What is the True Cost of Going Green?
This past week Elisa Wood of Renewableenergyworld.com wrote a very interesting blog piece focusing on the state of the commercial real estate market and the perceived costs and benefits of green buildings. Ms. Wood focused on what she calls the "ghosts" of green building, the perceived costs of green expenditures which in reality do not actually turn out to be true her post is based on a recent report released by Ceres which can be downloaded here.
The report established the methods by which both direct and indirect property investors can reduce their portfolios energy usage and increase its value:
- Establish a baseline measuremen tof energy use across portfolios
- Prioritize opportunities for energy reduction using a sequenced approach from ENERGY STAR that focuses first on the worst- performing properties that provide the lowest-cost, easiest opportunities for cutting energy use. Such sequencing includes:
- Retro-commissioning buildings, which involves testing building systems to ensure they are operating optimally
- Upgrading lighting – Reducing electricity load demand of occupants and equipment – Upgrading and optimizing air distribution systems – Upgrading and optimizing heating and cooling systems
- Benchmark on a regular basis ongoing energy use against that baseline For indirect property owners who invest in real estate related funds or stock ownership:
- Seek funds with a specific mission of creating or acquiring energy efficient properties
- Seek funds with specific goals for energy efficiency improvements in existing holdings
- Use proxy voting and direct engagement to address energy efficiency with asset managers and public companies
The report contains very interesting material for all involved in the green building industry and is worthy of a quick read. The findings are very encouraging for the future of the industry and show that people are starting to appreciate the benefits that green buildings can provide.
