EIC boss: It still pays to be green

After years of paying lip service to the green revolution, the time has come for contractors and customers to put their money where their mouths are. Many people talk about environmental responsibility, but who is willing to put their hand in their pocket when the going gets tough?

Recession demands efficiencies from everyone. Costs are scrutinised, and often short-term savings are put before long-term considerations. Belt-tightening may see sustainability squeezed out, but that could prove a false economy, especially when it comes to implementing the recent raft of environmental laws, including the Climate Change Act 2008, which sets tough standards for carbon emissions for the next 40 years.

So what price green? At first glance, incorporating environmentally friendly materials and technology can seem an unnecessary expense when putting together a competitive tender.

But customers are not necessarily impressed by a lower quote if it means abandoning their own green agenda.

The value of a positive ‘green’ profile in terms of corporate social responsibility (CSR) cannot be underestimated. As a potential marketing tool, CSR is likely to become an important differentiator during the credit crunch, for both contractors and clients, as companies seek to reinforce positive brand values.

Lip service, or ‘greenwash’ as it has been dubbed, may no longer be enough to satisfy those with a genuine energy-saving agenda. Real determination to help clients reduce their carbon footprint has to be demonstrated by the contractor.

M&E specialists are at the forefront and can play their part through clever design. Clients who bring in the m&e experts at the beginning of the project can reduce their long-term running costs through energy savings, and avoid mistakes by ensuring the right design is in place from the start.

Simple design tweaks can make a huge difference. Do the windows make the most of natural daylight to heat and illuminate the space? Has sensor technology been thought of to regulate lux levels or temperature? Are the construction materials from a source that is sustainable or, ideally, could existing materials be cost-effectively reused?

The industry has come up with several methods for measuring green credentials, to encourage the delivery of ever more stringent energy-saving requirements. The most widely used yardstick is BREEAM, the Building Research Establishment Energy Assessment Method, which rates new-build and refurbishment sites according to a series of criteria.

Clients who bring in the m&e experts at the beginning of the project can reduce their long-term running costs through energy savings, and avoid mistakes by ensuring the right design is in place from the start

A BREEAM ‘excellent’ contract might demand a 5-10% premium but, as long-term cost savings start to outweigh the capital expenditure, sustainability will become more palatable.

Residential wind turbines and solar panels have never really taken off because homeowners are yet to be convinced that they will get their money’s worth within the lifespan of the technology. But a recent RICS survey found the increasing cost of energy – 30% in 2008 alone – has slashed the payback time of solar panels from 205 years to 60-100 years.

This might still be far longer than the average 30-year lifespan of the panel, but with improvements in technology and the prediction that energy prices will only continue to rise over the long term, sustainable and efficient-energy sources are looking more and more favourable.

Businesses are keen to realise value for their investments and are cautious about laying out vast sums of capital funding without a cast-iron guarantee of future savings. Hard figures are not easy to come by, with commercial environmental ratings less than one year old. Looking to the future, however, components are set to come down in price as demand increases and, almost everyone agrees, fuel prices are only going up, so the ability to reduce energy use will become more and more important.

As landmark projects like the BREEAM ‘excellent’ Calthorpe House in Edgbaston, Birmingham, prove, sustainability and quality can go hand in hand. Putting aside the cost implications, the environmental benefits of incorporating sustainability into projects are clear.

But considering the cost advantage to the client, compliance with green regulations can also prove to have an economic advantage.

And as an industry, m&e contractors can be the low-energy light that leads the way.

This article was originally published in EMC March 09 as It still pays to be green