1. Art and Diseño

ISSUE 2
ENVIRONMENT MATTERS FOR REAL ESTATE
Water Shortages in Asia: Issues for
the Real Estate Industry
Steps Towards the Greening of Real
Estate Investment in Asia
Facilities Management: On the Front
Lines of Sustainability
ASIA
Act Locally, Share Globally Why City Mayors are Critical in the
Fight Against Climate Change
Market news from around the region
Climate change news and analysis
CONTENTS
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04
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12
20
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Sustainability Asia
FOREWORD
Introduction by Chris Brooke, President and
CEO, Asia, for CB Richard Ellis
MARKET NEWS
A roundup of green building news from
across the region
CLIMATE CHANGE NEWS
The latest developments relating to climate
change and how they affect the real estate
industry
MAIN FEATURE
Water Shortages in Asia:
Issues for the Real Estate Industry
FEATURE
Steps Towards the Greening of Real Estate
Investment in Asia
FEATURE
Facilities Management: On the Front Lines
of Sustainability
FEATURE
Act Locally, Share Globally Why City Mayors are Critical in the Fight
Against Climate Change
FOREWORD
The real estate industry
has a crucial role to
play in using water
in a responsible and
sustainable way
W
elcome to the second edition
sustainable way as stress on Asia’s water
large, complex and diverse asset portfolios
of Sustainability Asia, CB
resources continues to intensify in the
as part of their daily responsibilities.
Richard Ellis’ bi-annual
years ahead.
We also preview the forthcoming C40
workshop scheduled to take place in Hong
publication covering the
latest regional news and developments in
The greening of real estate investment
Kong in November. The event will bring
green real estate. We have been delighted
is another topical issue. Government
together representatives of cities from
by the positive response to the inaugural
regulations and incentives, increasingly
around the world to discuss the challenges
issue released earlier this year and are also
costly natural resources, legal risks, the
and opportunities of creating modern,
grateful to those of you who took the time
rise of corporate social responsibility,
low-carbon and liveable metropolitan
to respond to our reader survey. We have
changing occupier behaviour and
centres.
implemented many of your suggestions
stakeholder pressure are all combining to
in this second issue and will continue to
compel the integration of environmental
In addition, we provide our usual
strive to improve the publication in future
issues into the process of real estate
round-up of green real estate news from
editions.
investing. We examine how leading
major markets around the region along
real estate investors are evaluating and
with a review of the latest issues and
In this edition we look at the issue of
enhancing the environmental performance
developments related to climate change.
water shortages and how they could
of assets in their portfolio to prevent
impact the real estate industry in Asia.
obsolescence and reduce exposure to
Thanks once again for your ongoing
Recent years have seen growing concern
future taxes and penalties associated with
support, and I hope you find the second
over a world water crisis as unpredictable
carbon emissions and energy use.
edition of Sustainability Asia as useful
and informative as you did the first.
weather patterns, agricultural production,
rapid urbanisation and population
Elsewhere in this edition we report on
growth combine to increase demand for
how sustainability is becoming a critical
fresh water. The emerging trend of water
component of facilities management
scarcity will pose a number of challenges
practices in Asia. FM professionals across
for the property sector and it is clear
region are increasingly driving energy and
that our industry has a crucial role to
water efficiency programs and managing
play in using water in a responsible and
waste and recycling initiatives across
CHRIS BROOKE
PRESIDENT & CEO, ASIA
Sustainability Asia
3
MARKET NEWS
A roundup of green building news from across the region
China
demonstration projects in order to promote
the development of renewable energy.
Chinese and US Green Building
Councils sign Memorandum of
Understanding
Central government launches
nationwide green city demonstration
project
The central government has finished
accepting applications for subsidies to
develop green building demonstration
cities across the country. The programme
has been developed by the Ministry of
Finance and the Ministry of Housing
and Urban-Rural Development and aims
to promote the greater use of renewable
energy nationwide by creating green
cities with sustainable design which
use renewable power and have efficient
and modern transportation systems.
The central government will cover 60%
of the total cost of construction of the
developments, which will be paid in
three-year installments. A maximum
of two demonstration cities and three
counties are permitted to apply for each
province. Developers are required to use
energy efficient building technology in the
construction of the eco-cities, including
building-integrated photovoltaics, solar
water heating systems, geothermal heat
pumps, insulation and lighting.
Ministry of Finance unveils budget for
emissions reduction projects
The Ministry of Finance has announced
that a total of RMB 141.288 billion will
be allocated to environmental protection
projects in 2010, with RMB 83.3 billion
dedicated exclusively to energy-saving
emission reduction programmes. Projects
will include those that promote the
development of low carbon technology,
encourage energy conservation and the
use of new energy vehicles, and support
the construction of urban sewage and
garbage treatment facilities and pipeline
networks. RMB 10.9 billion will be
provided to support the implementation of
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Sustainability Asia
The US Green Building Council (USGBC)
and China Green Building Council (GBC)
signed an MoU in February to foster
greater collaboration and support ecofriendly building practices in the two
countries. The USGBC said in a statement
that the two organisations would work
together to promote green buildings
and carbon emissions reductions in
the building sector. This will include
supporting green building conferences
held by the two organisations and joint
research and educational projects on a
series of issues of mutual interest.
end of 2011. The company says that the
project’s low-carbon elements will include
the use of new energy sources along
with environmentally-friendly building
materials. The project is being constructed
on a brownfield site close to existing
transportation networks and appears to
be a good fit with the Beijing Municipal
Government’s stated desire of developing
low-carbon areas of the city.
Hong Kong
High-rise building in Shanghai achieves
LEED-CS Gold pre-certification
Kai Tak redevelopment project to
include green features
A 26-storey commercial tower currently
under construction in Shanghai has been
awarded LEED Gold Precertification
under the LEED-Core and Shell (LEEDCS) program, the first high-rise building
in Shanghai to receive such an award.
The building at 1080 East Dondaming
is located two blocks from the Huangpu
River in Shanghai’s old Jewish Quarter.
The LEED-CS rating evaluates the
entire project with the exception of the
interior spaces of tenants. The building’s
sustainable features include decreased
energy usage throughout its interior
space; a ground source heat pump;
occupancy sensors to allow greater
management of individual areas; the use
of regional materials; and the reduction
of building water use and water efficient
landscaping.
The redevelopment of the site of the
former Hong Kong International Airport
at Kai Tak in Kowloon will reportedly
include a number of environmentally
friendly features. The massive project,
which is set to include a public housing
estate, a shopping mall, a cruise terminal
and several government buildings, will
include a HK$1.67 billion district-wide
cooling system which is expected to
reduce electricity consumption by 35%
compared to traditional air-conditioning
systems. The system, which will have the
capacity to serve 1.73 million sm and cool
30 40-storey buildings, will save up to
850 million kilowatt-hours of electricity
a year, and can reduce 59,500 tonnes of
carbon dioxide. The public housing estate
on the site will also include various other
energy saving methods to reduce carbon
emissions, such as using solar power. The
estate will occupy 9.17 hectare area (30%
of which will be a green belt) on the site.
Other environmentally friendly initiatives
to be integrated into the project include
LED lighting, a water-saving system, paths
and flower beds created from recycled
materials and designated areas to recharge
electric cars.
CapitaLand to launch low-carbon
residential community in Beijing
CapitaLand is launching a low-carbon
residential community development
in Beijing’s eastern expansion area.
The project, known as Beauford, is
Capitaland’s response to the Ministry of
Construction’s “Assessment Standard
for Green Buildings” directive issued in
2006 and should be completed by the
MARKET NEWS
HKGBC proposes green incentives for
industrial buildings
The Hong Kong Green Building Council
(HKGBC) has unveiled proposals to
award additional gross floor area to
landlords who convert old industrial
buildings to other uses, provided they
incorporate green features. The draft
guidelines cover energy and water use,
waste disposal and greening. Under
the proposed scheme buildings should
attain the minimum energy performance
specified by mandatory building energy
codes (which will take effect next year)
and at least 0.5% of the buildings energy
consumption should be generated from
renewable energy. Washing and laundry
water should be recycled to reduce at least
5% of usual water consumption while
water-saving devices should be installed
to reduce annual water consumption
by 20%. Demolition waste must be
minimised and at least 30% of the waste
generated from the conversion process
should be recycled. Finally, at least 20%
of a building’s external area should be
covered with plants or foliage, including
vertical greening.
enhance collaboration, the sharing
of best practices and accelerate the
universal adoption of sustainable
building practices. The MoU outlines
a number of areas of collaboration
including sharing knowledge of their
respective green building rating systems
and other events, education, advocacy
and research programs; collaborating
on strategies to dramatically reduce
the impact of the built environment on
climate change; facilitating opportunities
for secondments and the training of
respective staff; working together with the
World Green Building Council (WGBC)
to help accelerate global best practice
for market transformation, and; assisting
other countries to develop green building
councils and green building rating
systems, under the auspices of the WGBC.
India
New warehouse and distribution
centre pursues HKBEAM certification
Goodman Group and the Goodman Hong
Kong Logistics Fund have announced
plans to begin construction of Interlink, a
2.4 million sf warehouse and distribution
centre in the Tsing Yi port area. The
development, which is expected to have
a total cost of HK$3 billion and deliver
a forecast yield on cost of 9%, aims to
incorporate operational efficiency with
environmental and sustainable design and
hopes to be the first building of its type
to obtain the HKBEAM accreditation and
award. The company says the building
has also been designed to achieve LEED
accreditation. Construction has already
begun and is expected to be completed by
January 2012.
Hong Kong Green Building Council to
collaborate with Australian counterpart
The Hong Kong and Australian green
building councils have signed a
Memorandum of Understanding to
New Delhi city government launches
building retrofit programme
The New Delhi city government has begun
retrofitting work on the first batch of 21
administrative buildings it has pledged to
reduce the carbon footprint of following
its signing of an MoU with The Energy
and Resource Institute (TERI). It is now
mandatory for all government buildings
in New Delhi to comply with the Energy
Conservation Building Code (ECBC),
formulated in May 2007 by the Bureau of
Energy Efficiency (BEE). In related news,
the new US$95 million state assembly in
Chennai, the capital of Tamil Nadu state,
has become the first legislative building in
the world to be awarded a Gold rating by
the Indian Green Building Council (IGBC)
under the LEED certification scheme.
Designed by the German architectural firm
GMP, the building has been designed to
harvest natural light and reduce heat to
save on power. Initial estimates are that
the building saves around 20% of power
consumption compared to other buildings
of the same size. There is 340,000 sf of
green space available inside the assembly
complex while all water is recycled
through an on-site sewage treatment plant.
