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VOL. 32 NO. 6 • NOVEMBER/DECEMBER 2017

GREEN YIELDS

Implanting Sustainability in the Real Estate Value Chain

PA R T O F T H E

P A R T

O F

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CARBON METRICS PORTFOLIO-WIDE STRATEGIES PASSIVE HOUSE ACTIVATION DIVERSITY SMART TECHNOLOGY HEALTHY SPACES DEEP ENERGY SAVINGS

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editor’snote

VOL. 32 NO. 6

Editor-in-Chief Barbara Carss barbc@mediaedge.ca

HOW MANY DIESEL GENERATORS does it take to build light rail transit? Unremarkably, the answer is not a 'fun fact' easily found on the project's website, but an unscientific surface survey would reveal more than a handful along Toronto's in-progress Crosstown line construction.

Most observers and future passengers would see that as a justifiable trade-off for the end result. Still, they are a good visible reminder — at least for the passersby who realize what those vibrating rectangular boxes are — that even the greenest of buildings and infrastructure are birthed through a not so environmentally benign process.

Sustainability and building performance are now increasingly viewed on this larger canvas, assessing the net carbon effect of development, operations and how building users get to and from and behave within the space. This issue's Focus looks particularly at the largely untapped potential for improved environmental outcomes in existing buildings.

Proponents of target-setting often reiterate that it is an effective spur to action, and Canada's target for a 30% reduction in greenhouse gas (GHG) emissions relative to 2005 levels by 2030 certainly appears to be motivating aspiring problem-solvers in the commercial real estate industry. Our contributors recommend government policies to support investment and market transformation; outline practical retrofit measures with accompanying calculations of expected emissions reductions; and make a defensible business case for pursuing deeper savings — all ranking existing buildings as the most productive place to begin tackling a daunting challenge.

Benchmarking and standards are natural companions to targets. Among the approaches to monitoring, measurement and transparency now gaining momentum, we offer some insight into GRESB, WELL and the Chemical Footprint Project. We also report on the new Zero Carbon Building Standard, the Passive House Standard and two emerging certification programs, Investor Ready Energy Efficiency and Rick Hansen Foundation Accessibility Certification.

Simone Skopek and Bob Best cover off the 'people piece' with their thoughtful advice on developing portfolio-wide sustainability programs and getting buy-in from a dynamic range of prospective participants, while Amy Erixon explores the possibilities of artificial intelligence. Her informed and intriguing prognosis of what smart technology may soon bring to the real estate industry and the larger economy points to a couple of landmarks that the green building movement has also navigated — the trough of disillusionment and the slope of enlightenment.

New construction continues to be the critical conduit for advanced technology.

Development is fundamental to economic growth and, as new green buildings have repeatedly shown, it can influence owners/investors' attitudes and consumers' expectations in a positive way.

We offer two examples of ambitious projects: a mixed-use, office-hotel-residential project now under construction in Montreal; and a proposal for what would be the world's tallest Passive House multi-residential towers in Vancouver. We also ask some perhaps more contentious questions about the sustainability of abandoning professional sports facilities before the end of their life cycles.

Barbara Carss barbc@mediaedge.ca @BarbaraCarss

/cpmmediaedge /CDNPropMgmt /cpmmediaedge

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METER DESIGN & MANUFACTURING. METER DESIGN & MANUFACTURING. ENERGY ANALYTICS Real-time data collection allows you REPORTING. &ENERGY to monitor energy performance and ANALYTICS detect deficiencies.

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contents Publication Agreement #40063056

12 Existing Stock Tagged for GHG Reductions 18 Retrofits Key to Achieving 2030 Target 24 Improving Economics of Ultra-Low-Energy Buildings 30 CaGBC's Zero Carbon Building Standard 32 Evaluating the Passive House Standard 34 Passive High-Rise Proposal 38 Artificial Intelligence Meets Real Estate 44 Montreal's HUMANTI Development 48 Green Engagement Across the Portfolio 52 2017 GRESB Results 54 Defining Well-being in ESG Metrics 56 Chemical Footprint Project 58 Health Properties of Green Space

Mother Earth was the signature piece presented at MOSAÏCANADA150 / GATINEAU 2017, a horticultural exhibition produced by Mosaïcultures Internationales de Montréal for the 150th anniversary of Canada’s Confederation. The event brought more than 1.3 million visitors to Jacques-Cartier Park, Gatineau, during the summer of 2017.

