Launch of the SUSTAINABLE PROPERTY GUIDE

The Mint, Macquarie Street, Sydney

9.30am, Monday 1 June 2009

I would like to acknowledge that we are meeting today on the land of the Gadigal people of the Eora nation. I pay my respects to the traditional owners and descendents of this land.

Acknowledgements:

I am very pleased to be here this morning to launch the Sustainable Property Guide, developed by the Department of Environment and Climate Change in partnership with Colonial First State Global Asset Management.

Environmental impact of buildings

We know that the world's population is concentrating in cities. Australia is no difference. 84 per cent of our population lives within 50 kilometres of the coastline.

As we have become urbanised, more and more of us spend our working lives in commercial buildings such as offices, retail outlets, hotels, education facilities and hospitals.

But with this growth in commercial building space has come an increasing impact on the environment.

Between 1990 and 2006 the greenhouse gas emissions attributable to Australia's commercial sector has grown by 87 per cent with office buildings contributing the most significant proportion of these emissions.

Climate change is the greatest environmental challenge facing the future of our nation, and we cannot ignore this trend or go on with ‘business-as-usual'.

Fortunately, a growing number of building owners and managers are becoming more proactive and ensuring that commercial buildings are built and operated in a sustainable manner.

This change has been encouraged and supported by government policy and investment and expanded by a growing number of tenants who are demanding a more sustainable and comfortable working environment for their staff and clients.

Response of commercial property sector

It is particularly pleasing that many of your organisations are already reaping the benefits of adopting sustainable practices in managing commercial properties. For example:

• In an office tower in North Sydney, a state of the art tri-generation plant is using waste heat in an absorption chiller to provide cooling in summer. This has delivered less costly, more efficient and more reliable energy while improving the building's environmental footprint;
• One property management company has put strategies in place that will cut water consumption by 36 per cent and greenhouse gases by 45 per cent across the portfolio. Already, one quarter of the company's portfolio base building energy comes from accredited Green Power; and
• Another company has made a commitment to design all new office buildings to achieve a NABERS energy rating of at least 4.5 stars.

What is the NSW State Government doing in its own buildings?

Like other industry sectors, achieving a more sustainable commercial property sector requires active leadership by both business and government.

The NSW Government is making an important contribution through targets set for the buildings we own and occupy. As part of the NSW Government Sustainability Policy:

• we have a State-wide target to return greenhouse gas emissions from our building energy use to year 2000 levels by 2019-20;
• government buildings will achieve and maintain a NABERS rating of 4.5 stars for energy and water by 1 July 2011;
• tenanted buildings are to include a Green Lease Schedule for all new or negotiated leases, and
• the Government has committed to set NABERS targets in Government office buildings for waste and the indoor environment.

Sustainability at The Mint

This building is a good example of Government's efforts to improve the sustainability of our own commercial buildings. For example, the motorised louvers you see behind me are part of a system of environmental control which balances temperature, air velocity and humidity with natural ventilation. This reduces the need for air conditioning, and cuts power bills and carbon pollution.

Next door at Parliament House there are solar panels, energy saving initiatives tackling lighting, air conditioning and food storage.

Combined with water tanks and water recycling Parliament House will reduce greenhouse gas emissions and water usage by 25% - saving more than $250,000 a year in energy costs.

How is the NSW Government helping your sector to prepare for the future?

As part of our response to the challenge of climate change and carbon pollution the NSW Government has brought together a number of major initiatives under the NSW Energy Efficiency Strategy. These include the Small Business Energy Efficiency Program and expansion of the Sustainability Advantage Program to include an Energy Saver component. I encourage you to engage with these initiatives.

When coupled with Federal action, there is no doubt that programs under the Energy Efficiency Strategy will drive demand for green trades and professionals to design, install and maintain a range of energy efficient technologies and services.

To help ensure there is the skilled workforce to meet the growing demand, the Energy Efficiency Strategy also includes a $20 million Energy Efficiency Training for Trades and Professionals program which will begin from 1 July this year. Support for green skills in the property and construction sectors will be a priority in this program.

It will include the provision of vocational education and training to property sector trades and professionals - electricians, plumbers, heating ventilation and air conditioning (HVAC) technicians, facility managers, engineers and accountants.

We'll also provide support to energy trainers and other educators to ensure they have the latest knowledge and skills, and working closely with large organisations to encourage take-up of the relevant training.

The NSW Government is also leading the charge through COAG for integration of building rating systems and an overhaul of the Building Codes to incorporate higher energy efficiency standards.

Sustainable Property Guide

The Sustainable Property Guide that has been developed jointly by the Department of Environment and Climate Change and Colonial First State Global Asset Management will play an important part in enhancing the commercial property sector's sustainability knowledge and skills.

The Guide is a practical, on-line resource that has been designed specifically for commercial building owners and their key service providers (managing agents and building managers).

The Guide instructs on how to achieve and maintain environmental efficiency; including energy, water, waste and materials. It provides guidance on indoor environment quality and how to manage it.

The Sustainable Property Guide contains comprehensive step-by-step guidance, checklists and worksheets to integrate sustainability into property portfolios. It advises on:

• developing business cases and policy for becoming a sustainable organisation;
• acquisitions and operational management, including tenant engagement and green leases;
• practical issues such as managing energy, water, waste and recycling; responsible refrigerant use and indoor air quality;
• incorporating sustainability into project delivery for tendering, fitouts and retrofitting, and
• supply chain and procurement issues.

I understand that when you return to your offices an email will be waiting for you, giving you the web address for the Sustainable Property Guide. We hope that this ready electronic access will encourage you and your colleagues to make use of the sections most relevant your organisation. You can of course find the site by googling NSW Sustainable Property Guide.

The Department of Environment and Climate Change will be regularly updating the Guide and it will be looking to members of the commercial property industry for information on the latest sustainability initiatives and case studies to demonstrate success.

The Department is also committed to ensuring that the information contained in the Guide becomes part of practical training solutions for people employed in or servicing commercial property. Over the coming months training resources will be prepared and delivered initially to Colonial First State Global Asset Management staff and service providers. This tested training package will then be offered to the commercial property sector as a whole.

Conclusion

The transition to more sustainable buildings is a big opportunity for the commercial building sector. Whether you are buying, leasing, upgrading or managing, you need to take environmental performance into account.

The Sustainable Property Guide will be a key information source to help the property industry gain the knowledge base to minimise the impact of commercial buildings on the environment. I congratulate Colonial First State Global Asset Management for partnering with Department of Environment and Climate Change in preparing this extremely useful resource.