GLOSSARY Appraisal An expert opinion on the value of a property; the act or process of estimating value. Asset A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Building Research Establishment Environmental Assessment Method (BREEAM) A method of assessing the sustainability performance of both new and existing commercial buildings primarily based in the UK. 1 Commissioning A quality assurance process intended to confirm that all systems of a building—heat, air conditioning, electrical, plumbing, safety, security—are operating as intended by the building owner and designed by the architect and engineer. Energy Performance Certificates (EPC) A mandatory certification required when a building is being sold, built or rented, that provides an energy efficiency rating (from A-G) and recommendations for improvement. 1 Energy Star An energy performance rating system for commercial, institutional and industrial buildings developed by the US Environmental Protection Agency. The rating can also be used to determine whether a property qualifies for Energy Star recognition. 1 Fiduciary A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit. 2 Financial Return The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage. 2 Green Certification Schemes which provide third-party assessment of green building measures on a wide variety of building types. Green Lease A “green lease” seeks to remove disincentives in a commercial lease to reduced energy, water and raw material consumption, increased recycling, as well as the use of sustainable materials in tenant improvements, and encourages sustainable practices by both the landlord and the tenant. A green lease works to ensure that tenants and landlords are required to adopt environmentally friendly practices. Green Mark Voluntary scheme which was launched in January 2005 By Singapore’s Building and Construction Authority as an initiative to drive Singapore’s construction industry towards more environment-friendly buildings. Green Star A voluntary environmental rating system for buildings in Australia, launched in 2003 by the Green Building Council of Australia. Haute Qualité Environnementale (HQE) A standard for green building in France that considers environmental issues in building construction, designed to improve the environmental quality of buildings and monitor environmental impacts. Human Capital A measure of the economic value of an employee’s skill set. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. 2
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THE BUSINESS CASE FOR GREEN BUILDING