STEPHAN DEGENHART*, Associate Partner at Drees & Sommer, provides an insight into what developers can do in 2021 and beyond to increase their green rating and reduce their carbon footprint.
01 December 2020
A responsible attitude towards nature, climate-friendly energy technology, economical use of resources and access to clean drinking water are criteria that will decide our future. This applies in particular to the design and construction environment, given that buildings have an operating life of 40 to 80 years. Hence, sustainability is increasingly becoming a strategic priority for developers, and the best way to approach this is holistically with buildings being a visible manifestation of this.
It’s important to bear in mind, however, that sustainability is more than buildings being as energy efficient as possible – it involves everything from architecture and design to material selection and the health and well-being of users. As such, there is no end in sight for the smart building trend in which a fusion of technology, design, engineering and environment is created to enable a smarter future.
To design sustainable buildings, Drees & Sommer embraces the Cradle to Cradle (C2C) design principle and aims to reduce the consumption of resources and waste to nil and consider the materials used as ‘nutrients’. Buildings and the materials employed within them are selected either because they are completely bio-degradable or because they can be repurposed or recycled. C2C also has a direct impact on the users of a building – with companies that have set up offices in sustainable buildings reporting lower incidences of illness and employee turnover.
The Cradle to Cradle principle is the basis of the circular economy and industrial system that’s regenerative by design and ensure that the resources used can serve as starting materials for new, pollutant-free products after they have been used.
Alongside this, the Internet of Things (IoT) and smart technology are fundamentally changing the way in which buildings are developed, operated and controlled. There are a host of smart technology solutions already available, from 3D laser scanning and digital modular fabrication to intelligent construction equipment and BIM (building information modelling) models, besides IoT systems and robotics. For the asset owner, the financial benefits of intelligent, sustainable buildings are considerable. According to research by McKinsey & Company, adopting digital solutions throughout every phase of the construction process could increase market productivity by as much as 15 per cent and reduce life cycle costs by up to 45 per cent.
The concept of sustainable construction is nothing new, it’s something developers and investors know they should be doing. Covid-19 has simply accelerated this and put a new spotlight on how we can design and build sustainable developments. The combination of ecological and economic sustainability is critical to the future of the real estate industry. Nonetheless, there are many questions on the path to sustainable development. To help developers, below are three concepts that are worth exploring for those interested in sustainable development and construction:
• Engage a sustainability consultant: A sustainability consultant can advise on targeted measures you can use in your development and production processes to reduce both energy consumption and carbon dioxide (CO2) emissions, while cutting any manufacturing costs. They can also help you decide on the appropriate Green Building Label for your Green Building certification and review the costs, risks and opportunities associated with your project. In addition, a sustainability consultant can provide support with the certification process in accordance with all the established systems. The outcome of sustainability consulting is a perfect balance between profitability and sustainability.
• Consider going modular: Modular design involves the construction of buildings via prefabricated sections, built remotely and then delivered to the construction site. It’s suffered from being stereotyped as quick and lower quality, but this doesn’t have to be the case. Modular building is innovative, cost-effective and incredibly time-efficient. The controlled plant conditions used for construction off-site mean results can be achieved in half the time of conventional methods. If C2C principles are also implemented, the benefits multiply.
Drees & Sommer’s advice is to future-proof your assets now. The increasingly competitive environment will result in more demand for quality products, driving the transformation to sustainable design and construction. The systems and technology are there; meaning it’s your opportunity to be at the forefront of change.
• Embrace digitisation: Digitisation has the power to have a strong impact on the real estate industry. In a recent Drees & Sommer survey, 91 per cent of respondents said digitisation would have either a strong, or very strong impact on the real estate sector. Firstly, digitisation will play an increasingly integral role when it comes to the design and construction of sustainable buildings. Secondly, digitisation will go far beyond architecture; it will support the operation of a building.
Driven by more demanding user requirements, increasing desires for efficiency and the need for reduced operating costs, digitisation will bring about new business models when it comes to property. No longer is an asset simply built, leased, rented or sold; a building is capable of so much more. Essentially, technology can give buildings a brain, bringing them to life and opening up new possibilities of how we use them. n
*Stephan Degenhart is also the Managing Director of Drees & Sommer’s Middle East office. He has extensive experience in real estate development consulting and project management.