World Green Building Trends 2018 SMR FINAL 11 24 PDF

SmartMarket Report
World Green Building

Trends 2018
Produced in Partnership With: Premier Partners: Premier Research Partner:
Contributing Partner:
■ Design and Construction Intelligence
SmartMarket Report
Dodge Data & Analytics World Green Building Trends

2018
Chief Executive Officer SmartMarket Report
Michael Petrullo
Executive Editor
About Dodge Data &
Dodge Data & Analytics Stephen A. Jones
Research & Analytics/
Analytics
Managing Editor Dodge Data & Analytics is North
Industry Insights
Donna Laquidara-Carr, Ph.D., LEED AP America’s leading provider of
Senior Director, Research & Analytics
Burleigh Morton
Chief Marketing Officer analytics and software-based
Sharon Lubrano workflow integration solutions for
Senior Director, Industry
Contributing Art Director the construction industry. Building
Insights Research
Stephen A. Jones Alison Lorenz product manufacturers, architects,
engineers, contractors and service
Director, Industry Insights Research Contributing Art Director
AD-BOUTIQUE, INC. providers leverage Dodge to
Donna Laquidara-Carr, Ph.D., LEED AP
Terumasa Yamada identify and pursue unseen growth
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Introduction
C
arrier, its parent company, United Findings validate its importance globally,
WORLD GREEN BUILDING TRENDS 2018 SMARTMARKET REPORT
Technologies Corporation, and with particular strength in diverse markets

and Dodge Data & Analytics like China, Colombia, India, Ireland and
(then known as McGraw Hill South Africa, as well as the US. This is an
Construction) first began collaborating emerging priority that can be expected to
on this research program in 2008 because gain increasing traction in future studies.
both companies believed green building Consistent with previous studies, the
was poised to transform construction on top challenges and triggers vary strongly Chris Nelson
a global scale. This 2018 edition of the by market, and thus, each market is President, Commercial
research demonstrates that their vision analyzed in regional/country sections. HVAC
Carrier
has been fulfilled, more than either could Some of these sections compare the 2018
have imagined. responses to those from 2015, providing a Chris Nelson leads the
This report compares data from the unique vantage point into the priorities and global commercial HVAC
product and service
latest study (2018) to previous ones in drivers in some of the top green markets in portfolio for Carrier, part
the series (2012 and 2015), analyzing the the world. of UTC Climate, Controls
level of green activity, the benefits of Among the most compelling elements & Security, a unit of
United Technologies.
building green, the triggers most likely to of the data are the strong business benefits
He is responsible for
spur further green market growth and the reported for both new green buildings driving continued
challenges that may impede it. and green renovations/retrofits of existing product innovation with
One of the most encouraging trends is buildings. The findings since 2012 have an unwavering focus
on sustainability – from
the increasing percentage of respondents clearly demonstrated the value of investing energy-efficient solutions
who expect to do the majority of their in green. For example, there has been a that deliver comfortable,
projects (more than 60%) green in most steady growth since 2012 in the number of healthy and productive
environments to green-
of the 20 countries/regions included in owners who see a 10% or greater increase certified manufacturing
this study. The global average for this in asset value for new green buildings facilities, including the
group is expected to increase from 27% compared with traditional ones. world’s first LEED-certified
We would like to thank Carrier for their HVAC factory.
to 47% between 2018 and 2021, and in
about half of the locations, the percentage partnership on this research since 2008.
who expect they will be doing the We also thank the other organizations
majority of their projects green by 2021 whose support made this SmartMarket
is expected to double. This trend analysis Report possible, including the American
clearly demonstrates increasing global Institute of Architects, Autodesk and the
commitments to building green. US Green Building Council, as well as the
This year’s study also features a deep efforts of the World Green Building Council
look into the importance of healthier in advising on the study and promoting
buildings as an element of green building. participation among its members.
Donna Laquidara-Carr,
Ph.D., LEED AP
Industry Insights
Research Director
Donna Laquidara-Carr
currently provides
editorial direction,
analysis and content
to DD&A’s SmartMarket
Reports. Prior to this
position, she worked for
nearly 20 years with DD&A’s
Dodge division, where she
gained detailed insight into
the construction industry.
Dodge Data & Analytics 1 www.construction.com SmartMarket Report

SmartMarket Report
WORLD GREEN BUILDING TRENDS 2018
TABLE OF
CONTENTS
4 Executive Summary
Executive Summary
4
Global Findings by Country
6
9 Data
9 Introduction
10 Green Building Market Activity

10 Level of Green Building Activity
Sectors for Future Green Building Activity
12
13
sidebar Healthier Buildings
14 Influences on the Green Building Market

14 Top Barriers to Increased Green Activity
Triggers to Increased Levels of Green Building
16
Social Reasons for Building Green
18
Environmental Reasons for Building Green
20
Green Building Rating Systems
21
Cover Illustration: Paul Wearing; Opposite page left: Image courtesy of UTC.; Opposite page below: Image courtesy of Natalia Knezevic Photography
32 Business Benefits of Green Building

32 Important Benefits of Green Building
Metrics Used to Quantify Benefits of Green Building
34
Impact of Green Buildings on Reducing Operating Costs
35
Payback Period for New Green Building Investments
36
Asset Value Increase for New Green Buildings
37
Impact of Green Retrofit and Renovation Projects on Operating Costs
38
Payback Period for Green Retrofit and Renovation Projects
39
Impact of Green Retrofit and Renovation Projects on Building Asset Value
40
41 Green Building Products and Services

41 Use of Green Building Products and Services
Criteria for Identifying Green Products
42
Sources of Information on Green Building
44
SmartMarket Report Dodge Data & Analytics 2 www.construction.com

Left: Customer Experience Center
at the UTC Center for Intelligent
Buildings
Below: Silver Star Apartments

CONTENTS
46 Country and Regional Profiles

46 Australia
China
48
Europe
51
India
56
Middle East/North Africa
58
North America
62
South Africa
66
South America, Central America and the Caribbean
68
Southeast Asia
72
22 Green Technology
22
data sidebar Expert Insights on Green Technology
27
sidebar Existing Cities Get Smarter
28
case study Affordable Housing With Sustainable Goals
Silver Star Apartments, Los Angeles, California
30
case study Smart for Green
The UTC Center for Intelligent Buildings, Palm Beach Gardens, Florida
75 Methodology
77 Resources

Executive Summary
Green building activity continues to grow across the globe, with dramatic
increases expected in 20 countries across five continents between now and 2021.
The latest in a series of studies, the findings show great consistency in the benefits derived from green with previous
studies in 2012 and 2015, but they also demonstrate the increasing influence of social factors like creating a sense of
community, encouraging sustainable business practices and especially improving occupant health and well-being.
Green Building Activity Is Increasing, Level of Green Building Activity

But Is Not Always Certified (According to Global Respondents)
For the first time, global respondents were asked Dodge Data & Analytics, 2018
two questions about their level of green activity: the

percentage of their projects considered green using a 1% to 15% Green Projects More Than 60% Green Projects
Exploring 31% to 60% Green Projects
definition provided in the survey, and the percentage (No Green Involvement) 16% to 30% Green Projects
of their projects that are or will be certified under a
recognized green building system. (See the Methodology
on page 75 for the definition provided for green building.)
The chart at right reveals the total share of green 47%
27%
projects reported by all global participants in the study
currently, and the expected share in three years. It 20%
demonstrates that green building activity will increase, 19%
21%
and, even more important, it shows that most of the 22% 10% 17%
increase comes from a large percentage of respondents 10% 7%
(47%) who believe that they will build the majority of 2018 2021
their projects (more than 60%) green by 2021.
The findings also reveal that some respondents who
do the majority of their projects green are not certifying
all of those projects. More important, the gap among
those doing the majority of their projects green and 2_1_Market_Activity_#01
Business Benefits Expected From Green
those who are actually seeking green certification on the Building Investments
majority of their projects is expected to grow between (Medians Reported in 2012, 2015 and 2018)
2018 and 2021. This indicates that green activity is New Green Building
expected to exceed certification activity and may suggest 2012 2015 2018
that those experienced with green are using certification Decreased 12-Month
8% 9% 8%
more strategically. Operating Costs
Decreased 5-Year
15% 14% 14%
Operating Costs
Growth in Green Driven by Ongoing Increased Asset Value
Strong Business Benefits (According to Owners)
5% 7% 7%
The table at right shows the significant operating cost Payback Time for Green
8 Years 8 Years 7 Years
savings, short payback periods and asset value increases Investments
achieved from investments in new green buildings and
Green Retrofit
green retrofit projects reported by respondents in the
2012 2015 2018
current study and the two previous ones in 2012 and Decreased 12-Month
2015. The savings achieved, the payback periods and the 9% 9% 9%
Operating Costs
increased asset values are strikingly consistent, despite Decreased 5-Year
13% 13% 13%
changes in the number of respondents, in geographies Operating Costs
and in global economic conditions over those years. Increased Asset Value
4% 7% 5%
(According to Owners)
These business benefits form the foundation that helps
Payback Time for Green
promote the growth of further green building activity. 7 Years 6 Years 6 Years
Investments

Executive Summary CONTINUED
Client Demands and Environmental Top Triggers Driving Future Green Building
Regulations Remain the Top Triggers Activity (According to All Global Respondents)
for Building Green Dodge Data & Analytics, 2018
The current findings, represented in the chart at right,

closely echo those of the previous 2015 study. The top Client Demands
triggers demonstrate that the market is pulled by client 34%
demand and pushed by environmental regulations Environmental Regulations
globally. However, the importance of these and other
33%
triggers vary significantly by country.
Healthier Buildings
Creating Healthier Buildings Is a 27%
Priority for Green Building
Creating healthier buildings is also an important trigger
for green building globally, especially in Brazil, China,
India, South Africa and the US. In addition, improving 7_1_ExecSumm_Triggers_#01
occupant health ranks first among the social reasons
for building green, and the percentage selecting it has Top Social Reasons for Building Green
jumped 5 points from the 2012 study. (By Percentage of Global Respondents Rating
Each Reason as Important)
Social Reasons for Building Green Dodge Data & Analytics, 2018
Gain in Importance Over Time 2018

Consistent with the 2012 and 2015 studies, respondents 2015
in 2018 were asked to rank several social reasons 2012
for building green on a one to five scale, from not
important to very important. The chart at right shows the Promotes Improved Occupant Health and Well-Being
percentage who consider several of the reasons provided 77%
to be important/very important. NA
In addition to demonstrating the importance of
72%
healthier buildings, the chart shows a general trend of
ascribing increased importance to the social reasons Encourage Sustainable Business Practices
for building green over time, especially increasing 75%
worker productivity, creating a sense of community and 68%
supporting the domestic economy. 78%
Increases Worker Productivity
Obstacles to Building Green
59%
Respondents citing higher first costs as a top obstacle has
dropped from 76% in 2012 to only 49% in 2018. However, 50%
despite the drop, it still remains the top barrier in 2018. 50%
Three additional barriers are selected by roughly Creates a Sense of Community
one third of the respondents: lack of political support or 57%
incentives, affordability (green is for high-end projects 51%
only) and lack of public awareness. The degree to which
44%
each of these barriers is influential varies a great deal by
country, suggesting different strategies are needed to Supports the Domestic Economy
promote green globally. 53%
52%
39%

7_2_ExecSumm_Social_Year_#01
Summary: Country Findings
Global Findings by Country
Each of the 19 countries featured in this report has different triggers and
challenges, and different social and environmental priorities. For the share
of respondents who are green building council members by country and
for a more complete analysis by country and region, see pages 46 to 74.
Australia currently do the majority top ones in mainland China projects within three years.
Australia has a high share of their projects green, and are market demands, The top triggers for
of GBC respondents moderate growth in this healthier buildings, right new green building
(63%) and the highest level of green activity is thing to do and branding/ activity in Germany
percentage who report expected in the future. PR, while client demands are client demands
doing the majority (over Client demands is the and regulations are the top and environmental
60%) of their projects top trigger in Canada, triggers in Hong Kong. regulations, and its
green. Steep growth in selected by a much higher selection of worker
that percentage is also percentage (50%) than the Colombia productivity as the
expected by 2021. global average (34%). While the percentage top social reason for
Market factors drive new 61% in Canada consider currently doing the building green is unique
green activity, including improved occupant health majority of their projects in this study.
market demands and and well-being a top social green in Colombia is
client demands for green. reason for building green. relatively low at 19%, India
Improving occupant nearly half (46%) expect The percentage of
health and well-being is China to do a majority of green respondents doing the
the top social reason for Only 9% in mainland China projects by 2021. majority of their projects
building green. currently do the majority Internal corporate green in India is expected
of their projects green, commitments is one of the to nearly double by 2021,
Brazil which is likely due to the top triggers in Colombia from 28% to 55%.
A moderate percentage in low share of respondents and demonstrates the New green building
Brazil (21%) do the majority who are members of a importance of private in India is being driven
of their projects green GBC (14%). However, three industry in promoting most by environmental
now, but twice as many times as many expect to green in this country. regulations and healthier
(42%) expect to do that do a majority of green Another top trigger buildings. The need for
share of green by 2021. projects by 2021, even in is lower operating more public awareness
A wide range of triggers this group. costs, which shows the about green is the top
drive this green building In contrast, Hong Kong importance of bottom- challenge faced in this
market, including currently has the second line business benefits. country, and the lack of
market demands, highest percentage of However, regulations are educated green building
market transformation, those doing the majority also an important trigger in professionals is also an
client demands and of their projects green, this market. issue of note.
healthier buildings. and a relatively high share
Energy conservation of respondents who are Germany Ireland
and protecting natural GBC members (46%), but A relatively modest Ireland has a relatively
resources are the top little growth is expected in percentage of German high percentage (40%) of
environmental reasons for those doing a majority of respondents say that they those doing the majority
building green in Brazil. green projects by 2021. are building the majority of their projects green,
They also differ in terms of their projects green perhaps due to the high
Canada of the top triggers for new now, or that they expect to share of GBC member
Over one third in Canada green building activity. The have that share of green participation in the study

(61%) in this country. 54% projects green, but that The biggest factors top obstacle in
anticipate doing a majority percentage is expected to supporting that growth this country.
of green projects by 2021. double by 2021. are client and market
Client demands is the Mexican respondents demands. However, cost is Saudi Arabia
most important trigger regard a wide range of an issue: higher first costs Saudi Arabia has the
for new green building triggers as influential, and affordability are the lowest percentage of
activity, selected by including environmental top obstacles. respondents doing the
71%, more than double regulations, market majority of their projects
the global average. transformation and Poland green now (5%) or in
Environmental regulations lower operating costs. Poland has a relatively low three years (13%). This
are the other notable Higher first costs is the percentage of respondents may be influenced by the
trigger. Nearly half, top obstacle, but lack who are doing the majority fact that only 8% of Saudi
though, find that the of political support/ of their projects green respondents are GBC
lack of educated green incentives is also an issue. now or who expect to be members.
building professionals is a doing a majority of green There is little agreement
key obstacle to more green Norway projects by 2021. on the top triggers to drive
building, second only to Those doing the majority The key triggers that growth, with seven triggers
higher first costs. of their projects green in can drive growth in selected by between 20%
Norway is expected to this market are market and 30% of respondents.
Mexico more than double from transformation and Perceived higher first
Currently, slightly more 30% in 2018 to 64% by improved 10-year costs. costs are the most widely
than one quarter in Mexico 2021, suggesting a market On the other hand, lack of recognized barrier to green
(27%) do a majority of their in transition. public awareness is the in this market.
Percentage of Firms That Are Doing/Will Do More Than 60% Green Projects
(2018 and Expected for 2021)
Dodge Data & Analytics, 2018
2018 2021
64%
55% 54% 54%
46% 48% 47% 46%
42% 42% 40%
35% 35%
30% 28% 27%
21% 19%
9% 13%
Australia Brazil Canada China China Colombia Germany India Ireland Mexico
(Hong Kong) (Mainland)
64% 66%
61%
45% 48% 45%
40%
30% 34% 34% 32%
28% 29% 27%
21% 24%
13% 13% 13%
5%
Norway Poland Saudi Singapore South Spain UAE UK US Vietnam

Arabia Africa
2_3_Market_HighGreenCountry_#01 Dodge Data & Analytics 7 www.construction.com SmartMarket Report

Singapore do the majority of their about the affordability to 45%.

A green mandate has projects green now, but of green. The top trigger driving
led to a high level by 2021, that percentage In addition to energy the market by far in the
of green building is expected to more than conservation, a top US is client demands,
activity in Singapore, double, from 29% to 61%. environmental reason to demonstrating the degree
where environmental Financial and corporate build green in the UAE is to which green building
performance standards benefits are driving this water conservation. is market driven in that
have been incorporated growth, with internal country. Therefore, it is
into building regulations. corporate commitment UK not surprising that the top
Thus, it is not surprising and higher building values The UK has a moderate barriers are higher first
that environmental all key triggers in Spain. level of green building costs and concerns about
regulations tops the lists Improved occupant health activity (27% doing the affordability. Encouraging
of green building triggers and well-being is also majority of their projects occupant health and well-
in this market. However, widely recognized as an green), and they still being is widely recognized
higher first costs still important social reason for remain moderate by among US respondents
continue to be the most green building in Spain. 2021 (40% expect the (78%) as a top social
widely recognized barrier However, there is also majority of their projects reason for building green.
to green building here. a high degree of concern to be green).
Promoting sustainable about the barriers to green Client demands is the Vietnam
business practices is the building in Spain, with most important trigger Vietnam has relatively few
most important social over 40% noting higher for future green building respondents (13%) who
reason for building green. first costs, lack of political activity in the UK, and are doing the majority of
support/incentives, lack many also recognize their projects green. By
South Africa of public awareness and the importance of 2021, that percentage is
South Africa currently has lack of market demand environmental regulations expected to nearly double,
a moderate percentage of as barriers. to increase green activity. but it remains among the
those doing the majority However, lack of market lowest in the study.
of their projects green, but UAE demand and higher first The most important
that percentage will grow By 2021, two thirds of costs are barriers to triggers driving growth in
considerably by 2021. respondents from the additional growth in the green building in Vietnam
Lower operating costs United Arab Emirates green market. are market demands and
is the top trigger driving (UAE) believe that they will In addition to reducing higher building values,
future green building do the majority of their energy consumption, which demonstrate the
growth in this country, projects green, nearly lowering greenhouse gas importance of owner
and healthier buildings is double the percentage of emissions is an important engagement in green to
also an important driver. those with that share of environmental reason for help drive this market.
Improved occupant health green work now. building green in the UK, The top barrier to green
and well-being is also Environmental one of the few countries to market growth in Vietnam
one of the top two social regulations are an have this as a top reason. is the lack of educated
reasons for building green important driver of that green professionals, but
in South Africa, along with growth, selected by half US other widely recognized
promoting sustainable as a top trigger. The key A moderate level of barriers include the lack
business practices. barriers that need to be growth in green activity of political support/
overcome to encourage is expected in the US by incentives, concerns about
Spain more green building in 2021, with those doing the higher first costs and the
A moderate percentage the UAE are lack of public majority of their projects lack of public awareness
of Spanish respondents awareness and concerns green increasing from 32% about green building.

Data:Introduction
S
ince 2008, Dodge Data & Analytics (formerly
WORLD GREEN BUILDING TRENDS 2018 SMARTMARKET REPORT DATA
McGraw Hill Construction) has conducted global

Notes About the Data
research on green building trends. The study The data and analysis in this report are
evolved into its present form by 2012, and has drawn from the 2,078 respondents to an
been conducted every three years since then. The results online survey that was administered
are published in a series of World Green Building Trends from April to June 2018. A minimum of 30
SmartMarket Reports, which benefit from the ability responses were received from the following
to compare over time how the drivers, challenges and countries, which are featured in the analysis
of the report: Australia, Brazil, Canada,
benefits of building green have (or have not) changed
China (Mainland and Hong Kong), Colombia,
between 2012 and 2018. Germany, India, Ireland, Mexico, Norway,
The latest study in this series is the most broad-reaching Poland, Saudi Arabia, Singapore, South
yet, with over 2,000 participants from 87 countries that Africa, Spain, United Arab Emirates, United
span five continents. This includes 19 countries with a Kingdom, United States and Vietnam.
large enough response to support statistically significant Due to the various means of recruiting
analyses of the findings. These countries are referenced respondents (discussed in the Methodology
on page 75), the share of participation
both in the main data section and in the special data
by respondents whose companies are
sections featuring a brief analysis of that country or region.
members of a green building council (GBC)
All of the 13 countries included in the 2015 World Green varies, which should be considered when
Building Trends SmartMarket Report are featured, allowing comparing findings in the study.
for detailed analysis of changes in those markets since
■■60% or Greater Share of GBC Respondents:
2015 in the country/regional section. That section also
Australia, Canada, Ireland, Norway and Spain.
features new additions like Canada, Ireland, Norway, Spain
■■50% to 59% Share: India, South Africa, US
and Vietnam.
■■40% to 49% Share: China (Hong Kong), UAE
The profile of the respondents who participated in
■■30% to 39% Share: Colombia, Poland, Vietnam
the study also differs from the earlier ones. In 2012, the
■■20% to 29% Share: Mexico, Singapore
majority of the respondents were members of a World
■■Less Than 20% Share: Brazil, China (Mainland),
Green Building Council (GBC). In 2015, a change in the way
Germany, Saudi Arabia, UK
in which respondents were recruited led to only 33% of the
total respondents being members of a GBC. In the current Respondents include the following:
study, World GBC participation as a premier research
■■Architects/Designers (25%)
partner, wide participation by various non-GBC partners
■■Contractors/Builders (23%)
and paid panels in selected markets led to a balanced 44%
■■Specialists/Consultants (21%)
of participants who belong to a GBC.
■■Owners/Developers (18%)
In addition, this report features a special section on
■■Engineering Firms (12%)
green technology, which includes data from a series
■■Investors (1%)
of in-depth interviews with nine experts, along with two
case studies on the use of technology to enhance green Statistically significant differences between
building and a feature article on converting existing cities architect/designers, contractors/builders,
to smart cities. owners/developers and engineering firms
are shown in the analysis. Also, where
appropriate, longitudinal analysis is also
conducted comparing the findings of this
study to two previous ones: 2012 and 2015.
For more information on the study,
including the definition of a green project,
see the Methodology section on page 75.

