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editor’snote
VOL. 31 NO. 7
THE SPEED OF LIGHT in a real estate context might be slower than the scientific definition, but it has certainly been the pacesetter for energy-efficient building technologies for a number of years. This is no doubt due to research, innovation and highly successful commercialization, but lighting also enjoys some inherent advantages over other types of equipment. It costs less, needs to be replaced more frequently and is seen as a design element as well as a utilitarian function. Lighting's vaster scale of production and faster turnover of product lines creates more opportunities for advances, while consumers are more willing to invest in exploratory purchases. "It's a $6 bulb instead of a $20,000 chiller," observes Eric Richman, chair of the ASHRAE lighting subcommittee that has just ushered in another round of enhanced performance requirements in a new edition of the 90.1 standard for energy efficiency in buildings. While the myriad North American jurisdictions that reference that venerable standard in their building regulations can fall years or even decades behind ASHRAE's triennial update schedule, the developers of the 90.1 standard are actually chasing the market. Performance criteria are established through modelling of available technology. "In terms of some lighting technology, we often think three years is a long time," Richman reports. "Other types of products don't seem to have the really disruptive technological change like lighting has." Our Focus on green buildings, sustainable management and operations charts this continuum of market transformation from the rapid accelerators to those that could use a nudge at the starting gate. Not all products, practices and perspectives have had lighting's brilliant trajectory, but they all do help to make the business case for each other. Reaping the paybacks on the $6 bulb makes consumers open to investing a little more capital next time in other goods with similar promise. Looking at the players in market transformation, green capitalists might be seen as the lighting in the game. Voters make seldom choices for long-lasting but generally slow-moving entities, while consumers make choices relatively continuously. Happily, however, voters and consumers are pretty much the same people. Thus, green capitalists have exponentially more opportunity to win their favour. Something to think about in the times in which we find ourselves.
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contents
Focus: Green Buildings, Sustainable Management & Operations 10 Proposed National Energy Code Changes 14 Infrastructure Investment Pushes Sustainability Envelope 20 LEED v4 Becomes Compulsory Path 24 Building Toward 2030 Emission Reduction Target 28 Environmental Management System Stays Prosecution 34 GRESB for Infrastructure Introduced 36 Canada Endorses ISO 50001 38 2016 GRESB Results 40 Industry Leadership at Oxford Properties 44 Global Cities Provide Green Building Platform 48 Vancouver's Zero Emissions Building Plan 52 Returns on Mechanical Insulation 54 Species at Risk Halt Development 58 ASHRAE 90.1-2016 Addresses In-Suite Lighting
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Editor’s note
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STEPPING UP BUILDING PER Updated National Energy Code Could Inspire New Architectural Trends By Barbara Carss FEWER GLASS TOWERS will be appearing in Canadian skylines if proposed changes to the National Energy Code for Buildings (NECB) are adopted. Consumer demand may be driving the recent proliferation of high-rise condominiums with extreme window-to-wall ratios, but recently released documentation from the Canadian Commission on Building and Fire Codes (CCBFC) contends that a flawed basis for determining a building's thermal transmittance has played an enabling role. A slate of measures addressing building envelope, heat recovery and lighting are now posted for public comment with a
target for a 2017 code update. Of these, new criteria for calculating thermal bridging and a mandate for heat/energy recovery systems in a wide range of conditions could have the most significant impact on the design and construction of new buildings. Other proposals of note include calls for improved performance of roofs, window and doors; reduced allowance for skylights; and generally lower lighting power densities due to the emergence of more energy-efficient lighting products (see story, page 58). "This is a lot in one step, but I think this is where we need to get," advises Andrew Pap e -Sa l mon, Sen ior Energ y &
10 Canadian Property Management | Part of the REMI Network
Sustainability Specialist with RDH Building Science Inc. "Definitely it will increase upfront capital costs [to comply with the code], but these are all economically justifiable from an operating cost perspective." THERMAL BRIDGING In calling for a more comprehensive approach to gauging infiltration/leakage, the CCBFC maintains that currently accepted methods underrate the impact of thermal bridges – i.e. how heat or cold moves between various elements of the building envelope assembly.
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FORMANCE Currently, a fairly limited number of elements are directly factored into the code's allowances for overall thermal transmittance, while other elements that penetrate the envelope are addressed more generally as a percentage of the surface area or exempted from consideration if insulation is present. New evidence disputes these assumptions. "With the NECB-allowed exclusions and unconsidered thermal bridges, the actual overall thermal transmittance of opaque envelope assemblies can be substantially higher (>2x) than the calculated overall thermal transmittance as assumed in the NECB," the rationale for the proposed
change states. "Because the impact of thermal bridges is not properly reflected in 'base building' assumptions, there is no credit or incentive for designers to incorporate design practices that reduce thermal bridging." For example, the insulated glass spandrel panels that create the opaque portion of a glass curtain wall can have a high insulation value when assessed as a stand-alone structural component, but any penetration or contact with other surfaces will diminish that performance. "If you take into account all the thermal bridging, the R-20 degrades to R-5 or R-4,"
Pape-Salmon notes. "That would be the best example of thermal bridging and the worst example of degraded thermal performance." To counter this, it's proposed that designers would have to account for the thermal transfer at almost any place another element comes into contact with the envelope, including: studs and joists; penetration of floor slabs, beams, girders and columns; junctions with the roof or glazing; edges of walls and f loors; ornaments; and appendages. This could be accomplished via prescribed ASHRAE or ISO calculations, computer modelling or laboratory www.REMInetwork.com | November 2016 11
greenpromise&delivery testing, but Pape-Salmon speculates most developers will opt for modelling and the cost premium that goes with it. "Fundamentally, this requires what's called thermal analysis. The thermal bridging calculations mean everything is moving into the cost area of energy modelling," he says. "It's definitely increasing the cost of compliance, but it is also moving us into the direction of the compliant building actually performing in line with what the energy model has predicted." The proposed measure means that formerly compliant designs could fail to stay within the code's allowable limit for thermal transmittance since developers' calculations will almost automatically yield higher numbers – a result the CCBFC acknowledges amounts to a "major change in performance requirements". "This, in turn, will require major departures from current common construction practice in NECB-compliant buildings and associated increases in construction costs," the code change rationale states. However, there may be relatively little cost impact for designs that already exceed the code. On the plus side, the CCBFC argues that expanding the required input of information will help developers identify where gains can be made. "One benefit of this additional analysis is that it will make apparent where low-cost changes to details can generate significant changes to energy use over time," it submits. An accompanying consultant's report commissioned by the CCBFC's Standing Committee on Energy Efficiency in Buildings also stresses that this measure is the most effective among all proposed code changes. "Codifying infiltration would have a significant impact on energy savings (in the range of 20-40%) for all building types in all six climate zones," it concludes. U VALUE REDUCTIONS Meanwhile, the proposed code changes would explicitly mandate improved performance of roofs, windows and doors, equating to a 15% increase in insulation values. Notably, associated studies conclude that there are fenestration products "currently available" in the marketplace that could achieve this target, resulting in modelled savings of 2.1% to 3.3% of total building energy consumption depending on building type and geographical location. The cost premium for this new window performance requirement, relative to the current NECB, is pegged at a maximum of
$10 to $15 per square metre in all but the coldest of climate zones. Perhaps more ominously, the code change rationale also suggests the new stipulation "may force windows to be completely redesigned." "Each specific change may result in a very small cost to the builders, but when you add up all the changes, the cost increase can be very significant," cautions Bob Finnigan, President of the Canadian Home Builders Association and Chief Operating Officer with the housing developer, Herity. Yet, based on trends in the single-family and low-rise market, industry insiders do foresee more competitive product costs as market scale grows. "The technology is there. The glazings are there. As production ramps up then costs usually go down," observes Lisa Bergeron, Government Relations Manager with the window and door manufacturer, JELDWEN, and First Vice President of the industry association, Fenestration Canada. She commends Natural Resources Canada's Energy Star initiative – a voluntary partnership with manufacturers supplying the residential and low-rise sector – and suggests the proposed regulatory prompt might spur similar progress in larger commercial/multi-residential buildings. "It truly is a market transformation," Bergeron asserts. "We went from doing clearclear [in double pane assemblies] to using low-e argon in about a five-year period. Low-e was a rarity not that long ago. Now, a lot of the time, the regulations are trailing what's happening in the marketplace. Now the residential sector is going to triple [pane]." Pape-Salmon concurs. "In commercial buildings, performance of windows has not been tracking in step with the residential sector," he says. "The proposed code change is very significant. It ensures windows will be high-performing and Canadian manufacturers are capable of meeting this requirement." Together, the more stringent fenestration requirements and heightened scrutiny of thermal bridging will likely have the most impact in the multi-residential sector. As code drafters have intended, developers will either have to ensure their favoured architectural style is more energy-efficient or turn to something different to engage prospective homebuyers. "The glass boxes would still be plausible, but they'd need better windows and the balconies would have to be better insulated from the suite," affirms Andrew Pride, an independent energy management consultant who serves as Chair of the Standing
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Committee on Energy Efficiency in Buildings. "There are countless examples today of developers profitably constructing buildings, including glass boxes, that are designed to use significantly less energy than required by code." HEAT RECOVERY Tighter building envelopes lead somewhat logically to ventilation and the proposals for heat recovery or energy recovery systems in a much wider sweep of buildings. The code currently mandates heat recovery when the air exhausted from a building's HVAC system contains at least 150 kilowatts of sensible heat, but code drafters suggest there are far greater savings to be captured and cost-effective technologies for doing so. The proposed code changes establish varying triggers for requiring heat/energy recovery based on the climate zone and the volume of outdoor air that will be drawn into a building. They also introduce more stringent efficiency thresholds for heat recovery equipment, bumping up the current requirement for a minimum of 50% transfer of energy to 60%. Effectively, heat/energy recovery systems would be required in almost all commercial buildings (except in Vancouver's climate) where ventilation systems operate for at least 8,000 hours per year. Multi-residential buildings with self-contained in-suite HVAC systems would be exempted. "This is a significant move for Canada and it actually puts our code at the forefront for energy performance," Pape-Salmon says. Yet, in practice, HVAC industry insiders suggest the market is already there. "We are sealing up buildings tighter and tighter and, as a consequence, ventilation is critical for air quality," says Warren Heeley, President of the Heating, Refrigeration and Air-conditioning Institute (HRAI) of Canada. "Energy recovery is a mainstay of the commercial side of the building industry. It just makes sense to try to save on the costs of warming up the air you're bringing in from outside." Other proposed code changes include: ventilation requirements specifically targeted to commercial kitchens; a reduction of the allowable area for skylights from 5% to 2% of gross roof area; and occupancytriggered controls for lighting and temperature in hotel and motel guestrooms. All are posted on the Canadian Codes Commission website at www.codescanada. ca and are open for comments until December 9, 2016. zz
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THE NEW NORMAL LOOKS GREEN High-Performance, High-Profile Institutional Projects Raise Real Estate Expectations
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By Jon Douglas EARLIER THIS FALL, the federal government released details on the second phase of infrastructure funding. Since the middle of the summer, hundreds of infrastructure projects across the country have received phaseone funding from the federal government, which is aimed at boosting the economy, replacing aging infrastructure and investing in the innovation, research and technology sector. Higher education investments alone account for more than 300 of the federally funded projects, with aims of stimulating innovation and research within the education realm. These projects will raise the bar for all green buildings in the country and have already changed the conversation on sustainability for many organizations. A unique aspect of this round of infrastructure investment is that it also looked to address climate change and spark the conversation about moving to a low-carbon economy. The funding structure required applicants to detail how each project would address climate change, greenhouse gas emissions and other environmental issues. Some observers have voiced concern that the gover nment did not set requirements high enough, and that merely asking for a list of strategies will not g ua ra nte e envi ron ment a l per for mance. However, from the perspective of an advisor to a number of institutions submitting applications for funding, their approach to sustainability strategies is evolving to a new level. Under the program, infrastructure funds were to be allocated based on how proposed projects met their stated sustainability objectives. As a result,
