Green building as a bold business strategy
Download World Green Building Week social media assets and demonstrate your leadership
As the climate crisis intensifies, every sector must play its part — and the built environment is no exception. September 8-12 is World Green Building Week (WGBW) . Led by the World Green Building Council (WorldGBC) and partner councils like CAGBC, this annual campaign raises awareness, drives global conversations, and promotes practical action to reduce the environmental impact of buildings. This year, we are recognizing the importance of green buildings for people, planet and prosperity – and the opportunity for businesses.
Smart buildings are smart business
WorldGBC, along with its 75 member GBCs are working to put green buildings at the top of many organization’s agenda. As sustainability becomes an increasing priority for governments, investors, and consumers, businesses are recognizing that green building practices can deliver tangible returns on investment while contributing to a more sustainable future. Today, sustainability is no longer a nice-to-have, but a strategic business priority. Developers and landlords who opt for new green buildings or deep carbon retrofits could see higher occupancy rates, lower tenant turnover and higher market value. Projects that achieve a reputable green building certification have a third-party verification of their sustainability investments, which can position those assets favourably for investors looking for long-term stability in a competitive market.
Buildings that minimize energy consumption are less vulnerable to future energy and carbon cost. Furthermore, green buildings tend to have lower maintenance costs due to the use of more durable materials and smart building systems that reduce equipment wear and tear. This allows for long-term cost predictability, which is especially attractive to institutional investors and Real Estate Investment Trusts (REITs) seeking stable, income-generating assets.
In fact, a recent study conducted by CAGBC member Akonovia found that the value of a sustainably designed building can appreciate by as much as 45 percent in the tenth year following construction.
Low risk, high impact
Being inherently climate risk averse, green building practice also makes a strong case for safer investments. Sustainable buildings outclass other real estate investments especially when it comes to risk mitigation. From an investor’s perspective, structures designed to be more resilient and energy efficient are lower-risk assets better prepared to comply with future building code and regulation updates. Additionally, investors and developers may gain access to incentives and financing programs reserved for green retrofit projects and climate-resilient new builds. As standardized Environmental, Social, and Governance (ESG) metrics have made their way into reporting frameworks, sustainability has become a core component of corporate reporting risk management.
A path forward
Most of the buildings standing today will still be standing in 2050.
Retrofitting older buildings can deliver strong returns and is often more cost-effective than demolition and rebuilding. CAGBC plays a central role in supporting transition planning for existing buildings across Canada, through its Transition Planning Now and Retrofits Now initiatives, which will offer resources to help organization identify assets for transition planning and plan for the needed interventions in a strategy and cost-effective way. Many government programs offer incentives– in the form of tax credits, or others – to encourage green retrofits, including the Building Retrofits Initiative, the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC), and the Codes Acceleration Fund.
Project developers also have access to innovative tools to help them better leverage funding opportunities. Administered in Canada by CAGBC, the Investor Ready Energy Efficiency (IREE) certification makes retrofits more attractive to building owners and investors by supporting the standardization of energy-efficiency retrofit projects. IREE provides a trusted framework investors can leverage to evaluate energy efficiency projects, increasing confidence in the energy cost savings outcomes.
Business goes better when you’re bold on buildings
From reduced operating costs and higher asset values to healthier, more productive workplaces, the evidence is clear: sustainable buildings aren’t just good for the environment, they make strategic business sense. However, owners, developers, and investors need reliable and accurate information to guide their investments. Resources such as CAGBC’s Rapidly Scaling Canada’s Deep Retrofit Market, and Decarbonizing Canada’s Commercial Buildings help build the case, and new initiatives like Retrofits Now and Transition Planning Now will provide the assets, training and support building owners will need to advance deep retrofits.
Step into action
Interested in demonstrating your commitment to new, sustainable buildings or deep energy and carbon retrofits? This World Green Building Week, showcase your successes and innovative solutions buildings that unlock and increase value over time. Join WorldGBC’s #BeBoldOnBuildings and amplify the message by customizing these WGBW assets and sharing them on social media.