Data:Green Building Market
Activity
Level of Green Building Activity
Global study participants were asked about the share of Level of Green Building Activity
their projects that are green in three time frames: three (According to Global Respondents)
years ago (2015) currently (2018), and expected in three Dodge Data & Analytics, 2018
years (2021). They were asked to measure the share of

1% to 15% Green Projects More Than 60% Green Projects
green projects in two ways:
Exploring 31% to 60% Green Projects
• The share of their work that was certified green by a (No Green Involvement) 16% to 30% Green Projects
recognized third-party system
• The share of their work that was green based on a
specific definition of green: The final building has
efficient use of energy and water; it includes 47%
27%
pollution and waste reduction measures; it has
good indoor air quality; and a general consideration 20%
of the environment was done in design, 19%
21%
construction and operation. (Full definition used can 22% 10% 17%
be found in the Methodology on page 75.) 10% 7%
2018 2021
The findings discussed below demonstrate that the
commitment to green building is still growing globally,
and they reveal a slight shift toward doing green projects
that are not certified by a third-party system.
2_1_Market_Activity_#01
Total Share of Green Projects
The top chart at right shows the share of total green
work—using the definition of a green project rather Respondents Selecting Over 60% Green
than third-party certification—for all study respondents Projects Versus Those Selecting Over 60%
reported for 2018 and expected by 2021. Certified Green Projects (By Year)
■■Currently, over one quarter (27%) report that the Dodge Data & Analytics, 2018
majority (more than 60%) of their projects are

50%
green, and slightly more (31%) report little to no
All Green Projects
green involvement. Certified Green Projects
■■Within three years, though, expectations for doing
40%
more green work are very high, with nearly half of
respondents (47%) expecting to do the majority of
their projects green, and very few (17%) who are still 30%
expecting little to no green involvement.
■■Strikingly, owners are the most enthusiastic about
the growth of green in the future, with 57% reporting 20%

that they expect to do the majority of their projects
green by 2021. Since owners typically make the final
determination about whether a project will be green, 10%
this bodes well for future growth in green building. 2015 2018 2021
2_2_Market_CertVsAll_#02

Green Building Market Activity
Level of Green Building Activity CONTINUED
Certified Versus Total Green Projects Green Activity by Country

The bottom chart on page 10 shows the growth in the The chart below shows the percentage of those with a
percentage of those with certified green projects from majority share of green projects currently and expected
2015 to 2018 and anticipated in 2021, and the growth by 2021 in the 20 countries with a sufficient response
in total green projects over that same time frame. Two level to be analyzed separately in this study.
conclusions can be drawn from the data shown. ■■Countries with the highest percentage doing a majority
■■Most of those doing a high level of green projects are of green projects currently include Australia (46%),
also certifying their projects. This is true across the total China (Hong Kong) (42%) and Ireland (40%). Each of
respondents, but there is more variation by country, these countries also have a relatively high share of
with the biggest gaps in Hong Kong. Ireland and Spain. respondents whose companies are GBC members,
■■However, the gap between those doing the majority which may influence these findings.
of green certified projects and total green projects is ■■Countries with the highest percentage who expect to
growing. In 2015, there is little difference between the do a majority of their projects green by 2021 include the
percentage with a majority of green projects (regardless UAE (66%), Australia (64%), Norway (64%) and Spain
of certification) and the percentage doing a majority (61%), which again are countries with a high share of
of green certified projects. However, through 2018 GBC respondents.
and 2021, the percentage of those doing a majority of ■■Norway, Spain and the UAE also expect to have the
projects green regardless of certification is growing highest level of growth in the percentage doing 60%
faster than those certifying the majority of their projects or more green projects in the next three years. Other
green. This suggests that those doing a majority of countries with high levels of growth include Mexico,
green projects (or those who expect to do so in the India and Colombia. Thus, high growth in green is most
future) are becoming less reliant on green certification common in emerging green markets, but also occurs in
over time. more established green countries like Norway.
Percentage of Respondents Whose Firms Have Done More Than 60% Green Projects
(2018 and Expected for 2021)
2018 2021
64%
55% 54% 54%
46% 48% 47% 46%
42% 42% 40%
35% 35%
30% 28% 27%
21% 19%
9% 13%
Australia Brazil Canada China China Colombia Germany India Ireland Mexico
(Hong Kong) (Mainland)
64% 66%
61%
45% 48% 45%
40%
30% 34% 34% 32%
28% 29% 27%
21% 24%
13% 13% 13%
5%
Norway Poland Saudi Singapore South Spain UAE UK US Vietnam

Arabia Africa

2_3_Market_HighGreenCountry_#01Dodge Data & Analytics 11 www.construction.com SmartMarket Report
Green Building Market Activity CONTINUED
Sectors for Future Green Building Activity
Respondents were asked to select the building sectors in Sectors With Planned Green Activity Over
which they have planned green building projects in the the Next Three Years (Global Average and Five
next three years for the country in which they are located. Highest Averages by Country)
The chart at right lists the global average of respondents Dodge Data & Analytics, 2018
for the six sectors included in the study and the top five
Global Average Top Five
countries with the highest percentage for each sector.
■■New Commercial Construction: New commercial 73% 69% 65% 61% 61%
construction is, by far, the sector most commonly
selected globally. This corresponds to the findings in New
Commercial 51%
2015 and shows that commercial construction is still the Construction
biggest driver of green building.
Norway UAE China Spain Vietnam
• Norway has the highest percentage (73%) of those (Mainland)
doing new green commercial projects, and China,
60% 54%
the UAE, Spain and Vietnam also have very high 50% 50% 45%
percentages, demonstrating that the popularity of New
Institutional 38%
green commercial projects are widespread globally. Construction
• The lowest percentages of new commercial
Canada China Saudi UAE US
construction are found in the UK (30%) and (Mainland) Arabia
Germany (31%).
■■New Institutional Construction: North America, China 55% 52% 52% 50% 50%
and the Middle East dominate this building type, while Retrofit of
fewer than 20% in Brazil, Poland and South Africa report Existing 37%
Buildings
having green institutional projects in their pipeline.
■■Retrofits of Existing Buildings: Retrofits are reported Ireland Spain Canada US UAE
in the pipeline by 50% or more respondents in Canada,
Ireland, Spain, UAE and US, notably more than the 37% 61%
52% 50% 49% 48%
global average. They are least commonly reported
New
in emerging markets like India (24%) and Brazil (21%), High-Rise 35%
where the focus is on new buildings. Residential
■■New High-Rise and Low-Rise Residential: Not
Vietnam China UAE China India
surprisingly, there is no overlap in the countries with a (HK) (Mainland)
high percentage with high-rise and low-rise residential
61%
projects in their pipeline. Vietnam (61%) has the highest 53%
43% 42% 39%
percentage of high-rise residential, while Ireland (61%) New
has the highest percentage of low-rise. Low-Rise 30%
Residential
■■Other Sectors: Green communities and green interiors
are less commonly reported than the other project types Ireland Saudi Mexico UK Spain
Arabia
overall, with less than one quarter globally reporting
these types of projects in their pipeline. 39% 38% 35% 35%
Green 32%
• Nearly half the respondents in Poland (49%) are
Communities 24%
doing green interior projects in the next three years, a
particularly robust finding. Vietnam UAE Australia China Ireland
• On the other hand, no country has more than 39% of (Mainland)
respondents who report doing green communities.
49% 43% 40%
Commercial 32% 30%
Interiors 24%
Poland China Saudi Ireland US

(Mainland) Arabia

2_4_Market_Sectors_#01
Sidebar: Healthier Buildings
Healthier Buildings
Even as interest in creating healthier buildings grows globally, the specific

goals and priorities for those buildings vary based on local needs.
O
ver the past decade, like China, factors like air quality are positive examples around the
benefits of green important health considerations. globe, she does see “huge
building—such as By comparison, in Norway, air disparity” in different parts of
energy savings, water quality is less of a factor compared the world. “Among our members,
savings and reduced environmental with availability of light and the who are in 33 countries, there are
impacts—have been well effects on mental health. “There’s varying levels of development
documented and quantified. More regional significance and a learned and various internal and external
recently, health and well-being have response,” she adds. challenges in their buildings,”
emerged as key considerations in Who and how an employer should she says. “That brings a whole
green building, but the movement get involved in an individual’s health spectrum of opinions.” Brady
is early in adoption, and data—and and well-being are also careful notes that it is often the least
even definitions—have yet to be considerations. Gray says that, in developed countries that have
widely accepted. the United States, responsibility the greatest need for healthier
for one’s healthcare is placed more buildings, yet they often can’t
Defining Health on the individual, while many make the commitment.
Ratings and certification systems other countries have socialized David Pogue, senior vice
such as the Well Building Standard healthcare systems. “It’s personal president at CBRE for Global
(WELL) and Fitwel are helping responsibility versus seeing it as Client Care—Sustainability, sees
to provide building owners, everyone’s responsibility,” she adds. a direct connection between
developers and tenants with “In Norway, I don’t have to convince health and productivity. Pogue
definitions and guidance on anyone about the importance of points to a 2015 Harvard study
supporting health and well-being. having healthy drinking water or that reported that people working
Still, they are very early in adoption. why it’s important to have plants in in green environments achieved
As of May 1, 2018, WELL had 92 the office. In the US, they might say, cognitive scores that were double
certifications globally with 737 in it’s not my responsibility.” those of people working in
the pipeline. As of June 1, 2018, conventional spaces.
Fitwel had 95 certifications in the Benefits and Challenges He also sees companies
US with 620 pending. The World Green Building Council focusing on the health benefits
“The word health was generally highlighted health benefits of green of green as a way to attract and
applied in green building 10 years building in its April 2018 report retain employees. “You want to
ago but not well defined,” says Better Places For People, which encourage not only their best work,
Whitney Gray, senior vice president focused on 11 case studies. For but also to encourage them to stay,”
at Delos, which established the example, a net zero-carbon he says. “It’s a strong recruitment
WELL Building Institute in 2013. office in Australia had 94.5% and retention factor.”
“People in the building industry staff satisfaction, while 72% of A key challenge, however, is
thought of health mostly within the employees reported better health. getting decision makers to make
LEED format, focusing on things like A headquarters in El Salvador the direct connection. “Recruiting,
air quality, materials, acoustics and saw a 68% reduction in reported retention and empowering
lighting. Now, we’re redefining respiratory problems, and staff sick employees—those are factors that
health in buildings.” days were cut almost in half. live in human resources,” he says.
Part of the issue is that definitions Catriona Brady, who heads “But real estate lives in finance.
of health can vary greatly around the Better Places for People There’s often miscommunication
the world. Gray notes that in places project, says that despite reporting and disconnect there.” n

Data:Influences
on the Green Building Market
Top Barriers to Increased Green Building Activity
Respondents were asked to select the top three barriers Top Barriers to Increased Green Building
to increased green building activity for their businesses. Activity (All Global Respondents by Year)
The chart at right shows the percentage in the current Dodge Data & Analytics, 2018
study who select each barrier as one of their top three, 2018
compared with those who selected it among their top 2015
three in previous studies in 2012 and 2015. 2012
Barriers by Year Higher (Perceived or Actual) First Costs

For the most part, the percentages concerned about 49%
the barriers in 2018 are very consistent with those from 50%
2015. In both years, no single barrier is considered a
76%
top obstacle by more than half of the respondents. This
suggests that there is no insuperable barrier to increasing Lack of Political Support or Incentives
green building growth globally, but it may also indicate 33%
that challenges are diffuse and more difficult to tackle on 30%
a global scale. To increase green building, attention to the 36%
most important barriers in specific markets is likely to be
Affordability (Green Building Is
the most effective approach. for High-End Projects Only)
The chart reveals a few other notable trends. 33%
■■Higher first costs have declined dramatically as a top
28%
concern since 2012. In 2012, 76% considered this a top
29%
barrier, but by 2015, that percentage dropped to 50%,
and now even fewer (49%) still select it as a top barrier in Lack of Public Awareness
2018. This demonstrates that the drop noted in the 2015 32%
study may be a permanent shift in the perception about 29%
higher first costs as a negative influence on the green 29%
building market.
Lack of Market Demand
■■There is a small uptick in the percentage of those
25%
who find affordability (the association of green
with high-end projects only) to be a concern. 29%
Tracking this in future studies may be important 29%
to see if it is just a temporary increase or a growing Lack of Trained/Educated
concern moving forward. Green Building Professionals
22%
Barriers by Country 21%
While no single barrier dominates globally, some are 17%
very influential in specific markets. The chart on the
Unable to Prove Business
opposite page shows the countries in which the top five Case Due to Split Between
barriers globally are selected by the highest and lowest Capital and Operating Costs
percentage of respondents. 21%
Some conclusions that can be drawn from the findings 25%
include the following. 32%
■■Higher first costs are a particular concern in the US and
Ireland, surprising in such established green markets,

but the US findings are also consistent with previous
studies, revealing the persistence of this barrier in the
US market. 3_6_Influence_Challenges_Year_#01

Influences on the Green Building Market
Top Barriers to Increased Green Building Activity CONTINUED
The perception that green is associated with high-end The need for greater public awareness of green
■■ ■■
projects only continues to be among the top issues in building to help grow the market is most evident in
Australia, consistent with previous findings. India, Poland and the UAE.
■■Brazil, Colombia and Spain struggle with lack
of political support or incentives as a barrier to

green building.
Countries With the Highest and Lowest Percentages Selecting the Top Barriers to
Green Building Activity
Top Five Global Average Low Five

73%
68%
58% 57% 55%
38% 37%
32% 29%
Higher First
Costs 49% 19%
US Ireland Colombia Australia Norway Saudi Vietnam India UAE Germany

Arabia
42% 41% 41% 39% 38%

28%
23% 19% 16% 12%
Affordability 33%
Australia Norway UAE UK China Vietnam Poland Ireland Spain Brazil

(Mainland)
49% 45% 44% 41% 39%

Lack of Political 26% 25% 24% 20%
Support/ 33% 12%
Incentives
Colombia Spain Brazil Vietnam China US Germany UAE Saudi Singapore

(HK) Arabia
50% 46% 45% 42%

37%
Lack of Public 19% 19% 19% 19% 18%
Awareness 32%
India Poland UAE Spain Vietnam Canada/ Norway Singapore US Australia

Ireland

Influences on the Green Building Market CONTINUED
Triggers to Increased Levels of Green Building
Global study participants were asked to select their top Triggers Driving Future Green Building
three triggers from a list of 16, and the top 10 selections Activity (All Global Respondents)
are indicated in the chart at right. The findings from Dodge Data & Analytics, 2018
previous years are not included on the chart because

Client Demands
a new option (healthier buildings) was added this
year, which prevents direct longitudinal comparisons, 34%
although notable changes in the importance of triggers Environmental Regulations
compared with other years will still be discussed in the 33%
analysis below.
Healthier Buildings
Most Influential Triggers 27%
The top triggers in the current study are client demands Market Demands
and environmental regulations, consistent with the
25%
findings in 2015. This demonstrates that the green
building market is equally influenced by the pull of the Right Thing to Do
market and the push of regulations. 25%
Lower Operating Costs
Moderately Influential Triggers 23%
A cluster of four triggers are moderately influential,
selected among the top three by between 23% and Internal Corporate Commitment
27% of respondents. 17%
■■Healthier Buildings: This newly added trigger is the
Market Transformation
third most influential in the study, demonstrating that
15%
creating healthier buildings is a goal of building green.
• More architects select this among their top three Higher Building Values
triggers than owners, engineers or contractors. 15%
■■Market Demands: The percentage selecting this trigger
Branding/PR
among their top three has dropped steadily since 2008,
while the influence of client demands remains high, 13%
revealing that clients play a greater role in driving green
building globally than does general market pressure. • Like other triggers that impact the financial
• This trigger is most influential with contractors. performance of the building like higher asset values,
■■Right Thing to Do: After a precipitous drop between higher rents and higher occupancy rates, lower
2008 and 2012, the percentage who believe doing the operating costs is most frequently selected as a top
3_1_Influences_Triggers_#01.eps
right thing is a top trigger for future green building trigger by owners.
activity remains steady at about one quarter. While
market factors have become more influential over time, Less Influential Triggers
the desire to build green to have a positive impact still Corporate factors like internal corporate commitment,
remains an important driver. branding/PR and even higher building values are only top
• This is especially true for architects and owners, triggers for a relatively small percentage of respondents.
who more frequently select this trigger than engineers In addition, while the percentages selecting market
and contractors. transformation and marketing/PR are quite consistent
■■Lower Operating Costs: Roughly the same percentage with the findings of 2015, they are significantly lower than
in 2018 find this to be an important trigger as those in those in 2012 and 2008.
2015, demonstrating the ongoing importance of lower This suggests a maturation of green building in most
operating costs to support a business case for green markets, where it has become more commonplace and
building investments. therefore is no longer considered a transformational
approach nor likely to directly boost marketing/PR efforts.

Triggers to Increased Levels of Green Building CONTINUED
It is worth noting that the two triggers selected by Environmental regulations vary widely, within regions
■■
the fewest respondents—higher rents (5%) and higher as well as across the globe. Diverse countries like India,
occupancy rates (4%)—only apply to commercial Ireland, Singapore, the UAE and the UK all consider
real estate, which is likely to account for their low regulations top triggers.
performance since many respondents may not work on ■■Healthier Buildings: The top two markets interested
those types of projects. in healthier buildings, India and China (Mainland),

are those that also struggle with air quality issues.
Variation by Country It is also notable that the US and India are among the
As with challenges, the influence of the top triggers varies highest percentages selecting this trigger. Because
by country. The chart below reveals the countries in these two countries account for over one third of the
which each trigger has the greatest and least influence. total responses to the study, the high performance of
■■Client demands are most influential in Northern Europe healthier buildings in the overall findings is influenced
and North America, although they have much less by its popularity in the US and India. However, the
influence in Mexico than in Canada and the US. global average, excluding the US and India, is still 23%,
so the influence of healthier buildings is widely
recognized globally, not just in those two countries.
Countries With the Highest and Lowest Percentages Selecting the Top Triggers for Future
Green Building
Top Five Global Average Low Five

71%
60%
50%
44% 42%
25%
Client Demands 34% 20% 19% 16% 13%
Ireland UK Canada US Germany India Saudi Mexico China Colombia

Arabia (Mainland)
50% 48% 45% 42% 42%

23% 22% 19%
Environmental 13% 12%
Regulations 33%
UAE UK Ireland India Singapore Brazil China Norway Spain Poland

(Mainland)
39% 35% 33% 32% 28%

Healthier 19% 16%
27% 12%
Buildings 6% 3%
India China South US Vietnam Norway Spain Singapore Mexico Colombia

(Mainland) Africa

Social Reasons for Building Green
Social Reasons Rated as Important Social Reasons for Building Green

Overall, the findings of this study suggest a general (Respondents Who Rated Each as Important/
tendency toward increased importance of many social Very Important)
reasons for building green. Respondents were asked to Dodge Data & Analytics, 2018
rate the importance of several social reasons for building

2018
green on a five-point scale, from unimportant to very
2015
important. The chart at right shows the percentage
2012
of those who rated each reason as important/highly
important in the current study, and, where applicable, in Promotes Improved Occupant Health and Well-Being
the three previous studies. 77%
VARIATION BY YEAR NA
■■The top two social reasons for building green, 72%
each rated as important by about three quarters Encourage Sustainable Business Practices
of respondents, are that green building promotes
75%
improved occupant health and well-being, and that it
68%
encourages sustainable business practices.
• The impact of occupant health was added back into 78%
the study after being dropped in 2015, and this finding Increases Worker Productivity
demonstrates the importance given to healthier 59%
buildings that is evident throughout the study. 50%
• After a slight decline in 2015, the ability of green
50%
buildings to encourage sustainable business practices
is also highly influential in the current study. Creates a Sense of Community
■■Increasing worker productivity, creating a sense 57%
of community and being aesthetically pleasing are 51%
considered important in the current study by a higher 44%
percentage than in the two previous ones. While
Supports the Domestic Economy
this may have to do with the individual factors, it also
53%
suggests an evolving understanding that building
sustainably should achieve other goals beyond just 52%
energy savings and resource conservation, indicating a 39%
more nuanced understanding of green building. Is Aesthetically Pleasing
49%
Two Most Important Social Reasons 43%
Respondents were then asked to select the two most
32%
important social reasons for building green among the
responses they rated as important. The chart on page 19
provides a listing of the global average for each reason,
and show the countries with the highest percentage of
respondents selecting each reason.
■■Improved Occupant Health and Well-Being: This still
3_3_Influence_Social_Year_#01
ranks as the top reason globally, and it is selected
among the top two reasons by a very high percentage
of respondents from Colombia, Ireland and the
United States. Conversely, less than one third of the
respondents from Saudi Arabia (27%) consider this one
of the top two reasons to build green.

Social Reasons for Building Green CONTINUED
Encourages Sustainable Business Practices: Over three Top Social Reasons for Building Green
■■
quarters of respondents from Singapore and Norway (Ranked Among the Top Two Reasons by Those
consider this a top social reason for building green. Who Consider It Important)
However, Saudi Arabia again has less than one third of Dodge Data & Analytics, 2018
respondents (24%) who rank it in the top two. Global Average Top 3
■■Increases Worker Productivity: Only about one third
88% 82%
(30%) of respondents globally rate this among their top 79%
two reasons, but it has great influence in Saudi Arabia Promotes
Improved
(49%) and Poland (47%). Occupant 66%
■■Creates a Sense of Community: While only 27% of total Health and
Well-Being
global respondents consider this a top social reason
for building green, about half of those from China (both Ireland Colombia US
Mainland and Hong Kong) and Saudi Arabia do.
■■Supports the Domestic Economy: Germany is notably
80% 77%
more influenced by this factor than the other countries 65%
Encourages
in the study, but globally, its influence is quite limited. Sustainable
■■Is Aesthetically Pleasing: While nearly half rate this as Business 58%
Practices
an important factor in the previous question, very few of
them (14%) select it as one of the top two social reasons Singapore Norway UAE
for building green. Even when considering responses by
country, fewer than one third of respondents from any 49% 47%
country consider it among the most influential reasons. Increases 35%
Worker 30%
Productivity
Saudi Poland South
Arabia Africa
52% 52% 50%

Creates a
Sense of 27%
Community
China Saudi China
(Mainland) Arabia (HK)
46%
Supports the 32% 31%
Domestic 21%
Economy
Germany Poland Spain
30% 27% 25%

Is
Aesthetically 14%
Pleasing
Canada Saudi Brazil
Arabia
Dodge Data & Analytics 19 www.construction.com

3_4_Influence_Social_Country_#01 SmartMarket Report
Environmental Reasons for Building Green
In both 2015 and 2018, respondents were asked two Top Environmental Reasons for Building Green
questions about their environmental reasons for building (Ranked Among the Top Two Reasons by Those Who
green. First, they were asked to rate the importance of Consider It Important)
several reasons on a five-point scale from unimportant Dodge Data & Analytics, 2018
to very important. Next, respondents were shown the 2018

reasons they designated as important (4 or 5 in the scale) 2015
and asked to identify just their top two.
• Over three quarters of respondents rated all five of Reduce Energy Consumption
the environmental reasons offered in the survey as 66%
important (4 or 5). 66%
• The chart at right shows the breakdown when they
Protect Natural Resources
were asked to select just their top two most important.
40%
Reducing energy consumption is still most frequently
37%
selected as a top environmental reason for building
green, as it has been since 2008. As the chart shows, Reduce Water Consumption
the same percentage selected it in 2018 as did in 2015. 35%
Reduced energy consumption remains the most tangible 31%
and financially significant benefit of green building, so Lower Greenhouse
this finding is not surprising. Gas Emissions
What is notable, though, is that there is a significant 31%
increase since 2015 in those who consider reduced 24%
water consumption, lower greenhouse gas emissions
and improved indoor air quality to be top reasons for Improve Indoor
Air Quality
building green. This may indicate that a more holistic
26%
understanding of green building is becoming more
common globally. 17%
Variation by Country
■■Demonstrating its universal importance, reducing
energy consumption is selected as one of the top 3_5_Influence_MostImpEnv_Year_#01
two environmental reasons by more than half of
respondents from all 20 countries in the survey. It is
selected by nearly all respondents from Saudi Arabia
(91%) and China (Hong Kong) (86%).
■■Protecting natural resources is selected by nearly
half of respondents in Vietnam (50%), Brazil (49%)

and China (Mainland) (48%). However, only 20% of ■■Lowering greenhouse gas emissions is particularly
respondents from Hong Kong and 8% from Ireland important in Ireland (63%), and selected by at least
consider this one of their top two reasons. half of respondents in Saudi Arabia (52%) and Hong
■■Around half of respondents from Colombia (51%), Kong (50%). However, less than 20% in the UAE (16%),
South Africa (51%) and the UAE (50%) select reducing Singapore (18%) or Brazil (18%) rate this highly.
water consumption among their top two. It is least ■■ No country has more than half of its respondents
important in Spain (9%) and Norway (8%), and all other rating improved indoor air quality as one of the top
countries in Western Europe have fewer than 20% of two reasons. This is surprising given the high level
respondents who consider this a top reason, suggesting of interest in healthier buildings shown in the rest
that it is generally not prioritized in this region. of the study.