New guidelines drafted for green
township housing complexes
The government has called on the country’s
leading real estate developers to voluntarily
adopt new guidelines being prepared by
the Ministry of New and Renewable Energy
(MNRE) and the Energy and Resource
Institute (TERI) governing the construction
of low energy consuming green housing
complexes. The new guidelines would
include the requirement that projects
should meet 5% of their energy needs
from renewable sources. The government
recently entered into a joint venture with
Ansal Properties which will invest around
IDR 1,300 crore (US$278 million) over
the next three years to develop a 112-acre
green township called Esencia in Gurgaon.
In related news, the state government
of Maharashtra has announced plans to
introduce an amendment in Development
Control rules in an effort to persuade
developers to adopt green technology
for their projects in the state. Developers
adhering to the new guidelines will get a
Zero Energy Certification for their projects
and will be granted additional FSI (Floor
Space Index).
New Delhi unveils green indoor
stadium ahead of Commonwealth
Games
The Indira Gandhi Indoor Stadium,
India’s largest indoor sports venue, has
opened ahead of the Commonwealth
Games, which are scheduled to take place
in October this year. The stadium, built
over an area of 72,425 square metres and
boasting a seating capacity of 14,500,
is equipped with a number of green
features including a thermally insulated
roof, external glazing with low energy
tinted glass and energy efficient lighting
fixtures. It also incorporates a number of
water conservation features including a
rainwater harvesting system.
Sustainability Asia
5
MARKET NEWS
YCH India unveils green logistics
facility in SIPCOT Special Economic
Zone
YCH India, the Indian subsidiary of
Singapore-based logistics and supply
chain management company YCH
Group has formally opened a 525,000
sf YCH DistriPark logistics building in
Sriperumbudur in the SIPCOT Special
Economic Zone (SEZ). The building is
strategically situated along the ChennaiBangalore Highway and is the first
warehouse facility in the country to
receive LEED Gold certification from the
Indian Green Building Council (IGBC).
Indonesia
Green Building Council Indonesia
launches Greenship rating tool
The Green Building Council Indonesia
(GBCI) formally launched its new green
building rating system, Greenship, on
June 17. The new system covers six rating
criteria including the use of site, energy,
water, and materials, indoor quality and
environmental management. Ten buildings
in Jakarta, all of which are still under
construction, have already been registered
for green building certification. Three of
them are government buildings: City Hall’s
Block G, the Jakarta Legislative Council
building and the Public Works Ministry
building. GBCI founder Naning Adiwoso
said the tool would soon be available
to certify buildings in other parts of the
country including Sumatra and Bali. One
significant differentiator for Greenship
is that even for new buildings, the
certification is only valid for three years,
after which recertification is required,
making it stricter than the LEED scheme.
Jakarta authorities to introduce
citywide green building rating scheme
City authorities in Jakarta are shortly
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Sustainability Asia
expected to unveil a revised bylaw on
building permits that will require future
construction projects to meet energy
efficiency standards. The Jakarta Building
Supervisory Agency will study developers’
construction plans after they have secured
building permits to ensure designs meet the
standards of the bylaw. However, the city
will not issue green building certificates,
but will instead issue a benchmark rating
in line with the lowest standard set by
the Green Building Council of Indonesia
(GBCI). It is hoped that the new regulation
will help the country meet its target of
reducing carbon dioxide emissions by 26%
from current levels by 2020.
Japan
The Tokyo Metropolitan government has
introduced an obligation to reduce total
greenhouse gas emissions, along with
an emissions trading system, under the
amended Tokyo Metropolitan Ordinance
on Environmental Preservation. The bylaw
stipulates that carbon emissions of an
office building must in principle be cut by
6-8% per annum over a five-year period
starting in fiscal 2010. For the purpose
of reducing emissions, businesses are
allowed to engage in emissions trading in
addition to taking action to reduce their
own emissions. Any business failing to
meet the obligation will be required to
cut emissions by a volume that is 1.3
times the shortfall from the required level.
Violating the order will result in a fine
and other penalties. The law essentially
applies to landlords but also requires the
cooperation of tenants. Specified tenants,
including those occupying a total floor
area of 5,000 sm or more, must prepare
and execute their own action plans.
Mitsubishi Estates unveils Marunouchi
1-4 Project
Revised Energy Conservation Law
comes into force
The revision of the Law Concerning the
Rational Use of Energy, commonly referred
to as the revised Energy Conservation
Law, came into full effect in April. One of
the key points for business is a shift from
energy management at individual factories
and premises to energy management on
a companywide scale. All businesses
must now accurately monitor how much
energy they consume in total every year.
Any business with a total annual energy
consumption of 1,500 kiloliters or more is
obliged to submit an energy consumption
report to the relevant Bureau of Economy,
Trade and Industry. The threshold of
1,500 kiloliters corresponds to some 6
million kilowatt-hours per year or, in the
case of an office, to a total floor area of
roughly between 20,000 to 30,000 sm. The
legislation then requires these businesses
to improve energy consumption efficiency
by at least 1% each year.
Tokyo Environmental Preservation
Ordinance amended
Mitsubishi Estate Co., Ltd. has announced
plans to build an environmentally friendly
27-storey 139,000 sm office building and
hopes to acquire Rank-S certification
under the Comprehensive Assessment
System for Building Environment
Efficiency (CASBEE) programme. Modern
LED grid lighting will be fully adopted
as standard lighting for the leased office
zone on the 11th to 26th floors and
will ensure that power consumption
will be about 38% lower than that of
fluorescent lighting. The building will
also be equipped with other eco-friendly
technology such as a large solar panel on
the rooftop, vegetation, district heating
and cooling and an air flow window
system in the office zone. The project
has been recognised by the Japanese
government as a model project for
reducing carbon dioxide emissions.
Shimizu Corporation to install micro
grid in new headquarters building
Shimizu Corporation will install a
micro grid, which uses a combination of
photovoltaic power generation and storage
MARKET NEWS
batteries, at its new head office building
at Kyobashi, Chuo-ku, Tokyo. The project
will be the first building in Japan to use a
micro grid, which is a power transmission
network for buildings and their premises
with distributed power sources. The
company says carbon dioxide emissions
from the building will be nearly half that
of ordinary buildings of equivalent size.
New Starbucks outlet applies for
LEED certification
Starbucks Coffee Company’s new outlet
in Ohori Park, Fukuoka, has become the
chain’s first store in Asia to be registered
for LEED certification. The outlet was
constructed and designed to integrate into
the existing landscape and to preserve
surrounding trees, while also minimising
energy and water consumption and
incorporating locally-sourced and reused
or recycled materials. Specific measures
include building low table tops with
reclaimed wood, reupholstering chairs
previously used in other stores, installing
LED bulbs to reduce energy consumption
and reusing rainwater collected from the
roof to water the landscape and flush
toilets. The company says it intends to
achieve LEED certification for all of its
new company-owned stores beginning
later in 2010.
Korea
Government revises regulations on
green building certification
Effective on July 1, the government
revised the Regulation on Green Building
Certification, decreasing the time required
to receive certification and diversifying
certification levels from two to four. Under
the current scheme, certification by the
Korea Green Building Council (KGBC)
is valid for five years, at which time an
extension may be granted. All building
certifications must be renewed after 10 years.
New convention centre achieves
LEED-NC certification
Songdoconvensia, a recently completed
convention center located in Songdo,
has received LEED-NC (Leadership in
Energy and Environmental Design for New
Construction) certification, making it the
first convention centre in Asia to receive
the award. Meanwhile, the Parc 1 office
project in the YBD has received LEED for
Core & Shell Gold Level precertification,
while The Center 1, which is a new Grade
A office property scheduled to come on
stream in the CBD in November 2010,
has achieved LEED for Core & Shell
Development Silver Level certification.
Malaysia
Malaysian Green Building Index
launches rating system for existing
buildings
The Malaysian Green Building Index (GBI)
has launched a new Non- Residential
Existing Buildings (NREB) rating system.
The GBI certification scheme for existing
buildings still covers the six core criteria
that is used for new structures including
energy efficiency, indoor environment
quality, sustainable site planning and
management, material and resources,
water efficiency, and innovation, with
some differences in emphasis. Points
are also given for a building which
demonstrates energy savings over the last
three years. The new GBI scheme will be
applied to offices and can also be used for
buildings such as warehouses and heritage
buildings.
10th Malaysia Plan includes green
building pledges
The Malaysian government has included
a number of initiatives related to green
buildings in its RM230 billion 10th
Malaysia plan announced in June. It
will promote environmentally-friendly
housing by introducing guidelines
and a green rating system and has also
pledged to take the lead in adopting green
building standards. New government
buildings will be designed to meet green
certification, while the energy efficiency
of existing buildings will be enhanced. As
a showcase example, the Prime Minister’s
Office complex will be upgraded to meet
the Gold Standard Green rating. A detailed
list of programmes and projects will be
unveiled by the end of August 2010.
Teliti Datacentres to build green data
centre at Enstek Business Park
Malaysian Information Technology
solutions provider Teliti Datacentres is to
invest US$100 million (RM323 million)
to build a green data centre at the Enstek
Business Park in Nilai, Negeri Sembilan.
The centre, to be completed by the end of
2011, will aim to secure Green Building
Index (GBI) certification by incorporating
a number of environmentally friendly
features including solar energy and
rainwater harvesting into its day-to-day
operations. The company is currently
collaborating with Cisco, which will
share data centre best practices and work
with Teliti as it develops a business
model for data centre management and
governance.
G Tower receives Green Mark Gold
Award
The new G Tower office building in
downtown Kuala Lumpur has been awarded
Green Mark Gold certification by the
Building and Construction Authority of
Singapore. The 30-storey tower uses 25%
less energy compared to other buildings
of similar size and location because of
its efficient air-conditioning and lighting
systems. Landscaping with sky gardens
and green walls help to cool the building
and improve air quality, while the building
uses double glazed glass panels to cut
down on heat transmission. A rainwater
harvesting system is used to irrigate plants
and vertical greenery found throughout the
entire building. The building’s interior decor
Sustainability Asia
7
MARKET NEWS
features a large quantity of old furniture that
has been refurbished and reused.
Philippines
Last year TI earned a LEED-NC Silver
certification on its Phase V expansion
project in Baguio City, which was also the
Philippine’s first LEED certified building.
Sun Life Centre completes topping out
UAP launches Philippines Green
Building Initiative
The Philippine Green Building Initiative
(PGBI) has been launched by the United
Architects of the Philippines (UAP).
The PGBI aims to provide an objective
approach to the study and assessment of
buildings incorporating international best
practice in building design, construction,
performance and energy efficiency. It
will promote the use of environmentally
and culturally sustainable architecture
and is presently developing its own
green building rating system suited to the
Philippines’ warm and humid climate.
It also plans to promote sustainable
building practices in aid of legislation
and regulation and in the formulation of
public policy relating to climate change.
