Be part of the change. Reimagining how we define value
Tetra Tech High Performance Buildings Group
Delivering high-end consulting and engineering design services for our clients’ most challenging building projects
Soon it will no longer be about having an ESG strategy, just a strategy. Being sustainable will be standard practice. Following Environmental, Social and Governance (ESG) principles isn’t a trend, but a necessity that will redefine both value creation and economic growth for the built environment.
The built environment has always been redefining what ‘normal’ looks like. Few office buildings across the globe had on-site cafes or bicycle shelters two decades ago; now a vast number do. In more recent years some steel smelters have become fully electrified, so have building sites and buildings themselves. What humankind creates, and then values, is constantly evolving over time.
A transformational shift is now needed in how we develop, deploy and utilize the built environment or the industry risks failing in the mission to achieve net-zero by mid-century. This is also needed to deliver on the United Nation’s Buildings Breakthrough Goal – where all new and refurbished buildings from 2030 should be ‘near zero carbon emissions and resilient.’ Part of this shift involves redefining value.
This is about the need to move from a purely financial and economic focus towards a broader definition of what value means. This includes environmental values, community and social values, wellbeing and health, as well as an inclusive transition to net zero carbon emissions.
Reimagining the built environment with ESG principles at the core must be seen as an opportunity, not about mitigating perceived risks. Investing in sustainable, decarbonized, resilient buildings should be very appetizing. Sustainability shouldn't be hurting the bottom line – an expanded triple bottom line – defined by profit, people and planet. This involves reimagining the ‘rules of the game.’
This is the conclusion from top industry experts from around the globe after an extensive consultation by the?Tetra Tech High Performance Buildings Group, a global team of built environment experts. Real estate providers, engineers, financiers, sustainability and ESG experts, as well as those in public service provision, were all interviewed in this process.
“We cant change the world without actually thinking about this as a cultural shift.” Helle Lis S?holt, Founding Partner and CEO of Gehl
What matters therefore, is how the built environment industry defines value. Improving air quality, reducing noise pollution, energy consumption and wastewater, as well as boosting biodiversity are not a waste of money. This is true for every community across the globe, whether they’re from high- or low-income countries. The argument should be reframed – can you afford not to invest in a better built environment?
“If we get smarter at measuring and valuing things better and differently, respect the environment and the circular economy, and get the incentives right, then the prospects are more encouraging.” Mark Harvey, Head of Profession for Infrastructure and Urban Advisers in the UK's Foreign Commonwealth and Development Office (FCDO)
The need to redefine people’s choices and how they use the built environment was another conclusion of the respondents. The industry must use its creative minds to engage people in new ways and provide opportunities to experience different choices – albeit ESG-focused ones. The culture around the built environment must change.
Redefining value through language is also important. The lexicon used is often focused on the negative aspects of climate change – avoiding harm or environmental damage. The starting point should instead be what the industry will gain by focusing on climate resilience or sustainable development goals – the positives.
A great deal of focus has also been on climate mitigation in the built environment – now it has shifted to both mitigation and adaptation at the same time while building long-term resilience. This multi-pronged attack will also help redefine value. This involves adopting whole-life carbon and life cycle thinking concepts that encompass the whole value chain.
Reimagining how the built environment industry defines value isn’t going to be easy. It will involve taking a radically new outlook on what’s possible and moving way past net zero, according to several respondents.
To get there, the industry also needs an expanded skillset. Leveraging artificial intelligence and new data-fed technologies will also make it possible to uncover fresh wisdom and master a high degree of inherent complexity.
““The process for facilitating the investments is extremely costly. The financial system could be more efficient in terms of facilitating climate investments faster. This is the challenge we have right now. Try to avoid unnecessary transaction costs.” Rodrigo Chaparro, Climate Change Director, Tetra Tech
Redefining value involves reimagining scale as well. Thinking about climate change and other ESG factors at a more regional, district or city level gives the industry more options to use a systems approach, innovate to address these local issues and provide financial benefits – scale matters.
Considering the wider value proposition with multiple wins can also help. Compounding benefits such as reducing emissions and boosting social value, alongside financial benefits and risk mitigation, redefines the traditional business case for a more sustainable built environment. Leading the change in this mindset puts us at a strategic advantage: multiple wins matter.
This post is the last in a series of five. Starting with an initial?post, the focus has been on reimagining the built environment. This is no small feat. It has involved asking a series of hard questions delivered in three other articles -?Can we reimagine how we nurture ideas??How do we reimagine the market we operate in? And?can we reimagine relationships between people and nature? This final one has focused on redefining value. The fact is that the issues are complex. Only by dealing with each of these issues can the industry reimagine the built environment. ? ?
