Time is ticking on short-term thinking

Citation

Price, S. (2010), "Time is ticking on short-term thinking", Journal of Facilities Management, Vol. 8 No. 2. https://doi.org/10.1108/jfm.2010.30808baa.001

Time is ticking on short-term thinking

Article Type: Guest editorial From: Journal of Facilities Management, Volume 8, Issue 2

It would be mistaken to think of climate change as an intangible future peril; the effect can already be seen around the world. For the commercial world, there are multiple impacts of climate change, and taking a long-term view of energy sourcing within the built environment is a method to mitigate a number of such impacts. Methods to counteract climate change go hand in hand with tackling security of energy supply and rising energy costs, which are real threats to businesses as the UK is a net importer of oil, gas and coal. Gas imports increased by 41 per cent in 2006, imports of coal have been rising by 15 per cent a year since 2002 and the net import of oil stands at −£2.2 billion (BERR, 2007). However, this presents an opportunity to the built environment, and facilities management (FM) who can mitigate the risk of shortage of supply and rising energy costs. This can be done through developing and adapting facilities to utilise renewable energy and sustainable design. The introduction of the Carbon Reduction Commitment compels business owners, whose buildings produce an energy bill of over £500,000 or consuming 6,000 MWh (or over) of electricity (through a half-hourly meter), to purchase carbon credits from the government from April 2011 (Carbon Trust, 2009). These can cost thousands of pounds depending on energy use. Ultimately, the FM departments will be involved, if not responsible, for ensuring that building systems are adapted to deliver such reductions.

The UK climate change commitment includes cutting carbon emissions by at least 60 per cent by 2050 (BERR, 2007). This figure is significant to the FM industry as two-thirds of the property predicted to exist in 2050 is already built. The built environment in the UK is responsible for 40 per cent of the UK’s carbon emissions and 40 per cent of energy used, arguably making a significant contribution to climate change (Sayce et al., 2010). New build property can be designed to function as carbon neutral, but this is likely to only target a small proportion of UK property. The FM industry and organisations involved in refurbishment are going to be required to adapt existing buildings towards the goal of carbon neutral. This is both an enormous and exciting task. The built environment already has an immeasurable influence on our daily lives and well being; however, with the advanced understanding of climate change and the impact which the existing building stock has on this only makes the built environment an ever important field.

Of importance, in addition to climate change, is the threat which security of supply and rising energy costs poses to building managers. However, these threats are also vast opportunities. There are many layers of benefits to pursuing sustainable FM, involving both commercial and non-commercial advantages. A small number of the researched advantages that green buildings provide include; a healthier environment, productivity increases and importantly a reduction in operating and maintenance costs. The environmental debate needs to be fully incorporated into commercial decision making in order to bring it into focus in the business world; sustainable and environmental impacts of decision making need to be given the same platform to be heard as commercial implications. This is being realised on a large-scale through the Carbon Reduction Commitment; however, the success of this scheme is not yet known. The link between the environment and economics at the level of the company is being promoted through the idea of Green Valuation. There is a great opportunity to develop green buildings which not only reduce the impact on the environment but also begin to add value to property, including retail and leisure property. This is as an opportunity that property owners and facilities managers can take full advantage of.

Increased levels of publicity surrounding the energy debate, and the increasing use of Display Energy Certificates, are encouraging the development of Green Valuation, with renewable energy solutions having a positive effect on property prices. Legislation and shortage of supply is only likely to develop this trend. The RICS has found that there is a firm link between the market value of a building and its environmental credentials, with tenants prepared to pay more in rental value for properties which are designed to a lower energy load. Energy savings through current green property refurbishments often are only minimal; however, there is the scope to improve this. A great example of the potential is with systems such as natural ventilation which consume less energy than mechanical ventilation systems due to more effective use of natural light, and the lack of components needed. Natural ventilation systems utilising the buoyancy driven stack effect can use 51 per cent less energy than a typical air conditioned building and less energy than a typical naturally ventilated open plan building (Krausse, et al. 2007). In addition, indirect savings have been found due to the positive effect green construction and green operating systems can have on the internal environment. Green design is linked to higher rates of satisfaction in the workplace and higher productivity rates, which is significant considering that staff costs can account for 85 per cent of business overheads (RICS, 2005). There is potential for great savings in staff costs through increasing productivity and reducing staff absenteeism. There is also the possibility of tax savings through using renewable energy, and the opportunity to sell excess energy back to the grid.

The support that buildings give to businesses is vital which the Journal of Facilities Management actively demonstrates. Much focus is on developing FM to enhance its support of organisations core business operations. As organisations are forced to focus on their emissions and energy usage, FM is going to need to adapt to support this change in focus; mitigating the risks of energy supply, reducing the impact of energy costs and preventing the award of penalties associated with carbon emissions and environmental pollution. Linking the built environment to the natural world and reducing its impact will only seek to develop the link between the built environment and the health and well being of occupants. Climate change and the contribution of the built environment to this phenomenon are very real risks and developments in legislation are reinforcing this. To deliver environmental targets and to exist in a sustainable environment, there is a need not only for technological advances but also a change in attitude and behaviour of building end-users, and users of resources. The FM profession has the ability to exert influence over how buildings are used and so are able to make an effect on both technological change and the behavioural change which needs to come with it.

The importance of FM to take on the environmental agenda can be seen when looking at the impact the existing building stock has on carbon emissions. There are a multitude of laws covering new build construction, driving carbon neutral design; however, this is not going to affect the existing inefficient building stock. The current economic, business and legislative environments are pushing for change in FM, with legislation and internal pressures driving an improvement in environmental performance. The FM industry is partly responsible for achieving environmental legislation imposed on the built environment due to their role in managing the building stock. Environmental, social, economic and political factors are all putting pressure on the FM industry to change. Organisations that are adaptable to change are best placed to turn these threats into opportunities. One such opportunity being that currently the UK only generates 6.8 per cent of its electricity from renewable sources, compared to 51.6 per cent from gas and 19.5 per cent from coal (BERR, 2007). The advantage of sourcing energy from renewable sources is wide reaching; it will reduce carbon emissions from buildings, diversify energy markets, thus increasing security of supply, and mitigate the risk of rising prices of conventional energy sourcing. There is a need to take advantage of Green Value in the built environment and to put an end to short-term thinking.

Samantha PriceGuest Editor