I live in one of those horrifically designed houses from the 60s. A time when the height of interior design dictated that there should be turquoise carpet everywhere (even the kitchen), that home extensions should include hexagonal rooms, and that no lounge room could be complete without a holographic rose-in-vase still life. It was also a time where the correct orientation of a house was immaterial to DIY builders – thus the sweltering summer heat, which seems to be lingering into autumn, has been particularly unpleasant this year.
Unfortunately, for many tenants – both residential and commercial – green building design isn’t at the top of a landlord’s priorities. This is beginning to change, however, with the real estate and development industries recognising the need for more efficient buildings and their responsibility for our built environment.
This change is due to two factors: corporate social responsibility requirements (environmental accountability of public companies to shareholders and the general public), and tenant demand (due to their own CSR requirements, or through desired savings on energy costs).
The change in Australia’s political climate has also produced some long-awaited results – such as the ratification of the Kyoto Protocol (along with some unprecedented action on whaling). While an expression of intent to reduce national emissions is all well and good on the part of the Commonwealth, the success of this largely depends on the actions of individuals. In our country, the responsibility for real climate change innovation comes back to the market, as market forces compelling action have outpaced regulatory requirements.
At the basic residential level, there are a few main courses of action for reducing waste of household energy and water: these include water heating, lighting, and grey water. Water heating is the single largest polluter, contributing up to 30% of greenhouse gas emissions. However, only 5% of Australian households have solar hot water.
For energy savings, replacing incandescent globes with compact fluorescents will heavily reduce lighting costs. Fluorescent globes have improved to include ‘warm’ colours, and can fit in standard light sockets. According to the Australian Conservation Foundation:
‘If you replace a 60 watt incandescent with the equivalent 11 watt CFL, you can save 107 kilowatt-hours over a year if used for six hours a day – this is a saving of around $15.50 per light, per year. ‘
Beyond this, landlords and homeowners can install grey-water recycling systems. There are a few options including diversion, filtration, and treatment systems. Each of these options is more expensive than the last, but provide safer water quality. As these features progressively become standard in many homes, rental properties are beginning to be leased based on their green credentials.
Meanwhile, even in Perth, the commercial sector has been initiating a range of projects to keep up with consumer sentiment. A 2007 Cone Consumer Environmental Survey in the US found that ‘almost as many (85% of Americans) indicated they would consider switching to another company’s products or services because of a company’s negative corporate responsibility practices.’ In the commercial real estate and development market, this translates to more tenants demanding efficient buildings due to their business requirements and the requirements of their customers.
The development industry has been notorious for creating un-walkable, car-dependent, energy-guzzling suburbs. However, it is beginning to come to the party. In Australia, around 225 eco-villages have been set up, mostly in the last 10 years; and green features, including higher quality design, have entered the general market.
The vast majority of innovation, however, is coming from the commercial office sector. According to Global Real Estate Research, green renovations of office buildings can lead to savings of over 30%. In the US:
‘A modern HVAC (heating, ventilation, and air conditioning) system alone can cut energy costs by 5% to 15%, depending on the building… For a 200,000-square-foot office building, a 30% savings could translate into annual savings of $135,000, based on typical utility charges of $2.25 per square foot.’
The same study found that green features in office buildings tended to result in more content workers – increasing productivity and substantially reducing training costs through employees leaving the company. Another benefit was the perceived newness of such buildings, which increases sales and leasing values.
As practical action on climate change gains momentum and the federal government begins to take a closer look at housing and energy, some real innovation should enter the general market. Buildings currently generate around 30% of greenhouse gases, so a strict focus on design and appliance efficiency will take effect. Sitting in the sweatbox I call home, it couldn’t come soon enough.