VOL. 32 NO. 6 • NOVEMBER/DECEMBER 2018

CANADA $15.00

8 Pro Sport Facilities Pose Green Dilemma

ON THE COVER:

F O R B U I L D I N G O W N E R S , A S S E T A N D P R O P E RT Y M A N A G E R S

GREEN YIELDS

Implanting Sustainability in the Real Estate Value Chain

Focus: Green Buildings, Sustainable Management & Operations

PA R T O F T H E

P A R T

O F

T H E

Photo courtesy of Mosaïcultures Internationales de Montréal Photo by St-Amour Fine Art Photography PA R T O F T H E

P A R T

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T H E

CARBON METRICS PORTFOLIO-WIDE STRATEGIES PASSIVE HOUSE ACTIVATION DIVERSITY SMART TECHNOLOGY HEALTHY SPACES DEEP ENERGY SAVINGS

6 Canadian Property Management | Part of the REMI Network

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greendilemma

SINGLE-USE SPO VENUES LOSING

Early Replacement Engenders Wasted Durability in Existing Facilities

By Barbara Carss THE LATE 20TH CENTURY rise and speedy 21st century fall of the suburban, single-use professional sports venue has left several North American cities — and their teams — with an albatross far from today's preferred downtown location and associated mix of supporting land uses. Ottawa and Calgary are two current Canadian examples where pressure is mounting to abandon major arenas still far from the end of their structural life cycles and build anew.

From a sustainability perspective, schemes to replace a 30-year-old facility in Calgary or an even newer 22-year-old facility in Ottawa seem out of sync with the philosophy that the greenest of all buildings

is the one that hasn't been built. However, the definition of green is less than black and white when factoring in the potential broader community benefits of the proposed replacements.

"The suburban arenas are more functionally obsolete than they are technically obsolete. No matter how good they are, they are in the wrong location and those locations are very car-intensive," says Professor James McKellar, Director of the Brookfield Centre in Real Estate and Infrastructure at York University's Schulich School of Business.

"A rena s play a so cia l role i n sustainability," adds Mark Lucuik,

8 Canadian Property Management | Part of the REMI Network

Director of Sustainability, based in Ottawa, with the consulting engineering firm, Morrison Hershfield. "People need gathering places for community reasons, and it could play a better social role if it was in a central location."

Meanwhile, Mark Bessoudo, Manager of Sustainability and Energy Research with the consulting engineering firm, WSP, points to two studies that resonate somewhat contradictorily. In 2011, research led by Preservation Green Lab in the United States applied life cycle analysis to calculate the environmental impacts of new construction versus retrofits to improve the energy efficiency of existing buildings.

ORTS G FAVOUR Results differed for various building types and climate zones, but researchers concluded that it can take from 10 to 80 years for a new energy-efficient building to balance out the negative environmental impacts of the construction process. "For those concerned with climate change and other environmental impacts, reusing an existing building and upgrading it to maximum efficiency is almost always the best option regardless of building types and climate," they advise.

Even so, transportation energy intensity comes very much into play when almost all building users drive to a site, as is the case with Ottawa's existing professional

“The life cycle of the structure is reasonably 50 years and potentially could be longer.� hockey arena. A 2007 study led by the U.S. based Congress for New Urbanism found that building occupants would expend approximately twice as much energy commuting to their workplace than would be required to operate a new office building built to 2007 code standards.

"The share of embodied energy [indirectly from construction materials and processes] and transportation energy is only going to increase as buildings become more energyefficient or get to net-zero energy status," Bessoudo observes. "I haven't seen any stats specifically about arenas or stadiums. I think it would be very interesting to do a www.REMInetwork.com | November/December 2017 9

greendilemma study and crunch the numbers, but there are so many tradeoffs beyond just the energy aspect or the materials."