Green Building Rating Systems
Three quarters (75%) of respondents report using one Benefits of Using a Green Building Rating
or more third-party green building rating system. Those System (According to Respondents Who Use
using these systems were asked about the benefits they Rating Systems)
experienced from using them. All respondents were also Dodge Data & Analytics, 2018
asked why they chose not to use a rating system on green 2018
projects. Their answers to both questions are shown in 2015
the two charts at right. 2012
Benefits of Using a Green Building Ability to Create a Better Performing Building

Rating System 67%
The top chart at right shows the benefits reported by 61%
more than 50% of respondents from their use of a rating 68%
system in the current study, and where applicable, also
Provides Marketing and
shows the percentage of respondents reporting these Competitive Advantages
benefits in 2012 and 2015.
53%
■■Two thirds (67%) report that using a rating system
49%
allows them to create better performing buildings. This
benefit declined slightly between 2012 and 2015, but the 67%
current study nearly restores the percentage back to Provides 3rd Party Verification
the 2012 level. The frequency with which this has been That Building Is Green
consistently reported shows that respondents find that 52%
the rigor of a third-party system assists them in creating NA
better performing buildings. NA
■■Marketing and competitive advantages are noted by
more than half (53%), but the percentage experiencing

this benefit declined since 2012. In some markets, green Top Reasons for Not Using a Green Building
building is becoming more common, making it less of a Rating System (According to All Respondents)
competitive advantage and more of a requirement to do Dodge Data & Analytics, 2018
3_7_Influence_Rating_Bens_#01
business at all. 2018
■■Over half (52%) of respondents also find that using a
2015
rating system provides third-party verification that
their buildings are green. This finding suggests that Too Costly/Timely
concerns about green washing are still prevalent in 79%
the industry.
53%
Reasons Not to Use a Rating System to Understand

Requirements and
There is a notable increase of 26 percentage points Documentation Processes
between 2015 and 2018 in the number of respondents 19%
who don’t use a rating system because of the cost. This
22%
is also the only concern selected by more than 20% in
2018, suggesting that the perception of the high costs Not Tailored Enough to
Regional Climate and
may be the biggest hurdle needed to be overcome Cultural Implications
in order to encourage wider use of third-party rating 17%
systems. This increased concern may also contribute to
25%
the growing share of green projects that are not being
certified in a system (see pages 10 and 11). Not Ambitious Enough
17%
NA

Data:Green Technology
Expert Insights on Green Technology
In July 2018, Dodge Data & Analytics conducted a series

of interviews with experts from nine companies on using

technology to improve building performance and achieve better
sustainable outcomes in new and existing buildings.
I
nterviews on green technology “[Generative design] is going to augment
were conducted with many
experts from design firms
our ability as designers to make better
recognized for their green and more informed decisions early.”
projects, as well as experts from Brendan Garrett, Dekker, Perich, Sabatini
Johnson Controls and Siemens. For a
full list of participants, see page 23.
No formal definition of green participants. However, in some developers and owners are
technology was provided to the cases, ambitious energy goals expected to become increasingly
participants, so their responses cover were highlighted. Ilana Judah, sophisticated, taking a more
a wide spectrum of technologies, former principal and director of holistic approach to address the
from advanced analytical capabilities sustainability at FXCollaborative, pressing needs of lowering their
in early design, to LED fixtures, to emphasizes achieving net zero carbon footprint, improving indoor
cloud-based systems gathering data buildings, and Clay Nesler, vice air quality and offering a healthy
from sensors. president of global sustainability occupant experience.”
In addition to insights about the and industry initiatives at Johnson ■■Adaptable/Flexible Space: Some
technologies themselves, these Controls, reports that “this notion experts report demand for spaces
discussions also highlighted critical of net zero, near zero and energy that can be flexible and adaptable.
trends and goals for green building positive buildings is clearly They discuss “address-less”
that the industry is attempting to accelerating,” based on their 2017 offices, in which occupants choose
address through technology. global energy efficiency indicator spaces to work in that meet their
study with building facility and immediate needs.
Key Sustainability energy executives in 12 countries. ■■Transparency About Material
Trends and Outcomes Distributed energy production Components and Lifecycle

During the interviews, participants through renewables is also another Impacts: Several experts express
were asked to discuss the ambitious trend observed by Tobias interest in how technology can
technologies they currently use and Huber, global head for business and help address the challenges they
anticipate using in the near future project development at Siemens. face in understanding the makeup
to accomplish their sustainability ■■Building Occupant Impacts: of the materials they choose
goals. Because specific goals were Attention to the health and well- and their likely health impacts.
not included, this led to an interesting being of building occupants is a None of the experts has found a
portrait of the top trends and primary concern of many of the good technology solution to this
outcomes driving sustainable activity respondents. In addition, ways to challenge, but a few are hopeful
among these experts. These trends influence occupant behavior to about that potential.
and goals provide a framework for improve building performance are ■■Scaling Up: A few experts are
defining the technologies discussed also discussed by a few experts, looking beyond the building
as green. largely by providing feedback to envelope to understanding green
■■Energy Performance: Not occupants about performance in an performance on a neighborhood/
surprisingly, improved energy immediate, actionable way. Chris city scale, and understanding
performance in buildings is still Nelson, President, Commercial how their buildings contribute.
a top outcome mentioned by all HVAC, Carrier, states, “Building Aaron Ketner, intern architect/

Data: Green Technology CONTINUED
energy specialist at Dekker, Perich, allowed them to “become part of

Sabatini, says, “[What] I am starting the dialogue throughout the design Green Technology Experts
to find a passion for is, how does process. And the biggest benefit is Interviewed
not only the individual building that, these technologies allow for ■■Chris Nelson, President,
perform, but how does it influence an iterative process—a process for Commercial HVAC, Carrier
the context. We are getting more exploration.” His colleague Aaron ■■Brandon Garrett, Associate/
interest in community-scale kind Ketner also regards the speed with Architect, Dekker, Perich,
of impacts... we’re looking at an which these iterations can now be Sabatini
entire urban environment and run as a major improvement over ■■Aaron Ketner, Intern
how do we evaluate our design his experience in the past. Architect/Energy Specialist,
decisions based on a super- ■■Ability to Conduct Analysis as Early Dekker, Perich, Sabatini
connected environment.” as Possible in the Design Process: ■■Ilana Judah, AIA, OAQ, LEED
Ellen Mitchell Kozack, principal and AP BD+C, CPHD, Institute

Technologies director of sustainability at HKS, for Resources Environment
The experts were asked about the sees the biggest benefit coming & Sustainability, University
technologies that they have seen from “the shift toward more early of British Columbia (former
improve in the last five years and phase analysis that can be done Principal and Director
what they are seeing and most in-house by architecture and not of Sustainability at FX
excited about on the horizon. In many solely relegated to our consultants. Collaborative)
cases, the answers to these two She points out that even though the ■■Ellen Mitchell Kozack,
questions overlapped. limited parameters available in the Principal and Director of

Sustainability, HKS
■■Clay Nesler, Vice President,
“I believe we should be making those Global Sustainability and

early decisions that empower us to own Industry Initiatives, Johnson
the impact of the architecture.” Controls, Inc.
■■Ryan Hess, Principal, Mills
Margaret Montgomery, NBBJ
Group
■■Margaret Montgomery,
EARLY ANALYSIS TOOLS very early design stages may not
Principal and Sustainable
By far, the most widely discussed be able to yield completely accurate
Design Leader, NBBJ
technologies improving green forecasts of energy consumption,
■■Tobias Huber, Global Head
building performance are the early they can be very valuable from
for Business and Product
analysis tools available for use with a comparative perspective: “It
Development, Siemens
building information models (BIM). allows us to look at the constraints
■■Nirup Jayanth, Managing
These include many aspects of and opportunities of the project in
Director, Surbana Jurong
building performance, with the most three dimensions instead of two.”
SMEC
commonly mentioned uses being Margaret Montgomery, principal
■■Wang Ying, Director Assistant
energy analysis and daylighting. and sustainable design leader at
of Technology Development
■■Integration Into the Model: Brandon NBBJ, regards the decisions made
Department, TIAD China
Garrett, associate/architect at before consultants typically join
Dekker, Perich, Sabatini, says that a project as critical to its ultimate
when they initially started using performance. “When our designers
these tools for early analysis, they start at day one, they probably
were part of a separate, optional don’t have the other disciplines
process. However, their integration sitting there with them as they are
and increased ease of use has initiating their first design doodles,

but I want the software to be able “..[A]s we move toward IoT, people are going
to support them [at that stage]... I to rely more on data to inform decisions, and
want us to have a good feedback once that comes, there is no going back.”
loop when we’re doing things that
Ellen Mitchell Kozack, HKS
we tend to do quickly and early.”
She recognizes the importance of
collaboration with other disciplines
as the most exciting development decisions. Every design is different,
and embraces that approach, but
they anticipate. Brandon Garrett, based on latitude, longitude,
sees these tools as valuable to
from Dekker, Perich, Sabatini, climate pattern ... it has to be very,
improving performance at this
describes it as goal-based tools, in very localized.” Hess himself,
early stage. She states, “I believe
which they could input their project though, caveats that “integration is
we should be making those early
goals and what they know about a key ... It is integration of all of that
decisions that empower us to own
project at an early stage (such as data [such as window placement
the impact of the architecture.”
the site, the square feet, the number and shading] in a simplified form
■■Demonstrate Impact to Clients of
of buildings and the number of that helps reveal a sound design
Early Design Decisions: Another
stories) into the system and have process.” Ellen Mitchell Kozack
important benefit of engaging in
the software show them the top shares that concern while also
early energy analysis is the ability
solutions to achieve those goals. sharing in the excitement of
to show their clients the impacts
He states that generative design “is having this tool. She describes the
of early, key design decisions,
going to further augment our ability possibility of having the computer
such as building placement and
as designers to make better and generate simulations based on
mapping. Ryan Hess, principal
more informed decisions early.” energy performance parameters
at Mills Group, says that being
Excitement about computer aided that determine the optimal
able to perform these functions
design is not confined to designers. orientation, glazing, window
“on the fly” in front of clients
Chris Nelson regards a computer- treatments and other elements
helps them to demonstrate the
aided design paradigm as an to improve energy performance
value of the choices being made
opportunity for Carrier to help their as “pretty compelling,” but also
and how they will impact final
customers become more efficient. states that “it seems a little bit
building performance. In fact,
“When we take that [computer scary because in some ways it
Aaron Ketner, from Dekker Perich
aided design technology] to the starts to take away our jobs as
Sabatini, describes how his team
HVAC product level, it propels designers.” However, on further
was iterating ideas with clients to
the design process forward and consideration, she finds a balance
demonstrate the impact of different
simplifies the way buildings in her expectation that “there are
basic design decisions, and the
are designed, constructed, inherent things in terms of beauty
clients were very impressed, stating
commissioned and serviced.” and delight that a computer is
“Wait, you don’t have to go do all
■■Concerns About the Future of not going to be as effective at
this and come back?” Instead, in the
Design in an Age of Generative simulating, but [the technical tasks
course of their meeting they were
Design: While many see automating of understanding how a structure
able to continue to adapt the design
this aspect of the design as a likely performs] can be solved by a
and show the client the impact.
development in the future, some computer very easily.”
■■The Potential of Generative Design:
designers voice concerns. Ryan ■■Automating Design as it
When asked about the technologies
Hess, from Mills Group, argues that Progresses: Brendan Garrett
that they believe will have the
“it is important for the designer to anticipates more automation of
greatest positive impact on
have that hands-on understanding tools in the workflow of a designer.
sustainable outcomes in buildings
of the depth of the design to be able He anticipates, for example, “a
in the next five years, many of the
to make some critically informed dashboard that is sitting there as
designers regard generative design

we are working, and as you are However, the majority of owners people actually circulate around
designing and making decisions, do not share measurement and buildings, rather than relying on
performance is moving up or down. verification data currently with standard assumptions.
So it is no longer a second thought design firms. Ilana Judah has found Major impacts are also expected
process to run the analysis, but getting feedback from clients on the on improving occupant well-
rather, you get live feedback as you measurement and verification data being. Aaron Ketner explains that
are designing.” of buildings they’ve designed to be understanding how people circulate
exception rather than the norm. provides data on strategies designed
INTERNET OF THINGS
Ellen Mitchell Kozack agrees that to provide active routes and promote
Sensors are now commonly
sharing data has not entered the stair usage. Clay Nesler describes
deployed in building projects, to
mainstream, but she sees creating a smart sensors that sense a broader
measure occupancy, air quality,
feedback loop as an opportunity. “I range of indoor pollutants than just
temperature and other factors.
see [client use of the digital model] carbon dioxide. The use of this data
However, use of the data being
as a way to not only add value for will change based on location: In
gathered is still an emerging trend,
the client but as a way to foster countries with acceptable outdoor
but one that directly impacts building
connections with the client beyond air quality, this may call for more
performance. Tobias Huber, from
the design and construction of the ventilation with outside air, but in
Siemens, summarizes that impact
building, through commissioning buildings like their new headquarters
well: “There is a clear trend from
and post-occupancy work.” building in Shanghai, it could lead to
green to smart, and I believe in the
Having data would directly removing indoor air pollutants using
near future, we will not be able to
impact design and building filters and scrubbers instead.
distinguish measures that make a
operations. Chris Nelson describes Many are excited about the way
building green or measures making a
how their new headquarters in in which the data will help building
building smart.”
Florida features a “centralized operations and maintenance to
Ilana Judah considers the
security monitoring and become more predictive rather
importance of the measurement
management hub, [that] allows us than a reaction to issues that arise.
and verification of data one of the
to oversee systems and solutions Ryan Hess mentions the example
most important technologies to
throughout the building, respond of “a building having predictive
emerge in the last five years, on par
rapidly to incidents, support remote forecasting” that can use the weather
with the early analysis tools. She
sites as a backup and monitor the forecast to “precool the building [at
says, “We are starting to see more
facility during off hours. Software night] instead of cooling it during
sophisticated building management
platforms are integrated to help peak hours.” Brandon Garrett
systems, and that is helping us
better protect the building and the imagines a future where a cloud
understand the actual performance
people inside, while minimizing staff system could track performance
of buildings once they’ve been
needs and enhancing operational on all equipment of the same make
built. It is the two ends of the
efficiencies.” Clay Nesler states,“We and model installed into different
spectrum: early design tools, and the
are getting to the point where we buildings so that performance of a
measurement and verification tools.”
can actually count people,” which single unit could be compared with
Ellen Mitchell Kozack believes
allows for several benefits, including that of the others and addressed.
these tools are already having a
understanding space utilization and Nirup Jayanth, managing director
fundamental impact on design. “It
more proactive indoor air quality at Surbana Jurong SMEC, anticipates
is all about the shift to using data
control to address carbon dioxide the combination of data and artificial
to inform decisions. I feel that is
levels before they rise. intelligence that will help dynamic
inevitable as we move toward IoT.
Brandon Garrett agrees. He systems perform on their own,
People are going to be relying more
believes this technology will change maximizing the performance. He
and more on data to inform decision,
how they approach the layout of sees this trend largely merging in
and I think once that comes, there’s
buildings because they can see how “laboratories and highly specialized
no going back.”

environments where you need a building data to a digital model of PREFABRICATION

high level of control on the building, also have the potential to Margaret Montgomery is interested
environmental conditions.” help scale up the benefits of these in the ways in which prefabrication is
The impact of this data ultimately, technologies to the level of smart altering the design and construction
though, will depend on how usable cities. Nirup Jayanth from Surbana process, which has strong
they are. Clay Nesler compares Jurong, states, “ When you look at sustainability implications. Wang
these very technical buildings to the Internet ofThings and sensors, Ying also mentions prefabrication
modern cars today. The car itself is a this has primarily caught on at both as one of the technologies that has
combination of highly instrumented the building level, having integrated improved sustainable building
and complex systems, but because BMS [building management outcomes in the last five years. Nirup
the user interface is still very simple, systems] as well as a large scale Jayanth not only agrees, but he
he states, “my 86-year-old mother city level of smart technology. regards it as a factor that has helped
drives her car just fine.” Buildings What we are able to do today is reduce the air pollution caused by
must be the same, according to to help provide command centers, building construction in India.
Nesler. “Buildings are going to be providing monitors to manage
OTHER TECHNOLOGIES
more complex to design, more these systems. Where we can go
Other technologies mentioned
complex to construct, but through forward is potentially running
briefly as desirable by the experts
new user interfaces and automation simulations... to better double up
interviewed include better
technologies, we may be able to with the artificial intelligence
automation of green building
make them easier to operate and solutions and automated controls
certification requirements on
achieve peak performance.” based on scenarios in the future.”
projects, automation that helps
Still, in the current condition, Ilana Judah also sees exciting
support material selection, based
the challenge of the disparate applications in moving from the
on HPDs, EPDs and ratings that
nature of the data is significant. building scale to the city scale. She
identify material components, and
Tobias Huber from Siemens is interested in “how buildings
automation that provides better
describes the need to gather data talk to the greater infrastructure.”
lifecycle analysis for materials.
from different systems together: She pictures situations where an
“There is so much data existing emergency management response
in silos and not brought together team can use data to understand
Best Practices
A few best practices also emerged
for comprehensive analysis.” To where people are in a building,
from the interviews with the experts.
maximize the operational impact of where the temperature is very
■■A few are using their own offices
this data, systems need to be able high and other data that can
as test beds in order to be able
to speak to each other. Wang Ying, improve resilience.
to advocate for the best new
director assistant of the technology
LED LIGHTING technologies with clients through
development department at TIAD
Several experts felt that LED their own experiences. One
in China mentions that her firm is
lighting is still a critical technology example is the UTC Center for
developing a protocol for different
for improving green building Intelligent Buildings, featured in a
sensors for the operations phase that
performance. Margaret Montgomery case study on page 30.
can allow the use of disparate data in
reports that LED lighting has tipped ■■Meeting an overarching goal
one tool.
from being too expensive to being about performance (such as AIA
Wang Ying also explains that it
fairly ubiquitous. Tobias Huber 2030) can help to foster the will to
is important that the sensors are
regards LED lighting retrofit as an experiment with new technologies.
demonstrated to help achieve the
enabling technology to get smart IoT ■■Recognize that people are the most
original design goals to be worth
infrastructure in existing buildings, critical element to improve building
the investment, and not to just use
financed by the payback derived operational performance. Make
technology for technology’s sake.
from energy savings. tools simple, and use technology to
Digital twins, which marry the
guide occupant behavior.

Sidebar: Smart Cities
Existing Cities Get Smarter
For a growing number of the world’s cities, data generated by sensing

technologies is helping to orchestrate the functions of daily life—

mobility, energy, water, waste, governance and citizen participation.
W
hile a few cities are surveillance cameras, 3,700 road solar collectors on rooftop
being built smart from detectors and 6,000 traffic lights, to greenhouses (which also create
the outset, the vast tackle its near-critical congestion jobs and contribute to urban food
majority are created and support a major public transit production), relies on smart meters
in quiet increments as existing cities upgrade. London uses maps, to provide the real-time consumption
undergo various rates of retrofit. apps and kiosks to allow people data essential to stabilizing the
But whether they are built all at to compare transportation modes electricity grid, and aggregated
once or piece by piece, a smart city for a given route by price, time, patterns to facilitate planning.
comprises three layers. calories burned and CO2 emissions With the combined gains from
The first is the data from sensors, generated. And over 1,500 cities renewable production and smart-
meters and other collection points around the world are considering induced savings, Copenhagen’s
integrated into the urban fabric— or have implemented bike sharing: potential for energy optimization is
in buildings, utilities, infrastructure, using phone apps to find the nearest estimated at 30%.
street furnishings, phones, bike, unlock it and charge for The water sector has been slower
wearables and elsewhere. The time used. than others to implement smart
second is the middleware, analytics Air quality monitoring can technologies, but with utilities
and apps that make sense of the complement mobility improvements, worldwide losing 25% to 35% of
volumes of data that the sensors or work as a stand-alone measure. their water to leaks and bursts,
produce. The third layer consists Beijing, for example, reduced early adopters are finding smart
of decision making, in which a airborne pollutants by about 20% in infrastructure can help stanch these
city’s constituents—its citizens, less than a year by monitoring their losses. Following a major earthquake
businesses, utilities, agencies, sources and regulating traffic and in 2011, the city of Christchurch,
governments and visitors—act on the construction accordingly. New Zealand, was able to use
data to make a better, more livable Further reducing congestion and before-and-after data to locate
and more sustainable city. emissions, sensors on trash bins ruptures and prioritize repairs. Not
that send an alert when the bin is just for emergencies, smart water
Enhanced Mobility— full are enabling garbage trucks to management systems increase
Reduced Emissions streamline their routes and eliminate network visibility, facilitate predictive
Many cities start with the mobility runs for empty bins. The sensors also maintenance and enable faster
sector, which accounts for 14% of the have the potential to improve waste response times.
world’s greenhouse gas emissions management by signaling when Priorities for smart initiatives vary
(GHGs) and offers some of the inappropriate or hazardous material from city to city. Regardless of which
most accessible gains. Singapore’s is deposited. sectors a city emphasizes, however,
Smart Urban Mobility project, for sustainability rarely forms a stand-
example, leverages data and digital Distributing Energy, alone consideration, with solutions
technologies, including artificial Saving Water that integrate other quality-of-
intelligence and autonomous In the electricity and heat production life indicators—economics, public
vehicles, to improve public transit sector, which accounts for 25% of health, social justice, to name a few—
and reduce the total number of cars global GHGs, smart technologies proving more likely to succeed.
on the road. Moscow has launched are supporting renewable energy Ultimately, smart cities are thinking
an intelligent transport system (ITS), initiatives. Copenhagen’s Energy beyond technology to what a good
which controls over 2,000 video Block, for example, which positions city should be. n

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Affordable Housing With Sustainable Goals

Silver Star Apartments
LOS ANGELES, CALIFORNIA
able to take a project from preliminary

Early energy modeling helped to site and solar analysis through to

ensure a passive design that had
a major improvement on energy
construction documents in a single
performance. file makes continuity of design intent
much easier to maintain, says Anuj
Dua, an associate at FSY. “BIM can
do a solar study at any stage,” he
says, “enabling continuous
refinement and checking.”
A C-shaped, courtyard building
with its long axis running east-
west, Silver Star varies its facade
expression in response to BIM-
based solar analysis. Windows on
F
the exposed south face are protected
or anyone who thinks building practices inform ACOF’s with shade boxes.These provide
green building requires housing development strategy, says horizontal shading against high
deep pockets, a nonprofit Ryan Lehman, the organization’s midday rays, and faceted, vertical
housing project for formerly senior project manager. Moreover, shading against lower sun angles
homeless veterans will seem an he says, “anything that can reduce either side of noon.The west facade
unlikely poster child for ambitious the operating costs of the building minimizes exposure to afternoon
sustainability goals and pioneering benefits us directly.” rays by recessing windows in deep
technologies. However, A Community One of the most significant vertical slots. Facades facing into the
of Friends (ACOF), a Los Angeles– operating costs Silver Star knocks shady courtyard need no additional
based charity, aspires not only down is energy. As the first ZNE protection. Behind the varied facades,
to build quality, permanent, affordable housing development in apartment layouts are identical for
supportive housing for its tenants, L.A., the project meets a predicted cost-effective construction.
but to do so in a way that is 105% of its annual energy needs with Passive solar performance is
environmentally responsible. onsite renewably sourced electricity— reinforced with a high performance
ACOF’s Silver Star Apartments, an especially significant achievement building envelope in which quality-
a 49-unit, three-level, $12 million for a tight urban site. controlled air sealing and insulation
development designed by FSY installation minimize leaks, and all
Architects, shows what is possible. Aggressive on Passive units enjoy cross-ventilation. Even
Recognized as the 2017 Sustainable Producing a building’s energy supply with this optimized passive design,
Innovation Awards Project of the entirely within its property lines however, the project’s energy demand
Year by the L.A. chapter of the requires first minimizing demand, and was predicted to exceed the capacity
United States Green Building Council, Silver Star achieves a 54% reduction of all the photovoltaic panels (PVs)
the building has achieved platinum- compared with baseline compliance that would fit on the roof.
level LEED for Homes and Energy with California’s already progressive
Phase Change
Image Courtesy of Natalia Knezevic Photography
Star Homes certifications, anticipates energy code.The biggest move in

the 2030 Challenge for carbon-neutral hitting that mark was to minimize To bring HVAC loads within supply
operations, and is on track heating and cooling demands. limits, the building envelope, interior
to comply with the zero net energy The design team used building walls and ceilings incorporate an
(ZNE) requirements of the Living information modeling (BIM), three- innovative phase change material
Building Challenge. dimensional design software, to (PCM). An organic compound
Green building programs that optimize massing and facades for derived from sustainably sourced,
recognize best-in-class sustainable passive solar performance. Being renewable, plant-based byproducts in
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quilt-like plastic sheets, the PCM takes heaters by up to 80%. “Right now, with rising construction
advantage of diurnal temperature The cost of Silver Star’s PV and costs, it’s a struggle just to get enough
swings in L.A.’s desert climate. solar thermal systems was $350,000 money for a basic building,” says
Overnight, the compound hardens and $142,000, respectively.These Lehman. Nonetheless, for a developer
as it cools; as daytime temperatures costs were offset by a $105,000 that prioritizes best building practices,
rise, it grows soft, absorbing heat as it incentive from the Los Angeles and where incentives support
melts. “If you would ordinarily turn on Department of Water and Power, and innovation, he says, “it definitely
your air conditioner at 11:00 a.m., the $65,000 in tax credits, bringing the makes sense to try.” n
coolness of the phase change material net cost for both systems to $322,000.
could make that 1:00 p.m.,” says Dua. Although this still represents a
“Two hours a day, 200 days a year for significant capital expense, the
Project Data
st
49 units over the 75-year life of the reduced operating costs from the two
at
s
building:That’s a huge savings.” technologies enabled ACOF to take on Owner
Although PCM’s price is reportedly an extra $322,000 in permanent debt, A Community of Friends
dropping, its cost to Silver Star bringing the real cost of the system Location
was comparable to that of the to zero, says Lehman.That’s based on South Los Angeles
photovoltaics it made redundant. a 15-year amortization, after which Cost
Unlike the photovoltaics, however, ACOF will enjoy free electricity and $12 million
PCM had no trouble fitting onsite. improved cash flow. Completed
PCM also contributes to Silver Star’s 2017
disaster resilience. If the power grid Coming Soon Number of units:
fails, electricity from the project’s Water is another significant 49
battery storage system will serve conservation focus for the Certification
essential functions only, but the development, and Silver Star is dual- LEED for Homes—Platinum;
PCM, combined with shading and plumbed for gray water capture Energy Star Homes; Living
cross-ventilation, is expected to keep and reuse in toilets and irrigation, Building Challenge—Energy
the building’s tenants comfortable reducing potable water demand Petal (pending)
even after conventionally insulated by 40%.The installation of the Architect
buildings with fixed windows have water treatment system is on hold, FSY Architects
become uninhabitable. however, pending completion of the General Contractor
New technologies are not without municipal permitting process. (So Dreyfuss Construction
risk, however. FSY investigated the is the installation of the PV system’s Sustainability Consultant
material with due diligence, says battery backup.)That regulatory delay Green Dinosaur
Dua, and reached a liability sharing is an aspect of green technology both Civil Engineer
arrangement with ACOF in case the developer and architect identify as a SWCE Civil Engineering
product’s performance falls short of lesson learned. “Ideally you would Mechanical Engineer
its promise. only put in the technology that’s JaycoCal Engineering
approvable at the time you go out Electrical Engineer
Solar Thermal to bid on a project,” says Lehman. Electrical Building Systems
The other major power draw that “It’s difficult to go back and add once
Plumbing Engineer
Silver Star minimizes in order to everyone has moved on.”That said, JaycoCal Engineering
achieve zero net energy is water ACOF values its new understanding of
Landscape Architect
heating. A 16-collector rooftop solar these technologies, especially as L.A. Yael Lir Landscape Architects
thermal array, combined with EPA now mandates projects of this type be
Photovoltaics
WaterSense-compliant fixtures, gray water ready.
Promise Energy
reduces the energy consumption Will ACOF be pioneering green
of high-efficiency heat pump water technologies on its future projects?

