State of the Industry Report 2007-2008

Chapter Six sustaInabIlIty perCeptIons and trends – global surVey results In 2007, corporate sustainability surpassed early adoption on a global scale. • Europe is the ‘cradle’ of sustainability, having been the earliest adopter of green practices among the global regions. • Australia is also seen as an early adopter in many ways. • North America was lagging until a sound business case for the cost and economic value gained clarity in 2007. • Asia is beginning to embrace sustainability on a wider scale. China is already known for intelligent buildings, for example. Energy use, global warming and emissions are among the most important changes from 2007 that differ from the CoRE 2010 forecasts on CRE’s role in sustainability, as underscored at the 2007 london global summit. The sudden – if not unexpected – view of sustainability as a critical near-term issue for global companies stands in contrast against the evolution of other industry drivers. So much so, that sustainability became the industry hallmark of 2007. The results of our global survey on “Sustainability Perceptions and Trends in the Corporate Real Estate Industry” serve as an early validation that sustainable practices, also termed around the concept of Corporate Social Responsibility, or CSR, have gone from early adoption to the mainstream of the globally networked enterprise. Click here to view related research bulletin. Click here to view survey data. trIple bottom lIne Comes Into full foCus In 2007 Sustainability makes good business sense, yet there are still gaps in perception to close, and thus even broader adoption and wider practice levels to attain. From an enterprise and CRE view, sustainability literally ‘shot to the top of the page’ in 2007 because of a clearer understanding of the economic benefits: cost, value and return on investment. There’s higher awareness of the value and willingness to pay more. But the actual cost of sustainability is perceived as being higher, as is access to the so-called “green” supply chain of CRE and related products and services. The survey sheds light on the one piece of the Triple Bottom Line (3BL) that corporations must have to rationalize sustainable practices: the profit component. The firm linkage of “profit” to “people and planet” – mainly through energy-management issues – has indeed helped corporations rationalize the business case for sustainability, as the new survey results also demonstrate. energy as a wedge Issue One implied outcome of this survey is an immediate leadership opportunity for CRE and workplace executives. The survey also validates the key recommendation made in another 2007 CoreNet Global study done jointly with the Rocky Mountain Institute: “the energy Challenge: a new agenda for Corporate real estate.” “Turning pervasive obstacles into business opportunities,” is how dr. amory lovins of the rocky mountain Institute characterized the scenario currently facing CRE as it seeks an early strategic niche on the organizational matrix for CSR. Energy cost and usage are huge issues for companies. With commercial and industrial buildings using 40% of total energy consumed, solutions must be connected to real estate, and thus to a leadership role for CRE. It’s less a case for an opportunity and more of a mandate for CRE departments to take action now. • Energy, at least currently, is the most important sustainability factor for corporate occupiers • That’s a direct reflection of the extremely high energy costs and the fact it’s an approachable, actionable item chapter six State of the Industry 2007-2008 20 http://www2.corenetglobal.org/home/index.vsp http://www2.corenetglobal.org/summits_events/london_2007/reports/index.vsp http://www2.corenetglobal.org/summits_events/london_2007/reports/index.vsp http://www2.corenetglobal.org/home/info_center/global_press_releases/pdf/pr070430_energy.pdf http://www2.corenetglobal.org/home/info_center/global_press_releases/pdf/pr070430_energy.pdf http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=3036456 http://www2.corenetglobal.org/dotCMS/kcoSearch?search_type=advanced_search&keyword=keywords&search_field=global+survey&kwPublicationMonth=-1&kwPublicationYear=-1&assetTopicsInodes=38782&assetTypesInodes=38768 http://www.rmi.org/ http://www.rmi.org/

Table of Contents Feed for the Digital Edition of State of the Industry Report 2007-2008

State of the Industry Report 2007-2008 Contents Chapter 1: Introduction : CoRE 2010 Framework and Report Structure Chapter 2: The Changing Business Environment Chapter 3: Executive Summary of Key Findings and Conclusions Chapter 4: CoRE 2010 Adoption Rate Chapter 5: Sustainability/Corporate Social Responsibility Chapter 6: Global Sustainability Survey and Roundtable Findings Chapter 7: Workplace Practices/Work Environments Chapter 8: Workplace Related Issue: The War for Talent Chapter 9: Asset Management/Portfolio Optimization Chapter 10: Solutions Delivery Chapter 11: Location Strategies/The Strategic Role of Place Chapter 12: Location Related Issue: Site Selection Morphs to Portfolio Alignment Chapter 13: Strategic Competencies/Enterprise Leadership Skills Chapter 14: Competencies Related Issue: The War for Talent in Corporate Real Estate (CRE) Chapter 15: Integrated Resources Infrastructure Solutions – IRIS Chapter 16: Technology and the Web Chapter 17: Technology Related Issue: Removing the Obstacles to Industry Data Standards Acknowledgements and Sources

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