Value Beyond Cost Savings - Green Building Finance Consortium

Value Beyond Cost Savings: How to Underwrite Sustainable Propertiesdescribed above. A brief description and web link to more detailed information is providedin Appendix III-D for each of the systems identified.Since the bulk of Appendix III-D was created, the United Nations EnvironmentalProgramme, Sustainable Buildings and Construction Initiative published a report: “UNEP-FI/SBCI’s Financial and Sustainability Metrics,” which supplements Appendix III-D withadditional performance and certification programs. This report is well done and outlinescommon performance indicators for sustainable building, discusses in detail key financialindicators for sustainable buildings, and does a comparative assessment of six keycertification systems and describes many more.http://www.unepfi.org/publications/property/index.html2. Performance Measurement Moves to Forefront in IndustryMeasurement and assessment is at the forefront of the private sector commercial real estateindustry today. As corporate boards, pension boards, and other senior management havedeclared their commitment to looking closely at sustainable issues in their real estate,portfolio managers, corporate real estate executives, and facility and property managers arestruggling to determine what level of sustainable performance they should strive for, howsustainable their properties are today, and what they need to do to better measure, monitor,and manage sustainability going forward?There are many ways to think about measurement and certification systems. One of themost important for financial analysis is the difference between certification or assessmentsystems based on modeled criteria versus those based on actual performance (water use,energy use, carbon output, quality of the indoor environment, etc.). For certification orassessment systems based on modeled criteria, underwriters need knowledge and expertiseon how to assess the accuracy and reliability of forecasts. For systems based on actualperformance, key issues include selecting the correct items to measure, accuratelymeasuring them, and employing a consistent approach between properties to enablecomparisons.The sustainable property industry has matured resulting in an increasing focus on actualversus projected performance. However, depending on whether you are in the planning,construction, or operations phase of a building, and on the specific sustainable features andattributes planned, different assessment and certification systems may be more applicableand appropriate.In Expanded Chapter III we identify and assess some important developments insustainable property assessment in recent years including:• ASTM Building Energy Performance Assessment and Disclosure Standards;• International Code Council Green Building Code;• European Union Energy Performance in Buildings Directive (2009 Recast)26