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Smart for Green

The UTC Center for Intelligent Buildings
PALM BEACH GARDENS, FLORIDA
T
he UTC Center for living laboratory for the company’s Induction beams, also known
Intelligent Buildings, a solutions, so the strategic use as active beams, incorporate

five-story office building of building technologies played ventilation air distribution via a
completed in 2018 in Palm a central role in achieving the four-pipe terminal beam which can
Beach Gardens, Florida, is on track Center’s green goals. Nonetheless, cool or heat the air as needed. The
to become the first building in the says Chris Pietrzykowski, Director aerodynamics of a small amount
state to achieve LEED Platinum of Technology at UTC, “an of fresh air blown through a beam-
certification under the standard’s intelligent building is not about integrated duct induces room air
stringent new version 4. using technology for technology’s across the cooling (or heating) coil,
The 224,000 square foot building, sake.” Instead, what the Center where the air is mixed, tempered and
which will serve as the global demonstrates, he says, is that delivered through linear diffusers.
headquarters for UTC Climate, “technology becomes the enabler of Based on the findings of the Harvard-
Controls & Security as well as the vision for the building.” led cognitive effects research, the
members of the Otis America UTC Center is designed to provide 40
regional headquarters team, Cooling for Less cubic feet per minute of outdoor air
achieves a 60% reduction in energy One of the most significant per person, double the code-required
use (6,240 MBtu/year)—obviating contributors to achieving the ventilation rate.
the production of 988 tons of project’s energy reduction goals, Because the induction beams
greenhouses gases annually—a while providing a comfortable require only a small amount of air
36% reduction in water use inside indoor environment in Florida’s to be actively blown, fan noise and
the building and a 100% reduction heat and humidity, is the building’s energy consumption are drastically
in outdoor water use. The building advanced heating, ventilation and reduced, drafts are eliminated, and
also provides a standard of indoor air conditioning (HVAC) system. spaces are evenly conditioned.
air quality that Harvard-led studies High efficiency chillers in a series Moreover, the reduced volume of
correlate to a doubling of occupants’ counterflow configuration (which forced air allows for shallower ceiling
performance on cognitive tests reduces the work done by each plenums and, therefore, reduced
assessing information usage, compressor at both full and part floor-to-ceiling heights. The Center
strategy, crisis response and load) reduce energy consumption is four feet shorter than conventional
other indicators. for cooling by 42% compared to the air conditioning would have
In addition to its role as corporate industry standard. required, resulting in considerable
headquarters, the building also Ceiling-mounted induction beams construction cost savings—in
serves as a showcase for UTC’s complement the chillers’ efficiency addition to the reduced embodied
products and systems and as a with efficient air distribution. energy and associated greenhouse
gases from using less material in the
Center’s structure and envelope.
Optimization through integration
is a central feature of the project.
Building on its HVAC efficiencies,
one of the Center’s most innovative
achievements pertains to the
LEED credit for occupant control of
thermal comfort, which requires at
least 50% of individual workspace
occupants—including those in open
areas—to be provided with controls.
Image Courtesy of UTC
Typically, this granular level of

occupant control entails a prohibitive
Low floor to ceiling heights in the Center allowed reduced embodied energy and
associated greenhouse gases by using less material in the structure and envelope.
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number of thermostats, says Luke go undetected. For example, if a involvement of IT personnel to

Dorna, a systems engineer at United build-up of deposits is fouling a heat orchestrate the design implications
Technologies. But by capitalizing on exchanger on one of the chillers, the of complex technologies.
the ability of the HVAC and security monitor will alert maintenance staff “The smart building industry is
control systems to talk to each other to the reduced efficiency, enabling evolving,” says Brady. From what
through an underlying technology, them to arrange a cleaning as needed JLL sees UTC and other clients
and to interface with employees rather than waiting for scheduled doing, she says, “a huge driver is to
through a mobile phone app, the maintenance. The system can also give building occupants the ability
building is able to provide occupants prioritize faults according to pre- to optimize their experience of the
with individualized thermal comfort determined values and react either to space.” Complementing the focus on
without an army of thermostats. maintain availability of the particular occupant well-being, what the green
Through the app, workers in a component, for example, or to achievements of the UTC Center for
common area are able to register conserve energy, depending on the Intelligent Buildings demonstrate,
their thermal comfort preferences. value selected. adds Pietrzykowski, is that “technology
The system then takes an average can support the vision for the building
of the preferences of the employees Thinking Things Through in a sustainable way.” n
it perceives in the space and sets Are there challenges specific to the
the temperature accordingly. By use of smart technologies to support
corollary, if no one is present, the sustainability? “A lot of the advanced Project Data
st
at
system puts the space into an energy functionality takes advantage of
s
Owner:
conserving mode. In this way the information and data across multiple United Technologies
technology achieves a balance that systems,” says Pietrzykowski, “but Corporation
optimizes both occupant experience if systems are too tightly integrated,
Owner’s Representation:
and energy savings. you potentially have a more fragile JLL
building.” To ensure a lighting fault,
Architect/Interior Designer:
Adapting to Change for example, will not affect the HVAC HuntonBrady
Where a conventional building or security systems with which it
Mechanical/Electrical/
might undergo commissioning communicates, the Center’s building
Plumbing/Fire/LEED
to optimize its systems shortly controls are designed for resilience
Engineering Firm:
after construction, the Center for to single failures.
EXP
Intelligent Buildings is continuously For the project delivery team,
self-commissioning. The data its the main challenge of integrating Commissioning Firm (LEED):
NV5
control systems collect generate an these innovative technologies
evolving picture of how the building centered on decision-making, says General Contractor:
Whiting-Turner Contracting
is actually used over time. The Londa Brady, senior vice president
Company
system then uses its security access at JLL, project manager for the
data to automatically adapt such Center. With so many options to Project type:
Office Building
elements as HVAC temperatures, choose from, each product selection
airflow and schedules to maintain was put through a rigorous review Completed:
2018
comfort and efficiency even as use to ensure both that it contributed
changes. “Users experience the effectively to the project’s carefully Location:
building the way it’s meant to be,” articulated balance of priorities and Palm Beach Gardens, Florida
says Dorna. that it would not result in unintended Square footage:
In addition to responding to consequences for another system. 224,000
changing usage, the Center’s data In addition to clear project goals Certifications:
analytics also identify operational and methodical decision making, LEED Platinum (targeted)
anomalies that might otherwise Brady also recommends the early

Data:Business Benefits
of Green Building
Important Benefits of Green Building
Respondents were asked to identify which green building Most Important Benefits of Green Building
benefits, from a list of 10, they feel are the most important (Respondents Who Selected Each Benefit as One
ones. The percentage selecting each benefit is listed in of the Most Important in Their Market)
the chart at right, both for the current 2018 study and the Dodge Data & Analytics, 2018
two previous ones, if it had been asked. 2018 2015 2012

■■The top benefit identified by respondents is lower
operating costs, selected by 65%. This was also the Lower Operating Costs
top benefit in the two previous studies, although the 65%
69%
percentage selecting it has steadily declined since
76%
2012. Still, operating cost reductions remain central to
Improved Occupant Health & Well-Being
the business case for green and are among the most
58%
tangible metrics for return on investment. NA
• The US has the highest percentage of respondents NA
(77%) who select higher operating costs as a Documentation and Certification
top benefit. Providing Quality Assurance
• Over 70% also select it in Colombia, Germany, Ireland, 34%
Singapore and the UAE. 31%
• Only one country (Poland at 24%) had fewer than 38%
40% select this as an important benefit, reinforcing its Higher Value at Point of Sale
broad influence. 32%
■■The only other benefit selected by over half of
31%
38%
all respondents is improved occupant health and
Education of Occupants
well-being, a new option in this year’s study and one About Sustainability
that clearly is quite influential, with 58% selecting it 30%
as one of green building’s most important benefits in 31%
their market. 31%
• UAE (71%) and Ireland (71%) are most enthusiastic Future-Proofing Assets
about it. 29%
• The fewest respondents who regard this as important 26%
are in Poland (31%) and Hong Kong (47%). 36%
• Between 50% and 65% of respondents from the Increased Productivity
remaining 16 countries consider this an important 23%
benefit for their markets, demonstrating its global 22%
importance as a green priority. 25%
■■Five benefits are moderately popular, spanning a five- Flexibility of Design
point range between 34% and 29%. 21%
• The assurance of quality that comes from 25%
17%
certifying a project tops the category of moderate
benefits (34%), and an even higher percentage consider Higher Rental Rates
it an important benefit in Spain (52%), Norway (47%) 20%
17%
Saudi Arabia (43%) and the UK (42%).
27%
• Two of the four moderate benefits—higher value
Higher Occupancy Rates
at point of sale and future proofing assets—
18%
underscore the longer-term financial benefits of
16%
investing in green. Globally, though, there has been a 25%
notable drop in the popularity of these two benefits
since 2012.
4_1_Benefits_Important_Year_#01.eps

Business Benefits of Green Building
Important Benefits of Green Building CONTINUED
• Higher value at point of sale is considered an • Increased productivity has been at this relatively
important green benefit by about half of respondents low level since 2015, despite the focus on healthier
from Norway (53%), Saudi Arabia (53%), Vietnam buildings evident in the current study. This may reflect
(52%), Germany (50%) and Poland (48%). the difficulty in measuring and proving this benefit on
• Future-proofing assets is particularly influential individual projects, although there is a growing body of
in Ireland (68%), but it is also considered important evidence in academic studies demonstrating that green
by a high percentage from mainland China (54%) and buildings have a positive impact on productivity. Saudi
Australia (49%). Arabia has the highest percentage (43%) who rate this
• Future-proofing assets is also more frequently a top benefit.
cited by owners than by architects, engineers • Saudi Arabia also has a much higher percentage (45%)
or contractors, which clearly shows that project than any other country who select flexibility of design
teams underestimate the importance of this benefit to as a top design factor.
their clients. • Higher rental and higher occupancy rates are not
• Education of occupants about sustainability typically rated as strongly as some other factors, likely
has consistently been selected by about 30% due to the fact that they only apply to commercial real
of respondents globally, with the greatest support estate. However, higher rental rates is considered
for this benefit found in Vietnam (41%) and Saudi an important benefit by above average percentages of
Arabia (40%). In Norway, though, only 8% consider respondents from Poland (42%) and Vietnam (39%),
this a top benefit. and higher occupancy rates scores best in Saudi
■■ Several benefits are selected by fewer than Arabia (55%) and Poland (40%).
one quarter of the respondents as important in • Owners also place more importance on higher
their markets. occupancy rates than architects, engineers
or contractors.
Most Important Benefits of Green Building

(Top Five Countries in Which Each Benefit Is Most Frequently Selected)
70% and above 60% to 69% 50% to 59% 40% to 49% Below 40%
Global
Top 5 Countries
Average
Lower Operating US Singapore UAE Colombia Germany

65%
Costs 77% 74% 74% 74% 72%
Improved Occupant UAE Ireland US Colombia India

58%
Health 71% 71% 64% 63% 63%
Documentation Canada/Ireland
Spain Norway Saudi Arabia UK
Providing Quality 34% (tie)
52% 47% 43% 42%
Assurance 39%
Higher Value at Norway Saudi Arabia Vietnam Germany Poland
32%
Point of Sale 53% 53% 52% 50% 48%
Education of Vietnam Saudi Arabia Vietnam India UK
Occupants About 30%
41% 40% 42% 38% 38%
Sustainability
China
Ireland Australia Saudi Arabia South Africa
Future-Proofing 29% (Mainland)
68% 49% 43% 40%
54%

Business Benefits of Green Building CONTINUED
Metrics Used to Quantify Benefits of Green Building
Respondents were asked in 2015 and 2018 to select the Metrics Used to Quantify the Benefits of
metrics they use to quantify the business benefits of Green Buildings

green buildings, including whether they use any metrics Dodge Data & Analytics, 2018
at all. The findings reveal consistent use of metrics 2018

between 2015 and 2018. In addition, in both studies, 2015
most respondents (about three quarters) use metrics
to quantify the benefits of their green building projects.
The findings also show that lower operating costs is by 55%
far the most common metric tracked. 57%
Documentation and Certification
Variation by Country Providing Quality Assurance
In six countries—Mainland China, Mexico, Saudi Arabia, 29%
Singapore, UAE and Vietnam—nearly all respondents 33%
use metrics to quantify the benefits of green building.
Higher Value at Point of Sale
In many countries and regions where green building is
19%
well established, such as Australia, Europe and the US,
metrics are far less commonly used. This may be due 23%
to the fact that the business case for green is already Higher Occupancy Rates
well known in these countries, while it still needs to 17%
be proven in emerging markets. The emphasis on 18%
technology in Asia may also account for wider use of
metrics in that region. Increased Productivity
for Tenants
The greatest variation among countries is in the use
15%
of metrics for improved occupant health and well-being.
60% of Chinese respondents report using these metrics, 17%
and they are used by nearly half of respondents in India, Higher Rental Rates
Hong Kong, Saudi Arabia and Vietnam. However, they are 15%
used by less than 20% of respondents in Canada, Norway, 15%
Poland and the US.
Not Using Metrics to Actively

Track Performance Options
26%
25%
Use of Metrics to Quantify the Benefits of Green4_2_Benefits_Metrics_#01

Buildings
(By Country)
Very High Use High Use Moderate Use Low Use

(90% of Respondents or More) (80% to 89% of Respondents) (70% to 79% of Respondents) (69% or Fewer Respondents)
China (Mainland)
Mexico Brazil Australia Poland
Saudi Arabia India Canada Germany Spain
Singapore China (Hong Kong) Colombia Ireland UK
UAE South Africa Norway US
Vietnam

Impact of Green Buildings on Reducing Operating Costs
As the green building movement has matured, the Expected Operating Cost Decreases for New
business benefits of operating cost savings, payback Green Buildings Over 12 Months and Five Years
on investments and improved asset value have been Dodge Data & Analytics, 2018
important in driving green building activity. Since 2012,

More Than 15% 11%–15% 6%–10% 5% or Less None
respondents to these surveys have been asked
to quantify the benefits they have seen from their Within the First 12 Months of Operation
green projects. Owner responses have been
23% 22% 21%
particularly important since these benefits occur
during building operations. 16% 19% 17%
Lower Operating Costs in 24% 27% 27%

Green Buildings Compared With
Traditional Buildings 32% 26% 28%
Respondents were asked the percentage of expected
5% 6% 7%
operating cost decreases for new green buildings
compared with those built with traditional methods, and 2012 2015 2018
they were asked to identify those percentages within two
time frames: over the next 12 months and over the next Within Five Years of Operation
five years.
The most striking finding is the consistency with
which respondents have reported these cost savings 49% 43% 45%
since 2012. The stability of these findings, despite the
number of additional countries included in the current
18% 21%
study and the length of time between studies, suggests 17%
that owners understand and regularly find a certain level 19%
19% 19%
of operating cost savings on their green projects, and
13% 16% 12%
share these findings with their project teams.
2% 4% 3%
In 2018, the median 12-month cost savings are 8%
2012 2015 2018
and the five-year savings are 14%, with the five-year
savings holding steady and a small decline from 9%
in 2015 for the 12-month period. There is no variability
among owners, architects, engineers or contractors in the
median savings. 4_3_Benefits_OpCostsNew_#02
VARIATION BY COUNTRY
While there is little variation by player, there is a wide
range of variation by country. Countries reporting the
greatest median savings for the 12-month period include
more meaningful to compare the percentage getting
Canada, Ireland and Spain, all with medians of 12%, and
a high level of savings (10% or more) because the
Mexico with a median of 11%. The lowest is Poland, at
relatively large percentage who select 15% savings or
3%, and Norway, China (Mainland and Hong Kong), Saudi
more skews the median figure. 78% of those with high
Arabia and Germany, all at 5%.
green involvement expect 10% or greater operating cost
VARIATION BY LEVEL OF savings in the next five years, compared with 60% of
GREEN INVOLVEMENT those doing 30% or less of their projects green.
Respondents with high green involvement (doing These findings correspond to those of previous Dodge
more than 60% of their projects green) report higher studies on green building and continue to support the
median 12-month cost savings (13%) than those doing inference that more experience with green building
fewer green projects (8%). For five-year savings, it is leads to better building performance.

Payback Period for New Green Building Investments
In 2012, 2015 and 2018, respondents were asked Payback Period for Additional Cost of a New
whether they thought that new green buildings cost Green Building (According to Respondents
more than traditional buildings. About three quarters of Who Find That Green Buildings Cost More Than
respondents in 2018 (74%) reported that they cost more, Traditional Buildings)
roughly consistent with the findings from 2015 (73%) and Dodge Data & Analytics, 2018
2012 (78%). More Than 10 Years

However, higher first costs are not major barriers to 6–10 Years
building green in many instances if green buildings can 1–5 Years
be demonstrated to save more than the incremental
extra amount that they cost. In addition to the amount
of savings, the time frame in which those savings can 26% 26% 21%
be achieved also frequently impacts owners’ decisions

about whether they should invest more to make their
44% 41% 43%
buildings green. Therefore, the respondents who
reported that their buildings cost more were asked to
estimate the average payback period for their new green
30% 33% 36%
building investments. The same questions were asked in
the 2012 and 2015 studies as well.
The highest percentage of respondents (43%) find 2012 2015 2018
that payback periods for new green buildings are
between six and 10 years. A relatively high percentage
(36%) find that the payback period is between one and
5 years, and that percentage has kept growing steadily 4_4_Benefits_PaybackNew_#02
since 2012.
Shorter payback periods make it much easier to create
a business case for green investments, regardless of
sector. However, a short payback period is important for
commercial real estate in particular, so the shift toward
shorter payback periods evident across the three years
may lead to wider investment in green building in the
commercial sector.

Asset Value Increase for New Green Buildings
Owners Expected Increase in Asset Value for a New Green

As the impacts of green buildings on operating costs and Building (According to Owners and by Year)
the health of their occupants become more widely known Dodge Data & Analytics, 2018
and accepted, their value as an asset increases as well.

More Than 10% Less Than 3%
Owners were asked about the increase in asset value
6%–10% None
they have experienced based on their green building
3%–5%
investments, as they were in the two previous studies,
and the results are shown in the chart at right.
The percentage of owners reporting that new green 16% 24% 30%
buildings have an asset value more than 10% greater
31%
than that of traditional buildings has nearly doubled 33% 24%
since 2012. Around one third (30%) of owners report that
much of an impact on asset value today, compared with 31%
16% who did six years ago. This is also the first year in 24% 29%
which that strongest impact level is greater than any of 18% 15% 13%
the four lower tiers. 4% 4% 4%
This dynamic demonstrates that while operating 2012 2015 2018
payback period is important, owners are likely to
also benefit from the investments they make in green
buildings at their point of sale, making the prospect of
these investments more appealing in markets with short 4_5_Benefits_AssetValueOwner_#02
building ownership cycles. Expected Increase in Asset Value for a New
Green Building (According to Architects and
Architects and Contractors Contractors, and by Year)
Most architects and contractors recognize that building
green creates a higher asset value, and 27% of them More Than 10% Less Than 3%
believe that it adds more than 10% to the value, a 6%–10% Retains Value Better
similar percentage to the 30% of owners who find this 3%–5% None
to be true. The close correspondence between owners
and their project teams on the value added by green is 18%
important, especially since motivated project teams can 27% 27%
help influence more of their clients to invest in green if 21%
they fully understand and can communicate the financial 23% 20%
benefits their clients can receive by doing so. 21%
13% 16%
10% 9% 8%
23% 22% 22%
7% 6% 7%
2012 2015 2018
4_6_Benefits_AssetValueAEC_#02

Impact of Green Retrofit and Renovation Projects on

Operating Costs
Improving the performance of existing buildings is as Expected Operating Cost Decreases From
critical, if not more so, to achieve the goals of green Green Retrofits or Renovations
building as construction of new green buildings. (By Year)
Therefore, data on the business benefits generated by Dodge Data & Analytics, 2018
green retrofits or renovations is essential to encourage

building owners to make those investments. More Than 15% 11%–15% 6%–10% 5% or Less None
Nearly half (44%) of the study respondents have Within the First 12 Months of Operation
conducted green retrofit or renovation projects. Those
respondents were asked about the degree of impact 24% 21% 24%
those retrofits/renovations are expected to have on
17% 19% 19%
12-month and five-year building operations costs, as they
were in the previous studies in 2012 and 2015.
27% 28% 26%
The findings demonstrate a high level of consistency
in the responses over the last six years. Currently, nearly
half (43%) believe that they will see savings of more than 30% 30% 28%
10% in the next year and almost two thirds (61%) expect 2% 2% 3%
to see that level of savings in the next five years. 2012 2015 2018
Variation by Type of Company

While somewhat similar in their estimation of savings Within Five Years of Operation
for green renovations/retrofits over a 12-month period,
architects are more optimistic than owners about savings 42% 34% 40%
over five years of operations. 64% of architects expect
savings of more than 10%, while only 54% of owners do.
20% 28% 21%
Variation by Level of
23% 21% 23%
Green Involvement
A higher percentage of those doing the majority of their 14% 15% 15%
projects green (more than 60% green projects) expect 1% 2% 1%
over 10% savings on operational costs than those doing 2012 2015 2018
fewer green projects (30% or less). This is true for the first
12 months of operation (51% versus 39%) and over the
first five years (69% versus 57%).
4_7_Benefits_RenovOpCosts_#02

Payback Period for Green Retrofit and

Renovation Projects
Since 2012, study respondents have been asked to Expected Average Payback Period for Green
estimate the average payback period for their green Retrofits/Renovations

retrofit/renovation projects. The responses in 2012, 2015 (By Year)
and 2018 are all notably similar, despite the changes in Dodge Data & Analytics, 2018
response rates, areas covered by the survey and green More Than 10 Years 3–5 Years
systems, technologies and products now available. This 6–10 Years 1–2 Years
suggests that expected payback period is a critical factor
in determining whether to undertake a green retrofit/
15% 16% 18%
renovation, or the degree to which investments are made
to improve building performance.
There are no significant differences between owners, 42% 37% 35%
architects, engineers and contractors on the payback
periods for these projects. However, there is some
variation by country. 37% 39% 39%
■■The countries with the lowest median payback periods
are the UAE and Saudi Arabia, at four years. Brazil, 6% 8% 8%

Colombia, India, Singapore and South Africa also have 2012 2015 2018
short five-year payback periods.
■■The countries with the highest median payback
periods are the UK (12 years) and Ireland (11 years).