Insurance company Sun Life has finished
the topping out of the Sun Life Centre
in Bonifacio Global City, its future
headquarters. The 14-storey building,
which has a gross leasable area of 22,500
square meters and will be fully operational
in 2011, has achieved LEED-Core and
Shell (LEED-CS) gold precertification,
making it one of the first commercial
buildings in the Philippines to do so. Its
environmentally-friendly features include
a window system which utilises doubleglazed low emissivity glass that permits
natural light in while at the same time
minimising noise and heat from outside,
thereby saving on energy costs.
Singapore
Texas Instruments’ Clark test facility
obtains LEED Gold
Punggol officially designated as
Singapore’s first eco-town
Texas Instruments (TI) Incorporated’s
new 780,000 sf assembly and test facility
in the Clark Economic Zone has become
the first such development of its type in
the Philippines to receive LEED Gold
certification. The site uses a highly
reflective roof covered with plants to
reduce heat gain and slow water runoff.
Natural day lighting is used where
possible and desiccant wheel air handling
provides dehumidified fresh air. More
than 20% of the materials in the building
were made from recycled content and 40%
of all construction materials were locally
produced. Reclaimed water is used for
toilet flushing while moisture condensed
from air is used for site irrigation during
the dry season. Preferred parking is
available for low emission vehicles.
The Singapore Housing and Development
Board (HDB) has announced that it
will establish Punggol as the country’s
first official eco-town. The new town
will serve as a test bed for new green
technology in the fields of energy,
waste and water management. Punggol
town is also home to HDB’s first green
public housing project, Treelodge@
Punggol, which features units that
incorporate solar panels and rainwater
recycling systems. The HDB will also be
introducing similar solar power systems
at Tampines, Bukit Panjang, Tanjong
Pagar and Marina Parade. The system
will have a combined capacity of 600
kilowatts and will be used to offset the
towns’ energy consumption.
8
Sustainability Asia
Six Battery Road obtains Green Mark
Platinum rating
Six Battery Road has been awarded
2010 Green Mark Platinum certification
by the Building and Construction
Authority (BCA), making it the first
existing office building in Singapore to
receive this accolade. In related news,
CapitaCommercial Trust (CCT) will
be embarking on a S$92 million asset
enhancement programme for the building
Additional green features will be installed
to increase its level of environmental
friendliness as well as improving
operational efficiency and enhancing
cost savings in the long term. The
improvement work will take four years
and is expected to be completed in 2013.
Organisations join launch of carbon
management tool pilot scheme
Six Singaporean organisations have signed
up to a web based carbon management
tool pilot programme supported by the
Singapore Economic Development Board
(SEDB). The programme, run by the
CarbonNeutral Company, a provider of
carbon reductions solutions, will see the
six organisations measure and manage
their carbon emissions online in order to
develop offset inclusive carbon reduction
programmes that will reduce costs,
help them improve their environmental
management and prepare them for
future regulations. The participating
organisations include City Developments
Limited, WongPartnership LLP, Jebsen &
Jessen (SEA) Ltd, Pan-United Concrete
Ltd, Drydocks World – Singapore Ltd and
The National University of Singapore.
The CarbonNeutral Company will work
closely with the participants to help them
measure their carbon footprints and then
develop offset inclusive carbon reduction
strategies.
Asian Green City Index unveiled
Speaking at Singapore’s World Cities
Summit in July, representatives from
Siemens and the Economist Intelligence
Unit have announced plans to conduct
an environmental performance study of
20 major cities from 11 countries across
the region. The countries to be included
MARKET NEWS
in the study are China, India, Indonesia,
Japan, Malaysia, Pakistan, the Philippines,
Sin­gapore, South Korea, Thailand and
Vietnam. The study will measure and
compare the cities according to eight
environmental categories including energy
supply and CO2 emissions, transportation,
buildings and land use, water, sanitation,
waste, air quality and green governance.
The results of the study will be published
later this year.
Taiwan
Taipei County promotes green
buildings in selected townships
The Taipei county government has
promulgated new rules to promote green
buildings in 20 townships and areas
in the county. Under the new rules,
development projects that meet domestic
green building certification standards
will be granted bonus floor area. The
new incentive scheme provides bonus
floor area of 6%, 8% and 10% of the legal
GFA to green building projects according
to their certified grade. In addition,
the county government has reduced
building coverage ratios for residential,
commercial and industrial lands by 10%
in order to increase the pervious areas of
a development site and improve urban
environmental quality.
Taiwanese projects receive FIABCI
Prix d’Excellence 2010
Two Taiwanese projects have won top
sustainability prizes awarded by the
International Real Estate Federation
(FIABCI). The Northern Taiwan Solar
City, an infrastructure project developed
by the Taipei county government, won
the FIABCI Prix d’Excellence Award 2010
in the sustainable development category
while the retail building Park Lane by CMP
located in Taichung City was the retail
category winner. Northern Taiwan Solar
City was built to promote photovoltaic
power generation system and popularise
the installation of building-integrated
photovoltaic (BIPV). Solar panels were
installed on all structures including
parking lot canopies, bus shelters and
an education center, which collectively
produce more than 200,000 kilowatt-hours
in electricity every year. As infrastructure
in the Solar City uses about 110,000 kwh
per year, excess electricity generated by
the project is sold back to Taiwan Power
Co. Park Lane by CMP won the award
in the retail category for installing green
plants on its facade, a measure which has
resulted in the absorbtion of 200 kilograms
of carbon dioxide and release of 150
kilograms of oxygen per day. The plants
also help maintain the temperature of the
building and reduce electricity use by 30%
in the summer.
Ministry of Agriculture distributes Q
Building Awards
The Ministry of Agriculture has
distributed Q Green Building awards to
the Padtayapatana Building at the Faculty
of Medicine, Chulalongkorn University;
the Abdul Rahim Building on Rama IV
Road, Bangkok City Tower, GPF Witthayu
Tower, Tanyarungroengchai Rice Mill, Ek
Burapa School, Pattaya City Hall, U Chu
Liang and Siam Paragon. The Q Building
programme is a pilot project aimed at
implementing green building standards.
Measured by Central Laboratory
(Thailand) Co, the programme is based on
five quality factors: food, water, indoor air,
health safety and environmental safety.
Vietnam
Premier designates green buildings as
a strategic industry
Taiwan’s Premier Den-yih Wu has
officially designated intelligent green
building a strategic industry. The
premier pledged to make green buildings
more widely available and affordable
to the public, setting the stage for the
growth of the sector and opportunities
for developers who can successfully
integrate information-communication
technology (ICT)with construction and
eco-friendly technology. Wu said that
Taiwan was well positioned to develop
intelligent green buildings by being the
world’s No.1 supplier of ICT products,
adding that combining ICT products with
green construction will enable Taiwan to
significantly improve the quality of life
and industry.
Thailand
Vietnam Green Building Council
launches LOTUS certification
The Vietnam Green Building Council
(VGBC) held its first major conference
on June 11th to officially launch the
LOTUS Non-Residential Green Building
Certification programme. The launch
of the 2010-2011 pilot program will
introduce a green building accreditation
tailored to the Vietnam market based
on guidelines created by LEED, Green
Star, BREEAM, GBI and others. The pilot
program hopes to provide three levels
of accreditation and develop an overall
maintenance and operation standard
designed for the specific challenges faced
in Vietnam. Currently the VGBC has three
to four buildings identified as potential
candidates for the pilot program.
Sustainability Asia
9
CLIMATE
CHANGE
NEWS
A
n extra round of climate talks
has been scheduled to take
place in China in October ahead
of a UN summit in Mexico at
the end of the year as nations attempt to
reach agreement over a new global climate
treaty. The talks, provisionally scheduled
to be held in Tianjin, will be the first
time that international climate talks have
been held in China, the world’s biggest
producer of carbon. Little progress has
been made towards a new binding climate
change treaty since the Copenhagen
summit late last year ended with a weak
and non-binding accord, and it is hoped
that the Tianjin meeting will lay the
groundwork for agreement at the UN
climate ministerial negotiations in Cancun
from November 29 to December 10.
The Asian Development Bank (ADB) has
pledged to increase funding for clean
energy programmes aimed at mitigating
climate change in the region. Haruhiko
Kuroda, president of the Manila-based
bank, said the institution was targeting
to spend US$2 billion on clean energy
technology beginning in 2013, double
the US$1 billion it is aiming to provide
between 2008 and 2012. The ADB also
plans to examine the possibility of setting
up a venture capital fund to benefit
developers of cutting edge clean energy
technologies and other technologies
that could mitigate climate change. The
multilateral is presently supporting the
development of renewable energy sectors
in Indonesia and a number of pacific
island nations.
Following a meeting held in Bali, water
professionals from the Association of
Southeast Asian Nations (ASEAN) have
pledged to work together to improve
water management and implement floodrisk mitigation measures to prepare the
10
Sustainability Asia
CLIMATE CHANGE NEWS
Munch Re has identified climate change as a major factor
driving the growing need for insurance in China.
region for flooding and serious weather
Climate change and the El Nino weather
irrigated agriculture. However, residents
events caused by climate change. The
phenomenon have been blamed for
of the Yellow River basin in China could
meetings saw representatives share their
a severe drought in Thailand and
benefit as they rely less on irrigation, and
experiences of extreme flood events and
Vietnam that could severely affect
also because the projected higher rains
flood-management initiatives and discuss
global rice supplies. The two countries
upstream could be retained in reservoirs
how to develop early-warning systems and
are the world’s first and second largest
for use later for crops. The report estimates
strategies to deal with the effects of floods
rice exporters respectively and have
that the food security of 4.5& of the
and other related events. As the frequency
experienced unusually hot weather
region’s population — about 63 million
of extreme weather events increases,
and lack of rain this year. In Thailand,
people - will decrease because there is
Southeast Asia will be at an increased
which accounts for about one-third of
less water, and calls on governments to
risk from severe flood events and is
global rice exports, 53 provinces were
prioritise adaptation options and increase
particularly vulnerable to their impact
declared disaster areas in June because
water availability.
because of its extensive coastlines, islands
of severe water shortages, while the
and heavily populated megacities. In 2009
Ministry of Interior’s disaster prevention
The International Energy Agency (IEA)
a study released by the ADB identified
and mitigation department reportedly
has released data showing that China
the Philippines, Vietnam, Indonesia and
that nearly 6.5 million people had been
has surpassed the United States as the
Thailand as the Southeast Asian countries
adversely impacted by drought. An
world’s number one consumer of energy.
most likely to suffer from the impacts of
estimated 58,300 hectares of farmland
In 2009 China’s total energy consumption
climate change, especially severe flooding
in the north and northeaster provinces
from sources including oil, coal, wind
and drought.
have been severely damaged. Vietnam has
and solar power was equivalent to 2.265
seen little rainfall since last September
billion tonnes of oil, compared with
A report released by German-based
resulting in the increased salinisation
2.169 billion tonnes used by the United
reinsurer Munich Re has identified
of the Mekong Delta and the flowing of
States. China’s energy consumption has
climate change as a major factor driving
saltwater upriver, putting a large area of
more than doubled in less than a decade,
the growing need for insurance in China.