RANGE OF BENEFITS For example, Ottawa's proposed new venue for its National Hockey League (NHL) team is part of a much more comprehensive redevelopment plan for somewhat legendarily vacant lands in the city's core, known as LeBreton Flats. The National Capital Commission (NCC) currently has oversight of the area, which was razed for what was termed "urban renewal" in the 1960s, but has seen little activity in the intervening years. The newest scheme is a response to the NCC's 2014 call for proposals, and would begin with the private sector proponents covering the bulk of the costs for the required cleanup of contaminated soil.

An 18,000-seat "major event centre" is just one piece of an envisioned new urban infill community with market and affordable housing, other cultural/recreational facilities and connecting green space. All would enjoy convenient access to Ottawa's pending light rail transit (LRT) system, now under construction.

Other large cities and professional team owners have followed or are considering similar recipes to concoct the symbiosis of a lucrative downtown residential base and amenities to entice and keep it there.

"The new city centres are really d r iven by cu lt u re, a r t s a nd entertainment," McKellar maintains.

"In order for a stadium or arena to work today, it has to support more than one team. It needs to be in the city so it can attract a cross-section of people to a cross-section of events."

Edmonton provides an in-progress example. The new arena on the north edge of the city's downtown, associated community rinks and an office building housing civic government functions are now complete, while a new commercial office tower, condominium and rental apartment buildings are under construction and scheduled to open in the next one to two years. The 15-month-old home for the city's NHL team already boasts an extensive slate of concerts and other events, and has spurred hospitality business ventures in the surrounding area.

"It's really an entertainment district focused around an arena that has about 300 events a year. It's allowed for concerts that Edmonton couldn't have hosted without an arena like this one," reports John

Frederickson, Colliers Canada's Regional Vice President for the Prairie Region.

Notably, Garth Brooks' nine sold-out concerts last winter spun off an estimated $42 million to the local economy. Out-oftown hockey fans are also increasingly boosting business.

"The number of people coming from Saskatchewan to games in Edmonton, versus going to Calgary, has gone up," Frederickson says — and they're coming to a site where two surface parking lots, a bus depot and a casino previously stood.

"It's led to positive econom ic development," he submits. "Plus, the timing of it was when the economy in Alberta, and particularly in Edmonton, was slowing. Building a new arena certainly generated a lot of construction jobs, which was good for the community."

AGE IS RELATIVE Professional sports facilities could perhaps be called the dogs of commercial real estate since, in recent times at least, they're purported to age dramatically faster than other building types.

Edmonton's new arena succeeded a 42-year-old incumbent — younger than many of Canada's super-regional malls and iconic Class A office towers.

"Old arenas in the NHL aren't necessarily old; they're just old compared to most of the others," Bessoudo notes.

"The life cycle of the structure is reasonably 50 years and potentially could be longer, but the design of arenas has changed fairly significantly over the last 40 years," agrees his colleague, Chris Woit, a Principal, in WSP's structures division.

Toronto's Air Canada Centre is just three years younger than Ottawa's scorned

10 Canadian Property Management | Part of the REMI Network

Canadian Tire Centre, but their background stories are very different. McKellar credits Toronto's NHL owners for rejecting prevailing trends of the 1970s, '80s and '90s and the suburban sites proposed when talks of a replacement for the circa-1931 Maple Leaf Gardens first arose.

"They understood that it was better to move deeper into the city than to move outside the city," he says. "It became a multifaceted entertainment company. They had the prescience to get ahead of the curve."

As for Ottawa: "It was a terrible location," he asserts.

Yet, in many ways, the original developer had the same motivation as today's team owners. He pitched the arena as an anchor for a new hub between Ottawa's urban boundary (prior to the 2001 amalgamation) and the developed portion of the suburban city of Kanata, farther to the west.

"What it comes down to is: arenas are all about real estate," McKellar says. "The owners of the Calgary Flames don't just want a new arena; they want the land around the arena so they can develop it."