higher education institutions became increasingly competitive to put forward the best expressions of their dedication to a sustainable future. Organizations were having sustainability conversations of a whole different calibre. LEED is a great system to ensure the development of a wel l-rou nde d, sustainable project, and should be recognized for its unique value in the marketplace. However, in this context, proposing LEED certifications of any level was no longer enough to distinguish a project from the pack and secure the needed funding. Because federal funding only provided for half the cost of projects, institutions also needed to seek provincial and private funding to make up the remaining half. The effect of appealing to at least two different funding bodies led projects to pursue higher sustainability goals and targets than most would have considered in the past. Targeting energy performance under 100 kilowatt-hours per square metre, integrating large renewable energy components and even proposing to be Net Zero Energy were all a part of this new infrastructure investment discussion. MOMENTUM FOR GREATER ACHIEVEMENT Why does this matter to the real estate industry? And why should the private sector and public intuitions take note of this shift in the conversation around sustainability? At the macro level, this means that more than 300 projects will be built in the next 18 months (funding requirements stipulated projects must reach substantial completion by spring of 2018) and add significant square footage to Canada’s www.REMInetwork.com | November 2016 15
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real estate stock. It also means that 300 project teams are pursuing sustainability targets that were thought somewhat out of reach before. These developments are going to be from coast to coast, and will dominate real estate and sustainability news for the coming years. With the political nature of the funding tending to drive news coverage, there will be 300 ribbon cuttings with 300 accompanying photo opportunities. Developers, owners and investors with projects to be announced or completed in this timeframe should take note of what the competition is doing if they are trying to showcase their organization’s commitment to sustainability. The sustainability make-up of the Canadian building stock can be described as a bell curve with a small handful of leaders at the front, the bulk of projects making up the average, and the tail end being pushed by regulations. In essence, this round of sustainability-focused infrastructure funding is a force to shift the entire curve forward. Leaders in the real estate industry will push further and pursue grander environmental milestones to maintain their leadership status. This will propel the larger pack, as organizations do not want to be perceived as falling behind in the industry. This has already been demonstrated in the first wave of 21st century office towers in downtown Toronto. These highrises were not the first LEED projects in the city and perhaps not even the most sustainable. They did, however, raise the bar for commercial office developments – ensuring any credible office building proposal in the city would have to target LEED certification. The subsequent wave of office towers added to the Toronto skyline has shown exactly this, with some projects even pursuing LEED Platinum certifications. CARBON-SAVVY PROFESSIONALS Though it can be argued that private commercial office towers are targeting a different market than higher education institutions of the public sector, it would be unwise to overlook the parallels. Major tenants and organizations establish their sustainability programs based on the norm of their geographical locales. For example, the European division of a company usually answers to higher sustainability requirements than its North American counterpart. With the addition of these higher education projects across the country, the sustainability norm will undoubtedly be raised in Canada. A-class tenant organizations are investing significant resources to attract the best and brightest talent from Canada’s higher education institutions, and the next wave of new graduates and young professionals will be acclimatized to learning and working in high-performance spaces. They will demand the same of their workplaces. Various provincial initiatives, such as Ontario’s Climate Change Strategy, should further push integration of sustainability and climate change action into higher education curricula, producing carbon-savvy professionals. This injection of funding in green public infrastructure adds momentum to the sustainability conversation in other sectors. Real estate organizations looking to maintain their standing should take note of this rising sustainability norm. zz Jon W. Douglas, M.B.A, LEED AP BD&C and O&M, is a Sustainability Practice Leader, providing advisory services for Perkins + Will's Ontario offices. He has been recognized as one of the Top 30 Young Sustainability Leaders in Canada.
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Improve your property to justify higher rents Many apartment owners wonder what strategies they can use to justify increasing rents in their buildings, and often look for ways to boost investor returns and bottom line performance. While increasing rents will inevitably deliver greater returns for investors, this goes beyond the bottom line. From a real estate perspective, higher rents can drive up property values, enabling owners to secure additional financing, thus providing the equity needed to fuel the portfolio growth.
Ways to increase rents Tenants are willing to pay higher rents for better quality. Quality can span across three key areas: your brand, the physical building and the suites. Your brand Good marketing does more than help
you sell; it helps establish a trusted, credible brand that tenants covet. It is critical to present yourself, your company and your property in an honest, authentic and professional way, both in print and online. Invest time and effort to create a current, informative and easy-to-navigate website that provides information
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and value-added services. The perceptions that tenants have of your brand will translate into their expectations for your property. The physical building Common area features help to enhance the perceived and real value of a property. Amenities, such as an on-site laundry room, WiFi, a games room, a party room and gym, offer more than a simple place to live – they help create convenience and community. Design improvements are another way to transform a physical building. Diligent upkeep with capital repairs, modern design features and turning one bedroom into two bedrooms, all add to increased value. The suites When former tenants depart, it’s an excellent opportunity to update suites. With some smart investment, a unit can be renovated before it
goes back on the market. Updated floors and lighting, fresh paint and cosmetic enhancements to kitchens and bathrooms (countertops, vanities, appliances) can significantly improve your overall product. With a better product, an owner can command higher rents and greater tenant longevity, earning a return on their investment.
Trend: purchase and upgrade Daniel Bragagnolo, business development manager at First National Financial, is seeing a trend with owners buying older, underachieving buildings, upgrading them significantly and transforming them into valuable properties. A long-standing First National client was looking to buy what most would consider a high-risk building because of its 50 per cent vacancy. However, the client was skilled in managing
rougher types of properties with challenging tenants. “The client wanted to diversify in a particular geography,” says Bragagnolo. “The goal was to purchase the property, renovate it and enhance its value.” To secure the building, the First National team provided an interim conventional loan that was 85 per cent of the purchase price and financed renovations. The client upgraded the kitchens and added a modern design feel to the living spaces. As a result of the renovations, the client was able to raise rents for those units by $300 each. With full vacancy, higher paying and better quality tenants, the First National team then went to the Canadian Housing and Mortgage Corporation to secure insured financing. “In two years’ time, the client will be applying for a mortgage that will enable the withdrawal of an additional $10 to $12 million in equity on the property,” says Bragagnolo. “In three and half years, the client has been able to amass $22 million in debt on a property purchased for $14 million. It’s a real success story.” This client’s purchase and upgrade story illustrates how higher rents can deliver bottom line and investor value, but also create opportunities to secure the equity needed to fuel future growth.
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Mark Lucuik, LEED Fellow, Director of Sustainability, Morrison Hershfield
Ariel Feldman, Project Manager & Technical Lead, Buildings Sustainability Group, WSP Canada
Matthew Hirsch, Project Manager, Buildings Sustainability Group, WSP Canada
LEED STEPS FORWARD Version 4 Now Sole Path to Certification November 1, 2016 marked the official launch date for LEED version 4, which will base certification on a more rigorous slate of prerequisites and credits. This follows a lengthy extension to the originally proposed June 2015 deadline to close off eligibility for the LEED 2009 program. With all registrants now compelled to take the more demanding performance path, Canadian Property Management asked engineers/LEED practitioners for their thoughts on what project proponents might expect – Editor. CPM: What prerequisites and/or credits in LEED v4 will be most challenging for LEED proponents and their suppliers? Mark Lucuik, LEED Fellow, Director of Sustainability, Morrison Hershfield:
One of the bigger issues with LEED v4 is the general lack of familiarity with any and all of the LEED credits and prerequisites. Experienced architects, engineers and LEED consultants can no longer rely on a gut feel or past projects to determine the likelihood of attaining any credit. They now need to re-read the requirements in detail. 20 Canadian Property Management | Part of the REMI Network
This could pertain to almost any credit. However, the biggest change is in the materials section. Using materials with recycled or regional ingredients, as an example, contributes very little. Now there is much more emphasis on Environmental Product Declarations or EPDs. This means the LEED consultant may be encouraging the use of materials or brands that may be unfamiliar to a design team or owner. The manufacturing industry is aware of this issue and is working hard to provide compliant materials, but they can be difficult to source in some instances.
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For the new development and construction market, the changes LEED is already a challenging program for most existing buildings, which aims to target the top 25% in terms of are more substantial as LEED tries environmental performance. For the existing building market, probably to shift the buildings industry closer the biggest change in LEED v4 will be the minimum Energy Star rating, which was previously 69 and will now to low-impact design and be 75. It means that only properties with energy performance in the top construction. quartile will be able to pursue LEED Ariel Feldman, Project Manager & Technical Lead, Buildings Sustainability Group, WSP Canada:
O+M, and those properties also have t o m e e t sl ig ht ly m o r e st r i nge nt requirements for water and indoor air quality as well. One of the other more subtle but important changes is that there is more focus on measuring/monitoring actual performance. Several credits could be achieved quite easily in LEED 2009 by establishing a policy. In LEED v4, establishing those policies is a prerequisite for certification. To achieve the points, ongoing performance tracking to verify policy implementation is required. Matthew Hirsch, Project Manager, Buildings Sustainability Group, WSP Canada:
In the existing building program, many of the credits look similar at a glance, but small changes to requirements make them more difficult to achieve. For example, purchasing compliant green cleaning equipment was a point that was easily achieved by almost all properties in LEED 2009, but will be much more difficult under LEED v4 due to new sound restrictions on equipment. For t he new development a nd construction market, the changes are more substantial as LEED tries to shift the buildings industry closer to lowimpact design and construction. The new construction program has added several new credits that relate to encouraging ongoing sustainable performance after constr uction, including points for providing water and energy sub-metering, and development of ongoing commission plans as part of enhanced commissioning. LEED v4 a lso incor porates new
sustainability considerations such as d em a nd r e sp o n s e a nd a c o u st ic performance.
CPM: Is there anything that seemed onerous when LEED v4 was introduced in 2 013 t hat is less so today due to advancements in the intervening three years? Lucuik: LEED v4 went through a number of changes when it was first released for public comment. The largest number of changes from the first draft were in the material sections. The majority of the changes that I am aware of were not intended to make things easier, but, rather, more realistic for today’s market or to correct errors or loopholes. Feldman: One of the most significant conc er ns i n 2013 for t he New Construction market was whether manufacturers were going to be able to generate the required documents to align with the new materials credits. We’ve seen a lot of progress in that area. Most major manufacturers are now prepared to respond to the v4 requirements, though projects will still find that they need to be diligent and planning ahead in terms of what materials they are specifying in order to make sure that those LEED requirements are met. CPM: Can you identify any prerequisites or credits that are likely to get easier as the LEED v4 era unfolds? Lucuik: I do not envision LEED v4 changing significantly over the next few
years, but interpretations will make requirements more clear. The market will respond to LEED v4 and make available new systems and materials that are compliant to LEED requirements, so in the next few years, I would expect it will be easier to achieve the same requirements that exist today. It is important to note that LEED is intended to be an evolving tool representing the top 25% of the building stock so as codes and standards improve, LEED will also improve with new versions. Hirsch: LEED v4 has a lot of rating systems, even within the Existing Building or New Construction subset. For example, LEED for Existing Buildings has slight differences for offices, data centres, hospitality and more. Particularly for LEED for Existing Buildings, which was largely written for commercial office buildings, this seemed like a great change. As more property types pursue LEED, the number of interpretations will grow and make LEED easier to use. The US Green Building Council has even released an iteration of LEED v4 for Ex ist i ng Mu lt i-Un it Resident ia l Buildings. CPM: Were there weak links in LEED 2009 that you're glad to see expire? Feldman: One of the changes with LEED
v4 makes it more straightforward to exclude up to 20% of your property from most LEED requirements, which will be a big help for buildings with a small amount of retail, data centres or other www.REMInetwork.com | November 2016 21
greenpromise&delivery unique tenants. It should allow more properties to pursue LEED where they might have had difficulty before. Lucuik: I am glad to see more emphasis on durability. A LEED 2009 certified building could be achieved with little or no emphasis on the durability of the building envelope. Now there are two c r e d it s ava i l a ble fo r e nvelo p e commissioning, which should lead to longer lasting buildings with very little or no net cost increase. I am also glad to see less emphasis on material properties such as recycled content and regional materials that in some cases were poor measures of how sustainable a material is. The use of Life Cycle Assessment (LCA) in LEED v4 is a big step forward in understanding material impacts. CPM: Is there general awareness among developers and building owners/ managers that LEED has changed and that it will be more difficult to attain silver, gold or platinum levels than under LEED 2009?