farmland in danger, while dam reservoirs
although the US still consumes more
According to the report, China needs
are also at extremely low levels.
energy and oil per capita. IEA statistics
showed that more than half of China’s
greater risk transfer penetration as it
shares a particularly large burden in
A report published by the University of
total energy in 2009 came from coal while
catastrophe risk. The company said that
Utrecht in the Netherlands has projected
oil accounted for just under a fifth of the
due to China’s exposure to all weather-
that climate change will have a varied
total, although this could soon change as
related perils, its large population and
impact on Asia’s river networks. It had
vehicle use continues to rise. Analysts
the fast growth in economic values, the
previously been thought that the Asian
say that whilst the surge in energy
country is especially affected by climate
river basins would be similarly impacted
consumption has caused China to become
change, and will be even more so in
by climate change, which would both
the largest source of greenhouse gases,
the future. It added that over the last
reduce the amount of water available and
the country is excelling in the research
30 years, Asia has been the continent
harm food security, but the new research
and development of renewable energy
with the largest increase in frequency of
found that effects of climate change on
such as solar and wind power, and there
weather-related disasters, and that loss-
water availability and food security in
are hopes that it will play a major role in
relevant events have tripled in number,
Asia differ substantially among basins
the development of a global low-carbon
a trend which presents new challenges
and cannot be generalised. The effects on
economy. n
for all exposed economies. Munich Re’s
the Indus (which flows through China,
NatCatSERVICE database found that 34%
India and Pakistan) and Brahmaputra
of the 850 global natural catastrophes in
(which flows through China, India and
2009 took place in Asia and accounted for
Bangladesh) are likely to be severe
31% of overall economic losses, of which
owing to the large numbers of people
just 7% were insured.
living in the area and their reliance on
Sustainability Asia
11
Water
Shortages
in Asia:
Issues for the
Real Estate
Industry
W
12
Sustainability Asia
ater is the chemical
to a global shortage. Scarce or poor
basis of all life and also
quality water can have a serious impact
plays a crucial role in
on people’s daily lives, wellbeing
human infrastructure,
and economic development, and may
agriculture and industry. However, due
eventually in some cases lead to conflict
to the vast expansion both in the human
between entire communities and even
population and in the scope of industrial
countries competing to secure water
manufacturing during the 20th century,
security for their population. The UN
fresh water is an increasingly scarce
estimates that over one billion people
and precious commodity. Recent years
currently lack access to clean drinking
have seen concern grow over a world
water and more than double that number
water crisis as unpredictable weather
do not have proper sanitation, whilst
patterns, agricultural production, rapid
last year a report issued by the World
urbanisation and population growth work
Economic Forum said that insufficient
together to increase demand for fresh
water supplies would “soon tear into
water. This rising level of competition
various parts of the global economic
for water is now directly contributing
system” and “start to emerge as a headline
MAIN FEATURE
geopolitical issue”. Asia, which has
seen rapid economic development,
urbanisation and population growth
over the past few decades, will not
be spared the impacts of global water
Growth and development in
areas suffering from water
shortages may be severely
limited in the future.
from 3,790 km3 (of which consumption
accounted for 2,070 km3 or 61%) in 1995
to 4,430 km3 (of which consumption
accounted for 2,304 km3 or 52%) in 2000.
According to UNEP, in 2000 around 57%
scarcity. According to the 2030 Water
Resources Group, a research collaboration
increasingly strict legislative measures and
of global freshwater withdrawal and 70%
between the World Bank, McKinsey &
water policies in order to move forward
of its consumption occured in Asia, where
Co. and various industrial water users,
with new projects. Some projects may
the world’s largest areas of irrigated land
around 60% of China’s 669 cities are
founder or could be prohibited in areas
are located and where water availability
already short of water, with demand in
suffering from prolonged drought, or may
is the second lowest in the world due to
the next two decades set to rise by 32%.
have to implement water-conservation
the region’s high population. Agriculture
Elsewhere, India, the world’s second most
measures or develop alternative water
accounts for roughly 80 percent of the
populous country, is also suffering from
supplies in order to receive planning
region’s water but industry is a rapidly
rapidly diminishing water supply due
approval. It is anticipated that this will
growing user. China and Vietnam have
to mismanagement of water resources,
lead to an increasingly strong emphasis
both more than tripled their use of
over-pumping of underground aquifers
on green buildings or buildings that can
industrial water over the last 18 years.
and pollution, whilst shortages are also
recycle and conserve water, and this
Global demand for water is currently
impacting other countries across the
will also compel investors to pay closer
growing by 64 billion cubic metres (2.2
region.
attention to national and local water
trillion cubic feet) per year and annual
policy as water scarcity will affect the risk
global water withdrawal is expected to
Water shortages are expected to result in
and returns associated with investment in
grow by about 10-12% every 10 years,
significant changes in nearly all sectors
real estate development projects.
reaching approximately 5,240 km3 (or an
increase of 1.38 times since 1995) by 2025.
of the global economy and companies
could be forced to adjust their production
Population growth and climate change
The World Economic Forum estimates that
methods, strategic planning and possibly
over the past 200 years have combined
2.8 billion people already live in areas of
their entire business model to survive.
to exert twin pressures on global fresh
high water stress and this is set to rise to
Already many firms are adopting
water resources. In 1800 the world had
3.9 billion – more than half the expected
responsible water consumption practices,
one billion inhabitants, in 1900 it had
population of the world – by 2030.
both in response to stakeholder pressure
two billion and by 2000 the number had
and regulatory action from authorities
tripled to over six billion. According to
Climate change, with changing weather
and also as part of wider corporate
the World Water Development Report
trends such as shrinking glaciers,
social responsibility and sustainability
the global population is now growing
increasingly severe droughts, salt water
commitments. In the real estate sector,
by 80 million people a year and around
intrusion and more intense and frequent
the emerging trend of water scarcity will
90% of this growth is occurring in
typhoons and floods, is also set to severely
pose a number of challenges. Growth and
developing nations, particularly in
impact water availability in the years
development in areas suffering from water
Sub-Saharan Africa and South East
ahead. Asia, home to more than four
shortages may be severely limited, which
Asia, where hydrological resources are
could increase demand for available
often not abundant and access to clean
supply and drive up prices. At the same
water is already a challenge for the
time, property in areas suffering from
current population. Over the past 50
water shortages in which development is
years extraction from lakes, rivers and
not limited could very well suffer price
aquifers has multiplied by three times
declines as businesses and individuals
to meet the demand of rapidly growing
relocate to areas where water resources
populations. According to the United
are cheaper and more abundant. Going
Nations Environment Programme (UNEP),
forward, developers may have to adhere to
annual global freshwater withdrawal grew
Fig 1: World Population Growth,
1750-2150
10
(billions)
8
Developing countries
Industrialized countries
6
4
3
2
Developers may soon have to adhere to increasingly strict
legislative measures and water policies in order to be able to
move forward with new projects.
1
0
1750180018501900195020002050
Source: United Nations Environment Programme
Sustainability Asia
13
MAIN FEATURE
Fig 2: Global Water Stress and Scarcity
Freshwater availability,
cubic metres per person and per year, 2007.
Scarcity
Stress
Vulnerability
Data non available
Source: World Resources Institute
0 1,0001,7002,5006,00015,000
70,000684,000
billion people, is one of the regions most
will increase the salt content at the
which affected southern China and most
vulnerable to the impacts of climate
mouths of many rivers, from which many
of South East Asia. At the same time, the
change and many of its cities are at risk
Asian countries draw their drinking water.
increased regularity of extreme weather
due to their coastal geography and low
Another consequence of climate change
events such as typhoons and floods
elevation. Water distribution across the
is that the prolonged lack of rainfall will
will also impact fresh water availability
region is uneven and a number of large
be increasingly commonplace. In late
as such occurrences can result in the
areas are already under water stress.
2009 and early 2010 rain levels were
degradation of fresh water quality.
Climate change is set to exacerbate this
unseasonably low and caused a drought
scarcity even further. Rising temperatures
will mean that there will be more rain
and less snow in mountains and snow
will melt earlier in the year. This will
Fig 3: Global Water Withdrawal and Consumption
make rivers and streams carry more water
km3
3,500
earlier than normal and in areas where
3,000
reservoirs are absent or not big enough
Assessment
Forecast
Withdrawal
km3
3,500
3,000
Assessment
Forecast
Consumption
2,500
2,500
2,000
2,000
Himalayan glaciers, which supply two
1,500
1,500
billion people in the region, are melting
1,000
1,000
S. America
500
500
Australia &
Oceania
to hold the increased amount of water,
much of it will be lost to the oceans. The
ever faster as global warming accelerates.
Rising temperatures will increase the rate
of evaporation in rivers, dams, and other
water reservoirs, leading to decreased
water availability, while saltwater seeping
into aquifer and groundwater resources
14
Sustainability Asia
0
190019251950197520002025
Asia
N. America
Europe
Africa
0
190019251950197520002025
Source: Igor A.Shiklomanov, State Hydroclogical Institute (SHI, St. Petersburg) and United Nations Eductaional Scientific and Cultural Organisation (UNESCO,
Paris), 1999; World Resources 2000-2001, People and Ecosystems: Fraying Web of Life, World Resources Institute (WRI), Washington DC, 2000; Paul Harrison
and Fred Pearce, AAAS Altlas of Populaton 2001, American Association for the Advancement of Science, University of California Press, Berkeley.
MAIN FEATURE
Water shortages are already being reported
across Asia as the region grapples with
the twin impacts of population growth
and climate change. Other factors such
as pollution and the uneven distribution
and wastage of water resources are also
contributing to water scarcity. In China,
water issues have inhibited growth and
negatively impacted public health and
welfare for a number of years. Northern
China is already defined as a “water scarce
region” and China as a whole is set to join
the group of countries defined as water
stressed by the UN. Although the country
has the world’s fifth highest total water
resources (2.8 trillion m3) its annual per
capita renewable freshwater availability
is quite low, with its 1.33 billion people
each having just 2,100 m3, a figure which
Fig 4: Per Capita Renewable Water Resources of G20 Countries
1000 m3 / per capita / year
01020 304050 60708090100
Canada
Brazil
Russian Federation
Australia
Argentina
Indonesia
USA
Mexico
Japan
France
Italy
Turkey
United Kingdom
China
Germany
India
Republic of Korea
South Africa
Saudi Arabia
G20 Average
NB: Per capita based on IMF population estimates for 2009
Source: Globalisation of water, IMF, Responsible Research
is significantly below the G20 average
of 9,400 m3 per person per year (Fig 4).
