business drivers for green buildings & infra
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Business Drivers for Green Buildings & Infra. Dr. Seppo Junnila Helsinki University of Technology P.O.Box 9800, FI-02015 TKK, Finland email: [email protected]. Content. Background Environmental sciences Economic theories Business indicators What green buildings & infra has to offer - PowerPoint PPT PresentationTRANSCRIPT
Business Drivers for Green Buildings & Infra
Dr. Seppo JunnilaHelsinki University of TechnologyP.O.Box 9800, FI-02015 TKK, Finlandemail: [email protected]
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Background Environmental sciences Economic theories Business indicators What green buildings & infra has to offer
How to Boost Emergent Demand? Information and marketing New production philosophy User involvement Business concepts and value chains
Content
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Science about Green Buildings&Infra
Services sector creates 70% of the value added in the world and is the fastest growing sector (World Bank 2006)
Services is responsible for 40% of total industrial GHG emissions in the United States (Suh, ES&T, 2006)
The office building (with infra) contributes roughly 30-55% to environmental impacts in services companies (Junnila, Int J LCA, 2006)
Buildings account for 40% of world’s materials and energy flows (U.S. DOE 2002, UNEP 1999, Worldwatch 1995 )
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Economics about Green Buildings&Infra Building efficiency is economically the best
short-term strategy for California to reduce climate change (Hanemann et al. 2005)
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Carbon market in EU In Europe, the size of carbon market is 20
000 – 50 000 million € (EU Emissions Trading Scheme)
Suggestions both in UK that the building owners should be included (The Guardian, 6-Dec-06)
Many of the UK's big businesses - including supermarkets, banks, universities, hotel chains, hospitals and government departments - would be forced to sign up to a carbon-trading scheme under proposals being drafted by ministers Gordon Brown…
…cover all organisations with annual electricity bills of more than £250,000, or with electricity consumption above 3,000 megawatts - The Guardian, 6-Dec-06 -
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Business about Going Green Wall Street Journal, 23-Jan-07
In the US, a growing number of companies are pushing for a mandatory emissions limit, or "cap."
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Operational Performance of Green Companies Guenster et al. 2005
“The least eco-efficient firms show significant operational underperformance
Eco-efficiency improves Return on Assets, more than 10 percent of the average ROA”
“The survey results, as well as other available literature, corroborate the view that ISO 14001 accreditation confers economic benefits”
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Green BUILDINGS & INFRA can offer Buildings & Infra is a platform for businesses The best environmental improvement
potential Good cost benefit ration Existing solutions Short reaction time
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What’s stopping the companies?1. Business concepts and models
The value chains and customers, fallacy of volume The Long Tail economy - NO blockbusters Products vs. Services – if you talk the talk be
prepared to walk the walk User involvement - Remontti Reiska vs Jaana
Pelkonen Leap into unknown for many organizations
2. Operational philosophy in construction industries Adversial relations Sub-optimizing, sub-contracting Defensive approach
3. Understanding and communication Biased toward smokestacks The common mind set
Transformation of economies from manufacturing to services is a solution to the environmental problem
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Conclusion There seems to be a good business
opportunity for Green Buildings and Infra Scientific evidence Economic theories Business success
However, the competitive edge is narrowing... Technology innovations are needed but also
1. Business concepts and models2. Operational philosophy3. Understanding and communication
Sustainable Communities is all aboutMaximum value by Minimum waste