Lucuik: I think most owners and managers are aware in a vague way that LEED v4 is a big change, but lack the specific knowledge on what this means to them. This understanding will come as teams wade their way through the certification process for their first buildings. Overall, I think LEED v4 is a good step forward for LEED, and a LEED v4 cer tified building will more reliably reflect sustainability. So I am hopeful the same drivers that made LEED 20 09 popula r will continue with LEED v4. Hirsch: We saw a lot of clients registering projects for LEED 2009 before the October 31, 2016 deadline so there is likely a lot of awareness that LEED is changing. It is likely that the industry does not yet knows the extent of those changes.
Feldman: While
other programs like BOMA BEST might become a bit more attractive, particularly as it rolls out a third version of the program, LEED is still the gold standard in sustainable building rating systems and we don’t think that’s going to change any time soon. Lucuik: LEED still retains the leadership
position in market recognition, and I think that will be a driver that owners and developers will want in the future. BOMA BEST and Green Globes are good tools, but without the market recognition, I can’t see them replacing LEED. zz
Follow the green building movement at
CPM: Will this potentially boost the a t t r a c t i ve n e s s o f o t h e r k i n d s o f certification like BOMA BEST?
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BUILDINGS COULD LEAD LOW-CARBON CHARGE 2030 Emissions Reduction Target Opens Economic Opportunities
"Buildings represent the most cost-effective way to reduce greenhouse gas emissions, generate positive returns on investment and stimulate the economy," asserts Thomas Mueller, President and CEO of the Canada Green Building Council (CaGBC). The buildings sector will also be central to fulfilling Canada's pledge under the United Nations Framework Convention on Climate Change to reduce greenhouse gas emissions to 30% below 2005 levels by 2030. In a recent report and recommendations to the Canadian government, the CaGBC presents a four-point strategy to help reach that target. This is also touted as means to create jobs and develop capacity that will make a long-term contribution to the economy. The following is an summary of the report's key recommendations – Editor.
24 Canadian Property Management | Part of the REMI Network
greenpromise&delivery 1. PROVIDE INCENTIVES FOR ENERGY EFFICIENCY By developing a suite of grant programs, tax incentives and pilot projects that focus on high-performance standards, the federal government can help public and private building owners achieve significant emission reductions and contribute significantly to meeting Canada’s 2030 target. The following initiatives need to be implemented for public and private sector buildings greater than 25,000 square feet across Canada: • Recommission the 80% of buildings that have yet to undertake any retrofitting activity to highperformance standards in order to optimize existing systems in buildings for improved control and operational performance; • Undertake deep retrofits for 60% of buildings to high-performance standards such as LEED, ensuring that key building systems such as lighting, HVAC and envelopes are upgraded; • Incorporate solar or other renewable onsite energy systems for 40% of buildings; and • Work with jurisdictions and the private sector to switch fuel sources to generate emissions reductions in 20% of buildings. According to an economic analysis commissioned by CaGBC, the estimated net present value of all GDP impacts of these activities will be $261 billion.
Implementing this initiative will result in direct and indirect GDP impacts of $32.5 billion in 2030, reaching $42.9 billion inclusive of induced impacts. Employment gains from building upgrades are anticipated to average 260,741 equivalent full-time jobs annually, with labour income peaks in 2030 at $26.8 billion (in 2030 dollars). When direct, indirect and induced impacts are combined, construction activity in 2030 alone will generate $5.2 billion in taxes accruing to the federal, provincial and municipal orders of government. In 2030, the social cost of the GHG emissions avoided will be $960 million in 2030 dollars ($729 million in 2016 dollars). The economic report also identifies that, in the shortterm, design, manufacturing, installation and construction jobs will be created from the initiatives that generate GHG reductions. The impacts of adopting green building deep retrofits, recommissioning, renewables and fuel switching will stimulate 16 industry sectors across the supply chain in Canada, including: manufacturing, professional services, trade, real estate, construction, and telecommunications. Over the long-term, the initial costs associated with the upgrades can be recouped through energy savings, which are expected to reach approximately $6.2 billion annually in 2030.
2. PROMOTE ENERGY BENCHMARKING Energy benchmarking enables the measurement of energy use and year-over-year GHG emissions reductions in existing buildings. It empowers building owners in the public and private sectors to pinpoint exactly how energy is used. It provides them with the data they need to strategically invest in improvements in operations, technology upgrades and retrofits to reduce GHG emissions. The data that is generated, along with industry support and incentives, stimulates private and public sector investment in efficiency measures. The federal government can demonstrate leadership in achieving its GHG reductions goals by advancing energy benchmarking, reporting and disclosure in the public and private sector including buildings in its own portfolio. To strengthen Canada’s energy benchmarking regime, we propose the federal government: 1.
Invest in ENERGY STAR Portfolio Manager to support a wider range of building types and develop dynamic data analysis and reporting capabilities for the industry;
2.
Collaborate with provinces and territories to adopt the national fra mework for energy bench ma rk ing, reporting and disclosure, developed by CaGBC with industry input, as a guide to support each jurisdiction in implementing a program that addresses the specific needs of their region; and
3.
Encourage provinces, territories and municipalities to adopt an energy benchmarking, reporting and disclosure program for buildings greater than 25,000 square feet.
Energy benchmarking and its associated data will provide the government with: • Access to data on buildings in the public and private sector portfolios that can be used to track and verify the impact of government programs to encourage energy efficiency, and to optimize programs by identifying buildings with the greatest opportunity for improvement; • Improved energy conservation awareness among the civil service; • A measured approach and outcomes to demonstrate that the federal government is taking action toward achieving climate and energy goals from existing buildings; and • Access to key data on the performance of its buildings, enabling targeted improvements to building operations and retrofits. Once the federal government understands actual energy use and emissions, it can more strategically implement targeted measures to get Canada to a 30% reduction and beyond.
www.REMInetwork.com | November 2016 25
greenpromise&delivery 3. DEVELOP NET ZERO BUILDINGS CaGBC proposes to partner with the federal government on a National Net Zero Energy Building Initiative to create a Canadian standard to guide and support developers, owners, designers and builders in building net zero buildings and neighbourhoods. (See story, page 48) A national net zero initiative would also drive innovation in the building sector and further strengthen Canada’s position as an international leader and innovator in net zero buildings. We recommend the federal government: • Work with provinces, territories and local governments to adopt the net zero carbon standard and paths being developed by CaGBC with key stakeholders to ramp up the adoption of net zero carbon buildings in the private and public sectors; • Develop a critical path to make suitable new federal government buildings such as offices, research facilities and military buildings net zero carbon; and • Encourage jurisdictions to develop a critical path to make suitable new government-owned, funded or
leased buildings (e.g. offices, schools, research facilities) net zero carbon. Net zero policy development in Canada is underway and CaGBC is working to define the parameters for the Canadian context. CaGBC has established a national Working Group, including federal government representation, which engages leading Canadian building energy experts to: • Define net zero and develop metrics for use by the Canadian industry; • Identify pathways for the industry to move toward net zero construction and retrofit; and • Develop a standardized verification and monitoring protocol to ensure performance targets are being met and maintained over the life of a building. To manage future growth in Canada’s building footprint in a manner that is in line with a low-carbon economy, CaGBC is developing a regionally based, net zero framework and certification program.
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greenpromise&delivery 4. FIND SAVINGS IN THE FEDERAL PORTFOLIO Implementing carbon reduction activities for federally owned buildings greater than 25,000 square feet, which account for 3-5% of building sector emissions, will result in GHG emissions reductions of approximately 480,000 tonnes and cost savings of approximately $170 million annually. The federal government successfully adopted a LEED Gold policy for new federal office buildings in 2005. Expansion of this policy to large build ing ret rof its across t he enti re por tfol io of gover n ment bu i ld i ngs wou ld sig na l gover n ment leadership to the industry. The following are specific recommendations for actions the federal government can undertake to reduce the GHG emissions in its own building portfolio by 30% by 2030: • Establish h igh-per for ma nce ta rgets for energy efficiency to help achieve maximum carbon reduction benefits for both the construction and operating components of new and existing buildings; • Adopt an energy benchmarking program across the federal government’s building portfolio to better understand energy use and target strategic investment in building performance improvements;
• Assess and prioritize the retrofit potential of federal buildings that are the best candidates for high performance green standards; • Mandate that 60% of all government-owned buildings scheduled for significant renovations by 2030 meet high-performance targets for deep retrofits and recommissioning; • Adopt and implement an official policy committing to a c h iev i ng L E E D P l a t i nu m fo r r e t r of it s a n d recommissioning of large existing buildings within the federal government’s building portfolio, building on the 2005 policy for new builds; • Further improve the performance of new buildings by moving toward LEED Platinum or achieving zero carbon targets through a renewable energy or fuel switching options and use these as demonstration projects for industry; and • D ef i n e st r o ng p r o cu r e m e nt p ol ic ie s , le a si ng requirements and infrastructure program guidelines for new a nd existing buildings, ref lecting the importance of reducing emissions. zz
The complete text of Building Solutions to Climate Change, How Green Buildings Can Help Meet Canada's 2030 Emissions Targets can be found on the Canada Green Building Council website at www.cagbc.org/advocacy.