Compounding the problem is the fact that
over the past 20 years, largely due to the
freshwater availability is even lower
the country’s fresh water resources are
emergence of the Chinese middle class
than China’s, standing at 1,614 m3 per
unevenly distributed. The Northern part
and their interest in possessing all of the
person per year as of 2009 (Figure 4).
of the country, which includes Beijing,
accoutrements previously associated with
Water access is already severely limited
has than a fifth of the country’s fresh water
lifestyles in more developed economies
with the country’s 20 major water utilities
supply but is home to almost half of its
such as washing machines and landscaped
only supplying water for an average
population.
gardens, and engaging in sports like golf
of 4.3 hours per day in 2007. Demand
and swimming. At the same time, as
is outstripping renewable supply and
urban China has grown more affluent,
the World Bank estimates the country
consumption of meat, corn and sugar
will exhaust its fresh water supply by
have all risen precipitously, all of which
2050 at its current rate of usage. Rapidly
are quite water-intensive to produce. The
increasing demand, pollution and the
widespread pollution of large sections of
mismanagement of water resources are
China’s river network is also contributing
the main factors behind the depletion
According to Responsible Research, a
to water shortages. According to a World
of India’s water resources. Farmers use
provider of environmental, social and
Bank report issued in 2007, between 2001
around 80% of India’s available water
governance research to global institutional
and 2005 four of the seven main rivers
supply, much of it for irrigation, and are
investors, the outsourcing of global heavy
on the mainland contained water unsafe
drawing on underground aquifers faster
industry, manufacturing and processing
for human consumption. Looking ahead,
than they can be replenished. Recent
to Southern and Eastern China since the
pressure on China’s fresh water resources
years have seen a gradual change from
late 1980s and early 1990s has been a
will continue to rise as the economy
growing wheat to farming paddy grown
major factor behind the country’s rising
expands and weather patterns experience
rice, the latter which is a far more water
water intensity per capita, as has the
an accelerated rate of change. According
intensive crop, while free power or
construction of numerous coal-fired power
to the 2030 Water Resources Group, water
flat power tariffs for running irrigation
stations which inefficiently use large
demand in China is set to rise by 32%
pump rigs in many parts of the country
amounts of ground water for cooling.
over the next two decades.
encourages wastage and further depletes
Pressure on China’s water
resources will continue to rise
as the economy expands and
weather patterns experience
an accelerated rate of change.
Water in China: Issues for Responsible
the water table. At the same time, the
Investors, a report that was released by
The adequacy of India’s water resources is
improper disposal of sewage, industrial
Responsible Research in February 2010,
another major regional worry. According
effluent and chemicals from farm runoffs
notes that private water consumption
to the World Resources Institute (WRI),
has contaminated much of India’s river
in China has increased dramatically
the country’s annual per capita renewable
system and made water unfit for drinking,
Sustainability Asia
15
MAIN FEATURE
irrigation, and industrial purposes. All of
but freshwater consumption has doubled
these problems are further exacerbated by
over the past two decades and the north
the fact that climate change has caused
western part of the country, where much
rainfall to become increasingly erratic and
of its industry and population is located,
unpredictable, further increasing pressure
is vulnerable to water scarcity. Pollution
on water supply.
is the major worry in the Philippines,
where domestic and industrial wastewater
Most other countries around the region
and agricultural runoff have increased the
have abundant supplies of freshwater
toxicity of the country’s waterways.
Singapore has made
encouraging strides towards
addressing the issue of water
scarcity and is regarded
as a global leader in water
management.
needs whilst a number of desalinisation
plants have been constructed. Pricing
but urban areas and megacities are still
suffering from localised water scarcity as
Singapore is one Asian country which
has been another important step with
domestic water consumption increases
has made encouraging strides towards
tariffs having been raised considerably in
rapidly in tandem with economic growth.
addressing the issue of water scarcity
recent years and substantial conservation
Southeast Asian countries are under
and is widely regarded as a world leader
fees implemented. Water usage is 100
particular stress. In Vietnam the volume
in water management. The small island
percent metered while initiatives such as
of freshwater consumption has tripled
nation has no natural aquifers and lakes
water-saving toilets and water taps have
over the past 20 years as the country has
and has only a very small land mass to
been widely adopted. The Singapore
rapidly industrialised. Water quality is
collect rainwater. In the 1960s and 1970s
Environment Council together with
poor in several cities and supply does
water shortages were commonplace
the PUB is also working to encourage
not meet demand in many urban and
as the Singapore rapidly urbanised,
water efficiency and conservation in
rural areas due to inadequate water
but in recent years the Public Utilities
the non-domestic sector through its
infrastructure. Many major cities lack
Board (PUB) of Singapore has largely
“10% Challenge” campaign which
central sewage systems, which exacerbates
succeeded in creating a sustainable,
encourages hotels, schools, commercial
water quality issues and increases
diversified and reliable supply of fresh
and government offices to work towards
water treatment costs. It is also thought
water by adopting a “Four National Taps”
becoming Water Efficient Buildings
that climate change could be affecting
strategy which sources the precious
and save 10% of their monthly water
monsoon patterns and thereby impacting
resource from local catchment areas,
consumption.
seasonal availability. Between October
imports water from overseas and uses
2009 and February 2010 the country’s
reclaimed water and desalinated water.
Whilst the impacts of water scarcity on
north western provinces received
Over the past 14 years domestic water
property will vary around the globe, the
almost no rain and in January the Red
use has fallen from around 172 liters per
real estate industry is only now beginning
River in Hanoi was at its lowest level
person per day to 155 liters per person
to wake up to the extent of emerging water
in more than 100 years. Neighbouring
per day. Highly treated wastewater now
risks. In Asia, the region’s limited supply
Thailand has plentiful water resources
supplies a third of Singapore’s total
of water, rapidly increasing demand,
but their uneven distribution is placing
stress on availability, particularly in the
northwest of the country where a third
Fig 5: Singapore’s Four National Taps Strategy
of the population resides and where it is
anticipated that water will soon have to
be transported in from other regions to
meet demand. Agricultural and industrial
runoff has polluted coastal, surface and
ground water in many regions of the
country.
Imported
water
(Johor)
Water scarcity is also a problem in
NEWater
urban areas of Indonesia because of poor
infrastructure, inefficient use and rising
demand, although the country has more
than adequate national water resources
and high average annual rainfall.
Malaysia has plentiful water resources
16
Sustainability Asia
Local catchment
water
Desalinated
water
MAIN FEATURE
potential price increases, climate change
to construction materials. To cite one
for available housing, a factor likely
and weak infrastructure all mean that
example which occurred in 2008, the price
to drive prices up. On the other hand,
securing access to high quality, affordable
of sand in Bangalore rose dramatically due
cities may opt not to limit development,
and reliable sources of fresh water will
to increasing demand from developers,
resulting in more intense water shortages
become increasingly challenging going
which prompted the government to
and subsequent price rises, factors which
forward. Indeed, prevailing patterns of
impose limits on the extraction of sand
may compel residents and tenants to
high water usage within the building
from riverbeds to prevent groundwater
move and thereby ultimately resulting in
sector, which accounts for 17% of
depletion.
falling prices. With many cities in Asia
freshwater withdrawal globally, exposes
grappling with worsening water scarcity
the real estate industry to serious utility
Building location will become
and uninterrupted population growth,
shortage and price risks. Regional water
increasingly important going forward as
developers may face stricter laws of this
prices are likely to rise in the coming
it is a major factor in determining how
type in the years ahead. New projects may
decade as building-related water needs
susceptible a property will be to risks such
be required to include water conservation
grow in tandem with rapid urbanisation
as water scarcity, supply disruption and
measures or in some cases may even have
and population and economic growth.
usage related regulations. Developers will
to develop an alternative source of water
Water shortages, disruption and
need to carefully assess the vulnerability
supply, such as a treatment plant that can
intermittent supply will also bring
of their projects in certain areas to drought
recycle waste water.
additional costs. Sourcing an alternative
when planning to acquire land or build
water supply is possible but it can often
new projects, while also examining local
be difficult and expensive to use a private
water infrastructure to see whether it will
source. Building owners in some cities
be able to meet existing and projected
around the region often drill wells to
demand. Some cities or some areas
access backup water but this practice may
within cities will experience dramatic
face more regulatory restrictions going
fluctuations in seasonal water availability,
forward as such wells can lead to land
resulting in water quantity and quality
subsidence, saltwater intrusion and the
supply problems for properties located in
lowering of ground water levels.
these areas. Other sites may well be close
Most water used by a building occurs
to major sources of water pollutants which
during its operational phase and
could affect the quality of water supply.
is typically used for direct tenant
Water rights and water priorities are
another important issue and one which
Water shortages in some parts
of the world have already
become so severe that city
authorities are beginning
to limit new development in
areas lacking water.
consumption, cooling systems, and
will impact commercial buildings in
In some parts of the world, shortages
operations and maintenance. It therefore
particular as they are less protected from
have already become so severe that
follows that green or sustainable building
severe water shortages than residential
city authorities are already beginning
design is a crucial step in reducing
properties in Asia. Across the region
to take a more aggressive approach to
vulnerability to water risks through
domestic users generally take priority
handling water shortages and to limit new
the use of water-saving technology and
when it comes to water rights, followed
development in areas lacking water. To
various conservation measures. Typically
by agricultural and industrial users. For
cite one example, in areas of the United
more water is consumed outside buildings
owners of commercial and residential
States facing water scarcity pressures,
than is used inside, and smart landscaping
buildings, the rising cost of water or
such as Arizona, authorities require
and irrigation are taking an increasingly
increased unreliability of supply could
developers to demonstrate an “assured
important role in green building design.
result in higher operating costs, less
water supply” of 100 years’ worth of water
New technology such weather-based
competitive rental rates and lower
before they can sell new subdivision
irrigation can help building owners
occupancy rates. Buildings that use large
parcels in Active Management Areas, or
reduce water use by assessing weather
amounts of water or use it inefficiently
urban areas under the control of the local
conditions and soil moisture to deliver
could well become obsolete as authorities
water authority. Developers outside Active
water based on the needs of plants. Other
introduce legislation mandating
Management Areas are also required to
water-saving landscape features such as
water efficiency and environmentally
demonstrate an “adequate water supply”
bioswales (landscaping features designed
responsible tenants opt to lease space only
and must inform potential buyers about
to remove silt and pollution from surface
in buildings allowing them to effectively
water supply limitations if there is not
runoff water) can also help conserve water
manage and reduce their water footprint.
at least a 100-year supply of water. Such
as can more low-tech solutions such as
Growing water scarcity will also mean that
measures may limit development going
Xeriscaping, an approach to landscaping
developers face increased costs related
forward which could increase demand
that assumes a dry climate and uses only
Sustainability Asia
17
MAIN FEATURE
drought resistant plants and vegetation
that is accustomed to a dry environment.
