Value Beyond Cost Savings - Green Building Finance Consortium

Value Beyond Cost Savings: How to Underwrite Sustainable PropertiesMeasure of Occupant PerformanceOccupant performance has two key components of measurement, as shown below inExhibit IV-2:• The actual occupant: individuals working in or using space; and• Enterprises that lease or own the space.Exhibit IV-2Measuring Building Performance: OccupantsHealthIndividualEnterpriseProductivitySatisfactionReduction in Resource Use• Reduction in energy and water use• Reduction in building waste• Reduction in pollution emissions• Reduction in carbon footprintImproved Reputation / Leadership• Recruiting• Employee retention / satisfaction• Public relations / brand management• Retain “social license” to operate• Improved marketing and sales• Increased company market value• Increased company market liquidity• Shareholder concerns addressedCompliance With Internal / External Policies / Initiatives• Corporate energy / sustainability requirements• Corporate social responsibility reporting• Global Reporting Initiative• Carbon Disclosure Project• Minimum requirements of socially responsible investment fundsReduced Risk to Future Earnings• Legal risks—sick building syndrome and mold claims, businessinterruptions, building remediation costs, etc.• Reduced sub-leasing risk if downsizing, relocating, etc.• Reduced operating cost volatility• Reduced risk to reputation• Improved defense of competitive advantages• Reduced risk of future compliance costsWhile most researchers and industry analysts have focused on individual occupantperformance (health, productivity and satisfaction), enterprise-level occupant performanceis also critical to measure and understand. As shown above in Exhibit IV-2, enterprise-leveloccupant performance consists of reductions in resource use, improved reputation/68