Helping HelpingBusinesses BusinessesGet GetBack BacktotoBusiness Business “For “For more more than than a decade, a decade, IBC IBC hashas been been reporting reporting onon a rise a rise in in claims claims asas a result a result ofof increases increases in in severe severe weather weather events events related related toto climate climate change.” change.” Insurance Insurance Bureau Bureau of Canada of Canada 2016 2016 Fact Fact Book Book
Environmental Management System Reinforces Company Credibility By Marc McAree, Matthew Gardner, Giselle Davidian and Julia Paillé ON MARCH 29, 2012, unbeknownst to and without the authority of Control Chem Canada Ltd. (ControlChem) management, an employee, Mr. Silva, discharged the liquid contents of four large totes (approximately 4,000 litres) to an outdoor storm sewer catch basin. The spill occurred in the loading dock of ControlChem’s water treatment facility in Burlington, Ontario. At the time, the company president was out of the country on business. Later that day, the Ontario Ministry of the Environment and Climate Change’s (MOECC) Spills Action Centre was notified about the discoloration of nearby Sheldon Creek. Investigations by MOECC, the City of Burlington and the local Conservation Authority traced the discoloration from the creek to the municipal storm sewer system and a catch basin at the rear of ControlChem’s facility. The material discharged included aluminum chloride
hydroxide sulphate (ACHS), which reduced pH levels in the creek to lethal levels and posed a risk of burning or damaging the gills of fish in the creek. ControlChem and Mr. Silva were each charged with five offences arising from the spill. Two of the charges were under the Ontario Water Resources Act (OWRA) and the remaining three charges were under the Environmental Protection Act (EPA). The charges were for discharging or causing or permitting the discharge, and for failing to report a spill forthwith. DUE DILIGENCE DEFENCE During the course of a 10-day trial in the fall of 2015, ControlChem presented ext ensive ev idenc e ab out it s environmental management system including ControlChem’s: • International Standards Organization (ISO) 9001 certification and early adoption of ISO 14001;
28 Canadian Property Management | Part of the REMI Network
• continual participation in the ISO 14001 audit process; • par ticipation in biannual environmental compliance audits conducted by a n exter na l environmental consultant; • creation of its comprehensive ISO 14001 environmental manual; • establishment of detailed standard operating procedures, including instructions for the disposal of waste, truck maintenance inspections and cleaning of reusable totes and drums; • organization of regular production team meetings; • dissemination of the company mantra that “nothing leaves the building”; and • well documented and thorough staff training, including annual spills simulations. Notably, ControlChem’s standards and systems included mecha n isms to
greenpromise&delivery
In addition to policies, procedures, systems and training, ControlChem presented evidence that it had gone to great lengths to engineer and implement spill containment features at its production facility. identify and continuously improve any deficiencies. In addition to policies, procedures, systems and training, ControlChem presented evidence that it had gone to great lengths to engineer and implement spill containment features at its production facility to ensure the containment of chemicals within ControlChem’s production area. These included: • no sewer drains within the production area floor to eliminate the risk of spilled liquids entering the sewer system; • a 3-inch lip around the walls and elevated doors with the capacity to contain up to 20,000 litres of liquid spilled on the chemical mixing and batching floor; • securely constructed bulk inventory storage tanks with double walls; • containment of all mixing stations and pumps; • a closed heating system to eliminate the risk of open flame; • installation and use of an ultra-filtration system to treat chemical water and ensure that no liquid waste was disposed outside the facility; and • installation of spill kits throughout the production facility containing equipment and materials to be used in the prevention and cleanup of spills. ControlChem demonstrated that environmental management was integral to its corporate culture. The company expressly prohibited all employees from disposing wastewater outside the facility. ControlChem submitted evidence that its employees were trained to understand specific risks relating to spills through emergency spills simulation training. Notably, Mr. Silva regularly organized and participated in spills simulations, including a simulation of an ACHS spill just months prior to the March 29, 2012 discharge. ControlChem’s president, Douglas Fast, testified that Mr. Silva was a production co-ordinator at ControlChem who had supervisory responsibility for the other production staff members. Mr. Silva had been a ControlChem employee for
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greenpromise&delivery approximately twenty years with no prior misconduct. He participated in the creation and review of chemical formula sheets, operated and cleaned t h e u l t r a - f i l t r a t i o n wa s t ewa t e r treatment system and understood that nothing was to leave the building. As recited by the Court from Mr. Fast’s evidence, Mr. Silva had “…twenty years of outstanding performance and one day of horrible performance…” The Court found that Mr. Silva had competent skills and knowledge, and that he adequately comprehended the company policies and procedures. Du r ing t r ia l, M r. Silva h imself acknowledged that he understood the duty to report any environmental spill and that he was required to do so. NEGLIGENCE NOT REASONABLY FORESEEABLE The Ontario Court of Justice found that the Crown proved all elements of each of the five charges beyond a reasonable doubt. However, the Court acquitted ControlChem of all charges in finding that the company proved, on a balance of probabi l it ies, t hat Cont rolChem exercised due diligence and took all
reasonable care to prevent the March 29, 2012 discharge. The Court found that Mr. Silva’s aberrant action was not reasonably foreseeable, stating: "The evidence reveals the Defendant (ControlChem) to have farsighted, thoughtful, methodical and well documented philosophy and standards to address environmental protection generally and specifically addressing the issue of spills avoidance/ mitigation. ControlChem generally presents as an enterprise with a culture of st rong com m it ment to prop er environmental standards. Management recognized the high risk of severe harm that could follow from a spill or discharge of any materials employed and robust steps were taken to minimize this risk and harm." The Cou r t re cog n i z e d t hat ControlChem’s steps to guard against environmental risks were proportionate to the serious risk to p u b l i c s a fe t y a n d t h e n a t u r a l environment. In addition, the Court noted the company’s compliance with reasonable industry standards. While no amount of due diligence can
g ua ra nte e t he prevent ion of a n environmental incident, this decision highlights the importance for companies to implement and document meaningful prevention practices in support of an environmental due diligence defence. The bar is high to satisfy the Court that an accused should be absolved. R v ControlChem illustrates that the shift in the burden of proof to the defendant can lead to acquittal on the right set of facts. This includes ensuring environmental policies are known and implemented at all levels of a company’s operations. It also includes continuous improvements to company policies, procedures, systems and training to reflect or exceed current environmental standards. Anything less m ay negat e t he opp or t u n it y to successfully defend an environmental prosecution. zz Marc McAree is a partner and a Certified Specialist in Environmental Law at Willms & Shier Environmental Lawyers LLP. Matthew Gardner, Giselle Davidian and Julia Paillé are Associates. For more information, see the website at www.willmsshier.com.
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A New Solution Safety Complia Crawford Compliance intent on disrupting the industry Crawford & Company (Canada) Inc. is shaking things up. This year, the 75-yearyoung provider of global claims management solutions is unveiling a better value proposition for what the company believes is a compliance industry in need of a repair. “What we’ve heard consistently from contractors is the systems that are out there take way too long to administer and none of them recognize the other’s validation. With no real incentive to share data from one proprietary system to another, and no uniform standards, this is leading to duplicated data, limited choices, and industry frustration,” says Pat Van Bakel, President of Crawford. “The industry is
asking for a better solution and Crawford has listened. Crawford Compliance is coming to the market with a disruptive and compelling service offering and competitive price point. Rather than a disjointed, linear system of independent third-parties, Crawford has created a contractor compliance ecosystem with the key stakeholders involved in the process right from the beginning.”
across 70 countries in the world, and the existing Crawford solution already provides services to hiring clients and contractors, including claims management, consulting services, professional services, and vendor management programs. With these solutions already in place, Crawford is directly connected to this industry, and not a removed third party.
With long-term synergistic relationships already in place, Crawford Compliance, along with Crawford (a publicly traded company on the NYSE), is positioned as a key partner in the risk management and insurance industry. It has a network of over 10,000 employees in 700 locations
Contractors and building owners both are equally frustrated by current market pricing. Crawford Compliance listened and created a better value proposition with more realistic pricing. Fees begin at $199, and clients are given the freedom to begin at a lower price level and scale up as their needs evolve.
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for nce Equally appealing is the fact that contractors can now have greater access and control over their data, and are able to share this valuable information with all parties involved, including all their clients outside the system – a disruptive feature that is not currently offered in the market. “Crawford Compliance uses innovative software to bring contractors and their hiring clients closer together,” says Eric Yapp, Senior Vice President of Business Relations with Crawford Compliance. “The software takes advantage of the latest mobile platforms so that a contractor can spend more time working on job sites rather than back at the office doing compliance paperwork.”
Crawford Compliance allows users to track information down to the individual employee level. Worker level certifications are tracked and alerts sent as information expires for trade licenses, individual training records, or certifications – all in real time. This allows for fluid transparency of all documents to be shared between all parties. What’s more, scannable ID cards with “tap n’ go” technology allows for instant viewing of all credentials and documents, making contractor compliance accessible right down at the site level.
association or training provider, those documents and certifications are automatically updated into the Crawford Compliance ecosystem. The result is a reduction in the client’s time and a leaner operation.
A New Approach to Compliance According to Crawford, now is the time for a more effective solution. With the industry and contractors demands for flexibility, Crawford Compliance’s suite of modular solutions provides a tiered
“As a marketing tool, Crawford Compliance focuses on the ‘carrot’ rather than the ‘stick’, which is a fresh approach for the industry.” “The current state of the industry just isn’t working as well as it could,” says Yapp, explaining, “That’s where we want to come in with a solution that genuinely benefits the contractor. Our software is creating a compliance ecosystem where we can import and export information from multiple systems and sources. This reduces data duplication, creates better efficiencies, and gives contractors the ability to access updates in real time.”
response process beginning with prequalification, document collections, gap analysis and onsite/audit inspections as required. Other modules include Snow Tracker®, Grounds Tracker®, Janitorial Tracker, and Tenant Tracker.
For example, he explains, when contractors take a new training course from a partner
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“Not all health and safety risks are the same so our solution does not treat them that way. We scale up our services as the risk level of the work increases,” says Yapp.
greenpromise&delivery
INFRASTRUCTURE FOLLOWS REAL ESTATE'S LEAD
Sustainability Benchmarks Inform Risk Management
34 Canadian Property Management | Part of the REMI Network
greenpromise&delivery
THE INAUGURAL Global Real Estate Sustainability Benchmark (GRESB) assessment for infrastructure reveals that the asset class generally lags real estate's offerings of environmental, social and governance (ESG) evidence for investors. Results show a higher degree of commitment at the fund management level, while measuring and reporting the environmental performance of individual facilities is less common. This is expressed in divergent average scores for the two separate but complementary streams – funds and assets – reporting via the benchmark. The Alberta Investment Management Corporation and Ontario Teachers' Pension Plan are among 10 founding members of the GRESB infrastructure benchmark. The group, comprised of some the world's largest pension funds and fund managers, approached the metric developers in 2014 with an eye to tapping into GRESB's established and steadily gaining endorsement from institutional investors. Many of the firstyear respondents also participate in the real estate survey, which was launched in 2009. (See story, page 38) " T h e G R E SB i n f r a s t r u c t u r e assessment has been embraced by
almost 200 infrastructure assets and funds," reports Nils Kok, GRESB's Chief Executive Officer, in the introduction to the October release of the 2016 results. "The new assessment provides unprecedented transparency for investors to make more informed decisions, and infrastructure companies and funds to improve their ESG performance." The 51 participating infrastructure funds achieved an average score of 54, derived from 10 indicators focused on the ESG policy, risk assessment, analytics and disclosure embedded in investment criteria and protocol. Drilling down, an average score of 28 for i nd ividua l assets somewhat camouflages the range of performance among the 134 participating entities in 53 countries. This includes assets held by 23 of the funds also reporting fund-level ESG actions, and covers a broad range of asset types – renewable and conventional power generating facilities, airports, ports, toll roads, energy transmission and distribution, telecommunications, water and waste facilities and social infrastructure – with differing degrees of environmental impact. Similar to the scoring system for real
RESEARCH TARGETS CARBON TRANSPARENCY
Researchers in Sweden and Scotland are working to make carbon more transparent in infrastructure. Two studies addressing procurement and the materials supply chain recently received funding from the Construction Climate Challenge (CCC), an initiative to support and promote sustainability in the construction industry worldwide. The Swedish team will focus on policy, assessing ways to incorporate sustainability requirements into infrastructure projects at the decision-making level. The Scottish team is developing a tool to identify the embodied carbon and cost impact of each material element used in the construction and commissioning of an infrastructure asset. "We hope that the research projects will increase understanding of the problems that exist within the industry and that they will contribute to a clear guidance on how to reduce carbon dioxide and how to reach climate goals," says Dr. Peter Wallin, Research Manager of the initiative, which Volvo Construction Equipment sponsors. "The two we have chosen are the ones that were judged to have the greatest effect. We also want the projects to be international so that they can reach out globally." For more information about the Construction Climate Challenge, see the website at http://constructionclimatechallenge.com
www.REMInetwork.com | November 2016 35
greenpromise&delivery estate, infrastructure scores are derived f rom 32 i nd icators across eight d i f fer ent ly weig ht e d a sp e ct s of sustainability. Assets are scrutinized fo r expl ic it E SG p ol ic ie s, r isk assessment and mitigation measures, a nd a c t u a l p e r fo r m a nc e i n si x categories: energy; GHG emissions; waste; water; air pollutant emissions; and biodiversity and habitat protection. Also similar to real estate, the 21 participating infrastructure assets in Australia and New Zealand topped the field with an average score of 35. Europe's larger share of 73 infrastructure assets collectively scored 26 to underperform the global average, while 38 North American assets were in sync with the global average, achieving an average score of 28. Results highlight some areas of weakness. Notably, the report advises that funds could improve disclosure practices, including backing up ESG performance reporting with third-party validation. At the asset level, the report notes that actual measurement and reporting of performance indicators "is still in its infancy" and that biodiversity
and habitat protection particularly tends to be overlooked. On the plus side, overall performance at the fund level was deemed "strong" and there is broad recognition of environmental risks and the need for risk assessment, management and mitigation. "Interestingly, while 81% of assets reporting to GRESB have formally adopted a policy or policies on environmental issues, even more (94%) conduct environmental assessments. This shows that even some assets that have not formally adopted policies on environmental issues, in practice, take these into account," the report states. GRESB proponents suggest risk management is at the core of the metric's appeal to investors and the capital market at large given the multidecade if not multi-generational lifespan of infrastructure assets. Plus, as real estate is already experiencing, benchmarking for sustainability is simply in line with the evolution of the economy. "The development and operation of infrastructure projects will play an
important role in achieving the ambitious carbon reduction goals set out by the COP 21 agreement in Paris," observes Emke Bus, GRESB's Managing Director, ESG and Infrastructure. "The involvement and engagement of institutional investors such as banks, insurance companies, pension funds and sovereign wealth funds in infrastructure investments that are lowcarbon, climate resilient and socially inclusive is particularly important." zz For more information about the Global Real Estate Sustainability Benchmark, see the website at www.gresb.com.