Rainwater catchment and reuse systems
such as siphonic roof drainage technology
which uses negative pressure to draw
Buildings with water intensive designs and inefficient features
and systems may eventually become obsolete as authorities
mandate greater water efficiency in buildings and tenants opt
for offices and homes providing a cheaper and more sustainable
water supply.
water along horizontal piping and into
storage tanks are other effective water
The installation of sub-meters is another
to recycle and conserve water, especially
conservation measures commonly
practice that can achieve water savings.
in cities with high exposure to water
found in many leading green buildings
Sub metering products and software
scarcity, thereby facilitating the growth
today. According to a report titled
can measure when, where and how
of the green building market. Rainwater
“Green Buildings + Water Performance”
much water is being used and provides
harvesting, grey water reuse, fixture
published in April 2010 by Building
users with the information necessary to
replacements, water metering and cooling
Design+Construction, for every inch of
implement efficiency measures to lower
tower water reduction in buildings will
rain that falls on 1,000 sf of roof area,
usage and costs. All of these water-saving
prevent obsolescence and add significant
an effective rainwater harvesting system
technologies and measures can reduce
value to projects by lowering annual
can collect 600 gallons of water for reuse
utility costs for building owners and
operating costs and increasing net
by collecting it either from the roof
tenants, thus reducing operating costs
operating income. Investors will place
or the ground and then diverting it to
and improving rentability. Buildings with
far greater focus on assessing a building’s
storage tanks. There are also a number
water intensive designs and inefficient
exposure, vulnerability, and capacity
of measures that can be implemented in
features and systems may eventually
to mitigate water scarcity risks and will
the interior of buildings such as properly
become obsolete as authorities mandate
likely favour companies that have adopted
insulating and preventing leaks in piping
greater water efficiency in buildings and
green practices so they can reap the
and installing water conserving fixtures
tenants opt for offices or homes providing
benefits of green properties. Site selection
such as low flush or composting toilets,
a cheaper and more sustainable supply of
will become increasingly important as
low or no flush urinals, aerators on taps
water. At present green building markets
developers and investors look to ensure
and low flow nozzles on showerheads.
in Asia are still at a very early stage of
their projects are situated in areas without
Building air-conditioning and cooling
development but growth is likely as water
existing or potential future water scarcity
systems also use large quantities of
scarcity, energy insecurity, and climate
issues.
water but technology such as variable
change impacts intensify.
refrigeration volume systems can cool
In an ideal world however, new real
individual rooms or parts of a building
The issue of global water scarcity is now
estate developments will create little
depending on tenants’ requirements.
firmly in the spotlight and governments
or no additional water demand at all as
and the private sector are begnining to
their water needs will be met by green
respond to the increasing unpredictability
design features. Whilst such a scenario
of weather patterns, growing economies
is still some way off, it is clear that the
and rises in population. The real estate
real estate sector has a crucial role to
sector is gradually starting to realise the
play in using water in a responsible and
full extent of emerging water risks and
sustainable way as stress on Asia’s water
there will be a far greater emphasis on
resources continues to intensify in the
water conservation and efficiency in
years ahead. n
Fig 6: End Uses of Water in Office
Buildings
Other
(Incl. kitchen)
Domestic/
restrooms
10%
37%
20%
buildings going forward. Companies will
be compelled to develop programs for
water footprinting, and establishing water
management goals at the corporate level
33%
as well as for specific facilities will be an
increasingly common practice.
Landscaping
Cooling/
heating
Source: Dziegielewski, B., et al., “ Commercial and Institutional End Uses
of Water”, American Water Works Association and AWWA Research
Foundation, 2000
In Asia, as with the rest of the world,
governments are gradually introducing
and enforcing stricter building codes that
require design and operational measures
18
Sustainability Asia
In 2010, “Going Green” Means
Going with the Industry Leader
CB Richard Ellis is proud to be the only commercial real estate services
firm to attain all of these leadership criteria:
Pledge to becoming carbon neutral
Be named one of Newsweek’s 50 greenest companies
Employ more than 400 professionals who have achieved LEED®,
Green Star™ or BCA Green Mark accreditation
Commit more than 260 million sq. ft. of managed space
worldwide, including 157 million sq. ft. in Asia Pacific, to
participating in Earth Hour 2010
Earn a Carbon Disclosure Project score that is nearly double the
average for all companies*
Commit significant professional time to green building councils
throughout Asia Pacific and worldwide
Promote industry dialogue on sustainability issues through
events and thought leadership
CB Richard Ellis is actively helping clients in Asia Pacific to improve
in energy efficiency, water efficiency, indoor environments, air
quality and other sustainable features to achieve substantial
bottom-line business benefits. We have the resources, knowledge
base and first-hand experience to help turn sustainability goals
into reality. To learn more, contact Dr. Richie Lee in China at
+86 21 2401 1479 or [email protected]; or Mark Granter in
Australia at +61 3 8621 3310 or [email protected].
* In
early 2010, the Carbon Disclosure Project benchmarked 710
companies on their climate-change management policies. CBRE
achieved a composite score ranking in the highest quartile.
19
Asia
#1 in commercial Sustainability
real estate worldwide
www.cbre.com/environment
Steps Towards
the Greening
of Real Estate
Investment in
Asia
W
ithin today’s real estate
seen a growing number of institutional
investment sector there is
and individual investors, socially
a growing awareness that
concerned high net worth individuals,
environmental issues can
pension funds and mission-driven
impact investment portfolios and that
institutions incorporate environmental
incorporating sustainability into property
concerns into the way they manage their
investment strategies can make sound
property portfolios as energy efficiency
long term business sense, whilst at the
is introduced into building codes and
same time being the socially responsible
countries establish energy performance
option. Government regulations and
rating systems.
incentives, increasingly costly natural
20
Sustainability Asia
resources, legal risks, the rise of corporate
Although a direct link between green
social responsibility, changing occupier
property investment strategies and
behaviour and stakeholder pressure are
increased returns on investment has
all combining to compel the integration
yet to be proven beyond all doubt, the
of environmental issues into the process
“green approach to property selection” is
of real estate investing. Recent years have
beginning to attract a wide institutional
FEATURE
Investors have come to increasingly believe that a green
property portfolio will offer better long term investment returns
as less efficient buildings become obsolete and their prices
become subject to discounting.
says Richard Price, Chief Executive
Officer of ING REIM Asia. “We also have
a very forward looking environmental
and corporate social responsibility
commitment within the Group. So we
are seeing twin drivers, coming from
following. The key factor here is that
mandatory energy efficiency gathers pace
both the top down internally, as well as
investors have increasingly come to
across the region and also influences
externally from our clients,” he adds. ING
believe that a green property portfolio
occupiers’ leasing decisions, it looks
REIM Asia had two funds surveyed in
will offer better long term investment
highly likely that non-green buildings are
2009 and both finished in the top 10 of
return as less efficient buildings become
gradually going to become obsolete and
private equity real estate fund leaders in
obsolete and their prices become subject
could see their capital values and rents
sustainable investment in Asia in a global
to discounting. In Asia too, this practice
trade at a discount, resulting in lower
survey undertaken by the University of
is now starting to take hold, with large
investment returns. Such buildings could
Maastricht as commissioned by APG Asset
institutions increasingly adopting the
also incur additional taxes associated with
Management, PGGM Investments, and
principle of sustainability as a key part of
penalising excessive emissions and energy
the Universities Superannuation Scheme
their investment criteria and beginning to
use. In contrast, green buildings are likely
(USS).
improve the environmental performance
to command a rental premium in the
of buildings in their existing portfolios,
marketplace, depreciate at a slower pace,
while other investors launch innovative
enjoy a longer life cycle and ultimately
funds to invest in energy efficiency
retain higher capital values. All of this
projects in buildings around the region.
adds up to the suggestion that Asia will
ultimately witness the emergence of a
Evidence linking green buildings with
two-tier market in which green properties
stronger financial performance remains
will enjoy higher values, rental levels and
ambiguous, largely due to the absence
therefore rates of investment return.
Asia could ultimately witness
the emergence of a twotier market in which green
properties will enjoy higher
values and rates of investment
return.
There are a number of ways in which
of commonly agreed measurement
standards and centralised building
Among institutional investors in Asia,
institutional investors have begun
information. However a consensus is
one of the clear leaders in commitment
reflecting their greater concern about
now growing within the real estate
to sustainability in its real estate related
sustainability directly into the way they
investment community that outdated and
activities in Asia is ING Real Estate
manage their portfolio. Most begin by
unsustainable investment, construction
Investment Management, which in
identifying and sorting existing buildings
and facilities management practices will
2008 formalised a corporate policy
in their portfolio that may breach current
hasten the obsolescence of properties
underlining its commitment to this goal.
or future legal requirements relating to
and result in declining asset values and
The policy defines the company’s vision,
energy efficiency or other green standards.
poor financial performance. At the same
ambition and principles and serves as a
Next, they examine ways of making
time, investors are also anticipating that
sustainability framework. The company
these buildings more environmentally
tougher government regulations relating
has established a global sustainability
friendly. Steps adopted can range from
to energy efficiency and green buildings
platform with representatives from all
implementing relatively straightforward
will be rapidly coming into force in
regions around the world to support
smaller initiatives, such as installing
various markets, both globally and within
collaboration between different areas of
energy saving light bulbs, to major
Asia. The European Union has already
its business, to share best practices and to
projects, such as the full scale en-bloc
introduced its Energy Performance of
incorporate sustainability as a standard
sustainable retrofitting of entire buildings.
Buildings Directive (EPBD) for new and
business practice in anticipation of greater
They can also talk to their tenants and
refurbished buildings while in Australia
demand for sustainable real estate projects
other stakeholders and agree on actions
new buildings must comply with the
from its clients. “Over the past two years
and goals related to energy or other
Green Star sustainable performance
many of our investor clients in Asia have
resource savings.
measures. In Asia, under the Singapore
begun to implement environmental goals
government’s Green Building Masterplan
as part of their investment criteria. Several
ING REIM Asia followed a similar model.
unveiled last year, 80 per cent of buildings
of our bigger clients, particularly the large
“We firstly audited our existing portfolio
in the city must be Green Mark certified
pension funds, are increasingly insisting
and sorted our assets into different
by the year 2030. As the move towards
on transparency and sustainability,”
categories, according to how much
Sustainability Asia
21
FEATURE
The rising cost of natural
resources makes energy
efficiency simple business
sense and the sustainable
retrofitting of buildings is both
the primary and cheapest
solution to the problem.