Sustainability isn't typically in the pro forma. Toronto and Montreal offer examples of more environmentally benign outcomes as the previous homes to their NHL teams served for about seven decades and were then extensively renovated and converted to new urban uses, but both projects leveraged downtown sites hooked into public transit. Mammoth suburban complexes tend to be weaker candidates for this kind of adaptive reuse.

"The term I would use for this is: wasted durability," Lucuik reflects. "This is not a good thing from an environmental perspective, but you really have to weigh what systems and elements are in the building now against what we could have in the future for those purposes. The current location is very dependent on its users driving to it, so let's get it right next time. " Thus far, anecdotal evidence suggests many Edmonton hockey fans and concert-goers are willing to leave their cars at home. Perhaps more tellingly, that's in a city — like Ottawa — not renowned for mild winter weather.

"There was an expectation from many parking lot owners around the downtown that there would be a spike in parking lot revenue and occupancy, and that hasn't really happened," Frederickson says. "I think a large number of fans are using the LRT. That's one of the positives from a sustainability perspective." zz

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greentargets

A STOCK OF QUICK WINS Buildings Sector Aligns with Low-Cost GHG Reductions

THE PAN-CANADIAN Framework sets the stage for bold action in the building sector, which is positioned to offer some of the lowest-cost, most rapidly achievable greenhouse gas (GHG) reductions. These measures will help Canada reach its 2030 climate target under the Paris Agreement and its longer-term decarbonization goals, as well as reducing energy costs for Canadians through improved energy efficiency. We recommend the federal government implement the following measures as quickly as possible.

The Pan-Canadian Framework on Clean Growth and Climate Change has inspired a coalition of environmental, energy efficiency and buildings sector organizations to pool their ideas on how to effectively reduce greenhouse gas (GHG) emissions and move toward ultra-energy-efficient and lowcarbon building operations. Earlier this year, advocates for climate change action outlined recommendations for achieving results in the built environment in a letter to Canada's Ministers of Natural Resource and Environment and Climate Change. The following are the key points – Editor.

Driving momentum in new construction The Pan-Canadian Framework committed the federal government to “develop and adopt increasingly stringent model building codes, starting in 2020, with the goal that provinces and territories adopt a net-zero energy ready model building code by 2030.”

We recommend that government: • Convene and consult stakeholders early in the process to clarify the definition of "netzero energy ready” in the context of a national model code, and to share knowledge between jurisdictions such as

12 Canadian Property Management | Part of the REMI Network

Ontario and British Columbia that have already committed to a similar goal.

• Support code compliance and adoption by: i) Providing and/or supporting training around the model code to provincial and municipal staff; ii) Providing resources and incentives to assist in code compliance and enforcement. This could also encourage faster adoption of the national code by provinces and territories; and iii) Undertaking or sponsoring research on code compliance and code effectiveness in Canada to assess how well current codes

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greentargets are working and assess causes of any observed performance gaps.

• Set a clear expectation for provinces that all new construction should be net-zero energy ready by 2030.

efficiency retrofits, as well as the development of training, certification and quality assurance programs through the Low Carbon Economy Fund and infrastructure funding.

Accelerating retrofits and emissions reductions in existing buildings The Pan-Canadian Framework committed the federal government to "develop a model code for existing buildings by 2022”, work with sub-national governments “with the aim of requiring labelling of building energy use by as early as 2019” and support retrofits and fuel switching “through the Low Carbon Economy Fund and infrastructure initiatives.” Because improving the performance of new buildings alone will not be sufficient to drive the deep emissions reductions required in the building sector in order to me et C a na d a’s cl i m at e t a rget s, retrofitting and fuel switching in existing buildings a re key pr ior ities. We recommend that government: • Incentivize and support provinces in requiring mandatory home energy labelling at time of listing, and energy benchmarking for larger buildings by 2 019. Mo d el r eg u la t ion s a nd implementation guidelines can be developed for provinces in support of this goal.

• Provide support and training on the use of tools such as ENERGY STAR Portfolio Manager and the EnerGuide Rating System.

• Ensure that capacity-building efforts are supported as jurisdictions adopt mandatory energy labelling at time of listing.