Targets, metrics and benchmarks at
CANADA ENDORSES ISO 50001 Canada is part of an international coalition promoting the ISO 50001 energy management systems standard and an effort to achieve 50,001 certifications worldwide by 2020. The process-based approach for continuous improvement is considered particularly applicable for energy-intensive industrial operations that may not have a realistic chance of hitting the externally imposed targets that other types of green certification entail, but ISO's Plan-Do-Check-Act methodology can offer guidance for organizations of any size or environmental footprint. "It demands a consistent, across-thecompany commitment that begins at the top and is driven down through the organization by management," explains Bob Bach, Vice Chair, Energy, of Ontario's Building Code Conservation Advisory Council. "A commitment to an annual target for energy consumption reduction is required." The standard, which was launched in 2011, has the same basic framework as ISO 9001 for quality management or ISO 14001 for environmental management systems. Proponents begin with a policy and plan that includes: a review of existing energy use; an established baseline for
improvement; actions and performance indicators to achieve and demonstrate improvement; and the means for documenting performance. Strategies in the plan are then implemented (Do), measured and verified (Check), assessed for congruency with the policy and plan, and amended as necessary (Act). "Like any ISO standard, it's about the management system and not actual performance. A company can meet its goals to reduce energy use, but still be a high consumer of energy," says John Smiciklas, Director of Energy and Environment with the Building Owners and Managers Association (BOMA) of Canada. "However, the standard itself can be a good fit for the building sector, particularly for those firms that do not have a good energy management system in place because it tells them how to implement one. Most companies going through the process find that they do improve." In endorsing the global campaign for ISO 50001 certification at the international Clean Energy Ministerial assembly in June 2016, 14 supporting nations and the European Commission envision 62 exajoules (17,235 terawatt-hours) of cumulative global energy savings with an associated avoidance of
36 Canadian Property Management | Part of the REMI Network
6,500 megatonnes of carbon dioxide emissions to 2030. Canada, the United States and Mexico reiterated the commitment in the North American Climate, Clean Energy and Environment Partnership agreement signed the same month, and announced their intentions to work with industry partners in their countries. "International energy management system standard ISO 50001 offers an effective pathway to help meet global goals for stabilizing greenhouse gas emissions and improving energy performance in the industrial and commercial building sectors," affirms Bob Fraser, Chief of Natural Resources Canada's Engineering Support Services. Companies participating in NRCan's Canadian Industry Program for Energy Conservation (CIPEC) may qualify for funding to help cover the costs of implementing ISO 50001. The British Columbia government is also providing additional funding for enterprises in that province. For more information, see www.nrcan.gc.ca/ energy/efficiency/industry/cipec/5379 or www.Driveto50001.org – Barbara Carss
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GRESB REVEALS CANADIAN ENERGY SAVING PROWESS Institutional Investors Pushing Participation in Global ESG Survey By Barbara Carss CANADIAN ENERGY SAVING achievement is unrivalled in the 2016 Global Real Estate Sustainability Benchmark (GRESB) results. Canada's participants – encompassing eight private funds, five pension plans, two privately owned companies and one REIT – collectively surpassed both the North American and global average scores across seven differently weighted management and operational categories, but perhaps even more significant year-over-year reductions in electricity consumption and carbon emissions get somewhat overshadowed in the survey's larger picture. The 16 Canadian organizations accounted for more than 337,000 megawatt-hours (MWh) or nearly 42% of electricity savings tallied in North America from 2014 to 2015, while 162 GRESB participants in the United States delivered the remainder. Canada's nearly 90,000-tonne cut in carbon dioxide (CO2) emissions also equates to more than 22% of the North American total. Nevertheless, benchmark designers counsel against cockiness. "It's not sufficient to have performance alone," Chris Pyke, GRESB's Chief
Operating Officer, told a Toronto audience as the results were released last September. "Investors are not looking to invest in your last project. They are looking to invest in your next project." GRESB, now in its seventh year, is a portfolio-level approach to plotting sustainable intent, practices and outcomes, aimed at helping investors see connections to asset value and returns. Participants selfreport through a rigorous assessment process, including third-party validation requirements, and are subject to random checks and site visits. The benchmark database has steadily grown from just three European pension funds in 2009 to this year's slate of 759 entities in 63 countries that hold 66,000 individual assets with a gross value of USD $2.8 trillion. Canadian participation has more than tripled over the past four survey periods, with five new players added this year. PROOF OF PERFORMANCE "Six years ago when we started participating, we had great uncertainty whether we wanted to participate," Andrew McAllan,
38 Canadian Property Management | Part of the REMI Network
Senior Vice President and Managing Director, Real Estate Management, with Oxford Properties, recalled in opening remarks at the results release presentation. "Six years later, it's an integral part of how we do business. The benefits we obtain in our participation in GRESB far outweigh the time it takes to participate." With the most recent results, Oxford ranks as a North American leader for diversified office/retail portfolios for a fourth consecutive year. (See associated story, page 40) Bentall Kennedy, Global and North American leader for diversified office/residential portfolios, and the Minto Group, a North American leader for private residential portfolios, are the other Canadian participants tagged as top performers within their property sectors. GRESB's consistent metric and heightened transparency of environmental, social and governance (ESG) information provides investors with a tool for gauging assets' fit with their own corporate governance demands. It has also provided the data to back up intuitive and/or anecdotal conclusions about sustainability's role in asset value – evidence that can then become
greenpromise&delivery green-perpetuating when investors and tenants use it as a basis for more demands. "We believe the investor matters. They push down and create opportunities for change," Pyke affirmed. "Without information, you cannot differentiate the leaders from the liars." Participants are scored on a 137-point scale allocated to seven different aspects of sustainability. These are further broadly characterized as Management & Policy, equating to 28% of the total score, and Implementation & Measurement, making up the greater portion of available points. Performance indicators – which include energy and water use intensity, carbon emissions and solid waste diversion – and stakeholder engagement carry the heaviest weighting and together account for 50% of the total score. The other five aspects range from 9% to 12% of the total score and cover: management commitment; policy and disclosure; risk and opportunity assessments/ strategies; monitoring; and building certification. Final scores are expressed as a percentage of 100. CLIMATE CHANGE CONTEXT This year's global average score is 60 –
climbing from 54 last year. Australia/New Zealand is once again the top world region with an average score of 74 derived from 52 participants. The average score for Canadian participants rose slightly over last year's result, from 65.5 to 65.7, and remained well ahead of the 2016 North American average of 59. Other average scores were 56 for Europe and 54 for Asia. "Our colleagues in Australia and New Zealand continue to kick our butts," Pyke observed. "Canada is the only major country that is between the rest of the pack and Australia." Globally, GRESB participants recorded a 1.2% reduction in energy use, a 2% drop in carbon emissions and a nearly 2% cut in water consumption compared to 2015 results. Two Canadian performance indicators were considerably above that global baseline, equating to a 5.5% energy saving and a 6% reduction in carbon emissions. However, water savings, at slightly more than 1%, fell short of the overall average. Canadian participants also surpassed the global average score for stakeholder engagement, but, like the larger database, they tend to have gained more ground with
their own employees and tenants than with their suppliers and surrounding communities. "There's where there is more opportunity," Pyke advised. Pyke placed this year's progress in the context of other industry and world advancements since the 2015 results were unveiled, including: the Paris Agreement on climate change; major real estate associations' buy-in through the Action Framework for sustainable investment; and recently gained status as a stand-alone GICS sector. GRESB participants are arguably already the vanguard. "The rate of improvement is double the rate of background improvement in the economy at large," he said. Still, all economic players will have to up their game if the climbing global temperature is really to be held to no more than a 2-degree Celsius increase. "Buildings are part of the problem," Pyke acknowledged. "But the way we build, maintain and operate these buildings is part of the solution. We have to live up to the challenge that our sector is facing." zz The preceding article is reprinted from the REMI Network at www.REMInetwork.com.
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www.REMInetwork.com | November 2016 39
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40 Canadian Property Management | Part of the REMI Network
greenleadership
EXEMPLIFYING THE GREEN BUSINESS CASE Oxford Reaps Financial Benefits from Principles of Sustainable Intelligence By Darryl Neate GOING GR E EN I S G O OD for business – this is no longer a question in today’s economic reality. What was once a grassroots movement is now mainstream, with building owners and operators regularly incorporating green building measures in their practices and plans. Added to this, all t h ree levels of gover n ment have recently announced climate change plans, pushing green building further into the spotlight as building emission reduction strategies are sure to play a big role in meeting these targets. This increased focus on green buildings is a welcome change for organizations like Oxford Properties Group that have been working over the past decade to make sustainability a key pillar of its business strategy. Oxford formalized its commitment to green buildings in 2008 because it recognized early on that sustainability was important to its customers and a smart investment. Eight years later, more than 80% of its office portfolio is LEED certified (many at the Gold or Platinum levels), there has been a 26% improvement in the energy
efficiency of its managed portfolio (on a per square foot basis, since 2010) and it has engaged more than 75,000 customers in sustainability events and green team meetings since 2012. The guiding principles of Oxford’s Sustainable Intelligence program shape a l l a sp e ct s of it s app roa ch to sustainability, and for Oxford, the Leadership in Energy and Environmental Design (LEED) rating system aligns well with these principles – particularly those around leadership, performance and credibility. Considered the gold standard in green building internationally, LEED is the most widely used measurement for building sustainability worldwide with projects in more than 160 countries. Among the many available rating systems, LEED’s position as a global leader made it Oxford’s rating system of choice. It is the consensus “best in class” choice of the industry – a robust standard that is constantly evolving, developed by a broad range of individuals, and achieved through a rigorous third-party review process that demands the best from each building.