Other measures to be incorporated in
Along with the increased focus on
the near future include the installation
sustainable real estate among institutional
of LED lighting and a system to generate
investors in Asia, other investors are
electricity from garbage. “The next step
raising innovative funds to invest
is to set goals,” says Arjen Seckel. “In the
in energy efficiency initiatives in
future we hope to have a system where we
buildings around the region. Sustainable
can benchmark our portfolio against global
Development Capital LLP (SDCL) is
and regional green building standards and
raising capital for the China Energy
use this as a basis for making intraregional
Efficiency Partners L.P. Fund to invest in
control we had to make sustainability
comparisons. But at the moment we are
energy efficiency projects being developed
improvements,” commented Arjen Seckel,
restricted to measuring where we are so
at energy intensive industrial sites and
Senior Vice President at ING REIM
we can determine where we can go.” ING
in commercial and public buildings and
Asia and Asia coordinator of ING Real
REIM Europe recently launched a test
facilities in China. The fund is the first
Estate’s global sustainability platform.
system called ‘Green Rating’ to rate and
of its kind based on a paid from savings
“We identified buildings that can achieve
benchmark the environmental performance
model and will seek to generate relatively
LEED certification and then conducted
of its portfolio together with GE, AXA
high, predictable levels of income by
research into the costs, what needs to be
and AEW. The company contributed 30
making investments in projects on the
done and what are the benefits obtainable
buildings from 12 different funds to the
mainland involving the installation,
from these actions. We also started to
pilot project and the ING RE European
operation and maintenance of energy
measure energy usage and see where we
Office Fund is surveying the energy,
saving solutions and equipment. It will
can achieve savings,” he added. The major
water and transport performance of all
aim to earn investment returns by sharing
challenge encountered in this approach is
of its properties. Should this new rating
in the consequent energy cost savings
the ownership structure of the company’s
system prove successful the system will
achieved by the site, building or facility
existing portfolio. ING REIM Asia’s degree
eventually be rolled out in Asia as well.
owners. “The technology is there and
of control over its assets is varied; in some
the economics make sense,” says Glen
cases there will be a master lessee who
Plumbridge, Director at SDCL in Hong
will not accept changes, whilst joint-
Kong. “Over the next five years there
venture partners also need to be persuaded
will be a raft of legislation tightening the
or encouraged. There are only a limited
efficiency of existing buildings across
number of buildings in its portfolio over
the region which will force people to
which it has full control. On a more macro
retrofit for sustainability. At the same
level, the lack of standardisation in the
time, retrofitting is not as complex as it
Asian market can often be an obstacle,
was before. Technology, measurement
with the different certification regulations
and verification are all becoming more
and standards found in the various
advanced.”
countries around the region.
The CEEP model aims to capitalise on
The largest asset in ING REIM Asia’s
the increasingly resource-constrained
portfolio under its full control is a regional
global economy and a growing awareness
shopping center outside Tokyo. Here
among countries that they face significant
the company has been actively reducing
energy challenges. “Countries need to
the building’s energy consumption and
be more energy efficient because they
has introduced a number of measures
are running out of energy,” says Glen
that have led to significant year on year
Plumbridge. “The growth of our industry
reductions in the use of gas, water and
may eventually turn out be more driven
electricity. Key measures introduced have
by sovereign risk and the urge to be self
sufficient as opposed to climate change
included reducing the working hours of
escalators, installing sensors in emergency
stairs, using of a water well, reducing
the operating hours of air conditioners,
cutting the use of backyard lighting and
incorporating an inverter controller.
22
Sustainability Asia
Following ING REIM Asia’s completion of an environmental
retrofit of ING Tower in Seoul in May 2009, the building
became the first existing property in Korea to receive
LEED-EB certification. The retrofit resulted in a projected
reduction of 350 tonnes of carbon emissions and 35%
increase in annual energy savings. It was sold in July 2009
to Kookmin Bank Real Estate Trust Company for KRW 400
billion (US$310 million).
issues or carbon emission reductions,” he
adds. SDCL, which is involved with the
UN Environment Programme, the Clinton
Climate Initiative and the P8 group of the
world’s biggest pension funds, believes
FEATURE
that the rising cost of natural resources
generations of building standards and
says Richard Price. “However, as an
makes energy efficiency simple business
skip inefficient technologies altogether
investor, the value in investing in green
sense and that the sustainable retrofitting
as it continues rapid urbanization and
buildings will emerge in the sale, as
of buildings is both the primary and
this will present many opportunities for
they are far less likely to be functionally
cheapest solution to this problem. The
investors in green buildings.” On the
obsolete.” In the longer term improved
biggest challenge facing the CEEP model is
energy efficiency side China has doubled
data and research will illustrate whether
scalability and the fact that most projects
the number of ESCOs and the value of
new regulations and growing demand
are too small and many banks and other
energy efficiency projects each year for
are actually resulting in higher prices
investors are therefore not interested.
the past six years. “China has some of
for green real estate. Nevertheless,
SDCL believes that the bigger the project
the strongest legislation around and is
there is still gradual global and regional
value, the better, and is currently
acutely aware of its energy challenges,”
momentum in favour of green buildings as
exploring opportunities to link up with
says Glen Plumbridge. Indeed, over the
socially responsible real estate investors
big developers and fund energy efficiency
past few years China has implemented
evaluate and enhance the environmental
retrofits across entire portfolios.
strong top-down policies including
performance of assets in their portfolio to
nationwide energy conservation and clean
prevent obsolescence and reduce exposure
Various other green financing and
energy targets supplemented by incentives
to future taxes and penalties associated
investment tools are gaining traction
at the municipal level for developers
with carbon emissions and energy use. n
around the globe and are gradually
which engage in green or energy efficient
finding their way to Asia. Recent years
projects.
have seen an increasing number of
socially responsible investors purchase
local government-issued green bonds to
fund the sustainable retrofitting of low
income housing projects, such as the
Climate Awareness Bonds issued by the
European Union in 2007. Commercial
In general across Asia there is
a need for greater government
support and in some markets
there are a lack of financial
incentives.
bank green loans and investment products
are also being offered. In January 2010
Elsewhere around the region, Singapore
the government of South Korea formally
has good infrastructure and strong
passed its “low carbon, green growth”
rules and regulations relating to energy
law which saw it pledge to spend two
efficiency and green buildings but is
percent of annual gross domestic product
a small market, whilst in Hong Kong
on developing eco-friendly businesses
progress is slower due to legacy issues,
and projects that will result in economic
fragmented ownership and a lack of
growth and the reduction of greenhouse
government leadership. “In general across
gas emissions. At the same time a number
Asia there is a need for need greater
of the country’s biggest banks unveiled a
government support and in some markets
number of new green financial products
there is a lack of financial incentives,”
and services including loans for green
says Richard Price. “In markets such as
residential and commercial buildings.
Australia the government is being very
proactive and that is really facilitating
China tops the list of markets within the
green investment.”
region that investors have identified as
the most desirable location for investing
Despite the gradual shift towards investing
in green real estate. “Over the past few
in sustainable real estate a number of
years the improvement in construction
challenges remain, not least of which is
standards and the quality of the final
the fact that it has yet to be proven that
product in China has been immense and
developing green buildings is really worth
construction practices there now are more
the incremental cost. “We believe that
technologically sophisticated than those
sustainabile investment is important but
in many developed western markets”,
we have to remain prudent and always
says Richard Price. “The country will leap
keep the costs and benefits in balance”
Sustainability Asia
23
Facilities
F
Management:
On the
Front Lines
of
Sustainability
acilities Management (FM)
professionals are dedicated to
the management, operation
and ongoing improvement of
existing building stock and therefore have
a primary role to play in implementing
the environmental sustainability agenda.
In response to the increasing focus on
the sustainable development of the
built environment, FM has evolved
rapidly in recent years, both in terms
of the scope and type of services it
provides. Sustainability is now a critical
component of FM operations and FM
professionals across Asia are increasingly
driving energy and water efficiency
programs and managing waste and
recycling initiatives across large, complex
and diverse asset portfolios as part of
their daily responsibilities.
Over the past five years government
legislation and incentives, occupier
demand, greater awareness of the bottomline benefits of energy efficiency and a
stronger emphasis on corporate social
responsibility and environmental
stewardship
have gradually begun to
drive the construction of new
green buildings and the retrofitting
of older building stock across Asia.
FM is playing a key role in this new
emphasis on sustainability in the built
environment as FM professionals are the
individuals responsible for translating the
high-level strategic change required by
senior decision makers into day-to-day
reality for people in their offices, homes
and recreational space. No matter how
sustainable or green a building may be in
its design and construction, it can only
24
Sustainability Asia
FEATURE
remain so if it is operated responsibly and
maintained properly. FM professionals
understand how buildings work and
perform in practice and are effectively
As the shift towards green buildings and carbon footprinting has
gathered pace in Asia, FM has had to adapt to incorporate and
integrate environmental concerns into its service offering.
on the ‘front line’ of sustainability in the
real estate sector. They help to achieve
energy efficient buildings. Along with
Once the audits are completed FM
government and corporate targets on
corporate social responsibility, cost saving
will identify problem areas and make
energy efficiency and reductions in
is the primary driver as corporates become
recommendations to companies in the
carbon dioxide emissions as they control
more aware of the massive potential
form of an energy savings plan and a
heating and cooling systems, lighting and,
savings they can achieve on their energy
predicted payback period. FM will often
increasingly, all electronic appliances and
bills by implementing what are often very
recommend the installation of technology
information technology in the buildings
straightforward changes to the way they
to achieve energy savings including
they are responsible for.
operate facilities they occupy or which are
centralised energy management systems,
in their portfolio.
high-efficiency lighting, high-efficiency
heating and air conditioning and efficient
As the shift towards green buildings and
carbon footprinting has gathered pace in
Energy efficiency is the main area of focus
motors and variable speed drives. Other
Asia, FM has had to adapt to incorporate
for FM as it is where the most meaningful
actions can be more straightforward, for
and integrate environmental concerns into
and tangible benefits can be achieved.
example installing energy efficient light
its service offering. “Demand for services
FM helps companies use electricity
bulbs. By replacing old and inefficient
related to energy and water efficiency,
more efficiently thereby reducing carbon
equipment with new technology,
waste management and recycling has
emissions as well as fuel bills and there
companies will have higher quality
expanded rapidly over the past three
are a number of specific actions FM
systems, a reduced number of breakdowns
years and I think that people working
service providers can implement in what
and less maintenance, which can also
in the FM field would agree with me
is essentially a ‘housekeeping’ role. Once
increase the value and marketability of
when I say that we have had to take
called in by a client, FM will design
their buildings. Such improvements can
on a lot of new responsibilities,” says
and implement energy management
also have a positive impact on the lives of
Russell O’Shea, Asia Regional Director
programs which include auditing energy
people who use or work in the building.