4_8_Benefits_RenovPayback_#01
Respondents who do the majority (more than 60%)
of their projects green also have a median of four
years payback period for green renovations/retrofits,
compared with a median of eight years reported by all
doing fewer green projects.

Impact of Green Retrofit and Renovation Projects on

Building Asset Value
Owners, architects and contractors were asked about Expected Increase in Asset Value From a
the impact of green retrofit and renovation projects on Green Retrofit or Renovation Project
building asset value. The same question was asked in (According to Owners)
the 2012 and 2015 studies as well. The findings clearly Dodge Data & Analytics, 2018
demonstrate the widespread belief that green retrofits/ More Than 10% 5% or Less
renovations improve asset value, but there is some 6%–10% None
disagreement on the degree to which they do so.
14% 14%
Owners 21%
Nearly all owners (94%) believe that their buildings 24% 27%
are more valuable after conducting green retrofit/ 33%
renovation projects, but most (53%) believe that asset
value tends to increase moderately (by 5% or less). 55% 53%
Surprisingly, these findings in 2017 closely correspond 40%
to those in 2012, instead of reflecting the more optimistic
expectations in 2015. There could be many causes for 7% 6% 6%
this change, including changing economic conditions 2012 2015 2018
favoring new construction over renovations, reducing the
scale of green retrofit/renovations and thus their impact.
Architects and Contractors 4_9_Benefits_RenovAVOwners_#02

For new buildings, architects, contractors and owners are
Expected Increase in Asset Value From a
equally optimistic about the impact of green building on
Green Retrofit or Renovation Project
asset value. For renovations, architects and contractors
(According to Architects and Contractors)
are more optimistic than owners. In 2018, the highest
percentage (34%) believe that asset values are increased
by more than 10% due to green retrofits and renovations. More Than 10% Retains Value Better
Interestingly, for architects and contractors, the 6%–10% None
findings in 2018 more closely mirror those in 2012 than 5% or Less
those in 2015 as well. However, unlike with the owners,
the findings in 2015 are less optimistic for architects and 22%
28% 34%
contractors about the impacts of green renovations/
retrofits than those in 2012 or 2018.
22% 32%
One factor that could influence the higher estimates
28%
by architects/contractors are the types of projects
they may be involved with. Owners may do a range 30% 30%
23%
of green retrofits/renovation projects, some of which
may be small enough in scale to be handled by their 18% 12% 13%
2% 4% 2%
operations team rather than designers or contractors. On
2012 2015 2018
the other hand, architects and contractors are more likely
to be involved in more extensive green retrofit/renovation
projects, which would have a bigger impact on building
asset value. 4_10_Benfits_RenovAVAEC_#02

Data:Green Building Products
and Services
Use of Green Building Products and Services
Respondents in the current study were asked whether Past, Current and Expected Future Use
they specify or install eight categories of green products of Green Building Products/Services
and services, and then asked whether they intend to (Use Reported in 2015 and 2018 and
specify or install products or services in those categories Expected in 2022)
in the next five years. Respondents in the 2015 study were Dodge Data & Analytics, 2018
asked the same question. The chart at right shows the 2015 2018 2022
level of use in 2015, the current 2018 level of use and the
anticipated use of these products in 2022. Electrical
Use of these green product/service categories has 54%
56%
remained notably consistent between 2015 and 2018.
62%
While there are a few percentage point changes, none
rise to the level of statistical significance. Also, in 2015 Thermal and Moisture Protection
and 2018, seven of the eight categories fall into the 40 to 53%
50 percentile range for use, suggesting widespread but 49%
60%
not ubiquitous use for any of these product categories.
A higher percentage of respondents in the current Waste Management
study believes that they will specify or install products 44%
in these categories in the next five years, with most 47%
57%
now falling in the 50 to 60 percentile range. However,
the 2015 estimations of product use were also quite Mechanical
similar, with highest levels of future use expected for 44%
electrical products, thermal and moisture protection 47%
products, and building automation systems, similar to the 55%
current finding. This demonstrates ongoing interest and Building Automation Systems
commitment to these product/system categories. 46%
It is notable, though, that in both studies, they were 46%
simply asked to indicate if they ever installed or specified 60%
products in these categories, not the frequency with Finishes
which they do so. So while the percentage using each 45%
category may remain consistent, it is possible for use 45%
within each category to have changed. 52%
Flooring
Variation by Type of Firm 42%
■■Architects: Products more frequently used by 40%
architects than by engineers, contractors or owners 48%
include thermal and moisture protection, finishes, Furnishings
flooring and furnishings. 28%
■■Owners: Products/services more frequently specified
29%
or installed by owners than by the other major 41%
players fall into the categories of electrical and waste
management. Owners and engineers also specify/
install building automation systems more frequently
than architects or contractors. 5_1_Products_Use_#01
Variation by Location
The table on page 42 shows the countries with the
highest level of specification/installation of products in
each category.

Green Building Products and Services
Use of Green Building Products and Services CONTINUED
Countries With the Highest Percentage Reporting Use of Green Building Products/Services
60% or More 50% to 59%

Brazil, Canada, China (HK), Colombia, India, Ireland,
Electrical Australia, Norway, South Africa, UAE, Vietnam
Mexico, Saudi Arabia, South Africa, UK, US
Australia, Canada, China (HK), Ireland,
Thermal & Moisture Protection Spain, UAE, UK
Mexico, Poland, South Africa, US
Waste Management India, Norway, Vietnam Australia, Brazil, South Africa, UAE, UK
Mechanical Canada, Ireland, UAE, US Australia, UK, Vietnam
Building Systems Automation Norway, UAE Australia, China (Mainland), Poland, Singapore, Spain, Vietnam
Finishes Spain Australia, Canada, Colombia, UAE, US
Flooring None Australia, US
Furnishings None China (Mainland)
Criteria for Identifying Green Products

Respondents were asked to identify the criteria ■■Nontoxic: Given the importance of healthier buildings
they use to evaluate if a product is green. The chart in many of the findings in this study, it is not surprising
on page 43 demonstrates that most respondents use that nearly half consider this when selecting
multiple criteria. green products.
■■Highly Energy Efficient: This is by far the top category • 58% of architects use this criterion, far more than do
globally, the only one selected by almost three owner or engineer respondents.
quarters (72%) of respondents. Energy efficiency has • This is a particularly important criterion in Poland and
consistently been the top criterion since the study was Germany, selected by 63% in both countries.
first conducted in 2008. ■■Lifecycle Data: About half (46%) also consider lifecycle
• Owners (77%) and engineers (78%) more frequently data important overall.
select this criterion than architects (70%) or • Architects (52%) most frequently consider
contractors (69%). this criterion.
• Nearly all the respondents in the UAE (91%) report • Nearly two thirds (62%) of respondents from Norway
that they use this criterion, and respondents from consider it as well.
Ireland (85%) also use it more frequently than those ■■Durability: The importance of durability has declined
from other countries. notably from 2012, when 72% of global respondents
■■Made of Recycled Content: Over half (53%) consider regarded as a top criterion.
this criterion when evaluating products, a finding • The biggest market for this among the 20 countries
consistent with the 2015 study. included in the study is Saudi Arabia, where it was
• Nearly two thirds of architects (61%) use this criterion, selected by 68% of respondents.
significantly more than owners or engineers. ■■EPDs: EPDs (Environmental Product Declarations) were
• Over 60% of respondents from mainland China, Spain first included in the study in 2015, when they were
and India also use it. selected by 37%. The increase to 43% in 2018 is the
largest of any of the criteria measured.

Criteria for Identifying Green Products CONTINUED
• Nearly half of architects (48%) use this criterion, Criteria Used to Evaluate If a Product Is Green
significantly more than contractors (37%) or (According to Global Respondents)

owners (38%). Dodge Data & Analytics, 2018
• A high percentage of respondents from Spain (79%),

Norway (66%) and Hong Kong (56%) also select it. Highly Energy Efficient
■■Industry Performance Data: 37% also selected this 72%
in 2015, and the same percentage select it in the Made of Recycled Content
current study, demonstrating its ongoing importance
53%
in some markets.
• The top markets for relying in industry performance Nontoxic
data are Hong Kong (63%) and the UK (53%). 49%
■■Certification by a third party was selected by about one
Lifecycle Data
third of respondents in 2008 and 2012, but its influence
46%
has dwindled in 2015 (11%) and 2018 (16%).
• Even in the countries where it has the greatest Durability
influence, including Australia (28%) and the UAE (26%), 43%
the percentage who consider it is smaller than in 2008
EPD (Environmental
and 2012. Product Declaration)
43%
Industry Performance Data
37%
Certified by a Third Party
16%
5_2_Products_Criteria_#01

Green Building Products and Services CONTINUED
Sources of Information on Green Building
Respondents were asked to select the sources of Most Relied-Upon Sources of Information
information about green projects that they rely on the About Green Projects (Reported in 2018, 2015
most. While the question specified that they should only and 2012)
select the most reliable sources of information, they were Dodge Data & Analytics, 2018
allowed to select as many from the list as they truly feel 2018 2015 2012
are reliable. The top nine most frequently selected are
represented in the chart at right, which also shows the Internet
responses to the same question in 2015 and 2012. 55%
60%
77%
Variation Over Time
In general, the relative ranking of each of these nine items Conferences
remained comparable to the previous studies. 48%
■■The internet remains the most relied-upon source of
44%
60%
information across all three years.
■■While conferences have consistently ranked strongly, GBCs
the gap between the internet and conferences 39%
narrowed considerably between 2015 and 2018. NA
NA
■■Peers and building product manufacturers remain
in a virtual dead heat, as they have done in the Industry Associations

previous studies. 37%
■■Magazines is one of the few options that declined 44%
58%
notably in ranking from 2012, going from the fourth
most relied-upon source of information in 2012 to the Industry Peers
seventh currently. 35%
37%
Interestingly, the percentage selecting several 35%
options, including the internet, conferences, industry
Building Product
associations and magazines, has declined notably Manufacturers
since 2012. It is likely that most respondents have more 33%
experience with green building now than they did in 39%
2012, and that they have now determined the means they 35%
rely upon for finding information on green products, Magazines
rather than seeking out information from multiple 30%
sources. Widespread availability of green products and 35%
more experience with using them have likely reduced 44%
the number of means respondents rely on to find out
Government Resources
information about these products.
25%
This year, the option of Green Building Councils 30%
(GBCs) as a source of information was added to the list. It 32%
is possible that the decline in industry associations may
Trade Shows
be due to people now selecting GBCs who may have
24%
selected the broader category in the past. 27%
20%
5_3_Products_Info_#01

Sources of Information on Green Building CONTINUED
Variation by Firm Type Most Relied-Upon Sources of Information

There is little variation across firm type for the number About Green Projects (By Countries With
of people who rely on various sources of information. Highest Percentage That Rely Upon Each)
Two notable exceptions are magazines, which architects Dodge Data & Analytics, 2018
rely on more than engineers, contractors or owners, and

Global Average Top 3
conferences, which contractors rely on significantly less
than architects, engineers or owners. 73% 68% 63%
Variation by Country Internet 55%

On the other hand, there is significant variation by
country for most sources of information. For those China Saudi Vietnam
seeking to market products, choosing a strategy (Mainland) Arabia
based on location will be more effective than a
64% 60% 59%
one-size-fits-all approach.
■■The internet is selected by almost three quarters of
Conferences 48%
respondents in Mainland China (73%), but by only 36%
in Hong Kong or Germany.
UAE Poland China
■■Nearly two thirds in the UAE (64%) rely on conferences
(HK)
for green product information, but only 8% in
77%
Germany do. 59% 55%
■■Over three quarters in Spain (77%) select GBCs, but
less than 20% in Brazil (16%), Germany (14%) and UK GBCs 39%
(7%) do.
■■Over half of respondents from Canada (60%), Australia Spain Poland UAE
(58%) and the UK (56%) rely on industry associations,
but less than 20% do in Spain (19%), Colombia (19%), 60% 58% 56%
Saudi Arabia (18%) or Poland (12%).
■■Peers are influential in Ireland (52%), the US (50%) Industry 37%
Associations
and Mainland China (49%), but are not relied upon in
Germany (19%), Saudi Arabia (18%) or Vietnam (11%). Canada Australia UK
■■Half of respondents in Germany (50%) and the UAE
(50%) rely on building product manufacturers for 52% 50% 49%

green product information, but few do in Poland (19%),
Vietnam (19%) or Mainland China (16%). Industry Peers 35%
Ireland US China
(Mainland)
50% 50% 46%
Building
Product 33%
Manufacturers
UAE Germany Mexico
5_4_Products_Info_Country_#01

Data:Australia
Green Building Activity and Trends in Australia
Australia currently has one of the most active green building markets
in the study, and the level of activity is expected to grow in three years.
However, concerns about cost continue to nag this market.
Green Building The top sector is new commercial

■■ ■■Over one third expect to do green
Market Activity buildings, with 54% of institutional projects (39%) and
Australia has a relatively mature respondents. The percentage existing building renovations
green building market currently. of Australians who expect to do (37%). Both percentages are higher
Nearly all (94%) of survey green commercial work far exceeds than those reported in 2015 (30%
respondents do at least some green those for any other sector included and 33%, respectively).
building projects, and the majority in the study, and it is double the ■■A lower percentage of respondents
(67%) report at least a moderate level percentage (27%) who expected in 2018 (25%) report that they
of green activity, with a 30% share to do green commercial projects will do green low-rise residential
or more of their work being green. in 2015. projects than in 2015 (39%). This
In fact, nearly half (46%) report that • When asked about their overall is despite the fact that the same
they are doing the majority of their work, a higher percentage of percentage of respondents in
projects (60% or more) green now, respondents in 2018 report doing 2015 and 2018 report having done
the highest of any country included commercial office projects in low-rise residential projects in the
in the survey. This finding may be general in the current study (75%) last three years (57%).
influenced, however, by the fact that than in the 2015 one (50%), but ■■ One third (33%) of Australian
63% of survey respondents work at this may not entirely account for respondents expect to do green
companies that are green building the increase between 2015 and high-rise residential projects. A
council (GBC) members, well above 2018 of those intending to do much higher percentage of the 2018
the average for the study. green projects in this sector. respondents from Australia (63%)
Respondents are also very work in this sector than in 2015
enthusiastic about doing even more (20%), so it is not surprising that this
green projects in the future, with Levels of Green Building percentage is much higher than the
nearly two thirds (64%) who expect Activity for Respondents one from 2015 (24%).
by 2021 that they will be doing the in Australia (2018 and 2021
majority of their projects green, an 18 Expected) Influence Factors
percentage point jump from 2018. Dodge Data & Analytics, 2018 for Future Green
Overall, the findings suggest that 1% to 15% More Than 60% Building Activity
Australia has a mature, robust and Green Projects Green Projects
TRIGGERS
growing market for green buildings. Exploring 31% to 60%
(No Green Green Projects The market has a stronger influence
SECTORS WITH Involvement) 16% to 30% in Australia than other factors,
EXPECTED GROWTH Green Projects with the top two triggers for future
Australian responses to the sectors green building being client and
in which they intend to build green market demands. Australia is also
projects in the next few years are 46% notably higher than the global
64%
consistent with the overall global average for each of these factors,
findings, with all categories within demonstrating the sway they have
a few percentage points of the 21% on encouraging the green building
global averages. 11% market in this country.
11% 16% 8%
6% 7% 10%
Australia is slightly lower than
2018 2021 the global average for the influence
6_1_Australia_Activity_#01
Data: Australia CONTINUED
of environmental regulations, not Top Triggers Driving Future When asked to select their top
surprising in a country where market Green Building Activity reasons, though, the majority select
factors are so important. However, it in Australia improving occupant health and
still ranks third in the overall triggers Dodge Data & Analytics, 2018 well-being (79%), and sustainable
in Australia, demonstrating that Australia business practices (59%).
regulatory influence still plays a role Global Average ENVIRONMENTAL REASONS
in helping to drive the market.
Lowering green house gas
The other top triggers, selected Client Demands
emissions is rated as important by
by about one quarter, are doing 41%
the highest percentage of Australian
the right thing and healthier 34% respondents (75%) among all the
buildings. Both of these are on par
Market Demands environmental reasons for building
with global averages.
33% green. However, when those rating
CHALLENGES multiple items as important were
25%
Cost concerns continue to be the asked to select their top two, the
biggest challenges for building green Environmental Regulations highest percentage select reducing
in Australia. 26% energy consumption (57%), with
■■The top challenge, ranked in the 33% greenhouse gas reductions a distant
top three by 57% of Australian Right Thing to Do second (48%).
respondents, is higher perceived
26%
first costs. Australia is above the Business Benefits
25%
global average in the percentage An average of 9% operating cost
who rank this a top concern. Healthier Buildings reductions in the first 12 months for
The persistence of this issue in a 25% a new green building and 11% for
country with a mature green market 27% a green retrofit are expected from
is surprising. Australian respondents. The figure
■■Affordability (perception that for the five-year cost reductions for
green is for higher-end projects
Social and new green buildings is skewed by
only) is another top challenge,
Environmental Reasons the high percentage reporting that
according to 42% of Australian
for Building Green
6_11_Australia_Triggers_#01
they expect more than 15% in that
respondents. Australia is also the SOCIAL REASONS time range. It is notable, though, that
country with the highest level of Improving occupant health and well- the average payback period is lower
concern over this issue, as it was being (75%), sustainable business than in the last study, which may
in 2015, suggesting that this has practices (70%), increasing worker ultimately impact the perception of
been a persistent obstacle to green productivity (59%) and creating a higher costs.
building for Australians. sense of community (58%) are all
■■Other challenges ranked in the considered important social reasons
top three by one quarter or more for building green by over half of
Australian respondents are lack Australian respondents.
of market demand (28%), lack of
political support/incentives (28%) Expected Business Benefits of Green Building in Australia
and the inability to prove the
New Green Building Green Retrofit
business case because of the split
2015 2018 2015 2018
between capital and operating
costs. All of these align with the Decreased Operating Costs Over One Year 11% 9% 7% 11%
overriding concern about the Decreased Operating Costs Over Five Years 13% 27% 13% 15%
premium cost of building green and Payback Time for Green Investments (Years) 8 7 9 6
the challenge to pay for it.

Data:China
Green Building Activity and Trends in China
China contains at least two distinctly different markets: Mainland China, an

emerging market with the potential for explosive green growth and Hong
Kong, a mature green market that is largely driven by client demand.
Respondents from China are divided do more than 60% of their projects are significantly higher than those
into two groups for this analysis: green by 2021 grows by 5 percentage in Hong Kong for two sectors
those from Mainland China and those points over the current figure, with (new institutional construction
from Hong Kong. This is done to a corresponding shift down among and commercial interiors) and
give a more specific portrait of these those doing fewer than 15% of directionally higher for three (new
two very different markets. Also, the their projects green. This steadier, commercial construction, new
makeup of respondents in each of moderate level of growth suggests low-rise residential construction and
these groups is also different. Almost that the Hong Kong green market communities). Since the previous
half (46%) of respondents from Hong is in a relatively mature state, while finding shows a higher level of
Kong report that their company is a the explosive growth anticipated on green activity in Hong Kong than in
member of a green building council the Mainland points to an emerging Mainland China, this may suggest
(GBC), while only 14% of respondents green market. more specialization by sector-type
of Mainland China report that their for green projects among Hong Kong
SECTORS WITH
companies are members. The low respondents than among those from
EXPECTED GROWTH
participation of members of green the Mainland.
Respondents from Mainland China
building councils may be reflected in ■■ Mainland China: The sectors
expect to be engaged in green in
the low share of green activity shown reported by the highest percentage
multiple sectors, with relatively high
in the data from Mainland China. in Mainland China are new
percentages reported for several
commercial construction (65%), new
sectors, compared both to the global
Green Building averages and to the percentages
institutional construction (54%),
Market Activity from Hong Kong. The percentages
new high-rise residential (49%) and
The current levels of green activity commercial interiors (43%).
of Mainland China respondents
in Hong Kong are much higher than
those reported in Mainland China,
with 53% of those in Hong Kong
Levels of Green Building Activity for Respondents in China
currently doing more than 30% of
(2018 and 2021 Expected)
their projects green, compared with
35% in Mainland China. Dodge Data & Analytics, 2018
Expectations about the level of 1% to 15% Green Projects More Than 60% Green Projects
green work by 2021 on Mainland Exploring (No Green 31% to 60% Green Projects
China suggest the possibility of Involvement) 16% to 30% Green Projects
strong growth, with the percentage
expecting to do more than 30% of Mainland China Hong Kong
their projects green almost doubling
30%
to 67%. However, the highest 9%
percentage fall in the moderate level 47%
26% 42%
of green building category between
37% 5%
31% and 60%. 16%
11% 3%
In Hong Kong, the shift is less 17% 37% 3%
24%
12% 18% 18% 16% 18%
dramatic, in part due to the high level 11%
of green building already happening
2018 2021 2018 2021
in this market. Those expecting to
6_2_China_Activity_#01
Data: China CONTINUED
Hong Kong: New commercial Top Triggers Driving Future Hong Kong: The top two triggers in
■■ ■■
construction also tops the sectors Green Building Activity Hong Kong are client demands and
for Hong Kong at 59%, but close in China environmental regulations. Both
behind is new high-rise residential Dodge Data & Analytics, 2018 factors that are not highly rated in
at 52%. The percentage expecting Mainland China Mainland China. In general, the top
to do green high-rise residential Hong Kong triggers in Hong Kong more closely
work in Hong Kong is not only Global Average mirror global averages than in
higher than that on Mainland China Mainland China, with the exception
but is the second highest among Market Demands of doing the right thing, which has
the countries included in the study, 35% less sway in Hong Kong than in
with only Vietnam (61%) with a 30% most of the countries included in
higher percentage expecting to 25% the study.
work in this sector. Healthier Buildings
CHALLENGES
35%
27% While the triggers for green projects
Influence Factors for differ, the top three challenges to
27%
Future Green Building more green building are the same for
Activity Right Thing to Do
the Mainland China and Hong Kong
32%
TRIGGERS 16% respondents.
The most important triggers for 25% ■■Higher First Costs: This challenge
new green building activity vary Branding/PR is selected by 49% of Mainland

widely between Mainland China 30% respondents and 43% of those from
and Hong Kong. 14% Hong Kong.
■■ Mainland China: The top triggers 13% ■■Affordability (perception
are market demands and healthier Environmental Regulations that green is for higher-end
buildings. Doing the right thing and 22% projects only): 38% of Mainland
branding/PR are also important 34% respondents and 32% from Hong
drivers for this market. 33% Kong select this challenge.
• Mainland China has the highest Client Demands ■■Lack of Political Support/
percentage of respondents 16% Incentives: 30% of Mainland

who consider branding/PR a 39% respondents and 39% of Hong
top trigger of all the countries 34% Kong respondents select this one.
included in the study. This is likely
because green building activity is Social and
still relatively low, which means 6_12_China_Triggers_#01 Environmental Reasons
that firms can still distinguish for Building Green
themselves through the efforts to
SOCIAL REASONS
build green, unlike in more mature
When asked to rate the importance
green markets like Hong Kong.
of the six social reasons for building
• Doing the right thing also is
green included in the study, about
more important on the Mainland
three quarters of respondents
than in Hong Kong. Again, this is
from Mainland China rate five of
often a bigger driver in emerging
the reasons as important: creates
green markets than in more
a sense of community (78%),
established ones.
supports the domestic economy
(78%), improved occupant health
and well-being (76%), promotes

