State of the Industry Report 2007-2008

Chapter Six other InfluenCes: Wherever consumers make purposeful choices and/ or the CEO drives a mandate top-down. The results of these drivers are that we’re starting to see the carbon footprint of products being reduced. It’s also linked to supply chain strategies and customer location. Leading-edge companies tend to be found more among finance and high tech firms. Some manufacturing firms are also among them. Global differences can also determine what companies are leading edge. They include government regulation, availability of resources and consumer awareness. Leading-edge also means a broad focus beyond green buildings: “Leading-edge green gets into manufacturing products, corporate governance issues, travel……it gets to the understanding of the corporate suite,” as one Roundtable participant noted. QuestIon What do you consider leading-edge energy practices related to the CRE portfolio? result: Reducing carbon footprint Sun or solar generation Wind farms Hydrogen fuel cell generation Reengineered buildings Automated lighting control Space allocation/utilization Flexible workplace strategies like mobility Public transit proximity/access Gray water for irrigation, cooling, flushing Green and white rooftops Carbon and energy offsets related poInts: Integrating company products with operations can prove challenging. GE produces solar panels yet is finding the financial payoff difficult to justify from a corporate – divisional P&L standpoint when it places the product on business unit facilities. Innovation is integrating ideas to apply to existing buildings, especially in large urban centers like New York City, where ‘green’ leases are fast becoming a standard. In some U.S. cities and states it is also linked to location incentives. Some corporate tenants want green features written into their leases. Will other tenants be willing to pay? Bio-mimicry is on the horizon. How nature saves energy can be applied to people. New technologies like thin film can generate significant savings: 5 – 10% recovery vs. current 1%. QuestIon What do you consider leading edge ‘green’ (beyond energy) practices related to the CRE portfolio? result One ‘beyond energy’ opportunity is building recycling and materials reuse in reconstruction by United Technologies, Hearst and Pfizer. Travel demand management inside Nortel is another. Location decisions factoring in public transit were used by Adobe and Hearst. Mobility and other workplace practices by companies like HP, Nokia and Accenture also add a lot to more holistic applications of sustainability. • The desire and ability to develop sustainability into the portfolio differs based on what you build, whether you lease or build and what is of emphasis in your organization. • The biggest driver is to reduce space. • There are too many buildings and too many car parks. • Reducing the size of the portfolio and adopting innovative workplace strategies, above all, will make the biggest impact on ROI and affect all other aspects of the business. Encouraging people to take public transportation, bike to work or other creative ideas will have a considerable impact. • The goal of each company (particularly in the US) should be to get ahead of the trend. key take-away on sustaInabIlIty as a broad praCtICe beyond energy: Companies that have already embraced the ‘low hanging fruit’ in sustainability and have thought chapter six State of the Industry 2007-2008 23 http://www2.corenetglobal.org/home/index.vsp

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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