Engineering Inc. - January/February 2008 - (Page 31) rIsk manaGement Emphasizing thE BusinEss sidE of going grEEn By Pete Sabeff When historians look back on the first decade of the new millennium, they will recognize this as the beginning of a new era in the industrialized world—an era in which we found our environmental conscience. Recycling, renewable energy, fuel cells, energy conservation and sustainability are terms that have entered the English vernacular and are here to stay. The construction industry has embraced this new language and fashionable trend, wrapping itself in the color of the day—green. going Business green Building owners and managers are not in the facilities business purely for the sake of erecting energy-efficient, environmentally conscious structures. Buildings, facilities and campuses are designed to support larger objectives. A hospital, for example, is built to facilitate the delivery of health care services. A manufacturing plant is constructed to produce a product. An elementary school is used to provide an environment in which to educate children. The structure itself is not the objective; its purpose is to support a broader objective. As building owners and managers consider the greening of their structures, they must find the means to construct environmentally conscious structures and systems that are in keeping with their business objectives. It’s not just green, but Business Green. Design and construction professionals must help project owners find a balance between the Pete Sabeff two. We must help them consider, analyze and evaluate options and the impact those options have on the initial costs of their project, as well as the longer-term costs of ongoing operations. The goal is to improve the overall return on investment. As business owners now consider opportunities for reducing their environmental impact, they must still consider the economic results of their green investment. Business Green is the answer for the environmentally conscious and those concerned with meeting their business objectives. Such an approach allows companies to improve their world while also improving their bottom line. Numerous case studies have proven the economic benefit of going green. Businesses are lowering energy costs, decreasing maintenance costs and increasing the longevity of their building and its systems. Industries with “rooms to rent” (office buildings, hospitals, hotels and so on) are reporting decreased vacancies and increased “room” rates in their green facilities. Employers are crediting environmental improvements with reducing employee turnover and sick leave while increasing employee morale and job satisfaction. But not every environmentally friendly building improvement makes smart business sense. A Business Green approach starts by considering architectural and engineering opportunities that reduce initial costs and improve business economics. Spending a little more on the building construction to keep out heat, cold and moisture allows the engineer to design smaller building systems. Small systems mean smaller boilers and chillers, less wiring and simplified piping and ductwork. This approach lowers the initial cost while reducing energy consumption and its expense. The majority of facilities today are over-designed from mechanical and electrical perspectives. Rather than designing for an extremely hot summer day, designing for a typical summer day often will result in a 15 percent reduction in cooling system size, reducing initial and ongoing energy costs. Cost savings over time A Business Green approach often means increasing the initial investment in order to realize substantial savings over time. Studies have shown that the initial cost to construct a building is only 20 percent of the total cost of that building over the course of its useful life. Unfortunately, business and financial managers often make investment decisions based only on initial costs and miss the opportunity to increase their return on investment over a facility’s lifetime. A Business Green approach helps investors better assess their environmental opportunities from a financial standpoint in terms of initial construction and ongoing operations. Business Green operates apart from the hype associated with green building certification levels and flashy news conferences. It is rooted in common sense. Measuring energy usage to obtain LEED certification only makes sense if those measurements are used to further reduce energy consumption. Reducing energy makes sense, but not if the energy reduction is temporary. And replacing equipment makes sense only if the energy efficiency of the overall system is improved. By helping our clients see the value of Business Green, our industry can truly help transition this environmentally conscious movement from “trendy” to “sustainable.” n Pete Sabeff is founder and president of ACEC member firm Engineering Economics, Inc., a national facility consulting firm specializing in facility assessment, design review and quality assurance services. January / February 2008 enGIneerInG InC. 31
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