Data: China CONTINUED
sustainable business practices (73%) ENVIRONMENTAL REASONS Conversely, 48% of those in

and is aesthetically pleasing (70%). As with the social reasons, the Mainland China who consider
Respondents from Hong Kong are Mainland respondents tend to rate protecting natural resources
more tempered in their responses. most of the environmental reasons important selected it as one of their
The highest percentage from for building green higher than those top two reasons, compared to just
Hong Kong are the 68% who rate from Hong Kong. 20% from Hong Kong. Mainland
improved occupant health and • Both have a high percentage respondents also more frequently
well-being as an important reason, who consider reducing energy select improving indoor air quality
followed by 61% for sustainable consumption important (89% (34%) as a top environmental
business practices. in Mainland China and 80% in reason for building green than do
However, when those who Hong Kong). respondents from Hong Kong (21%).
rated several items as important • The biggest gap falls in their
were asked to select their top two estimation of the importance of Business Benefits
reasons, there is much greater parity improving indoor air quality, Respondents from Mainland China
in the responses between Mainland which is rated as important by and Hong Kong are conservative
China and Hong Kong. 87% in Mainland China and 64% about the percentage of operating
• The top reason for both is also in Hong Kong. cost savings they can expect for
the one with the greatest disparity: • The only environmental reason new green buildings. Both their one
77% of respondents from rated as important by a higher year (5%) and their five-year (9%)
Hong Kong select improved percentage in Hong Kong (84%) estimated savings are well below
occupant health and well-being than in Mainland China (73%) the global averages of 8% and 14%,
among their top two, compared is lowering greenhouse respectively. However, respondents
with only 54% of those from gas emissions. from Mainland China expect to see
Mainland China. payback in five years, notably under
When those who rated several
• The second most important social the global average of seven years,
environmental reasons were asked
reason for both is creates a sense while the average payback in Hong
to select their most important, 86%
of community, with around half Kong is nine years.
of those in Hong Kong who consider
of the respondents from both The same holds true for green
reducing energy consumption
locations placing it among their retrofits and renovations, which
important selected it as one of the
top two. are also notably under the global
top two factors, compared with
• The third most important social averages of 9% savings in one
70% of those from Mainland China.
reason for building green, year and 13% savings in five years.
A higher percentage of Hong Kong
selected by 48% from Mainland Payback time reported on Mainland
respondents (34%) also consider
China and 41% from Hong Kong, China, though, matches the global
lowering greenhouse gas emissions
is promoting sustainable average of six years, while payback in
a top environmental reason than
business practices. Hong Kong is expected to take
those from Mainland China (19%).
nine years.
Expected Business Benefits of Green Building in China

Mainland Hong Kong Mainland Hong Kong
Decreased Operating Costs Over One Year 5% 5% 7% 5%
Decreased Operating Costs Over Five Years 9% 9% 12% 6%
Payback Time for Green Investments (Years) 5 9 6 9

Data:Europe
Green Building Activity and Trends in Europe
The most notable aspect of the findings from Europe is the degree to which
individual countries vary, from their levels of activity, to the reasons they build
green to the savings they report experiencing from their green investments.
The data from six countries in Green Building • In all but one country (Poland), the
Europe—Germany, Ireland, Norway, Market Activity growth in green building comes
Poland, Spain and UK—are featured Levels of activity reported by the largely in an increase in those who
in the study, but 59 responses were individual countries vary widely expect to do the majority of their
also received from 17 other countries across Europe. projects green. Norway and Spain
across Europe. • Ireland has the highest percentage have the most dramatic increases
The level of green building of those currently doing the in this category.
council (GBC) participation also majority (more than 60%) of their • Poland is still emerging in green
differs across the respondents. projects green at 40%. activity. Even by 2021, the highest
40% of all European respondents • Spain has the highest percentage percentage expect to be doing a
work for companies that are GBC of high and moderate levels of relatively low level of green (16%
members, but well more than half of green work, with 65% reporting to 30%) of projects.
the respondents from Norway (73%), that they do more than 30% of
SECTORS WITH
Spain (65%) and Ireland (61%) work their projects green.
EXPECTED GROWTH
for GBC member companies, which • Poland currently has the lowest
The top sectors across Europe
may influence the level of activity level of green activity reported by
for green buildings in the next
and awareness of green in these survey respondents.
three years are new commercial
markets. In contrast, only 39% of
All of the European countries expect construction (48%), existing
respondents from Poland, 13% in the
to see a higher level of green activity buildings/retrofits (38%) and low-rise
UK and 8% in Germany work for GBC
by 2021 than they have currently. residential (32%). There is some
member companies.
variation among the countries
included in the study.
Levels of Green Building Activity for Respondents in the UK, Ireland and Norway

Exploring (No Green Involvement) 31% to 60% Green Projects
16% to 30% Green Projects
UK Ireland Norway
40% 53% 30%

27% 40% 64%
18% 20% 32%

20% 21%
19% 17%
27% 14% 26% 4% 4%
19% 7% 18% 15% 20%
9% 7% 7% 13%
4% 3% 2%
2018 2021 2018 2021 2018 2021
6_3_Europe1_Activity _#01
Data: Europe CONTINUED
Nearly two thirds (61%) of Irish and 49% new commercial interiors Client demands are widely
■■ ■■
respondents anticipate doing in the next three years. influential in Europe, with the
green low-rise residential buildings ■■Over half of the Spanish greatest influence in Ireland, the
in the next three years. respondents expect to do UK, Germany and Norway. Even the
■■Ireland is also higher than the new green commercial projects countries least influenced are close
European average for new (61%) and green existing building/ to the global average for this trigger.
commercial construction and retrofit projects (52%) in the next ■■Environmental regulations are
existing buildings/retrofits (both three years. influential triggers in the UK,

at 55%). ■■Low-rise residential projects top Ireland and Germany as well. The
■■Germany is lower than the the list among the UK respondents, other three European countries in
European average for new with 42% reporting they will be the study fall well below the global
commercial construction doing green projects in this sector. average for this trigger.
(31%) and higher for low-rise ■■Market transformation is one of
residential (42%). Influence Factors for the most influential triggers in

■■Almost three quarters (73%) of Future Green Building Poland. A higher percentage in
Norwegian respondents plan Activity Spain than the global average also
to do new green commercial favor this trigger.
TRIGGERS
construction projects. ■■Spain and Norway both exceed
The importance of specific green
■■With 45% who will be doing global averages for the percentage
triggers vary by country in Europe.
institutional projects, Norway also selecting higher building value.
Some of the most dramatic
exceeds the other five countries ■■Spain is influenced more
variations include the response
included in the study and the than most by internal
to client demands, environmental
overall European average (31%) for corporate commitments.
regulations, market transformation,
this sector. ■■Almost one third of Norwegian
higher building values, internal
■■Commercial construction is a focus respondents (32%) consider
corporate culture and improved
for the Polish respondents, with improved 10-year costs an
10-year costs.
48% reporting that they expect to influential trigger.
do a new green commercial project
Levels of Green Building Activity for Respondents in Germany, Poland and Spain

Germany Poland Spain
21%
29%
13% 35% 61%
15%
25%
8%
29% 36%
22%
29% 34% 16%
38% 36%
22%
21% 17% 14% 16% 16%
8% 7% 10% 13%
4% 4% 3% 0%
2018 2021 2018 2021 2018 2021
6_4_Europe2_Activity_#01
CHALLENGES Cost is a big concern in Norway, Social and

■■
The top challenges for all European with the perception of higher first Environmental Reasons
respondents are higher (perceived cost selected by more than half for Building Green
or actual) first costs (48%), lack of (55%) and affordability selected
SOCIAL REASONS
market demand (33%) and lack of by 41%.
Three of the six social reasons
political support/incentives (32%). ■■Lack of public awareness is the
for building green included in the
As with the triggers, though, there is top challenge in Poland, selected
study appear to resonate most with
wide variation by country. by 46%.
European respondents: improving
■■The second most important ■■In Spain, over 40% not only select
occupant health and well-being,
challenge in Ireland, selected by higher first costs (49%), but also
encouraging sustainable business
almost half of Irish respondents lack of political support/incentives
practices and increasing worker
(41%), is the lack of trained/ (45%), lack of public awareness
productivity. The percentages below
educated green building (42%) and lack of market demands
are the share of those who rated
professionals. This is much higher (42%), suggesting a high level of
this social reason as important in a
than the European (17%) or global concern about challenges in the
previous question, and then selected
(22%) average. market in general.
it as one of the two most important
■■ One third of German respondents ■■Higher first costs and lack of
reasons to build green.
select lack of market demand and market demand top the list of UK
■■Improving occupant health and
affordability (green is for high-end challenges, both with over 40%
well-being is selected as one of
projects only) as top challenges, expressing concerns.
the two most important social
the most for any of the challenges
reasons for building green by 60%
included in the study.
of European respondents.
Top Triggers Driving Future Green Building Activity in the UK, Spain, Poland, Norway,
Ireland and Germany
UK Spain Poland Norway Ireland Germany
Global Average 34% Global Average 33% Global Average 25% Global Average 25% Global Average 27%
71%
60%
48% 45%
41% 42%
32% 28% 36% 35% 32%
30% 29%
19% 22% 28% 26% 19% 31% 32% 23% 28% 23% 28%
19% 16% 19%
13% 12% 14%
Client Demands Environmental Regulations Market Demands Right Thing to Do Healthier Buildings
Global Average 15% Global Average 15% Global Average 17% Global Average 8%
36% 39%
35% 32%
26% 28%
11% 11% 9% 10% 14% 16% 12% 13%
6% 6% 3% 3% 7% 7% 8%
3% 6% 2%
Market Transformation Higher Building Values Internal Corporate 10-Year Costs Better
Commitment
6_13_Europe_Triggers_#03 Dodge Data & Analytics 53 www.construction.com SmartMarket Report

• It is selected by the highest Expected Business Benefits of Green Buildings in Europe

percentage of Irish (88%) and (Including Ireland, Germany, Norway, Poland, Spain, the UK and the Average of all
Spanish (71%) respondents. European Countries in the Study)
• The only one of the six European
New Green Building
countries featured in this study
where less than half selected this Europe Ireland Germany Norway Poland Spain UK
as a top social reason for building
green is Poland (31%). Decreased
■■Encouraging sustainable business
Operating 5% 5% 3% 12% 7%
7% 12%
practices is considered one of the Costs Over
top two social reasons by 58% of One Year
European respondents. Decreased
• Over three quarters (77%) of Operating 8% 12% 10% 31% 12%
13% 22%
respondents from Norway who Costs Over
Five Years
consider this reason important
ranked it in their top two. Payback Time
• The only country in which it was for Green 8 8 9 5 10
9 9
Investments
selected by fewer than 50% is (Years)
Germany (36%).
■■Increasing worker productivity
Green Retrofit
is selected as one of the top two
social reasons for building green by Europe Ireland Germany Norway Poland Spain UK
42% of European respondents.
• There is a wider range of response Decreased
for this reason than for the other Operating 13% 6% 9% 13% 8%
10% 16%
two: It is highly ranked in the Costs Over
UK (50%) and Poland (47%), One Year
moderately ranked in Ireland (31%) Decreased
and Germany (30%), and relatively Operating 13% 9% 14% 15% 13%
13% 34%
Costs Over
low ranked in Norway and Spain
Five Years
(both 26%).
Payback Time
for Green 7 8 8 8 12
8 11
Investments
(Years)

ENVIRONMENTAL REASONS building. The UK reports the highest,

Reducing energy consumption is but it is relatively consistent with

the top priority for all European the other four countries included,
countries included in the study. which are all slightly above the global
• It is rated as important by over average of seven years.
90% in Ireland, Germany, Norway
GREEN RETROFITS
and Spain, and 70% or more in
Ireland, Germany and Spain expect
Poland and the UK.
the biggest percentage of operating
• It is selected among the top
cost savings due to their green
two environmental reasons for
retrofits within 12 months. However,
building green by the highest
only Ireland has notably larger
percentage of respondents for
expectations than average for the
any reason from the six European
five-year operating cost savings.
countries included.
Despite their optimism about
The other important environmental the level of savings experienced,
reasons for building green vary payback periods for Ireland are the
more by country. longest of the six countries tracked,
■■Lowering greenhouse gas with the UK close behind.
emissions is one of the top Norway is by far the most
reasons cited in Ireland, Norway conservative about the savings they
and the UK. see from green retrofits. However,
■■Protecting natural and material their estimation of the payback
resources is a top reason in period for their investments is pretty
Germany and Poland. much on par with the European and
■■Improving indoor air quality is a top global averages.
reason in Spain.
Business Benefits
NEW GREEN BUILDING
Ireland and Spain report the highest
average operating cost savings from
green buildings when compared with
traditional ones for both a one-year
and five-year time frame. (Please
note that the five-year average
median savings is a little high due
to the number that selected 15% or
more as their highest category.)
On the other hand, Germany,
Norway and Poland are all quite
conservative in their estimates of
operating cost savings due to new
green buildings.
Spanish respondents report the
shortest payback periods for the
investments they make in new green

Data:India
Green Building Activity and Trends in India
Indian respondents anticipate steep growth in their green activity in the next three
years, driven by environmental regulations and the drive for healthier buildings.
Many of the challenges they face are typical of an emerging market, including the
need for more public awareness of green and more green-educated professionals.
Around half (51%) of the survey percentage of Indian respondents. Influence Factors
respondents in India work for This consistency demonstrates for Future Green
companies that are members of the importance of these sectors to Building Activity
a green building council. This is this market.
TRIGGERS
above the average for participation While the percentage expecting
The two most important triggers for
in the study overall, and should be to do new green commercial
future green building activity in India
taken into account when comparing construction is on par with the
are environmental regulations and
responses from India to other global average (51%), the percentage
healthier buildings. India notably
countries or to global averages. doing new high-rise residential is
exceeds the global average for each
significantly higher in India than
of these triggers.
Green Building globally (35%).
The strong performance of
Market Activity The one sector where India
environmental regulations and
Most Indian respondents (90%) is significantly below the global
relatively low performance of
have at least some level of green average is for existing buildings/
client demands, along with the
building experience, but the majority retrofits. Only 24% of Indian
data on the green market activity,
report that less than 60% of their respondents expect to do a green
suggest that India is still an emerging
projects are green currently, with a retrofit project in the next three
green market overall. Right now,
relatively even distribution between years, compared with the global
it is the pull of regulations rather
those doing less than 16%, those average of 37%. This suggests an
than the expectation of the market
doing between 16% and 30%, and emphasis on green for new buildings
driving activity.
those doing 31% to 60% of their in the Indian market.
However, the strong emphasis
projects green.
on healthier buildings suggests that
Their expectations about the Levels of Green Building
those doing green buildings in India
share of green projects they expect Activity for Respondents in
are tied into larger global trends,
to undertake by 2021, however, is India (2018 and 2021 Expected)
where health has emerged as a
very optimistic and shows strong Dodge Data & Analytics, 2018
top concern. Given the importance
expectations for growth in the 1% to 15% More Than 60%
Green Projects Green Projects of work in which productivity is
market. Those expecting to do more
Exploring 31% to 60% actively measured, such as call
than 60% of their projects green
(No Green Green Projects centers, in India, it is not surprising
nearly doubles to 55%. Involvement) 16% to 30% to see healthier buildings as a strong
Green Projects
SECTORS WITH trigger. Also, many countries that
EXPECTED GROWTH struggle with air quality issues place
Around half of the Indian emphasis on the indoor environment
respondents expect to do green 28% 55% as part of their green projects.
projects in the next three years
CHALLENGES
in two sectors: new commercial
23% Lack of public awareness is selected
construction (54%) and new high- 19%
19% 6% as a top challenge to expanding
rise residential (48%). These are the 20%
10% 6%
14% green building efforts by half of
same sectors that were expected
Indian respondents. The relatively
in the 2015 study by the highest 2018 2021
low performance of client demand
6_5_India_Activity_#01
Data: India CONTINUED
corresponds to this finding, and Top Triggers Driving Future ENVIRONMENTAL REASONS
together, they both suggest the Green Building Activity Over 80% of Indian respondents
need for greater education of Indian in India consider all five environmental
developers and consumers to create Dodge Data & Analytics, 2018 reasons for building green
a demand for green. India important. When asked to select
Other challenges reported by a Global Average their top two, though, reducing
higher percentage of respondents energy consumption is selected
from India than the global average Environmental Regulations by the highest percentage (62%),
are lack of trained/educated green 42% as it is in most green markets.
building professionals (27%) and 33% The second most important
lack of availability of green products environmental reason is reducing
Healthier Buildings
in their market (21%). Again, both water consumption, ranked in the
of these suggest that India is still an 39% top two by 48%, followed closely by
emerging market for green building. 27% protecting natural resources, which
However, one challenge that Right Thing to Do is ranked in the top two by 43%.
is highlighted by fewer Indian 30%
respondents than the global average
25%
Business Benefits
is higher (real or perceived) first costs. Indian respondents are more
49% report that this is a challenge Client Demands conservative about their
globally, but only 32% find it to be a 25% expectations for one-year operating
challenge in India. It will be interesting 34% cost savings for new green and
to see if this remains at a relatively retrofit projects than they were in
low level as the market matures since the 2015 study, bringing them closer
23%
it was a commonly reported issue in in line with global averages. Their
the early days of green building in 23% five-year expectations are more
many more developed markets. consistent for new green projects,
but have also shifted down slightly
Social and for green retrofits.
Environmental Reasons 6_14_India_Triggers_#01
On the other hand, they are more
for Building Green conservative about payback periods
These findings are consistent with on new projects than they are on
SOCIAL REASONS
the global averages, but they again green retrofits, perhaps because that
Most Indian respondents tend to rate
reinforce the importance of healthier market is still relatively small among
each of the social reasons included
buildings in this market. these respondents.
in the study as important, far more
than respondents tend to do globally.
However, when asked to select their
top two most important, two clear
reasons emerge.
■■65% consider improving occupant
health and well-being a top Expected Business Benefits of Green Building in India
environmental reason for building
green (among those who rated it
2015 2018 2015 2018
as important).
■■62% consider encouraging Decreased Operating Costs Over One Year 10% 8% 11% 8%
sustainable business practices Decreased Operating Costs Over Five Years 15% 15% 16% 12%
one of the top social reasons for Payback Time for Green Investments (Years) 4 7 5 5
building green.

Data:Middle East/North Africa
Green Building Activity and Trends in
the Middle East and North Africa
Two of the largest markets in MENA, Saudi Arabia and the United Arab
Emirates, reveal how two countries in the same region can be different from
each other, in terms of green activity, triggers and challenges to increased
green building, and the social and environmental reasons for building green.
Respondents from the Middle East activity anticipated to nearly double SECTORS WITH
and North Africa (MENA) region from 34% to 66%. EXPECTED GROWTH
came from 12 countries. Two of ■■In Saudi Arabia, the largest The top project sectors for
them, Saudi Arabia and the United increase is also expected among green building in MENA are new
Arab Emirates (UAE), had sufficient those doing a majority of their commercial construction (62%), new
responses to be analyzed separately, projects green, although those institutional construction (49%) and
but data from the region as a whole is doing a relatively low (16% to high-rise residential (40%). While
also included in this section. 30%) and moderate (31% to 60%) new green commercial construction
Saudi Arabia and UAE had level of green building will also is also the top sector in Saudi Arabia
different levels of participation from increase. The biggest shift, in fact, and the UAE, there are some notable
respondents whose companies are is the decrease in doing no green differences by sector between the
members of a green building council currently (21%) and those expecting two countries.
(GBC). In Saudi Arabia, only 8% of to do no green work by 2021 (10%), ■■New commercial construction is
the respondents are GBC members, suggesting a steady, but still early, by far the top green sector in the
while in UAE, nearly half (48%) are. shift toward green in this market. UAE, selected by 69%. In fact, there
The disparity in the makeup of the ■■Across the MENA region as a is at least a 19 percentage point
respondents should be kept in mind whole, the highest level of growth gap between new commercial
when reviewing the responses. is also among those doing the construction and any other sector,
majority of their projects green, demonstrating the importance
Green Building nearly doubling from 19% to 37%. of commercial construction in
Market Activity that market.
The UAE has a relatively active green
building market, with over half of the
respondents from that country (56%)
reporting that more than 30% of their Levels of Green Building Activity for Respondents in MENA
projects are green. In contrast, Saudi (2018 and 2021 Expected)
Arabia is still an emerging green Dodge Data & Analytics, 2018
market, with only one quarter (25%) 1% to 15% Green Projects More Than 60% Green Projects
doing more than 30% of their projects Exploring (No Green 31% to 60% Green Projects
green. The MENA region is closer to Involvement) 16% to 30% Green Projects
the levels reported in the UAE, with
nearly half (49%) doing more than Saudi Arabia UAE
30% green projects.
Growth is expected in the levels 5% 34%
13%
of green activity by 2021, in both 66%
countries and throughout the region. 21% 24%
22%
■■In the UAE, this growth largely 23%
comes in those expecting to do 21% 10%
31% 32% 3%
21% 10% 27%
the majority of their projects 10% 7% 8% 13%
(more than 60%) green, with the
2018 2021 2018 2021
percentage at that level of green
6_6_MENA_Activity_#01
Data: Middle East/North Africa CONTINUED
While new commercial respondents for anticipated • Market demands is the top
■■
construction is also the top green green projects: new institutional trigger at 30%, a percentage
sector in Saudi Arabia, selected projects, high-rise residential and roughly typical for the region and
by 55%, it is followed closely by existing buildings/retrofits, all in line with the global finding.
low-rise residential (53%) and new with 50% of respondents reporting • It is closely followed by improved
institutional construction (50%), expected green work in the next 10-year costs at 28%, which is
suggesting less of a concentration three years in these sectors. This notably higher than the regional or
on new commercial construction puts the UAE well above Saudi global averages.
in Saudi Arabia than in the UAE. Arabia and the global average for all • Creating healthier buildings,
This also places Saudi Arabia three sectors, and above the MENA lower operating costs,
well above the global average for average for high-rise residential and environmental regulations
respondents expecting to do green existing buildings/retrofits. and local competition all hover
low-rise residential projects in the at around one quarter of the
next three years. Influence Factors respondents. While this puts Saudi
■■However, Saudi Arabia has a for Future Green Arabia on par with global averages
higher percentage (40%) expecting Building Activity for healthier buildings and lower
to work on green commercial operating costs, and slightly under
TRIGGERS
interiors than the UAE (21%). for environmental regulations, the
Saudi Arabia and the UAE differ from
This may be due to the mix of percentages for local competition
each other notably when it comes to
respondents who participated in are much higher than the regional
the influence of various triggers to
the study in Saudi Arabia. or global averages.
encourage more green building.
■■With 50% of the respondents in ■■UAE: The top trigger in the UAE
■■Saudi Arabia: No single trigger
both Saudi Arabia and the UAE is environmental regulations.
dominates the responses from
expected to do new commercial Half (50%) of the UAE respondents
Saudi Arabia. Instead the top six
construction, both countries are select this, well above the global
triggers are a tight grouping,
well above the global average average or any market factor.
nearly equally influential among
(38%) for that sector. Correspondingly, the remainder
the Saudi respondents.
■■After new commercial of the UAE responses for other
construction, three sectors triggers are around or below
have a high percentage of UAE global averages.
Top Triggers Driving Future Green Building Activity in the Middle East/North Africa,
Saudi Arabia and the UAE
MENA Average Saudi Arabia UAE
Global Average 33% Global Average 34% Global Average 27% Global Average 25% Global Average 23% Global Average 8% Global Average 9%
50%
36%
31% 33%
30% 29% 28%
27% 25% 26%
25% 23% 25% 23%
20% 21%
17% 16% 17%
15%
5%
Environmental Client Demands Healthier Buildings Market Demands Lower Operating Costs 10-Year Costs Better Local Competition
Regulations