RENOVATIONS AND RETROFITS A big part of Oxford’s sustainability strategy – and that of an increasing number of its Canadian peers including Cadillac Fairview, Bentall Kennedy and GWL Realty Advisors – has been the idea that the ‘greenest building is one that i s a l r e a d y b u i l t ’. T h i s m e a n s recognizing the opportunities and returns that green renovations and retrofits can drive within existing buildings. The LEED program allows owners and operators to monitor ex ist i ng re a l est at e i n order to maximize performance and get the most out of all building types. Ta k e f o r e x a m p l e O x f o r d ’s Centennial Place, one of Alberta’s first office complexes of more than 1 million square feet to achieve LEED Platinum under the Existing Buildings rating system. When Oxford optimized the operations of this two-tower office c o m p l ex l o c a t e d i n d ow n t ow n Calgary, it used LEED as a guide, and the results have not just been good for operations, but also a direct and ongoing benefit to customers. www.REMInetwork.com | November 2016 41
greenleadership Key to this certification was the These results will lead to an estimated building management team working with $40,000 in lowered annual operating customer representatives to implement costs. Multiply the results from this one significant sustainability measures in the building and apply that to an entire building. The goal was to increase portfolio, and the potential is significant. occupant comfort and satisfaction, while improving energy performance and VALUE AND PRODUCTIVITY GAINS reducing the environmental impact of Aside from Oxford’s success with green the buildings. This included fine-tuning building, there are numerous studies the operation of building systems to and reports that present data to support achieve better energy efficiency, these benefits. A 2014 Canada Green extensive energy sub-metering to better Bu i ld i ng Cou nci l / McG raw H i l l understand opportunities for continuous Construction report found that more improvement, a comprehensive green than 40% of building owners surveyed cleaning program and instituting in Canada say that healthier building demand-controlled ventilation to practices inherent in green buildings optimize outdoor air delivery, among have or will lead to increased building many others. value, the ability to lease space more With these changes Oxford expects to: quickly and increased rent for their • Save 2.5 equivalent gigawatt-hours of properties. energy per year (equivalent to the Another report by the World Green energy use of 57 single-family homes); Building Council showed that healthier • Reduce greenhouse gas emissions by indoor spaces lead to happier, more 620 tonnes of carbon dioxide productive employees, including equivalent per year (equivalent of improvements in productivity of up to taking 131 vehicles off the road for a 11% as the result of better air quality, year); and and short term sick leave reduction of • Divert 494 tonnes of waste annually up to 35% in offices ventilated with 1 2016-05-12 AM air supply rates. (equal toIRC_CPM_April_2016_FINAL.pdf 35 garbage trucks each year). increased 10:42 outdoor
IRC Building Science Group Building Science Engineers & Consultants
Then there is the bread and butter of green building – the direct financial benefit that comes from more efficient operations. On average, studies show that LEED certified projects show an overall net savings of approximately $294.31 per squa re metre over an estimated 33-year economic lifespan of a building. At Oxford, the team has driven considerable financial benefits across its portfolio as a result of its com m it ment to sust a i nabi l it y a nd LEED – more than $60 million in avoided energy costs since 2007. Whether it’s new builds or retrofits, offices or mixed-use residential – the case for greener buildings is clear, and the tools to get there already exist. By incorporating comprehensive programs like LEED into current and future business plans, managers can achieve the environmental, organizational and economic benefits that come with being a leader in the industry. zz Darryl Neate is Director of Sustainability for Oxford Properties Group. The preceding article is reprinted from the REMI Network at www.REMInetwork.com.
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www.REMInetwork.com 2016-11-17 | November10:08 2016 AM 43
1.PARIS
DEVISING A NEW GLOBAL CITY SCALE Economic Juggernauts Assessed for Green Performance
3.LONDON
2.SINGAPORE 44 Canadian Property Management | Part of the REMI Network
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4.SYDNEY
6.HONG KONG 5.TOKYO
By Damien Duhamel, Erika Masako Welch, Sarah Khalil, Yiing Chyi Lim and Inkar Yerzhanova Analysts with the Asia-focused growth strategy consulting firm, Solidiance, chose 10 global cities for their green benchmarking exercise based on categorizations of the Globalization and World Cities Research Network (GaWC). Drawing from rankings of Alpha++ and Alpha+ designated cities, benchmarkers created a core list for comparison: Beijing, Dubai, Hong Kong, London, New York, Paris, Shanghai, Singapore, Sydney and Tokyo. The following summary is excerpted from their report, Top 10 Global Cities For Green Buildings – Editor.
A LT H O U G H T H E A R E A o f sustainable and green development has received a lot of attention from researchers and practitioners, with many papers being published on green or sustainable cities, very few public papers have tried to collate and evaluate data on the progress made in the development of green buildings in global cities. In particular, few report on the rate of green building adoption or the efficiency and performance of the built environment within these cities. In order to rank these cities’ green building performance, a set of criteria has been developed. The methodology developed assesses the global cities for their green building performance across four categories, of which three focused on total number of green buildings, performance and initiatives, and one category focused on the city’s green initiatives, which provides a
supportive infrastructure that fosters a healthy green building movement. After assessing the 10 global cities for green building performance, the leading cities were found to be Paris, followed by
Singapore and London. Sydney, Tokyo and Hong Kong came respectively in the fourth, fifth and sixth positions. While New York, Dubai, Beijing, and Shanghai were the laggards on this ranking.
Vancouver is among seven other world cities the Solidiance report highlights as a leading example of green initiative. Although inaccurately credited for British Columbia's carbon tax, the authors call Vancouver "evidently progressive" in both the development and execution of its plans to reduce greenhouse gas (GHG) emissions from new and existing building stock, and herald it as a case study for green building policies. (See associated story, page 48) Others commended as green exemplars include: Abu Dhabi, Boston, Copenhagen, Melbourne, Oslo and San Francisco.
www.REMInetwork.com | November 2016 45
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7.NEW YORK
8.DUBAI
There is no single right approach and every city must adjust its strategy based on its own sustainability journey. When evaluating the global cities on the number of green buildings and the certification systems in use (for green buildings), the research identified Singapore, London and Paris as the top
scorers. These three top cities are advanced in the adoption of new and existing green buildings, and experience a high level of green building activity. It should be noted that though Beijing,
In establishing metrics to compare the prominence of green buildings in global cities, the growth strategy consulting firm, Solidiance, sets out four categories of assessment: 1. Citywide Green Building Landscape the percentage of green buildings versus the total number of buildings the number of green buildings the number of green building credentialed professionals per building 2. Green Building Efficiency and Performance CO2 emissions from buildings CO2 emissions from buildings per capita CO2 emissions from buildings per GDP Energy consumption from buildings Energy consumption from buildings per capita Energy consumption from buildings per GDP
3. Green Building Policies and Targets Green building codes Citywide green building targets 4. Green City Culture and Environment Climate action plan Citywide CO2 emissions Citywide CO2 emissions per capita Citywide CO2 emissions per GDP % of CO2 emission reduction targets % of renewable energy consumed by the city % of waste recycled by the city
46 Canadian Property Management | Part of the REMI Network
Dubai and Shanghai lagged in many green building indicators compared to its other global city peers, these cities are among the most recent joiners of the green building movement. W hen considering the limited number of years that Beijing, Dubai and Shanghai have been working to green their built stock, the achievements of these cities are profound, especially when considering the large number of highly internationally certified buildings currently standing within these cities. When the global cities were ranked based on the overall performance and efficiency of the built stock, the research concluded that Paris and Singapore are amongst the best performers. This confirms that the green building efforts in Singapore and Paris are palpable, and that the local green building standards are stringent enough to produce tangible results. The assessment of the city level green initiatives established that both Sydney and Hong Kong have set higher than average CO2 reduction targets amongst the 10 global cities, and have also proven themselves as they perform noticeably well with low CO2 emissions city-wide and high percentages of waste recycling. Paris, Singapore, and New
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9.BEIJING
York also seem to perform extremely well on the green initiatives by implementing appropriate green solutions for waste and energy efficiencies. PARIS & NEW YORK Despite having normalized most of the metrics in this report by GDP and population, the fact of Paris' land area and population being the smallest and the GDP being the 4th largest among the 10 cities gives it an advantage. Small cities emit less CO2 and consume relatively less energy than other big cities, and tend to be more efficient. Paris also was the second ranking city in the Green Culture and Environment dimension following Sydney. The city showed positive performance on citywide CO 2 emissions (2nd), citywide CO 2 emissions per capita (2nd) and citywide CO2 emissions per GDP (1st). Paris puts GHG emissions reduction, energy consumption reduction and renewable energy at the centre of its climate action plan. The city focuses efforts on achieving the set goals by encouraging green urban planning, implementing strict regulations on buildings, and providing safe energy supply. New York does not fare as well as might be expected on the green building metrics. Although the city possesses the second highest GDP, it is far more densely populated in comparison to the other cities with similar land area. Firstly, when evaluated for its built stock, New York showed that it still has a long way to go for greening its buildings (only 5% of the city built stock is green). Buildings also
10.SHANGHAI
consume very large amounts of energy (80%) as well as emit a large volume of CO 2 (74%), which explain the poor performance on the Green Building Efficiency and Performance dimension. However, New York does make the top three on Green City metrics because the city performs exceptionally well on the renewable energy metric, and invests a lot of efforts on encouraging energy re-use. Moreover, although the city has one of the highest citywide CO 2 emissions, this shows as a better result when normalized per capita and per GDP – pushing it to top five on these metrics. It seems that New York is investing a lot of effort on greening the entire environment, but the city may require more focused attention to green buildings, as they still contribute the most to CO2 emissions and energy consumption. New York has announced many sustainable city initiatives in recent years, which will take time to be implemented and to show performance gains. CHARTING PROGRESS It is important to benchmark and publish the green building performance of the largest, most attractive global cities, in order to evaluate global progress towards sustainable development, increase knowledge-sharing, share best practices, and better understand what is and is not working. Overall, the green building movement in the past 10 years has witnessed exceptional growth. “New" cities such as Dubai, Singapore and Shanghai have
made significant gains, while older cities like New York struggle with aging infrastructure and growing population. But Paris proves that old cities do not have to be trapped and weighed down by aging infrastructure. A strategic and methodical approach to retrofitting can dramatically improve efficiency. All in all, the intensifying efforts and action plans aimed at greening the built stock in a city is important, not only to reduce the impact on the environment during construction, but also for the buildings to operate in a green and more efficient matter. Green buildings are the pillars to building more sustainable cities around the world; and building more sustainable cities around the world is integral to achieving sustainable development and preserving our world’s resourcing for present and future generations. There is no single right approach and every city must adjust its strategy based on its own sustainability journey. The key is to focus on driving gains in performance metrics versus focusing and measuring green building activity alone. In the green building race, the end result and big picture of living in sust a i nable, ef f icient a nd lowconsumption cities is more important than how many buildings can be labelled green. zz The complete tex t of Top 10 Global Cities For Green Buildings can be found at w w w.solidiance.com / w h i t e p a p e r / d o w n l o a d / t h e - t o p -10 global-cities-for-green-buildings.php www.REMInetwork.com | November 2016 47
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VANCOUVER DEVELOPERS TO PURSUE ZERO EMISSIONS Energy Efficiency and Low-Carbon Space Heating Drive Strategy By Barbara Carss
VANCOUVER'S ZERO EMISSIONS Building Plan (ZEBP) comes with an ambitious schedule to significantly reduce and ultimately eliminate greenhouse gas emissions from the city's new building stock. As envisioned, this is to be achieved through energy efficiency and low-carbon options for space heating and hot water supply. In turn, the city has pledged to support research and peer networking in the green building sector and to ease regulatory requirements that can undermine or add to the cost of innovative energy-efficient designs. The preamble to the plan, which was formally approved in July 2016, includes some weighty objectives. "These strategies for achieving zero emissions in new buildings were developed specifically to ensure comfortable and healthy indoor environments, maximize
local economic development, ensure longterm building resilience, protect housing affordability and facilitate achieving the City's Renewable City Strategy target to have all buildings in Vancouver, including those already built, use only renewable energy by the year 2050," it states. However, others characterize the effort in less intimidating terms. "The aim is to get the energy consumption as low as we can and then use renewable energy sources to supply the balance," says Brittany Coughlin, Energy and Sustainability Specialist with RDH Building Science Inc. in Vancouver. "There is a lot that is achievable and realistic. It's not based on crazy new technology; it's things we are already doing in a lot of cases." B.C.'s electricity supply – estimated to be 97% generated from hydroelectric and other renewable sources – supports options like
48 Canadian Property Management | Part of the REMI Network
heat pumps or even electric baseboards that wouldn't pass the emission-free bar in some other jurisdictions. Electricity, bio-gas and neighbourhood renewable energy systems (NRES) are tagged as the primary alternatives to fossil fuels, although builders will have flexibility to incorporate solar photovoltaics or other on-site renewable generation to meet near-zero or zeroemission targets. CIVIC LEADERSHIP WITH INDUSTRY BUY-IN Vancouver has now become a North American leader in pursuing zero GHG emissions in new construction by 2030. The envisioned incremental phase-down – cutting allowable emissions to 30% of 2007 levels by 2020 and to 10% by 2025 – is a similar schedule to the European Union's nearly-zero energy buildings (nZEB) target, which was endorsed in 2010 with the goal
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that all new buildings would comply by December 31, 2020. Even proponents of the EU target such as the European Council for an EnergyEfficient Economy concede that the 2020 deadline will probably not be met, but Vancouver has some strategic advantages that might make its goal more realistic. Beyond a low-carbon electricity supply, the moderate climate means generally less onerous heating and cooling loads and the city even has its own building code, giving local decision makers more direct and expeditious administrative control. "B.C. has the easiest conditions so it makes sense that they would move first on this," observes Doug Webber, Vice President, Sustainability and Energy, with the engineering consulting firm, WSP Group.