for Facilities Management for CB Richard
management practices and identifying
Studies from the US have shown that
Ellis. “In the past FM provided services
waste. Teams conduct energy assessments
occupants of green buildings or buildings
related to management, maintenance,
by collecting bills, documents and lists
that have been retrofitted for improved
security and safety but now it is becoming
of equipment and identifying operating
lighting, better air quality and more
the norm for FM to be responsible for
patterns and office functions and seeing
comfortable room temperatures are likely
managing, monitoring and reporting
where savings can be made, e.g. in lighting
to be happier and more productive. Once
on the environmental sustainability of
usage. Energy usage benchmarking and
the improvements to the building have
buildings.” Demand for this expanded
indexing is employed and comparisons
been made FM would continue to have
service offering is being driven by
between buildings in cities with similar
an ongoing role in managing day to day
landlords who are in turn responding
environmental profiles and climates
operations and ensuring the property is
to tenant demand for greener and more
such as Hong Kong, Singapore and Kuala
managed responsibly and maintained
Lumpur are made. “Most clients have
properly.
maintenance engineers in each location
FM teams are increasingly being asked to provide recycling
facilities as part of their overall service offering
that can come up with energy savings
Waste management and recycling
plans for each office but they are not
is another service FM teams are
usually experts in energy efficiency.
increasingly being asked to provide as
External FM providers will have specialist
part of their overall service offering. FM
engineers who can audit companies’
teams will commonly conduct a waste
operations regionally throughout their
stream analysis which involves taking
portfolio and can be very creative in
an inventory of the entire portfolio
identifying areas where savings can be
and measuring the volume of waste
made,” says Alvin Woo, Energy Manager
and recycled materials leaving all
for Global Corporate Services at CB
facilities along with its composition and
Richard Ellis in Asia.
destination. Then a database is created
enabling FM teams to track all waste
Sustainability Asia
25
FEATURE
experts are in a unique position as they
construction and performance led the
the only individuals able to combine
program to announce that it would begin
whole life-cycle thinking with a practical
collecting information about energy use
understanding of how buildings are used.
from existing LEED-certified buildings. In
Consulting with FM is increasingly being
addition the program also is requiring all
considered best practice in sustainable
newly constructed buildings to provide
design, ensuring that how a building will
energy and water bills for the first five
be used in practice during its whole life
years of operation as a condition for
cycle is factored in at the early design
certification. The label could be rescinded
stage. Facilities managers can advise
if the data is not disclosed. Some argue
how a building will actually be used
that LEED certification should be withheld
by its occupiers, rather than how it is
from a building if it does not proves itself
designed to be used. “FM professionals
energy efficient and that energy usage data
can definitely add value to the design of
from every LEED-certified building should
new buildings. One client’s cooler system
be made public. “There is definitely a gap
was three times over capacity because of a
between the design of LEED certified or
simple design flaw that should have been
green buildings and their actual energy
identified and rectified before it was even
efficiency performance,” says Alvin
installed,” says Russell O’Shea. “Perhaps
Woo. “In some cases this is because their
and cross reference it by facility type so
we could be involved earlier in building
systems are so sophisticated that some
they can identify and understand the
design or at least in recommending the
FM providers do not know how to operate
amount and type of waste each facility
most efficient technology to implement
them properly. I think this comes back to
generates and pinpoint where they can
during the fitting out phase, for example,
the point that FM needs to be involved
drive reductions. More basic measures
the best type of air conditioning system to
in the design stage of buildings and be
include separating recyclable materials
install. At the moment however this is not
properly briefed and trained on the best
such as paper and bottles, combining
happening in Asia and our main challenge
way to operate them.”
printing facilities to save paper and
and priority for the moment is bringing
consolidating rubbish into one collection
outdated energy systems up to speed in
Although Asia is generally behind the
point. There is also a growing emphasis on
existing buildings that are inefficient.”
US and Europe in terms of provision
FM teams can help install sustainable landscaping features
using drought resistant plant species and reclaimed water
water conservation. Steps that can make
a difference include installing waterefficient fixtures, improving reclaimedwater infrastructure and installing lowflow toilets and urinals. Other practices
in the FM field relating to environmental
management and sustainability can relate
to landscaping practices and custodial
services. Examples of best practice in
Employing a quality FM team
can help companies achieve
significant cost savings,
demonstrate their commitment
to sustainability and create
a comfortable working
environment for their staff.
landscaping include adopting drought
of services related to sustainability by
FM the region is gradually catching
up as legislation in countries such
as Singapore and China mandates
improvements in energy efficiency in
buildings and more companies in Asia
adopt sustainability practices. Looking
ahead, FM professionals across the region
will continue to be at the forefront of
the drive towards greener real estate.
tolerant landscaping methods, using
Research released by the United States
Employing a quality FM team, whether
weather based irrigation systems and
Green Building Council in 2009 found that
on-site or as a third party consultant, will
using reclaimed water. Janitorial staff
a quarter of the new-build projects that
help companies realise significant cost
can be provided with environmentally
have been LEED certified did not save as
savings, demonstrate their commitment to
friendly cleaning materials and non
much energy as their designs predicted
corporate social responsibility and create
paper based hand drying systems can be
and that most did not track energy
a more comfortable working environment
installed in bathrooms.
consumption once in use. The program
for their employees. n
has been under attack from architects,
As the focus on sustainability in the real
engineers and energy experts who argue
estate sector increases, FM professionals
that because building performance is not
are gradually becoming involved in the
tracked, the certification may be falling
design of new-build projects as well as
short in reducing emissions tied to global
the retrofitting of older properties. FM
warming. This perceived gap between
26
Sustainability Asia
Act Locally, Share Globally Why City Mayors are Critical
in the Fight Against Climate
Change
I
n Copenhagen in December 2009,
last year was co-organised by a group
Asia and Pacific. These cities represent
while the world’s eyes were focused
known as the C40 cities. Asian cities were
various stages of development, and have
on the United Nations Climate
represented at the event with the leaders
differing as well as shared challenges
Change Conference in the hope, if not
of Delhi, Hong Kong, Jakarta and Tokyo
in terms of promoting sustainable
expectation, that the national government
all playing active roles in the proceedings
growth while transitioning to a low-
representatives of the UN signatory states
along side the likes of Mayor Bloomberg
carbon economy. Between them, these
would be able to thrash out a deal to rein
from New York, Mayor Johnson of
cities represent over 4% of the world’s
in global greenhouse gas (GHG) emissions,
London and Governor Schwarzenegger of
population (291 million people) and
a group of municipal government heads
California.
when combined with the 19 C40 Affiliate
also met to discuss how cities can act to
cities, this rises to nearly 4.7% of global
The C40 developed from a meeting of 18
population (319.5 million people), which
world city leaders in 2005 who discussed
is greater than the population of any single
As has now been well documented, the
how cities could collaborate to share
nation, other than India or China.
national government process at COP15 did
experience and expertise to combat
not live up to expectations and although
climate change at a municipal level. The
In 2008 the UN Population Fund published
the result, the Copenhagen Accord,
result of that meeting was an agreement
a report that confirmed for the first time in
managed to save the process from complete
to work together and, importantly, work
history, over half of the world’s population
collapse, it is regarded as a failure in some
on lowering the barriers to entry and
now lives in an urban environment. By
circles, with several groups including the
increasing the market for low-carbon
2050 this world’s urban population is
United Nations itself noting that that the
technologies. The following year, this
expected to be in excess of 5 billion people,
current national GHG emission reduction
Large Cities Climate Leadership Group
and as existing cities become saturated, the
targets pledged are insufficient to reduce
signed joined forces with the Clinton
majority of that expansion will happen in
atmospheric levels to those that scientists
Climate Initiative pledging to reduce GHG
smaller cities which have less resources to
have established necessary to limit global
emissions and increase energy efficiency in
adapt to this scale of change.
warming to 2oC and avoid the worst effects
cities around the world.
address climate change.
Notwithstanding socio-economic or
of climate change.
The new collective was renamed the C40,
political issues associated with such
The conference of city mayors and other
composed of 40 large cities across South
dramatic transformations, it is very clear
municipal leaders that met in Copenhagen
America, North America, Europe, Africa,
that the work that the C40 does now to
Sustainability Asia
27
FEATURE
develop and share best practices, as well
as facilitate the development of the low-
C40 Cities in Asia
carbon technology marketplace is going
to have critical ramifications to the fight
against climate change as the move towards
city dwelling increases.
Every year the member cities of the C40
Beijing
group take turns to host conferences
Seoul
Tokyo
and workshops to discuss various
Changwon
aspects of low-carbon cities including
financing energy efficiency, alternative
Shanghai
energy solutions, waste management,
Delhi
transportation and of course, the impact of
Hanoi
buildings.
In November 2010 Hong Kong will host
Yokohama
Dhaka
Hong Kong
Mumbai
a workshop for the C40 sponsored by
Bangkok
the Hong Kong SAR government and
Ho Chi Minh City
co-organised by local public policy and
sustainability think tank, Civic-Exchange.
Christine Loh, the Chief Executive
Officer of Civic-Exchange, is a Senior
C40 Large City
Policy Adviser to the C40 Cities Climate
C40 Affiliate City
Leadership Group. Given that the majority
Jakarta
of urbanisation over the next 40 years is
predicted by the UN to occur in Africa
and Asia, it is fitting that Asia’s most
established metropolises step up to lead the
With new buildings typically representing
buildings over 50,000 sf. Landlords
developing world into a sustainable future.
1-2% of total stock, the issue of increasing
rebelled against the proposal on the
the energy efficiency and environmental
grounds that it was unreasonable to impose
November’s Hong Kong conference will
performance of existing buildings is clearly
legislation that required owners to upgrade
have two core themes; transportation
the key to making any significant inroads to
buildings at their own cost without
with a special focus on electric vehicles,
tackling climate change.
assistance from the city government at a
time when the economy was starting its
and buildings with a special focus on
retrofitting existing buildings and new
Getting the policy changes on sustainable
climb out of one of the worst recessions in
build best practice. In some cities,
real estate right is not always easy. In
recent times. The sharing of experience and
buildings count for a massive proportion
December 2009 Mayor Bloomberg of
best practice between the city governments
of energy usage and associated GHG
New York was forced into a u-turn on his
of the world is therefore extremely valuable
emissions. In Hong Kong, for example, this
far-reaching proposals to mandate retrofit-
in accelerating progress.
is up to 90% of total usage.
orientated energy audits of all existing
While national government leaders
remain tethered by national economic
“Existing buildings are a huge challenge for cities wanting to
reduce carbon emissions. Most buildings that will be around
in Hong Kong and many other cities of the world in thirty years
time are actually in existence now. But they were not originally
built with energy efficiency in mind. As well, it’s harder to
change a building once it’s built, rather than designing in energy
efficiency on the drawing board.” – Andrew Lawson, CivicExchange
28
Sustainability Asia
development concerns, international trade
issues, and powerful lobby groups, city
governments are proving more flexible in
adapting to the problems posed by climate
change. n
See Issue 1 of CBRE Sustainability Asia for an
in-depth look at how city governments in Asia are
responding to climate change.
EDITORIAL
CB RICHARD ELLIS ASIA OFFICES
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