• Establish an emissions reduction target for the building sector that puts Canada on a path to achieve at least 80% GHG reductions from the building stock by 2050.

• Move quickly to begin development of a model retrofit code, given the limited precedent to draw from and the number and diversity of stakeholders involved.

• Develop a comprehensive strategy for existing buildings, taking into account the role of retrofits and fuel switching in meeting a sectoral target. Such a strategy should include working with provinces to articulate an electrification and fuel switching strategy that is consistent with the unique energy supply and decarbonization pathways of each province.

• Support pilot projects for new technologies and programs to support deep energy

Improving energy efficiency standards for appliances The Pan-Canadian Framework committed the federal government to “set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable.” We recommend that government: • Renew its support for the ENERGY STAR labelling program and ensure that it remains available in Canada alongside ENERGY STAR Portfolio Manager.

• Move forward with ambitious regulations for space and water heating equipment, with the goal of ensuring that all such equipment is at least 90% efficient by 2025 and greater than 100% efficient by 2035.

• Make full use of market transformation tools — research, demonstration projects, incentives, labelling, and others — in enabling rapid improvements in minimum efficiency standards.

Catalyzing private investment through strategic use of public funds Financial incentives are a proven tool for accelerating investment in energy efficiency, both for new construction and retrofits.

However, public funds alone will not be enough to achieve the deep energy reductions required from the buildings sector.

Programs will require strong leveraging of public dollars in order to help mobilize private investment and maximize impact. In our view, projects with the highest carbon abatement potential should be prioritized.

We recommend that the federal government: • Provide strategic financial support or support other levels of government to incentivize and remove barriers to deep retrofits. For example, consumer rebates, supply chain incentives and financing options, including on-bill financing and property-assessed financing (e.g. property assessed clean energy/local improvement charges).

• Create a new public financing authority, or a new department of the Canada Infrastructure Bank, focused on energy efficiency and building renewal. Current federal funds and additional provincial funds should be used to establish this organization, create a sustainable retrofit financing model leveraging public and private financing, and capitalize the first round of programs.

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• Pursue opportunities to leverage private capital through innovative mechanisms such as revolving loan funds, loan guarantees or other credit enhancements.

• Reform tax policy to stimulate investment in efficiency. For example, tax credits and federal changes to deductibility rules can be used to stimulate retrofitting.

Support through leadership by example The federal government owns or occupies more than 27 million square metres (290 million square feet) of floor space, and provides funding for buildings in Indigenous communities and the social housing sector. These buildings provide opportunities to model the pathway to deep emissions reductions across a range of building types and regions. Leading by example also sends a clear sign of commitment to the overall vision. We recommend that the federal government: • Implem ent b ench m a rk i ng a nd d isclosu re of publ ic bu i ld i ng performance, starting in 2017.

• Require new publicly owned buildings to be built to net-zero energy ready standards, effective in 2017.

• Upgrade public buildings through deep energy retrofits (>30% energy reduction) and clean electrification at a rate that reduces total federal building emissions by 40% by 2030, in line with overall commitments under the Federal Sustainable Development Strategy.

• Address the pressing need for housing renewal in Indigenous communities by ensuring that new construction is built to high standards of health and efficiency, and by retrofitting existing buildings with a whole-building approach to energy use, health and resiliency.

• Support efforts to reduce emissions from the social housing sector by funding deep retrofit and demand aggregation pilots.

As a collaboration of leading energy and building professionals, we applaud Canada's commitment on climate initiatives, and we call on the federal government to continue on this path through strong action to deliver on commitments in the building sector. zz Represented organizations include: Architecture Canada, Association Québécoise pour la Maîtrise de l'Énergie, The Atmospheric Fund, Canadian Energy Efficiency Alliance, Council for Clean Capitalism, Équiterre, MaRS Advanced Energy Centre, Passive House Canada, Pembina Institute and Sustainable Buildings Canada.

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“Making those energy-saving choices in design is critical,” says Mark Glasier, Commercial Sales Manager with Union Gas. “That’s when you can consult with experts and energy stakeholders and incorporate their insights before any major decisions are made. This generates a lot more value for building owners as opposed to adding energy efficient features after a project is completed.”

