Three Birds, One Green Stone

Published the

4 September 2024

Categories:

Work

WORK IN BEAU PLAN

Three Birds, One Green Stone

Green offices decarbonise the external landscape while elevating the environment within. The result? Happier, healthier employees, reduced footprint, and a subtle overhaul of corporate branding.

If there is one thing that occupational research consistently shows us, it is that human beings were not designed to spend their days walled indoors behind screens. From declining mental health to sick building syndrome, the ailments of the office worker are numerous and well-documented. In response to a growing body of evidence, employers and developers around the world are learning how office design could
mitigate many of the ill effects of the modern workplace.

At the same time, the climate crisis is looming with urgency. It becomes morally impossible to ignore that the buildings we live, work, and play in account for 40% of total global carbon emissions. A global shift to more eco-conscious construction is therefore underway and has led to a boom in green building development.

Green office space is at the convergence of these two trends. Sustainably built and certified, they boast a 30-50% smaller carbon footprint than conventional offices. Companies that occupy green buildings demonstrate a clear commitment to sustainability to their employees, consumers and investors. The uplift in brand perception is discrete but undeniable. Overall, green offices are a win-win-win for the environment, companies that occupy them and their employees.

The corporate draw to green offices is driven by regulation, stakeholder pressure, and a calling to “do what’s right”

Whether it be increasingly stringent laws around ESG disclosure or mounting pressure from various stakeholders, companies everywhere are pushing greener agendas across their supply chain. In many developed markets, green-certified office space has become less of a differentiator and more of a requirement—particularly in cities where older office stock will soon be phased out. The EU, for instance, recently passed a law mandating that the 16% of least energy-efficient buildings be retrofitted by 2030, while all new buildings must have “zero onsite emissions” by the same deadline.

Beyond corporate image and commitments to sustainability, companies switching to green offices are also acutely aware of the precarious position of today’s workplace. If they want employees to readily come in over working from home, the office must feel like home. It should be airy, spacious, and nonconfining – productivity should not be designated to a single desk. If working from home offers the luxury of multiple work areas and eating lunch overlooking the garden, the office space should allow for similar fluidity. By and large, green certified buildings offer exactly this sort of environment.

The four pillars of a green-certified building

In recent years, there has been a proliferation of new green certifications, some of which are more holistic while others cater to a specific region or project focus. BREEAM, for instance, considers both environmental impact and occupant wellbeing in its assessment, while LEED focuses more narrowly on energy efficiency and embodied carbon. At Beau Plan, The Strand carries the EDGE certification, which focusses on making buildings more resource-efficient. At the Strand for example, this translates to 40% in energy savings, 40% less embodied materials and 33% water savings.

Regardless of the certification, all green rating tools consider the following elements to assess sustainability:

1. Choice of site and the ecology of that site (before, during and after construction)

2. Choice of materials (organic, biodegradable or recyclable)

3. Water and energy efficiency (through water recycling or passive heating/cooling/lighting systems)

4. Integration with services such as transport networks and surrounding amenities (to minimise vehicle use)

In Mauritius, about 13 office buildings (10% of total stock) are currently green-certified, while another 15 buildings are registered for certification. In countries like Singapore, this proportion rises to 90% – building emissions regulations such as those introduced in the EU have been around since 2008 and have forced market change.

Despite having no formal laws in place, green office space in Mauritius is growing rapidly, having almost doubled since 2020. With the rise of new businesses and global companies committed to strict ESG reporting standards, the demand for sustainable office space has surged. In response, smart cities are rising up to the demand by prioritizing eco-friendly constructions.

There is a premium for occupying green, but it pays for itself

Green-certified buildings can be 5-15% more expensive to rent than conventional buildings, but there are several tangible and intangible benefits that offset this premium:

Lower operating costs
Green buildings use 20-40% less energy and 10-40% less water than regular buildings, translating into operational savings for tenants.

Green buildings are a recruitment and retention tool
Occupying sustainable offices speaks volumes about an organization’s efforts to lower its carbon footprint. A recent KPMG survey showed that one-third of Gen-Z respondents reject job offers from companies with poor green credentials. More than ever, “climate quitting” has become a cross-generational barrier to retention.

Healthy employees mean healthy bottom lines
Healthier, happier employees are not just more pleasant to be around – they work a lot more effectively. Research shows that employees of green buildings are up to 15% more productive than their nongreen counterparts. A pleasant work setting is inspiring and creates the ideal
conditions for creativity and strategic thinking.

Overall, green office space is more than just the ethical or more compliant choice for businesses. It is a strategic move designed to give companies an edge in everything from recruitment to branding. As for the financial benefits that trickle down from happier, healthier employees – this is just another compelling reason for companies to switch to sustainable offices.