The Economic Benefits of Green Buildings:

The World Green Building Council has released a report reviewing the costs and benefits for developers, investors and occupants for turning buildings green.

The report called “The Business Case for Green Building” provides insight into different case studies of green buildings around the world. It said that there is an increasingly compelling business case for green buildings.

“The evidence presented highlights that sustainable buildings make clear business sense – it’s not just about saving the planet. These benefits range from risk mitigation across a building portfolio and a citywide economic benefits, to the improved health and well-being of individual building occupants,” the report said.

Also, green buildings nowadays can now be delivered at a price that’s comparable to those for conventional buildings. “These costs can be recouped through operational costs savings and, with the right design features, through a more productive workplace. Design decisions made at the start of a project will impact the long-term value of the building and its return on investment.”

Aside from that, studies around the world show that green buildings attract tenants more easily and command higher sale and rent prices.

“In markets where green has become more mainstream, there are indications of emerging ‘brown discounts’ where buildings that are not green may rent or sell for less.”

However, the report said that in order to effectively transform the global marketplace, there is a need for more data and for even more case studies from all over the world.

Businesses can partner with each other or with academia and government to better understand the financial implications of a green building.

“What is clear is that there is a mounting evidence that in many markets across the world, part of being a better quality building means being a green building. In premium markets in particular, green is increasingly expected by tenants and owners – it is just part of what good ‘quality’ means,” the report said.

Rick Fedrizzi, Chairman of World GBC, said that the report “confirms yet again that when environmental strategies – along with program management – are integrated into the development process from the beginning of a building’s life cycle, green buildings save energy, save water, save precious resources and most importantly save money”.

The report highlights the best business case evidence available today for green buildings. It also shows how governments can leverage green building policies to support local economies and meet their long-term goals.

“With this foundation, we call on the private and public sectors to use their collective knowledge and strength to move the green building agenda forward, knowing that it benefits people and the environment – and their bottom lines.”