We hope this series of posts will create an expectant spark. The Tetra Tech High Performance Buildings Group is itself on a journey. A lot of progress has been made, but there is still a long way to go. It’s why we are taking every opportunity to move faster and further. This series is just one example.
Reimagining the built environment today is crucial for a more sustainable tomorrow.
Be part of the change.
Reimagining – a debate in three questions:
How would you redefine value for the built environment?
How do we reimagine ESG strategy so it’s no longer about ESG, just strategy?
How can the metrics better capture the long-term benefits of ESG, so that the sector values these principles more?
A case in point:
Decarbonizing Higher Education Campuses - United States
In 2018, we began work on a strategic road map for the California State University system, the largest public university system in the United States. This design standard provided guidelines for 23 campuses and its staff to decarbonize the operation of all its facilities. Various resources help staff make informed, data-driven decisions including interactive dashboards, design guidelines and policy reviews. Since then, we have grown this portfolio of work across the U.S., including work with the University of Colorado, Boulder, and George Mason University.
Advancing Sustainable Management of Cambodia’s Prey Lang Extended Landscape – Cambodia
The Prey Lang Extended Landscape covers more than 3.3 million hectares of forest, watersheds, and agricultural land in northeastern Cambodia. It is home to more than 1 million people and dozens of endangered animal and plant species. With the support of our partners, we developed and implemented an integrated approach to promote conservation-friendly, resilient, and low-emission sustainable economic development. Empowering communities to lead forest management practices was hallmark to Tetra Techs approach to help protect the vast diversity and beauty of this landscape which remains under severe threat from deforestation, illegal logging, wildlife trafficking, and the impacts of climate change.
Quotes from our conversations
“It would be unthinkable for us not to have sustainability at the heart of our strategy, not just from a moral but also a practical perspective. It allows us to create the most commercial, social and environmental value for the nation today and for generations to come.” Jane Wakiwaka, London & Regional Sustainability Director, Crown Estate
“Sustainability and value are inextricably linked. Investments like on-site solar, energy efficiency, and other improvements to make buildings more sustainable can reduce the operating costs of the building while also increasing overall asset value. We also see increasing demand from occupiers for sustainable properties. Investments in sustainable buildings are investments in protecting and enhancing a portfolio’s value." Stephanie Greene, Managing Director and Sustainability Solutions Leader for CBRE Americas Consulting
Tetra Tech High Performance Buildings Group brings together the expertise of talented engineers, commissioning agents, and energy analysts from around the world. For more than 50 years, Tetra Tech’s design practice has expanded to meet the needs of commercial and government clients looking to improve the sustainability of their buildings.
Acknowledgements. We would like to extend our sincere thanks to the following leaders and experts who contributed ideas and insights to this report:
Mark Harvey, UK's Foreign Commonwealth and Development Office (FCDO) Head of Profession for Infrastructure and Urban Advisers
Mark is one of thirteen Heads of Profession at FCDO who lead in their areas of expertise. Mark has worked for FCDO, DFID and ODA since 1991. He has a BSc Civil Engineering, worked for consultants in Zambia, the UAE and the UK in the water sector; and a MSc from WEDC. He has worked on the UK’s development programmes in Africa and South Asia with periods in London headquarters.
Rodrigo Chaparro, Tetra Tech Climate Change Director
Rodrigo serves as climate change director for international development projects at Tetra Tech where he leads the integration of climate change mitigation, adaptation, resilience, and carbon markets criteria across the portfolio of international energy projects. He has experience in the Americas, Asia and Africa and chairs the decarbonization working group of the IEEFP Committee.
Stephanie Greene, Managing Director and Sustainability Solutions Leader for CBRE Americas Consulting
Stephanie is responsible for delivering sustainability services and solutions for clients across CBRE’s Consulting and Advisory & Transaction Services business in the Americas.
Stephanie engages directly with clients to understand their needs, diagnose challenges and provide solutions. She advises on strategies related to real estate portfolio decarbonization, net zero roadmaps, benchmarking, green leasing, building ratings and certifications, electrification, on-site renewables, electric vehicles, reporting requirements, and governance deployment. She partners across functions to drive innovative strategies, working to address clients’ evolving needs by leveraging the breadth of CBRE’s service offerings.
Founder and President at Roomscapes, Inc.
10 个月I agree!
Vice President, Government Sector Lead
10 个月Another very interesting statistics: "The biggest opportunity right now involves renovating existing buildings. In some countries, 80% of the buildings that will exist in 2050 have already been built. " To me this means so many untapped potentials in our existing building stock. ??