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The Greening of Real Estate
18 April, 2008

Wherever you fall in the global warming debate between believer and denier, there is growing and widespread political, public and corporate support that human behaviour is producing effects that will impact and reduce the quality of life as we now enjoy it. It was hard to accept this when we saw no immediate consequences. Those consequences, however, are now showing up in a variety of ways, and all around the world. Where there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation, such as measures to reduce greenhouse gas emissions.

At the same time, another dynamic is occurring to add velocity to this change. For the better part of the past century, the west has consumed a vastly greater per capita share of natural resources and energy than has been consumed by countries such as China and India. To illustrate: China, India, Indonesia, Pakistan, Bangladesh, Philippines and Egypt in 1970 had a combined population of 1.7 billion. In 2000, they had grown to 2.9 billion.
Their total energy consumption in 2000 was 25.4 million ‘barrels of oil equivalent’ per day. At a per capita level of 3.2 BOE per day, that represented one thirtieth of what the US was consuming in 2000. As those countries and others develop and attempt to reach western standards for quality of life, as is happening in China and India today, greater quantities of greenhouse gases will pour into the atmosphere and greater consumption of the world’s non-renewable resources will occur.

Global trading has helped create the platform for countries such as China to move its economy to a level enjoyed by OECD countries and it is rapidly moving in that direction. Other countries are poised to have their populations also climb the ladder of affluence. Non-renewable energy resources will be exploited at increasing rates and the level of greenhouse gas emissions will increase at corresponding rates. In 2000, one fifth of the world’s population (developed nations) was releasing over 60% of all measured carbon emissions, while a poorer one fifth released less than 2%.

Clearly, economically developed nations, and North America in particular has a significant role to play in setting the tone to live more responsibly with respect to the impact its societal behaviour has on the planet. Governments, industries, corporations and individuals should be accountable and recognize that their activities have impacts and consequences on the planet’s systems.

The commercial real estate sector in particular, consumes an enormous amount of energy, water, and other resources. While many in this industry have long promoted energy conservation and resource management, it has been only in the last decade that we have seen a groundswell for implementation of green building practices.

The US Green Building Council developed a rating system known as ‘LEED’ in the late 90’s. Leadership in energy and environmental design is the cornerstone of the system and it is a widely accepted benchmark for the design, construction and operation of high performance ‘green’ buildings, although the system is not without critics. LEED promotes a whole building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality.

BOMA Canada has developed and adopted its own rating system for energy and environmental responsibility. There are two standards, BOMA Go Green and BOMA Go Green Plus. With buildings consuming 40 per cent of world energy use, accounting for 30 per cent of greenhouse gas emissions and the consumption of 30 per cent of raw materials use, the time has come for the real estate sector to show leadership in reducing environmental impacts. Adopting sustainable building design, construction and operation practices will help to ensure that the environmental footprint of our industry is reduced.

Hopefully it will also foster the creation of a growing culture of conservation and environmental responsibility so that we as a society can set an example for others climbing that ladder of affluence. Humanity has a duty to ensure conditions for its
survival are not diminished. A recent quotation of an ancient Indian proverb captured the essence of the message so well. “Treat the Earth well: it was not given to you by your parents, it was loaned to you by your children. We do not inherit the Earth from our ancestors, we borrow it from our children.”


by Ed McGoldrick, Director, Environmental Programs

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