More Corporations Promote Green Policies

November 30, 2007 | BY

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More corporations and governments around the globe have raised concerns on how to improve environmental efficiency and create more sustainable development,…

More corporations and governments around the globe have raised concerns on how to improve environmental efficiency and create more sustainable development, according to Dr. Jane Murray, Asia-Pacific Head of Research at Jones Lang LaSalle at a forum on risks & rewards in sustainable developments. “Installing efficient plants across the world has become a trend,” said Murray.

China and India will have potential for sustainability in the long run because of their economic growth and population increase, according to Jones Lang LaSalle's research analysis. The report shows that more than a half of the respondents in Asia-Pacific believe that sustainability will become a critical issue within the next two years, while 42% think it's an issue now.

By comparison, out of 500 real estate corporations from Singapore, Denver, Melbourne, and London, 50% think sustainability is already a critical issue now, while 62% believe it will be a critical issue within the next two years. Nine in ten feel that sustainability will become a critical issue within the next five years.

Compared to 5 years ago, changes in the PRC ­ policy, tourism and corporate developments, and regulations ­ have taken place in a positive way, said Randolph Lyon, a senior director of Sama Dubai. With the 2008 Olympics approaching, the country is now the leading edge in development, he said. While small local developers in the PRC are still relatively slow to adapt or to engage in new technologies, Lyon said that those developers who are willing to partner with foreign companies find the idea of sustainability motivating, and this is the group that is most likely to support the development financially.

“Perhaps Beijing will be a trend for the rest of the city” Murray said.

One of the advantages that sustainability will bring to corporations is energy savings and efficiency, Murray said. A green building can, on average, save 30% in energy costs, 50% on water, and 90% on other waste. In terms of good business policy, environmental sustainability reduces operating costs, improves productivity, and enhances business brands – it is also a drive for corporations to promote and motivate the workforce, Murray said.

However, one risk factor is that there is a limited availability of space for development even if it is sustainable. Over 50% of respondents think there is no space, according to the report. But the report also shows that more tenants are willing to pay more to occupy a green building. The other risk factor is the challenge in maintaining good relationships with the regulators of the environment, as environmental protection officials have high expectations for what a sustainability producer can do to improve their society, said Lyon.

“But movement [towards] sustainability is a long-term, ongoing phenomenon,” said Michael Pawlukiewicz, a senior research director of The Urban Land Institute.

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