Meanwhile, real estate industry advocates commend the city's consultation process and the motives behind it. In a letter to Vancouver Council, Anne McMullen, President and CEO of the Urban Development Institute's Pacific chapter, thanked city staff for openness to her membership's concerns over 18 months of work on the plan and affirmed the industry's support for the phased approach to compliance. "This will allow capacity in the industry to expand as the standards do," she stated. "The targets, including the early ones, will be difficult to meet. They are achievable, but we need to ensure that [some] issues are addressed." "It's a very ambitious program to meet some very ambitious targets,"
concurs Brooks Barnett, Manager, Government Relations and Policy, with the Real Property Association of Canada (REALpac). "If there's a concern with it, it would be about the timelines, but, fundamentally, it's the right way to go." PASSIVE HOUSE STANDARD ENDORSED City officials have identified the Passive House standard as the recommended m e a n s f o r d e l iv e r i n g r e q u i r e d reductions in thermal energy demand intensity (TEDI). Passive House design, calculated to achieve heating and cooling energy-use intensity no greater than 1.4 kilowatt-hours per square foot, is considered a particularly good fit for residential development s i n c e i t d ow n p l a y s c o m p l i c a t e d technologies that require more www.REMInetwork.com | November 2016 49
greenpromise&delivery operational expertise and places more emphasis on high-performance building envelopes and relatively simple ventilation systems. "Very good draft proofing and the use of a heat recovery ventilator (HRV) that uses the energy of warm exhaust air to pre-heat fresh incoming air during the winter and vice versa during the summer are central to an energy-efficient ventilation system," the ZEBP advises. "Given that 82% of new development in Vancouver is residential and that most homeowners, strata councils and apartment building operators are not WE KNOW: building energy system experts, keeping the building systems simple is essential to Phase I & II reliable and durable building energy Site Assessment efficiency performance." The Passive House standard is still a rarity Property Condition in the broad scope of new construction, but Assessments a growing number of practitioners are gaining expertise in design, construction E nvironmental and development of supporting products, Due Diligence including customized energy modelling software. The ZEBP endorses Passive Remediation & House as a "rigorous and widely applied Risk Assessment Expert People. Better Decisions. global standard" now physically translated into hundreds of millions of square feet of Asbestos & real estate around the world, but Mould Surveys PosterOne_CPM_July_2016_FINAL.pdf 1 2016-08-30 9:02 AM acknowledges "there is insufficient local data to conclude that this standard should be applied to all building types under all XCG_ThirdH_4-563x4-75.indd 1 2016-08-26 2:44 PM conditions". To date, there are relatively few examples of institutional, commercial or multi-residential buildings constructed to the standard and a fairly steep learning curve yet to negotiate. "Passive House is not well developed for commercial buildings. We will see if developers can deliver," Webber says.
xcg.com
COST FACTORS Cost-benefits analyses invariably focus on the long-term operational savings that come with energy efficiency, but Pa s s ive H o u s e a n d o t h e r m o r e innovative and aggressive design approaches can result in upfront capital savings via significant downsizing of high-cost mechanical systems that would otherwise be required to heat, cool and ventilate the building. Prefabricated building envelope is another emerging trend that could also reduce on-site construction costs. "Just looking at a line-by-line comparison for better-than-code or Passive House or net zero versus code compliant, you are going to see an added cost anywhere from 2 to 10%. However we are also seeing that there are other costs that can be reduced that could really dwarf any extra
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greenpromise&delivery CaGBC PLANS 2017 RELEASE OF ZERO CARBON STANDARD The Canada Green Building Council (CaGBC) has unveiled the first phase of a Zero Carbon Buildings Initiative, ahead of its planned launch of a Zero Carbon Building Standard in spring 2017. A new framework to assess highly energy-efficient buildings that reduce greenhouse gas (GHG) emissions is the first stage in the move to advance lowercarbon commercial, institutional and highrise residential buildings that support Canada’s efforts to reduce GHGs to 30% below 2005 levels by 2030. The Zero Carbon Buildings Framework provides a clear definition for zero carbon buildings and establishes five key components for the evaluation of building carbon footprints: • A greenhouse gas intensity metric for assessing a building’s emissions, calculated using regional emissions factors; • Energy intensity metrics to incentivize the design of highly efficient, reliable and resilient buildings; • A peak energy demand metric to encourage the use of “peak shaving” measures; • An embodied carbon metric to recognize the importance of building material lifecycle impacts; and
SALES INSTALLATION
• A requirement that renewable energy be generated on-site or procured directly in order to ensure the addition of clean power generation. “Our focus on carbon emissions as opposed to energy in this framework flows from the increasing urgency to address climate change by reducing greenhouse gas emissions from buildings,” says CaGBC President Thomas Mueller. “By embarking on this important initiative, the CaGBC is providing the market with a state-of -the-art guideline and, soon, the third-party verification and support required to make net zero carbon buildings a reality in the near future.” The next phases of the Zero Carbon Initiative include the identification of specific pathways to zero carbon, a zero carbon building pilot program and then the development of a verification program. The Joyce Centre for Partnership and Innovation at Mohawk College in Hamilton is Canada’s first pilot project. This collaboration will provide insight from the application of the framework and help determine requirements for the verification of performance. An executive summary of the framework is now available on the CaGBC's website at www.cagbc.org. –REMI Network
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incremental costs for building to the higher performance standard," Coughlin says. The City of Vancouver has committed to building its own affordable rental housing projects and other required new facilities to the Passive House standard, and is amending the previous policy requiring LEED Gold certification to reflect the new direction. The much larger provincial developer and manager of subsidized housing, BC Housing, is also on board, drawing from its experience in building 34 LEED Gold projects. "Given all of the sustainable new construction projects completed, BC Housing has found that those with simple designs that rely primarily on passive elements rather than complex mechanical systems use less energy and are easier and more affordable to maintain," the ZEBP reports. "They have targeted Passive House certification in RFPs for several recent new construction projects." zz Vancouver's Zero Emissions Building Plan can be found online at http://council.vancouver. ca /20160712 /documents/rr2.pdf. The preceding article is reprinted from the REMI Network at www.REMInetwork.com.
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2016-10-24 2:01 PM
SAVINGS GAINED ONE VALVE AT A TIME
Mechanical Insulation Conserves Energy, Augments Health and Safety By Steve Clayman PIPE INSULATION. Duct insulation. Equipment insulation. Things that don’t light up, beep, come with touch-screens and remain mostly out of sight. And, no moving parts to wear out. What can be exciting about that? Plenty, if the objective is to save energy, reduce greenhouse gas (GHG) emissions, save water, address personnel protection, control condensation and perhaps also help reduce the incidence of Legionella disease. When mechanical insulation is considered in these contexts the interest level moves the needle higher on the gauge. The Canada Green Building Council (CaGBC) asserts: “Energy benchmarking is a foundational tool for measuring
Photo courtesy of TIAC
energy use and year-over-year GHG emission reductions in existing buildings.” Meanwhile, some provinces have mandated that buildings – hospitals, schools, office buildings – begin the
52 Canadian Property Management | Part of the REMI Network
process of benchmarking. Once a baseline for energy and water use and GHG emissions is established, improving on the numbers becomes the yearly goal. With big or easily identifiable energysaving measures – energy-efficient windows, increased insulation on roofs and in walls, lighting and automated HVAC controls – taken care of, where can facilities/property managers look next? Mechanical insulation aptly illustrates the concept of “low hanging fruit” or simply reaching up or down to obtain a reward. Here's an example of how that might play out in the real world: A mechanical room in a downtown office building has four six-foot, 300°F-steam valves that once were
greenpromise&delivery insulated. However, because it is the nature of valves to require periodic maintenance, the insulation was stripped off and never replaced. The building manager rationalized his decision not to replace the insulation because it would only have to be stripped off again. Why waste money on that? The equivalent surface area of this valve can be calculated using ASTM C1129 Standard Practice for Estimation of Heat Savings by Adding Thermal Insulation to Bare Valves and Flanges. With that, heat loss, subsequent energy cost and GHG emissions can be determined using free downloadable software called 3E Plus available at www.pipeinsulation.org. A valve running at 300° F also presents danger for anyone working around it. The National Building Code of Canada sets the allowable threshold for hot surfaces that may come in contact with exposed skin at 70°C (158°F). A two-inch-thick removable valve cover offers a solution to heat/energy loss and safety concerns with payback in ten months. Studies following installation of a removable valve cover found: • 93% reduction in heat loss;
• a surface temperature of 96°F (reduced from 300°F); and • q u a n t i fi a b l e G H G e m i s s i o n s reductions. That's just one valve in one mechanical room in one office building in one city in Canada! Do the math, and it's evident that uninsulated or inadequately insulated piping, ducting and equipment are a potential source of significant savings. Water wastage also wastes the energy required to move it through municipal and building piping systems. Heat loss typically occurs if water must flow along a pipe for more than 31 seconds. A combination of improved insulation and reduced circulation is a path to savings, Insulated domestic (DHW) or service hot water (SHW) systems limit heat loss, thus shortening the time it takes for water to reach a comfortable temperature range at the outlet. Legionella bacteria can be a dangerous presence in water systems, where it flourishes in a temperature sweet spot between 95 to 115°F (35 to 46° C). The bacteria continues to survive in a dormant state at temperatures below
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68°F (20° C), but will not survive at temperatures between 158 to 176°F (70 to 80° C). The challenge for the facilities manager is to provide a “not too hot and not too cold” temperature range. Correctly specified pipe insulation thicknesses can help with this effort, and support Legionella control and mitigation. The Thermal Insulation Association of Canada (TIAC) has developed TIAC O&M Protocol for Mechanical Insulation to guide operations and maintenance personnel through an assessment of the need to replace or install mechanical insulation on existing HVAC systems. The step-bystep approach helps maintenance personnel determine whether to repair or replace the insulation, or call in a qualified contractor for advice and pricing. zz Steve Clayman is the Director of Energy Initiatives for the Thermal Insulation A s s o ci a t i o n o f C a n a d a . F o r m o r e information, see the website at www.tiac.ca.
