Benefits for Office Building
The benefits from implementing
“green” in return become an incentive
for the landlord:
• Waste saving and improve green
awareness
• Improve reputation. More
investment opportunities and
tenancy occupancy
• Financial advantages: lower
operational costs and economic
payback
Benefits for Office Unit
The benefits of implementing “green”
in return become an incentive for the
tenant:
• Waste saving and improved green
awareness
• Higher staff productivity. Fewer
physical complaints and lower staff
costs
• Financial advantages: lower
operational costs and economic
payback
Incentive for Landlord Overview
Overview
It is generally recognised that the landlord will achieve substantial
benefits from implementing green policies and thus the benefits in
return become an incentive for the landlord. The landlord will gain
advantages from several environmental programmes, certification
schemes, financial savings, green activities and development of a
permanent green strategy, etc.
Incentive for Tenant Overview
Overview
In general, the tenant will also gain substantial benefits from
implementing green policies and this becomes an incentive for the
tenant. The tenant will gain advantages from several environmental
programmes, green policies, financial savings, green activities and green
culture developed in the office.
• Improve corporate social
responsibility
• Permanent green strategy
developed. Reduce regulatory risk,
market risk and weather-related risk
Example of a successful landlord:
MTR Corporation Limited (MTR) has
taken a leading role in the property
industry to implement environmental
criteria of BEAM Plus in 2010. The
environmental campaign has led to
energy savings of approximately $4
million annually and the achievement
• Green culture incorporated. Reduced
regulatory risk and tenancy risk
• Improved corporate social
responsibility. Increased market
value and improved public relations
Example of successful tenant: Red
Smith, an international law firm in the
United States, looked for a sustainable
floor plan and thus moved office to
Three Logon located in Philadelphia
in 2014 (a building with ENERGYSTAR
certification). With support from
senior management, a high-quality
of BEAM Plus certification has
resulted in an improved reputation
of the Corporation and its managed
buildings.
(Source: MTR Sustainability Report, 2013 and
2014)
Figure 4.2.1 The Green Building
Award is established by the Hong
Kong Green Building Council and
the Professional Green Building
Council. Finalists are announced on
the website.
(Source:
)
Read more at:
1. MTR Sustainability Report (2014), available at
2. MTR Sustainability Report (2013), available at
3. US EPA, (1993) “Business Guide for Reducing Solid Waste - National Service Cen
Environmental Publications (NSCEP)”, EPA publication no. 530K92004, available at
and sustainable workspace has
been offered to staff members and
35% annual energy saving has been
projected.
(Source: Environmental Protection Agency of
United States)
Office
UNIT
Office
BUILDING
OPERATION AND MANAGEMENT STAGE
4.2.2 Incentives for Landlord and Tenant
Green benefits in return become incentives for the landlord. The
landlord gains advantages because:
• A certification scheme is offered by environmental programmes,
such as the Indoor Air Quality Certification Scheme of the
Environmental Protection Department. Recognised buildings can
be listed on the website, e.g. certified buildings listed in BEAM
Society Limited’s website
.
Allowing certification to be made public not only attracts tenants
and visitors to the building but also creates a good reputation
in the community, brings more investment opportunities and
increases tenant occupancy in return
• Holding green days, exhibitions and green tours, etc. would
improve corporate social responsibility. In return, the landlord
benefits from increased market reputation and business
opportunities
Note
Establishment of a green office can be costly in the early stages.
Funding sources or financial support can be sought to cover the
initial cost.
• Funding for introducing energy efficiency projects in a building can
be obtained through the Government, namely the Environment
andConservationFund (ECF) of theEnvironment andConservation
Fund Committee. For details, please refer to the website of the
ECF:
• Green environmental programmes and schemes organised by the
Environmental Protection Department and NGOs provide useful
guidelines and relatively cost-free green activities
• Relevant Government authorities and professional organisations
may consider establishing a landlord’s green incentive programme
by setting fund subsidy, providing professional advice, promoting
green events and activities and conducting periodic audits for
inefficient buildings
• Several programmes provided by the Government departments
and Non-Governmental Organisations (NGOs) are free-of-charge
for participation. The participant would benefit fromwaste saving,
lower energy consumption and improved green awareness
through simply joining the programmes
• Financial advantage due to lower operation cost, economic
payback, longer building longevity, lower maintenance and repair
cost
• A permanent green strategy would be gradually developed. This
can reduce regulatory risks when building sustainability becomes
a trend and legislation is passed banning inefficient buildings.
Meanwhile, market risk and weather-related risk would be
reduced as a green building is more marketable and less damage
is caused by extreme weather
Figure 4.2.3 Sample of
IAQ Certificate
(Source
Centre,
)
Figure 4.2.4 Certified building list at BEAM
Society Limited’s website
OPERATION AND MANAGEMENT STAGE
4.2.2 Incentives for Landlord and Tenant
Incentives for Landlord
Figure 4.2.2 Hong Kong Green Building
Week 2016
(Source: Ho
able at
128
129
