Commentary

Business Green Environmentally conscious design that makes good dollars and sense

Designers must balance sustainability with the practical needs of their clients to find the right common-sense business balance.

By Pete Sabeff

When historians look back on the first decade of the new millennium, they will surely identify this as the beginning of a new era in the industrialized world an era in which we found our environmental conscience.

Recycling, renewable energy, fuel cells, energy conservation and sustainability are terms that have entered the English vernacular and are here to stay. The construction industry has embraced this new language and fashionable trend, wrapping itself in the color of the day green.

But building owners and managers are not in the “business” of constructing facilities purely to green their environment. Buildings, facilities and campuses are generally constructed to support larger objectives. A hospital must facilitate the delivery of health-care services. A manufacturing plant produces a product. An elementary school provides an environment in which to educate children.

The structure itself is not the objective, but its purpose is to support that objective. As building owners and managers consider the greening of their structures, they must find the means to construct environmentally conscious structures and systems that are still in keeping with their business objectives. 

It’s not just green, but “business green.”

A Balancing Act

As design and construction professionals, it is our responsibility to help clients find the balance between the two. Helping them consider, analyze and evaluate their various options and the impact those options have on the initial costs of their project and the longer-term costs associated with on-going operations.

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Investment decisions in the business world are based on achieving positive economic results, often looking to increase revenue or decrease expenses. The goal is to improve the overall return on investment. As business owners now consider opportunities for reducing their environmental impact, they must still consider the economic results of their green investment. Business green is the answer for the environmentally conscious and those concerned with meeting their business objectives. A business green approach allows companies to improve their world while also improving their bottom line.

Numerous case studies have proven the economic benefit of going green. Businesses are lowering energy costs, decreasing maintenance costs and increasing the longevity of their buildings and systems. Industries with rooms to rent (office buildings, hospitals, hotels, etc.) are reporting decreased vacancies and increased room rates in their green facilities. Employers are crediting environmental improvements for reducing employee turnover and sick leave while increasing employee morale and job satisfaction. But not every environmentally friendly building improvement will make business sense.

Consider Lifetime Costs

A business green approach starts by considering architectural and engineering opportunities that reduce initial costs and improve business economics. Spending a little more on the building construction to keep out heat, cold and moisture allows the engineer to design smaller building systems.  Small systems mean smaller boilers and chillers, less wiring and simplified piping and ductwork.  This approach lowers the initial cost while also reducing energy consumption and its expense. The majority of facilities today are over-designed from mechanical and electrical perspectives. Rather than designing for an extreme summer day, designing for a typical summer day will often result in a 15% reduction in cooling system size, again reducing both first costs and ongoing energy costs.

A business green approach also considers increasing the initial investment in order to realize substantial savings over time. Studies have shown that the initial cost to construct a building is only 20% of the total cost of that building over the course of its useful life. Unfortunately, business and financial managers often make investment decisions based only on initial costs and miss the opportunity to increase their return on investment over a facility’s lifetime. A business green approach will help business investors better assess their environmental opportunities from a financial viewpoint, both in terms of initial construction and ongoing operations.
 
Common Sense

Business green operates apart from the hype associated with green building certification levels and flashy news conferences. It is rooted in common sense. It may not make sense to increase the insulation of a building in a moderate climate. Measuring energy usage to obtain a LEED certification point only makes sense if those measurements are used to further reduce energy consumption.  Reducing energy makes sense, but not if the energy reduction is temporary. And replacing equipment makes sense only if the energy efficiency of the overall system is improved. Business green does not jump on the bandwagon for the sake of a trend but because it achieves the larger objectives of the business.   

By helping our clients see the value of business green, our industry can help transition this environmentally conscious movement from trendy to sustainable.

Pete Sabeff is the founder and president of Engineering Economics Inc., a facility-consulting firm specializing in facility assessment, design review and quality assurance services and serving the Denver community for more than 23 years. EEI is dedicated to helping its clients find their business green.

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