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greenpromise&delivery
FEDS MOVE ON SPEC Order to Stop Development Signals Protective Stance By Janice Walton and Anne-Catherine Boucher ON JUNE 17, 2016, the federal cabinet approved an emergency order for protection of the habitat of the Western Chorus Frog (Great Lakes/St. Lawrence-Canadian Shield population) in La Prairie, Quebec. This is the second emergency order issued under the Species at Risk Act (SARA), and the first to impact privately owned land. The order was published in the Canada Gazette on June 29 and came into force on July 17, 2016, with significant effects on both public and private interests. The Order aims to protect the La Prairie meta-population of the frog by protecting 90% of its suitable habitat from destruction. It applies to approximately two square kilometres in a suburban area of Montréal currently undergoing significant growth. To meet this objective, a number of activities are prohibited, including: • Impacts on soil and vegetation • Surface water alteration • Infrastructure installation or maintenance • Operation of any motorized vehicle (including ATVs and snowmobiles)
other than on a road or paved surface • Installation of structures that create a barrier to frog migration • Deposit of materials or substances, and the use of pest control products or fertilizers. Exceptions are made for activities carried out under provincial authorization for the purpose of the protection of health and safety. The Order includes a provision making non-compliance with it an offence under SARA. The Order is part of a process that started several years ago when the federal Minister of Environment declined to recommend that Cabinet make an emergency order to protect the habitat. This led to a successful court challenge and an order from the Federal Court that required the Minister to reconsider whether the species was facing an imminent threat to its recovery. The reconsideration led to an imminent threat assessment and recommendation for the Order by the Minister appointed under the Liberal government that was elected in October of 2015.
54 Canadian Property Management | Part of the REMI Network
The making of an emergency order is part and parcel of what appears to be a significant shift in the federal government’s policy regarding the implementation of S A R A a c r o s s t h e c o u n t r y. I n addition to this order, there has been substantially more activity on the development of recovery strategies and action plans, and the making of protection orders for the habitat of federal species (aquatic species and migratory birds). ORDER IMPACTS While some of the land impacted by the Order had already been set aside for conservation purposes, much of the private portion of the land had been planned as part of an extensive housing development. According to the regulatory impact analysis provided to the C a b i n e t , E nv i r o n m e n t a n d Climate Change Canada reviewed non-regulatory measures taken by the municipality and the developers to mitigate impacts on the species, and found the
greenpromise&delivery
IES AT RISK
FOREST ECOSYSTEMS STUDIED
Researchers are currently studying amphibian habitat in the Kenauk Nature lands in western Quebec. The work, supported with funding from Nature Conservancy of Canada and the Sustainable Forestry Initiative, focuses on species reliant on temporary ponds formed from storm runoff and/or melting snow, known as vernal pools. That notably includes frogs, salamanders and toads, which seek out fishfree waters to lay their eggs. Lessons learned are also being shared with Canadian students through the Earth Rangers' School Assembly Program. The organization has a mission to engage youth in conservation and biodiversity issues, and sponsors a travelling road show with kid-friendly presentations. "Amphibians have been declining worldwide for nearly two decades, and little is known about the causes of these declines," says Peter Kendall, Executive Director of Earth Rangers. "Support of this important research and school assembly program helps increase students' understanding of the key role amphibians play in forest ecosystems, and inspire optimism in our children for what's possible when we all work together to protect the environment." Kenauk Nature is a 65,000-acre preserve of deciduous forest and lakes located midway between Montreal and Ottawa, which Monseigneur Laval, the first bishop of Quebec, took claim to in 1674. It is the home of many rare plant and animal species, including reports of the four-toed salamander. –REMI Network
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greenpromise&delivery effectiveness of the measures to be unclear. The loss of overall revenue by landowners and developers was identified as a significant concern in the public consultation that was done on the proposed Order. The costs/ benefit analysis in the regulatory impact analysis acknowledges that as a result of the order, two phases of the planned housing development – approximately 171 houses – will not be built. The identified “costs to society” resulting from the Order include only the loss value of the land yet to be developed ($7.8-million) and the lost service value of infrastructure that had already been installed $1.6-million). Other losses, including the lost profits of the developers and builders, and revenue to the municipality, are estimated to be between $29-million and $41-million, but were not considered as part of the costs/benefit analysis as they are classified by the government as IFMA_CPM_November_2016_FINAL.pdf “distributional impacts”, that is, costs 1
C
that would be delayed or redistributed to other businesses or municipalities. Employment losses were considered to be transitional. Provincial and municipal officials and developers expressed concern that the Order would create significant uncertainty over the potential for residential development and consequent loss of investment, and unpredictability in the authorization process for other upcoming infrastructure projects. The adoption of the Order has also stirred up, once again, the debate over jurisdiction over environmental matters, as the Quebec Minister of Sustainable Development, Environment and the Fight Against Climate Change was publicly critical of the federal government for what he considered unilateral action contrary to cooperative federalism. The provincial government and municipal actors also expressed concerns that the Order would set a precedent for emergency orders under SARA in other areas of 2016-11-14 5:31 PM Quebec.
What remains to be seen is whether impacted private entities will either challenge the Order or seek recompense for losses under SARA’s compensation provisions. It also remains to be seen whether the Province of Quebec will question either the substance of the Order or the federal government’s constitutional authority to make it. zz Janice Walton is Counsel based in Vancouver and Anne-Catherine Boucher is an Associate based in Montreal with Blake, Cassels & Graydon LLP. For more information, see the website at www.blakes.com.
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56 Canadian Property Management | Part of the REMI Network Untitled-3 1
2016-03-24 2:17 PM
The 22nd Annual Su rvey
of the Canadian Real Estate Industry’s Major Players & Portfolios
Who’s Who 2017
Here’s how to participate in the 22nd annual Who’s Who in the Canadian Real Estate Industry survey. Please take a moment to complete this questionnaire and fax it back to (416) 512-8344 by February 17, 2017. Your participation ensures the accuracy and comprehensiveness of the list so don’t miss the opportunity. - Barbara Carss, Editor Note:
1. This survey pertains to Canadian properties only. Please do not report any properties outside of the country. 2. If your ownership interest in any property is diluted, i.e. by a partnership, joint venture or other structure, please report only your net interest. 3. Please print your responses clearly. 4. Please provide all estimates of space managed and/or owned in square feet. Manage Only
Own Only
Both Own and Manage
Total Sq. Ft.
1. Office Properties 2. Apartment Properties (square footage estimate per unit: 900)
3. Condominium Properties (square footage estimate per unit: 900)
4. Industrial Properties 5. Retail Properties 6. Other Properties (Government, Health Care, Hotel, Educational etc.)
Total following information will not be released in the printed listing. It is, however, essential that you include this information should we need to confirm the accuracy of the estimates you are providing. Name: ____________________________________________________ Title: __________________________________________ Company: _________________________________________________Email: __________________________________________ Telephone: __________________________________________________Fax: __________________________________________ Please sign and date this form in the space provided to authorize this submission. ______________________________ Authorized Signature
________________________________ Date
If you have any questions, please contact Daniel Ross at 416-512-8186 ext.223 or 1-866-216-0860 ext. 223 or by e-mail at danielr@mediaedge.ca
greenpromise&delivery
ASHRAE 90.1 SHINES LIGHT ON MULTI-RES UNITS LED Advances Factor into 2016 Update of Energy Performance Standard By Barbara Carss DEVELOPERS OF multi-residential buildings can expect more pointed direction on their lighting choices as North American jurisdictions update their building regulations. The newly released 2016 edition of the ASHRAE 90.1 standard for energy efficiency includes first-time requirements for lighting within dwelling units. Previously, the standard's ascribed lighting power density applied only to common areas such as lobbies, corridors and laundry rooms. "In 2016, there is an added requirement that no less than 75% of lamps in permanent lighting installations in dwelling units have to be of a high efficacy – at least 55 lumen per watt," reports Eric Richman, Senior Research Engineer at the U.S. Pacific Northwest National Laboratory who serves as chair of the ASHRAE 90.1 lighting subcommittee. "That could be a good compact fluorescent or an LED." ASHRAE 90.1 is regarded as the de facto guidance document for energy performance in all types of buildings except low-rise residential given that regulators across the continent reference it in their codes and bylaws. Proposed changes to Canada's National Energy Code for Buildings (NECB), now open for public comment, include lighting criteria harmonized with ASHRAE 90.1-2016, while the United States Department of Energy conventionally adopts the standard as the minimum compliance requirement that states and municipalities must enforce in their building regulations. All 90.1 lighting requirements are premised on the light levels that the Illuminating Engineering Society (IES) deems adequate to carry out tasks in various types of space. From there, the standard devisors employ energy modelling to determine how the required light level could be achieved with available technologies. This is then expressed as an allowable wattage per square foot, known as the lighting power density (LPD).
ASHRAE 90.1-2016 introduces more stringent lighting power densities for dozens of designated types of space, attributed to the inclusion of LED technology in the 2016 modelling. "The same thing happened going from 2010 to 2013," Richman notes. "Most of the space type LPDs went down because there were more efficacious products available for the modelling." Still, he stresses that the standard does not mandate LEDs nor prohibit less efficient lighting options. Designers could theoretically specify any legally available product provided the cumulative LPD for the space can be attained. "The number is technologyneutral," he says. "It's going to be impossible to light the space with all incandescents, but you can mix and match. If you do a good job of designing, you might be able to use incandescents for a part of the space." Quirkily, and in contrast to most other building types, the multi-res LPD has actually become more generous in the 2016 standard because of changing design practices and IES light level recommendations. "If IES increases a recommendation, which has happened in the
58 Canadian Property Management | Part of the REMI Network
past, then our LPD number is likely to go up," Richman explains. Ultimately, the efficacy requirement for fixed installations in dwelling units is considered more significant. Even if unit occupants choose less efficient floor and table lamps, the new multi-res lighting proviso addresses energy efficiency in a vast amount of hardwired wall and ceiling lighting that was previously excluded from consideration. For developers, resulting upfront capital cost increases should be modest relative to the overall construction budget. LED or compact fluorescent ballasts are comparably priced to other types of lighting even if the bulbs are more costly than halogen or incandescent. Meanwhile, improved energy efficiency within suites can be marketed to both prospective homebuyers and renters. The new requirement isn't necessarily imminent, however, since ASHRAE's triennial cycle for revising the 90.1 standard tends to be well in front of provincial, state and municipal regulators' slower pace for updating their building regulations. The majority of those documents will continue to reference 2013, 2010 or even 2007 versions of 90.1 as the threshold standard for energy performance for awhile yet. zz
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