap between them and the public.

Beyond social cause, green design and sustainable strategies can unequivocally be linked with increased worker productivity and using green materials increases health benefits. A Herman_Miller study found a 7% increase in worker productivity following a move to a green, daylit facility. Reports from other companies that have developed sustainable design and business strategies echo those of the Herman_ Miller study, and additionally state a 5% decrease in sick employee sick time.

According to the Gregory Kats "Green Building Costs and Financial Benefits" [2003] Report, "a 1% increase in productivity (equal to 5 minutes per working day) is equal to $600 to $700 per employee per year, or $3 sq ft per year. A 1.5% increase in productivity — a little over 7 minutes each working day — is equal to about $1,000 per year, or $4 to $5 sq ft per year. Over 20 years and at a 5% real discount rate, the present value of the productivity benefits is about $35 sq ft for Certified and Silver level buildings."

Sustainable strategies reduce operating expenses, improve the life cycle cost of business operations, and increase return on investment. Green design and building leads to an 8_9% decrease in operating costs, 7.5% increase in building values, 6.6% improvement in return on investment, 3.5% increase in occupancy, and a 3% increase in rent rates.

Business executives can no longer afford to ignore the benefits of green building, nor the social impact of environmental strategy and corporate social responsibility. Global climate change is happening, and whether or not the merits and causes are scientifically agreed upon - the evidence of change is clear. In order to differentiate in this new marketplace, corporations must respond with an organizational strategy aligned with the natural environment.

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