CHALLENGES Social and promoting sustainable business

The top barriers to green growth Environmental Reasons practices and improving occupant
in the MENA region overall are lack for Building Green health and well-being.
of public awareness (42%), higher When those who rated several
SOCIAL REASONS
first costs (real or perceived) (40%), items as important were asked
When asked to rate the importance
lack of market demand and lack of to select their top two reasons,
of the six social reasons for building
political support or incentives (both respondents from the UAE still
green included in the study, at
32%). However, the most significant clustered around promoting
least three quarters of respondents
challenges differ between Saudi sustainable business practices and
from Saudi Arabia rate all six as
Arabia and the UAE. improving occupant health and
important, including supporting the
■■Perceived higher first costs is the well-being.
domestic economy, improving worker
top challenge in Saudi Arabia, The Saudis, on the other hand,
productivity, improving occupant
selected by 38%. Other influential most frequently selected creating a
health and well-being, supporting
challenges in this market include sense of community and improving
sustainable business practices,
lack of market demand (30%), worker productivity as their top two
creating a sense of community and
affordability (the perception that social reasons for building green.
being aesthetically pleasing.
green is for high-end projects only)
In contrast, the highest ENVIRONMENTAL REASONS
(30%), lack of public awareness
percentage to rate any of the social Reducing energy consumption is
(28%) and lack of trained/educated
reasons as important in the UAE the top environmental reason for
green building professionals (28%).
is 74%. The two factors rated by building green in Saudi Arabia and
This suggests that the market
that percentage as important are the UAE. It is recognized by most
still needs to overcome several
challenges to fully mature.
■■The top challenge in the UAE is Expected Business Benefits of Green Buildings in the Middle
lack of public awareness, selected East/North Africa (Including Saudi Arabia and the Average of 11 Other
by 45%. This is notably above the Countries)
global average but consistent with New Green Building
other MENA findings, suggesting
that this region in particular MENA Saudi Arabia UAE
struggles with creating public
awareness to create demand. Decreased Operating
8% 5% 9%
■■The perception that green is for Costs Over One Year
high-end projects only is also a Decreased Operating
14% 9% 38%
widely reported obstacle in the Costs Over Five Years
UAE, by 41%. This is well above Payback Time for Green
7 6 5
both the regional and global Investments (Years)
averages for this issue, making it
particular to this market. Green Retrofit
■■38% of respondents from the
UAE also consider the lack of MENA Saudi Arabia UAE

trained/educated green building
professionals to be a major Decreased Operating 4% 9%
8%
Costs Over One Year
challenge facing the growth
of green work in this country. Decreased Operating 11% 15%
14%
Costs Over Five Years
Again, this is much higher than
the regional or global averages Payback Time for Green 4 4
5
for this obstacle. Investments (Years)

respondents in Saudi Arabia (85%) green buildings. In contrast, only

and the UAE (93%) as important, and 18% of Saudis and 45% globally
it is considered one of the top two expect operating cost savings of
most important reasons by nearly all 15% or more in five years for their
those in Saudi Arabia who consider green buildings.
it important (91%), and by over three Given the high level of savings
quarters (77%) in the UAE. expected, it is not surprising that the
Nearly all respondents from UAE respondents also expect a low
the UAE (91%) rate reducing water payback time frame (five years) for
consumption as important, and their green investments.
it is selected as one of the top two
GREEN RETROFIT PROJECTS
reasons by half of them. On the
Respondents from Saudi Arabia
other hand, while three quarters
are notably conservative in their
of the Saudis rate reducing water
expectations for operating cost
consumption as important, only 27%
savings over the first 12 months
of them consider it one of the top
due to their green retrofits of
reasons for building green.
existing buildings. The 4% median
Protecting natural resources
savings expected is well below the
is also considered one of the top
regional or global averages. Some
environmental reasons for building
of the difference between Saudi
green by 36% of the respondents
Arabia and the regional responses
who consider it important from both
could be due to energy subsidies
Saudi Arabia and the UAE.
available to some members of the
Gulf Cooperation Council (GCC).
Business Benefits They also are a little below the
NEW GREEN BUILDING regional and global averages for five-
PROJECTS year median cost savings.
Respondents across MENA believe The region as a whole expects
on average that a new green building relatively short payback periods
will save 8% in operating costs over of five years, and the respondents
the first 12-month period of operation from Saudi Arabia and UAE fall
compared with a traditional building. even a little below that at four years.
The respondents from UAE largely A short payback period can support
align with those findings, which the business case for investing in
are consistent with the global these retrofits.
findings, but Saudi respondents
are more conservative.
However, 68% of respondents in
the UAE reported that they expect
15% or higher savings in their green
building operating costs over five
years. Since this was the highest
category, it skews the median to be a
very high number, but even though
that figure may be skewed, it still
represents a great deal of optimism
about the long-term performance of

Data:North America
Green Building Activity and Trends in North America
North America is comprised of three active green markets, although the

Canada and US market is more mature than that of Mexico. Costs are
a particular concern for this region, although Canada and Mexico both
report strong business benefits from their green building projects.
When comparing the findings of thirds, green projects account for By 2021, a higher percentage of
Canada, Mexico and the US, it is more than 15% of their work. respondents from all three countries
important to consider the percentage However, there are also some expect to see their levels of green
of participants in the survey who are notable differences in the level of building activity increase.
members of green building councils green activity by country. ■■Canada and the US report the
(GBCs). Canada has the second ■■Canada has the highest same 13 percentage point uptick in
highest percentage in the study as percentage (35%) of those those expecting to do the majority
a whole, at 63%, the US is slightly doing the majority (over 60%) of their projects green. This level
above average at 53%, and Mexico of their projects green, and the of growth reveals highly active,
is well below average at 20%. These US is close behind at 32%. growing markets in both countries.
percentages may influence the ■■While Mexico lags in terms of ■■Mexican respondents are very
relative levels of activity reported in those doing a majority of green enthusiastic about the percentage
these markets. projects, a higher percentage of of green projects they will be doing
those respondents currently report by 2021, with those expecting to
Green Building a moderate (31% to 60% green do a majority of green projects
Market Activity projects) and low (15% to 30%) level doubling from 27% in 2019 to 54%
All of the three major markets in of green activity than in the US and by 2021.
North America—Canada, Mexico and Canada. Thus, although Mexico
SECTORS WITH
the US—currently have relatively has fewer respondents who report
EXPECTED GROWTH
high levels of green building activity. a high level of green activity, they
The top sectors for green projects in
Over 85% of respondents from all have a higher percentage who are
Canada, Mexico and the US vary. The
three countries do at least some engaged with green projects at
analysis includes comparisons to the
green building, and for over two some level than Canada and the US.
2015 study for the US and Mexico,
Levels of Green Building Activity for Respondents in North America (2018 and 2021 Expected)

Canada US Mexico
27% 54%
48%
35% 45%
32%
27%
12% 15% 18%
22% 22% 18%
18%
10% 5%
23% 7% 18% 24%
12% 14% 12% 16% 12% 18% 18%
9% 4% 5%
2018 2021 2018 2021 2018 2021
6_7_NAmerica_Activity_#01
Data: North America CONTINUED
but not for Canada, since Canada did Top Triggers Driving Future both are below the global average
not have a sufficiently large level of Green Building Activity in of 51%. In the US, this is also on
participation in the previous study. North America par with the findings from the
■■The top sector for green building Dodge Data & Analytics, 2018 2015 study.
in Canada is new institutional ■■Low-rise residential construction is
Canada
construction, selected by 60%. US
also selected by a high percentage
■■45% also anticipate doing green of Mexican respondents (43%).
Mexico
institutional construction in the Global Average The percentage anticipating doing
US, a figure substantially above this work in Canada (37%) is also
the percentage in Mexico (32%) Client Demands above the global average of 30%,
and the global average (37%). 50% but the US (25%) is notably below
This percentage is also consistent 44% that average for this sector. This
with the findings from the 2015 19% was not one of the top three sectors
study for US engagement in green 34% in Mexico in 2015, though, which
institutional construction. Environmental Regulations suggests that it has gained in
■■The top sector for green building in 39% importance in this market.
the US is green existing buildings/ 28%
32%
retrofits, selected by 50%. This is
33%
Influence Factors
higher than the percentage (43%) for Future Green
who reported that they expected to Right Thing to Do Building Activity
do work in this sector in 2015. 31%
28% TRIGGERS
■■Green existing buildings/retrofits
20% While there are some overlaps,
is also an active sector in the 25% there are also some significant
Canadian green building market,
Healthier Buildings differences in the percentages who
with 52% expecting to be engaged
29% identify their top triggers for new
in these projects.
32% green building activity in Canada,
■■Mexico at 32% lags considerably
6% Mexico and the US.
behind the US and Canada in 27% ■■Client demands is the top trigger
expectations for green existing Market Transformation in Canada and the US, particularly
buildings/retrofits, but Mexico is 23% in Canada, where it is selected
also more in line with the global 12% by 50%. Client demands was also
average (37%), which the US and 28%
the top trigger in the US in the
Canada far exceed. However, 15%
2015 study, selected by an even
this is a drop from the findings in Lower Operating Costs
higher percentage (52%) than in the
2015, when nearly half (48%) of 19%
current study.
respondents from Mexico expected 24%
■■Environmental regulations are
to do green retrofit projects. 33%
23% an important trigger for green
■■The top sector for green building
building in Canada and Mexico.
in Mexico is new commercial
In Mexico, this is a big change
construction, selected by 52%.
from 2015, when environmental
However, it is notable that this is a
6_16_NAmerica_Triggers regulations were not even included
drop from the 65% who expected
among the top five triggers.
to do new green commercial
■■In addition to environmental
construction in 2015.
regulations, the other top trigger
■■A relatively high percentage in
in Mexico is lower operating costs,
Canada (44%) and the US (45%) also
selected by one third (33%). This
expect to do these projects, but

has also increased in importance that costs in general are the major important were asked to select their
since the 2015 study, when 25% of obstacle to building green. top two social reasons for
Mexican respondents considered it In Mexico, the lack of political building green.
a top trigger. support or incentives for green is For Canadian, Mexican and US
■■Healthier buildings is an important considered a top obstacle by 39%, respondents alike, two factors
trigger in the US and a moderately the second highest for this country emerged as the top two: improving
important one in Canada, but few and consistent with the findings from occupant health and well-being,
in Mexico consider it an important 2015. It is the third highest obstacle and encouraging sustainable
trigger for building green. Since it in Canada at 32%, but only 26% in the business practices.
was not included in the 2015 study, US select it. ■■A much higher percentage of
no comparison is possible for the It is also notable that 30% select respondents from the US (78%)
US or Mexico. high levels of corruption in the select improved occupant health
■■Doing the right thing also industry/government in Mexico, and well-being as one of the top
continues to be an important three times the global average for two social reasons for building
trigger for green building in that factor. green than any of the other
Canada, and a moderately reasons, or than respondents from
important one in the US. Social and Canada (61%) or Mexico (54%).
CHALLENGES
Environmental Reasons ■■Encouraging sustainable business
The top challenge to increased

for Building Green practices is selected among the top
two by the highest percentage in
green building reported in Canada, SOCIAL REASONS
Mexico (61%), and by relatively high
Mexico and the US is higher first Respondents were first asked to
percentages in Canada (59%) and
costs (perceived or actual). 73% of rate the importance of six social
the US (59%) as well.
US respondents in the current study reasons for building green, including
■■Aesthetics ranks higher in Canada
select this as a top challenge, far creating a sense of community,
than in most countries, with 30%
more than the 53% in Canada, and improved worker productivity,
of respondents selecting it among
the 41% in Mexico or the 49% global improved aesthetics, supporting the
their top two social reasons for
average for this factor. In the US, the domestic economy, encouraging
building green.
finding is consistent with the 2015 sustainable business practices and
study, in which 70% regarded higher improving occupant health and well-
costs as a top challenge. However, in being. Then those who rated each as
Mexico, the percentage has reduced
considerably since 2015, down 13
Expected Business Benefits of Green Building in
points from 54%.
North America
In the US and Canada,
affordability (the perception that New Green Building
green is for high-end projects only) Canada Mexico US
is the second biggest obstacle, Decreased Operating Costs Over One Year 12% 11% 8%
selected by 37% in the US and 36%
Decreased Operating Costs Over Five Years 21% 23% 13%
in Canada. It is notable that the third
most commonly noted obstacle Payback Time for Green Investments (Years) 8 5 8
in the US (30%) and the fourth in
Green Retrofits
Canada (31%) is the challenge in
Canada Mexico US
making the business case due to the
split between operational and capital Decreased Operating Costs Over One Year 12% 12% 11%
costs. The combined importance Decreased Operating Costs Over Five Years 14% 30% 13%
of all these obstacles suggests Payback Time for Green Investments (Years) 7 6 7

ENVIRONMENTAL REASONS Surprisingly, relatively few select GREEN RETROFITS

■■
The respondents had a similar set of improved indoor air quality as an The US estimates for operating
questions for their top environmental environmental reason for building cost savings on green retrofits
reasons for building green to green, despite the importance in a 12-month period more closely
those they had for their top social of healthier buildings as a social align to those from Canada and
reasons. The following considers reason. It is possible that most view Mexico, with all reporting a relatively
the choices of the top two among the environment as an external high percentage.
all the environmental reasons rated factor outside of the building, Five-year estimates, though,
as important. and therefore are less likely to are far more optimistic in Mexico,
■■The most frequently selected choose indoor conditions as an with 61% selecting the category of
environmental reason for environmental priority. 15% or more.
building green in the US, Canada Payback periods for retrofit
and Mexico is to reduce energy Business Benefits projects are one year shorter than
consumption. Roughly two those expected for new green
NEW GREEN BUILDINGS
thirds of the respondents in each projects in Canada and the US, and
Respondents from Canada and
country who considered this one year longer than for new green
Mexico are more optimistic about
important selected it among their projects in Mexico.
12-month operating cost savings
top two. This is consistent with
in their new green buildings than
other findings in the study and the
those in the US, and than the global
findings of previous studies for the
average, with median average
US and Mexico.
savings of 12% and 11%, respectively,
■■Protecting natural resources was
compared with the US and global
also selected by a high percentage
average of 8%.
from each country, including 46%
That pattern continues in their
from Mexico, 38% from the US and
estimation of five-year operating
37% from Canada.
costs savings, with median savings
■■Reducing water consumption
boosted for both Canada and Mexico
ranks high for Mexican
by the high percentage of those who
respondents as well, with 47%
select the highest category included
selecting it among the top two
in the study of 15% savings or more
(53% selecting that range in Canada
green. That is far more than
and 55% in Mexico). In contrast, the
respondents from the US (28%)
US expectation of 13% savings is on
or Canada (21%). This factor has
par with global averages.
increased in importance in Mexico
Mexico also has a shorter payback
since 2015, when it did not rank
period for investment in new green
among the top three environmental
buildings than do Canada or the
US, probably due to less expensive
■■Lowering greenhouse gas
labor costs.
emissions is a high priority in
Canada, with 48% of respondents
selecting it as one of their top
two environmental reasons. A
moderate percentage in the US
(36%) and Mexico (31%) also
consider this important.

Data:South Africa
Green Building Activity and Trends in South Africa
Within three years, South Africans anticipate that they will be doing a much
higher level of green building activity than they are now, driven by the desire
for lower operating costs and healthier buildings. Right now, retrofits of
existing buildings is the biggest building sector for green in this country.
Around half (52%) of the survey their assets, retain tenants and Influence Factors
participants from South Africa work building values is closely for Future Green
for companies that are members linked to the expectation that Building Activity
of a green building council. When renovations of existing buildings
TRIGGERS
comparing the findings to the ones will be the top sector for green
Lowering operating costs is an
from 2015, it is worth noting that only building in this market.
important trigger for future green
31% of respondents to that survey The second highest sector
building activity in South Africa. It
were from companies that are green for South Africa is new green
is selected by 38%, well above the
building council members. commercial buildings, but the 39%
global average of 23%. In fact, South
who expect to work in this sector in
Africa is the only country in the study
Green Building South Africa is significantly smaller
where lower operating costs are the
Market Activity than the 51% who will be working in
top trigger. The predominance of
Most South African respondents this sector globally.
retrofit work is likely to be directly
(94%) have at least some level of New green residential buildings,
correlated to this finding.
green building experience. The level both low-rise (28%) and high-rise
Another important trigger for
of activity varies across the market, (26%), are only other sectors selected
green building activity in South
with an almost even distribution by more than a quarter of South
Africa is creating healthier buildings,
between those reporting very low African respondents.
selected by 33%. Again, this exceeds
(less than 15% green projects),
the global average for this trigger.
low (15% to 30% green projects),
Three other triggers are selected
moderate (31% to 60% green
by more than one quarter of
projects) and high (more than 60%)
Levels of Green Building South African respondents: client
levels of green building activity.
Activity for Respondents in demands, right thing to do and
By 2021, though, the largest
South Africa (2018 and 2021 environmental regulations. These
percentage (48%) expect to be doing
Expected) are a diverse set of triggers that
a high level of green activity, with Dodge Data & Analytics, 2018 demonstrate that the pull of the
dramatic shifts downward in the
1% to 15% More Than 60% market, the push of regulations and
other three categories. Green Projects Green Projects the desire to do the right thing all
SECTORS WITH Exploring 31% to 60% carry sway within this market, rather
(No Green Green Projects
EXPECTED GROWTH Involvement) than being driven by a few
16% to 30%
Around half of the South African Green Projects key triggers.
respondents (49%) expect to
CHALLENGES
do green retrofit projects, the
The top challenge reported by
biggest sector reported by these 48%
28% South Africans is higher (real or
respondents. This is well above the
perceived) first costs, selected by
global average for green retrofits
21% 43%. However, it is notable that this
(37%), and it is consistent with the top 19%
24% percentage is lower than the global
sector reported in the 2015 study. The 21% 15%
6% 4%
14% average of 49%.
drop in new building construction
The challenge of affordability
in South Africa and the need for 2018 2021
that comes with the perception that
building owners to fully leverage
6_8_SAfrica_Activity_#01
Data: South Africa CONTINUED
green is for high-end projects only is Top Triggers Driving Future than in many other countries.
the second most commonly selected Green Building Activity in Close behind energy for
challenge by South Africans, chosen South Africa South Africans is reducing water
by 37%. This is higher than the global Dodge Data & Analytics, 2018 consumption, ranked in the top two
average of 33%. South Africa by 51%. A high percentage (47%)
Two other challenges were Global Average also selected protecting natural
selected by 28% of South African resources among their top two
respondents: the difficulty in making Lower Operating Costs environmental reasons for building
the business case due to the split 38% green.
between capital and operating 23%
cost expenses, and the lack of Business Benefits
Healthier Buildings
political support/incentives. The The medians for anticipated
combination of all these factors 33% 12-month operating cost savings
suggests that addressing the issue of 27% reported in 2018 in new green
the cost of building green would help Client Demands buildings and green retrofit projects
to grow this market. 29%
are similar to global averages.
There is a relatively high percentage
34%
Social and (55%) who select the 15% or higher
Environmental Reasons Right Thing to Do category for their expected five-year
for Building Green 29% savings, which may skew the median
25% savings up a little for that five-year
SOCIAL REASONS
period for both new buildings and
Encouraging sustainable business Environmental Regulations
retrofits. The global average for that
practices is the top social reason for 26%
category is 45%.
building green in South Africa in the 33% The South African respondents
current study, as it was in 2015. It is
expect shorter payback periods for
rated as important by 84% of the 2018
their investments than they did in
respondents, well above the global
2015, a strong driver for the business
average of 75%.
6_17_SAfrica_Triggers_#01 case for making those investments.
The other top social reason for
building green in South Africa is
to improve occupant health and
well-being, rated as important by
83% of respondents. This finding
is consistent with global findings
and the priorities in many countries
included in this study.
ENVIRONMENTAL REASONS
Most South African respondents
(79% or more) consider all five
South Africa
green important. When asked to New Green Building Green Retrofit
select their top two, though, reducing 2015 2018 2015 2018
energy consumption is selected by Decreased Operating Costs Over One Year 18% 8% 9% 8%
the highest percentage (55%), as it is
Decreased Operating Costs Over Five Years 19% 23% 29% 22%
in most green markets, although by
Payback Time for Green Investments (Years) 8 7 6 5
a lower percentage in South Africa

Data:South America,
Central America and the Caribbean
Green Building Activity and Trends in South

America, Central America and the Caribbean
The markets in the South American, Central American, Caribbean region
all expect strong growth in levels of green activity. There is an emphasis

on new green commercial and high-rise residential projects in this
region, with a relatively few green institutional projects expected.
Respondents from South America, the majority (more than 60%) of highest percentage of respondents
Central America and the Caribbean their projects green. (52%) plan to do green projects.
came from 15 countries. Two of ■■47% in Brazil expect to do new
Respondents were also asked
them, Brazil and Colombia, had green commercial construction
about the share of green projects
sufficient responses to be analyzed projects and 48% in Colombia.
they expect to be doing by 2021.
separately, but data from the region This is notably below the 62% from
Both Brazilian and Colombian
as a whole is also included in this the rest of the region, although the
respondents expect to be doing
section for regional analysis difference is directional rather than
a much larger share of green in
and comparison. statistically significant.
three years, with 42% of those in
About one third of the respondents ■■The percentage expecting to do
Brazil and 46% of those in Colombia
from Colombia (32%) work at green commercial construction in
expecting to do the majority of
companies that are members of a Colombia has fallen 11 points since
their projects green by 2021. The
green building council, compared the 2015 study. On the other hand,
remaining countries in this region
with just 12% of the respondents the percentage from Brazil has
report a similar level of growth, with
from Brazil. This disparity should be remained consistent.
46% reporting that they expect the
kept in mind when comparing the
majority of their projects to be green The second biggest sector in
findings from the two countries.
by 2021. this region is new green high-rise
residential buildings, selected
Green Building SECTORS WITH
by 40%.
Market Activity EXPECTED GROWTH
■■47% expect to do new green
Currently, 95% of respondents New commercial construction is the
high-rise residential projects
from Brazil and 87% from Colombia sector across the region in which the
are doing at least some green
projects. Among respondents from
Levels of Green Building Activity for Respondents in South
other countries in this region, that
America, Central America and the Caribbean
percentage drops to 82%.
• The highest percentage in Brazil Dodge Data & Analytics, 2018
(31%) of those doing green
building report 16% to 30% of
Exploring (No Green 31% to 60% Green Projects
their projects are green. Involvement)
• About one third of the respondents 16% to 30% Green Projects
from Colombia (30%) report that Brazil Colombia
they are doing between 1% and
15% of their projects green. 21% 46%
• In both countries the remainder 42% 19%
of those doing green projects are 23%
split nearly evenly between the 30% 17% 17%
16%
other categories with only around 20% 31%
17%
21% 8% 21%
one fifth (21% in Brazil and 19% in 5% 11% 14% 13% 8%
Colombia) reporting that they do
2018 2021 2018 2021
6_9_SAmerica_Activity_#01
Data: South America, Central America and the Caribbean CONTINUED
in Colombia. This is a dramatic Top Triggers Driving Future Influence Factors

increase over the percentage in Green Building Activity in for Future Green
Colombia (36%) who expected to do Brazil and Colombia Building Activity
this work in 2015. Dodge Data & Analytics, 2018
TRIGGERS
■■Only 30% expect to do new green
Brazil The triggers for new green building
high-rise residential buildings in Colombia activity are very country specific,
Brazil. This is not only significantly Global Average with different factors driving the
fewer than those in Colombia, but it
green building markets in Brazil
is also a drop of 13 points from the Market Demands
and Colombia.
findings in 2015. 37%
■■Brazil: A wide range of triggers
27%
Other sectors chosen by more 25% help drive green building in Brazil,
than 30% across the region include suggesting market influences,
Market Transformation
new green low-rise residential economic and social interests, and
28%
(36%) and green retrofits of existing 27% concerns about occupants are all
buildings (34%). 15% important in this market.
■■The percentages who anticipate
Client Demands • Market demands is selected
doing new green low-rise 26% by the highest percentage and
residential work in Brazil (37%) and 13% is more influential in Brazil than
Colombia (35%) hover around the 34% in Colombia or globally. This is
average reported for the region. Healthier Buildings a notable change from 2015,
While it has stayed relatively 26% when market demands were
consistent for Brazil since 2015, 3% only selected as a top trigger by
the percentage from Colombia has 27% 12% of respondents from Brazil.
increased by 9 percentage points in Environmental Regulations Publication of data demonstrating
that period, suggesting that green is 23% the business benefits of green
becoming more widely adopted in 35% building, along with strong media
this sector. 33% attention to green projects, have
■■Fewer respondents from Brazil Lower Operating Costs created market demand for green
(21%) expect to do green retrofits 23% in the commercial real estate
than those in Colombia (33%) or in 29% sector in Brazil.
the rest of the region (46%). This is 23% • Market transformation is
a significant drop of 16 percentage Internal Corporate also considered a key trigger
Commitment
points for Brazil from the 2015 in Brazil, with a much higher
12%
findings as well. percentage (28%) selecting it
39%
17% than the global average (15%) or
30% of respondents across the
than selected it in 2015 (12%),
region expect to do new green
and supports the high level of
institutional projects, lower than the
optimism reported for green
global average of 38%.
6_18_SAmerica_Triggers building in the next three years.
■■Few in Brazil in particular (16%) are
• Client demands are also
expecting to work in this sector.
important in Brazil, although
Colombia at 32% and the rest of the
they are selected by a lower
region at 35% are both much closer
percentage there (26%) than the
to the global average.
global average (34%). The findings
are roughly consistent with those
in 2015 when it was selected by

29%, although at that time, CHALLENGES Social and

client demands was the top Unlike the triggers, whose Environmental Reasons
trigger for Brazil. importance varies by country, for Building Green
• Healthier buildings is the final there is general agreement across
SOCIAL REASONS
top trigger for Brazil. While the the region about the top barriers to
The top social reason for building
percentage of respondents for this increased green building.
green in this region is improved
trigger is on par with the global ■■Higher First Costs (Real or
occupant health and well-being.
average, it is much higher than in Perceived): Over half (56%) across
It was not only rated as important
Colombia, where very few see this the region believe this is one of the
on a scale of one to five by 87% of
as a top driver. This trigger was not top barriers to green building in
respondents, but over three quarters
included in the 2015 study. their markets.
(76%) of those who consider it
■■Colombia: Corporate culture • The percentage of Brazilian
important rate it among their top two
and regulations help drive green respondents selecting this
social reasons for building green.
building in Colombia, with an challenge (47%) is on par with the
The other major social reason
emphasis on fulfilling green goals global average of 49%.
for building green according to
and improving the bottom line. • A relatively high percentage in
respondents from this region is that
• 39% of Colombian respondents Colombia (58%) select higher
it promotes sustainable business
find internal corporate costs as a top obstacle, although
practices. However, there are
commitments to be a top trigger it has dropped notably since 2015
differences by country for this factor.
for green building in their market, when it was selected by 67%.
• In Brazil, 70% rate this as
far more than those in Brazil (12%) ■■Lack of Political Support or
important, but only 33% of
or the global average (17%). This Incentives: Regionally, this is
those respondents place it
was also the top trigger in 2015 for considered a top barrier by nearly
among the top two social
Colombia, selected by 33%. half (49%) of respondents. Both
• Environmental regulations are Brazil (44%) and Colombia (49%) far
• In Colombia, 81% rate it as
also an important driver here, exceed the global average (33%)
important, and 58% of those
selected by 35%, which is similar for this challenge, suggesting that
consider it one of their top
to the global average. This is also this is a particular issue in this
two reasons.
similar to the finding in 2015, when region that needs to be addressed.
this trigger was selected by 31%. However, it is notable that this At least half of the respondents
• Lower operating costs is the challenge is selected by a much in Brazil and Colombia rate the
third most frequently selected higher percentage currently than other four social reasons for
trigger in Colombia, demonstrating in 2015 (39%) in Brazil and a much building green, including creating
the importance of a good business lower percentage currently than in a sense of community, increasing
case for green in this market. It 2015 (60%) in Colombia. worker productivity, improving
was selected by 22% in 2015, and ■■Lack of Public Awareness: About the domestic economy and being
ranked fifth at that time. one third (32%) of the respondents aesthetically pleasing, as important,
• It is notable that 27% in Colombia regionally report that this is a suggesting that all these reasons
consider market transformation top barrier, and Brazil (33%) and influence the market.
a top trigger, similar to the Colombia (30%) have a similar
percentage in Brazil and slightly percentage of respondents to each
All five environmental reasons
below the 31% who selected it other and to the global average
for building green included in the
in 2015. (32%). This factor has dropped
study—reduce energy consumption,
notably in both Brazil and Colombia
reduce water consumption, preserve
from the percentage of respondents
natural resources, improve indoor
who selected it in 2015 (41% and
air quality and lower greenhouse
45%, respectively).

gas emissions—are rated as Business Benefits GREEN RETROFIT PROJECTS

important by more than 80% of Estimations of the one-year

NEW GREEN BUILDING
respondents across the region and in operating cost savings regionally
PROJECTS
Colombia, and by more than 75% of and in Brazil are just slightly under
Respondents from Brazil and
respondents in Brazil. It is clear that the global average of 9%, but
Colombia are slightly more
all of these are widely recognized respondents in Colombia only expect
conservative than their regional
as essential components of green about 5%.
counterparts in the one-year
building in these two countries. Their five-year estimates are
operating cost savings they expect
When asked to select their top larger, though, than the global
in green buildings compared with
two among these environmental average of 13%, with Colombia close
traditional ones. They are also much
reasons, reducing energy to that average at 14%, and Brazil and
closer to the global median of 8%.
consumption is most frequently the region notably higher.
Expectations about five-year
chosen, both regionally and in The median payback period
operating cost savings in Brazil are
Brazil and Mexico. However, it is expected in this region is five years,
the same as the global median
notable that it is only selected as a just slightly under the global average
(14%), but they are high regionally
top reason by 61% in Brazil and 56% of six years.
and in Colombia.
in Colombia, relatively low for this
The payback period for the
factor, and that a couple of other
additional cost of a new green
reasons are selected by a relatively
building in Brazil is the same as
high percentage.
the global median of seven years.
• 51% in Colombia consider water
In Colombia, though, a five-year
conservation a top environmental
payback is expected.
reason for building green.
• Almost half in Brazil (49%) and
Colombia (48%) also consider
preserving natural resources a
top reason.
Expected Business Benefits of Green Building in South America,

Central America and the Caribbean
New Green Building
South America, Central America
Brazil Colombia
and the Caribbean
Decreased Operating Costs Over One Year 11% 9% 10%
Payback Time for Green Investments (Years) 6 7 5
Green Retrofits
South America, Central America
Brazil Colombia
and the Caribbean
Decreased Operating Costs Over One Year 8% 8% 5%

Data:Southeast Asia
Green Building Activity and Trends in Southeast Asia
The green mandates in Singapore have led to a high level of green activity
already, and it is expected to grow even more in the three years. Vietnam’s
market is driven by the priorities of commercial construction, including
market demand, higher building values and healthier buildings.
Respondents from Southeast Asia In contrast, only 13% of SECTORS WITH

came from seven countries. Two of respondents in Vietnam are EXPECTED GROWTH
them, Singapore and Vietnam, had currently doing the majority of The top project sectors for green
sufficient responses to be analyzed their projects green. In contrast, building in Southeast Asia are
separately, but data from the region nearly one third (32%) of Vietnamese new commercial construction
as a whole is also included in respondents are doing between 1% (57%), high-rise residential (41%)
this section. to 30% of their projects green. and communities (36%). All three
Over one third of the respondents Singapore is also expecting to see are above the global average for
from Vietnam (39%) work at increased levels of green building in percentage expecting to do work
companies that are members of a the next three years. By 2021, 45% of in these sector, with the most
green building council, and a lower those in Singapore expect to do the notable gap in communities,
percentage work for green building majority of their projects green. which is only selected by 24%
council members in Singapore (28%). Vietnam is also expecting to see of global respondents.
This disparity should be kept in a significant increase in the level There are a few notable differences
mind when comparing the findings of green activity. The percentage by country.
from the two countries, and when expecting to do fewer than 16% ■■61% of respondents from
comparing their levels of green green projects shrinks from 40% to Vietnam expect to do new green
building activity to other countries, 22% with commensurate growth in commercial construction in the
since the global average is 44% for those doing more green building, next three years. While this is not
green building council membership. especially in those doing the majority a statistically significant increase
of their projects green, which nearly above the 48% in Singapore
Green Building doubles from 13% to 24%.
Market Activity
A high percentage of respondents
Levels of Green Building Activity for Respondents in
from Southeast Asia (94%) have
Southeast Asia (2018 and 2021 Expected)
done at least some green building
projects, revealing a robust market
for green building. 1% to 15% Green Projects More Than 60% Green Projects
Singapore, in particular, already Exploring (No Green 31% to 60% Green Projects
has a very high level of green Involvement) 16% to 30% Green Projects
building activity. Over one third
Singapore Vietnam
(34%) report that the majority of
their projects (over 60%) are green,
34%
a notable level of growth over the 45% 24%
findings from the 2015 study, in 13%
which 23% were engaged at that 27% 15% 24%
level in green building. This high 25%
27%
level of activity is no doubt due to 2% 32% 15% 30%
27% 21%
the mandates for green in place 10% 7% 13% 7%
in Singapore. 2%
2018 2021 2018 2021
6_10_SEAsia_Activity_#01
Data: Southeast Asia CONTINUED
expecting to work in this sector, it is Top Triggers Driving Future selected by a slightly higher
still directionally notable and above Green Building Activity percentage than in Singapore, and
the global average of 51%. in Southeast Asia consistent with the global average.
■■61% of respondents from Vietnam Dodge Data & Analytics, 2018 • The percentage in Vietnam
also expect to do new green high- Singapore selecting healthier buildings as
rise residential work, significantly Vietnam a top trigger (28%) is in line with
more than those in Singapore (25%) Global Average the global average. It is likely that
and again well above the global the commercial building market
average (35%). Environmental Regulations is influencing its rank among
■■Nearly half (49%) of Singapore 42% the Vietnamese respondents,
respondents anticipate working 24% since healthier buildings have
on green existing building/retrofit 33% been widely promoted in this
projects, more than the 37% global Lower Operating Costs segment and currently provide
average and far more than the 13% 32% a competitive advantage for
who expect to do work in this sector 19% attracting and retaining tenants.
in Vietnam. 23%
Client Demands CHALLENGES
The top barriers to green growth
Influence Factors 28%
in Southeast Asia overall are
for Future Green 33%
34% higher (real or perceived) first
Building Activity costs (48%), lack of trained/educated
Market Demands
TRIGGERS 26% green building professionals (34%)
The two triggers for new green 37% and affordability/the perception
building activity most frequently 25% that green is for high-end projects
selected by Southeast Asia Higher Building Values only (32%). Similar to the triggers,
respondents are environmental 13% though, the critical barriers also vary
regulations (42%) and creating 35% by country.
healthier buildings (39%). However, 15% ■■Singapore: By far the biggest
differences emerge by country. Healthier Buildings barrier to green building in

■■Singapore: The green mandate 12% Singapore is higher first costs.
drives green building in this 28% This is likely related to operating
market, but lower operating costs 27% cost savings being an important
are also influential. trigger for green since long
• Environmental regulations payback periods on these
Vietnam: The influence of the
■■
are considered an important investments can cause challenges
commercial real estate market
trigger by 42% of respondents in 6_19_SE Asia_Triggers_#02 to those promoting the benefits of
is evident in the triggers driving
Singapore, far more than the 24% building green.
green building in Vietnam.
influenced by them in Vietnam • The other top barriers are selected
• Market demands is the top
and notably more than the global by about one third of respondents:
trigger, selected by 37%, notably
average of 33%. affordability/perception green
higher than the global average.
• Lower operating costs is for high-end projects only
• Higher building values is
are selected by 33% of (32%) and the lack of trained/
selected by 35% as a top trigger,
respondents from Singapore educated green building
an unusually high percentage
as an important trigger. This professionals (30%).
which is likely linked to the robust
demonstrates that a good ■■Vietnam: Vietnam has a wide
green commercial building market.
business case is also an important range of important barriers that
• Client demands are also an
driver in Singapore, in addition to need to be addressed.
important trigger in Vietnam,
the government mandate.

Data: Southeast Asia CONTINUED
• The top barrier to green building Improving occupant health and it one of the top two reasons), while
■■
for Vietnamese respondents is well-being was selected as one in Vietnam, 42% of those who
the lack of trained/educated of the top two reasons by 71% of consider improved indoor air quality
green building professionals, Vietnamese respondents. 59% in important choose it as one of their
selected by 43%. In emerging Singapore selected it among their top two reasons.
markets with a high level of top two as well.
green growth expected, this can
Business Benefits
be an issue since experienced
Reducing energy consumption is NEW GREEN BUILDING
green professionals can be rare in
rated as important on a five-point PROJECTS
those markets.
scale by 89% of respondents from Respondents from Southeast Asia
• 41% select the lack of political
Singapore and 87% of respondents are generally optimistic about the
support or incentives as a top
from Vietnam, the highest for business benefits they get from new
obstacle in Vietnam.
any of the environmental reasons green building projects. While the
• Other obstacles selected by more
for building green included in the Vietnamese respondents are slightly
than one third of Vietnamese
study. It is also selected as one of lower than the global average for
respondents include higher
the top two environmental reasons operating cost savings for one year,
first costs (37%) and lack of
for building green by those who their five-year projections are far
public awareness about green
considered it important by 77% above the global average.
building (37%).
of respondents from Singapore The payback period of seven years
and 68% from Vietnam, the highest is consistent with other findings
Social and as well. across the globe.
Environmental Reasons About half of those who rate
for Building Green protecting natural resources as
GREEN RETROFIT PROJECTS
The operating cost savings and
SOCIAL REASONS important in Singapore (42%) and
payback period for retrofits are also
Respondents were asked two Vietnam (50%) consider it one of the
fairly consistent with the general
questions about the social reasons top two reasons for building green.
global findings.
for building green: First, they were In Singapore, water conservation
asked to rate the importance of six is also highly regarded (43% consider
reasons provided in the study on
a scale of one to five. Then, those
who rated more than one reason as
Southeast Asia
important were asked to select the
top two reasons. New Green Building
Promoting sustainable business Southeast Singapore Vietnam
practices and improving occupant Asia
health and well-being were the Decreased Operating Costs Over One Year 9% 9% 7%
top two social reasons for building
green selected by respondents from
Singapore and Vietnam.
■■Promoting sustainable business
Green Retrofits
practices was selected as one of
the top two social reasons by 80% Southeast Singapore Vietnam
Asia
of those who consider it important
in Singapore. It was selected by the Decreased Operating Costs Over One Year 8% 7% 7%
second highest percentage (63%) of Decreased Operating Costs Over Five Years 11% 9% 12%
Vietnamese respondents. Payback Time for Green Investments (Years) 5 5 7

Methodology:
World Green Building Trends Research
The World Green Building Trends The distribution of respondent is Benchmark of Accuracy
Study was conducted to achieve as follows: The total sample size of 2,078
the following objectives: 1) identify • Architect/Design Firm: 25% benchmarks at a high degree of
triggers, obstacles and reasons • Contractor/Builder: 23% accuracy: 95% confidence interval
for adopting green building in the • Specialist/Consultant: 21% with a margin of error of 2%.
domestic marketplace; 2) measure • Owner/Developer: 18%
past, current and future levels of • Engineering Firm: 12% Definition of
activity in green building; 3) identify • Investor: 1% Green Building
important construction sectors Respondents were asked about their
Respondents were located in
for growth in green building; company’s level of green activity
86 countries, listed on page 76.
4) measure the impact of green in two ways: by the share of green
Sufficient responses were provided
building practices on business certified projects out of their overall
for statistically significant analysis to
operations; 5) profile the use of work, and by the share of total green
be conducted for 19 countries, also
green building products and/or projects. For the determination of
listed on page 76.
methods; and 6) uncover trends in what qualified as a green building, the
the industry through comparison COUNTRIES FEATURED following definition was provided:
with relevant findings from the 2012 The percentage of respondents by
and 2015 Global Trends in Green the countries featured in report are At a minimum, for a building project
Building Studies. as follows, along with the percentage to be considered green, it must
The study was conducted between of respondents from that country include the following:
April and June 2018. It was fielded who are members of a green building • Efficient use of energy, water and
using panel providers, email blasts council (GBC):: other resources
and association broadcast to • Australia: 5% of total; 63% • Pollution and waste reduction
members, or by forwarding the link GBC respondents measures, and the enabling of
to other groups as follows: 1) multiple • Brazil: 2% of total; 12% GBC reuse and recycling
Green Building Councils across the • Canada: 3% of total; 68% GBC • Good indoor environmental
world sent email invitations to their • China Mainland: 2% of total; air quality
members; 2) several associations 14% GBC • Consideration of the environment
(AIA, ACE, CIOB, IMEI and USGBC) • China Hong Kong: 2% of total; in design, construction
sent the survey link to members; 46% GBC and operation
and 3) the survey was sent to a • Colombia: 6% of total; 32% GBC
In addition, green building projects
Dodge Data & Analytics database of • Germany: 2% of total; 8% GBC
include as many of the following
industry professionals. • India: 19% of total; 51% GBC
as possible:
• Ireland: 1% of total; 61% GBC
• Use of renewable energy, such as
Study Participants • Mexico: 3% of total; 20% GBC
solar energy
2,078 architects, engineers, • Norway: 4% of total; 73% GBC
• Use of materials that are non-toxic,
contractors, owners, specialists/ • Poland: 3% of total; 39% GBC
ethical and sustainable
consultants and investors responded • Saudi Arabia: 2% of total; 8% GBC
• Consideration of the quality
to the survey. All respondents • Singapore: 3% to total; 28% GBC
of life of occupants in design,
were required to be employed • South Africa: 4% of total;
construction and operation
construction professionals and to 52% GBC
• A design that enables adaptation
have non-building projects account • Spain: 1% of total; 65% GBC
to a changing environment
for no more than 50% of their • UAE: 2% of total; 48% GBC
office’s revenue. • UK: 4% of total; 13% GBC
• US: 16% of total; 53% GBC
• Vietnam: 3% of total; 39% GBC

Methodology: World Green Building Trends Reserach CONTINUED
The results in this report are drawn from survey respondents from the following 86 countries, with statistically
significant results on the highlighted 19 countries. See region/country-specific results on pages 46–74.
Afghanistan Dominican Republic Lesotho Saudi Arabia

Albania El Salvador Malaysia Sierra Leone
Argentina Finland Malta Singapore
Australia France Mexico Slovakia
Austria Germany Moldova Slovenia
The Bahamas Ghana Morocco South Africa
Bahrain Gibraltar Namibia Spain
Bangladesh Greece New Zealand Sri Lanka
Belgium Guatemala Nicaragua Sweden
Bermuda Guyana Nigeria Switzerland
Botswana Hungary Norway Trinidad and Tobago
Brazil India Oman Turkey
British Indian Ocean Indonesia Palestine Ukraine
Brunei Iran Pakistan United Arab Emirates
Cambodia Ireland Panama United Kingdom
Canada Israel Peru United States
China (Mainland Italy Philippines Uruguay
and Hong Kong) Japan Poland US Virgin Islands
Colombia Jordan Portugal Vietnam
Costa Rica Kenya Puerto Rico
Czech Republic Kuwait Qatar
Democratic People’s Latvia Republic of Korea
Republic of Korea Lebanon Romania

SmartMarket Report
Resources
Organizations and websites that can help you get
smarter about global green building trends.
ACKNOWLEDGEMENTS:
The authors wish to thank Carrier, and its parent company United Technologies
Corporation, whose vision and commitment have been essential to this
research series since 2008.
Main Website : www.construction.com We also thank our premier partners, the AIA and Autodesk, and our
Dodge Global Network : contributing partner, USGBC, without whose partnership and funding this
www.construction.com/products/ report would not have been possible.
dodge-global-network
In addition, we thank World GBC for their active role as a research partner in
Research & Analytics :
www.construction.com/products/ helping the study be a success. We also appreciate the efforts of the GBCs
dodge-research-analytics globally who shared the survey with their members.
Sweets : www.construction.
We also thank our other research partners, ACE, CIOB and IMEI, for their efforts
com/products/sweets
to broaden the reach of our survey and variety of responses.
SmartMarket Reports :
www.construction.com/ Finally, we thank all the individuals and organizations who contributed their
toolkit/reports experiences, data and images for publication in the case studies, along with
those who agreed to provide their insights in our feature articles.
Carrier The American Institute of Architects Autodesk

www.carrier.com www.aia.org www.autodesk.com
Contributing Partner Other Resources mindful MATERIALS Collabortative :

www.mindfulmaterials.com
US Green Building Council : Architecture 2030 : https://
https://new.usgbc.org architecture2030.org/2030_
National Institute of Building
challenges/2030-challenge
Premier Research Partner Sciences : www.nibs.org
World Green Building Council : ASHRAE : www.ashrae.org

Organization for Economic
www.worldgbc.org
Building Owners and Managers Deelopment and Cooperation
Research
Produced Partners
with support from Association International (OECD) : www.oecd.org
Architects’ Council of Europe : (BOMA) : www.boma.org
Resilient Design Institute :
www.ace-cae.eu
C40 Cities : www.c40.org www.resilientdesign.org
The Chartered Institute of Building :
The Global ESG Benchmark United Nations Framework
www.ciob.org
for Real Assets Requirements Convention on Climate
La Asociación Mexicana del Edificio (GRESB) : https://gresb.com Change : https://unfccc.int
Inteligente y Sustentable A.C.
(IMEI) : https://imei.org.mx/imei International WELL Building
Institute : www.wellcertified.com
■ Design and Construction Intelligence
SmartMarket Report
www.construction.com
Dodge Data & Analytics SmartMarket Reports™
Get smart about the latest industry trends.

For more information on these reports and others, visit
analyticsstore.construction.com
Research Partners:
Participating GBCs:
IRISH GREEN BUILDING COUNCIL

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SmartMarket Report

World Green Building

Produced in Partnership With: Premier Partners: Premier Research Partner:

Dodge Data & Analytics World Green Building Trends

Technologies Corporation, and with particular strength in diverse markets

Dodge Data & Analytics 1 www.construction.com SmartMarket Report

10 Green Building Market Activity

14 Influences on the Green Building Market

32 Business Benefits of Green Building

41 Green Building Products and Services

SmartMarket Report Dodge Data & Analytics 2 www.construction.com

Below: Silver Star Apartments

46 Country and Regional Profiles

Dodge Data & Analytics 3 www.construction.com SmartMarket Report

Green Building Activity Is Increasing, Level of Green Building Activity

two questions about their level of green activity: the

SmartMarket Report Dodge Data & Analytics 4 www.construction.com

The current findings, represented in the chart at right,

Gain in Importance Over Time 2018

Dodge Data & Analytics 5 www.construction.com SmartMarket Report

SmartMarket Report Dodge Data & Analytics 6 www.construction.com

Norway Poland Saudi Singapore South Spain UAE UK US Vietnam

2_3_Market_HighGreenCountry_#01 Dodge Data & Analytics 7 www.construction.com SmartMarket Report

Singapore do the majority of their about the affordability to 45%.

SmartMarket Report Dodge Data & Analytics 8 www.construction.com

McGraw Hill Construction) has conducted global

Dodge Data & Analytics 9 www.construction.com SmartMarket Report

Level of Green Building Activity

years (2021). They were asked to measure the share of

majority (more than 60%) of their projects are

the growth of green in the future, with 57% reporting 20%

SmartMarket Report Dodge Data & Analytics 10 www.construction.com

Certified Versus Total Green Projects Green Activity by Country

Norway Poland Saudi Singapore South Spain UAE UK US Vietnam

Sectors for Future Green Building Activity

Poland China Saudi Ireland US

SmartMarket Report Dodge Data & Analytics 12 www.construction.com

Even as interest in creating healthier buildings grows globally, the specific

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Top Barriers to Increased Green Building Activity

Barriers by Year Higher (Perceived or Actual) First Costs

Ireland, surprising in such established green markets,

SmartMarket Report Dodge Data & Analytics 14 www.construction.com

of political support or incentives as a barrier to

Top Five Global Average Low Five

US Ireland Colombia Australia Norway Saudi Vietnam India UAE Germany

42% 41% 41% 39% 38%

Australia Norway UAE UK China Vietnam Poland Ireland Spain Brazil

49% 45% 44% 41% 39%

Colombia Spain Brazil Vietnam China US Germany UAE Saudi Singapore

50% 46% 45% 42%

India Poland UAE Spain Vietnam Canada/ Norway Singapore US Australia

Dodge Data & Analytics 15 www.construction.com SmartMarket Report

Triggers to Increased Levels of Green Building

previous years are not included on the chart because

SmartMarket Report Dodge Data & Analytics 16 www.construction.com

those types of projects. in healthier buildings, India and China (Mainland),

Top Five Global Average Low Five

Ireland UK Canada US Germany India Saudi Mexico China Colombia

50% 48% 45% 42% 42%

UAE UK Ireland India Singapore Brazil China Norway Spain Poland

39% 35% 33% 32% 28%

India China South US Vietnam Norway Spain Singapore Mexico Colombia

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