This insight is at the core of Union Gas’ Commercial Savings by Design (CSBD) program, which it launched in October 2016 to help construction developers identify future energy savings and unlock environmental benefits during their design planning.

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program blends interactive sessions, financial incentives and a wealth of industry resources. Central to Union Gas’ program is the Visioning and Integrated Design Process sessions, which provide advice, insights, and solutions that are tailored to each participant’s project.

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In the Integrated Design Process session, participants work one-on-one with energy and sustainability experts to identify practical

16 Canadian Property Management | Part of the REMI Network

design and equipment measures that use fewer resources (energy, water), save money and improve building performance.

Sustainable Buildings Canada’s Michael Singleton explains, “If you design a building in a manner that first looks at interior loads and ways to minimize those through lower lighting loads or a greater use of passive systems, you might then have lower air conditioning or heating load requirements that allow you to spec for smaller, more energy-efficient equipment.”

Topics such as building durability, constructability, resiliency, indoor comfort and other related themes are also highlighted throughout the sessions. As well, participants

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“ Programs like this raise the bar for the industry and get people thinking about new ways to do things and apply new technologies.” have an opportunity to work with Sustainable Buildings Canada and its partners to conduct real-time energy modelling to predict the outcomes of proposed design choices.

“This kind of information can be difficult, expensive or time-consuming to access,” says Mark Glasier from Union Gas. “By bringing construction developers and experienced subject matter experts into the discussion at the start of a project’s design phase, project proponents can learn about leading-edge products and practical solutions in a single day of focused learning.”

What’s more, says Singleton, even when the insights and benefits from these sessions don’t play out in a specific project, the knowledge participants take away from the program can – and have – proven valuable down the road: “That’s where the market transformational aspect comes into play. Programs like this raise the bar for the industry and get people thinking about new ways to do things and apply new technologies. All of that becomes the new norm in how they develop future buildings.”

participants may also be eligible for additional incentives through other Union Gas programs.

These incentives and early success have made the Commercial Savings by Design program popular among the construction development community. Since launching

The benefits for participating in the Union Gas Commercial Savings by Design program are equally advantageous. The Visioning and Integrated Design Process sessions combined offer a value of up to $30,000, while additional Energy Performance and Commission Incentives are available, providing up to $15,000 each. Upon completion of construction and once the equipment has been commissioned,

the program in October 2016, Singleton says the feedback from participants has been overwhelming: “It’s been very positive. In every session, we’ve been able to demonstrate 15 per cent or higher than minimum code requirements, and there have always been these ‘Aha!’ moments where someone has learned something critical.”

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www.REMInetwork.com | November/December 2017 17

greentargets

SOURCING LOW-CARBON BUILDING PERFORMANCE Energy Supply Integral to Reducing GHG Emissions The Canada Green Building Council (CaGBC) is advocating a four-point strategy for achieving Canada's 2030 carbon reduction target in the buildings sector.

Although energy efficiency remains central to cutting greenhouse gas (GHG) emissions to 30% below 2005 levels within the next 12 years, the Roadmap for Retrofits, released in the summer of 2017, broadens the scope to look at the carbon intensity of electricity and heating sources, and highlights low-carbon approaches for existing buildings. The following is an excerpt from the report, which was produced by WSP. – Editor

ENERGY IS OFTEN used as a proxy for carbon as a performance metric because it is more readily available and relates directly to costs. However, evaluating a building’s energy performance alone fails to consider how carbon emissions vary between electricity grids across the country and between fuels used on site.

While Canada is a global leader in clean electricity generation with 80% of electricity sourced from low-carbon sources, its electricity generation still has a large carbon footprint and the buildings sector disproportionately relies on fossil fuels for heating.

18 Canadian Property Management | Part of the REMI Network

Building owners, managers, tenants, service providers and policymakers need to adopt a subtle yet important shift from exclusively addressing energy use to a view that prioritizes focusing on carbon emissions.

Meeting the 30% national target will require strategic action in each province and every building segment. As a whole, large buildings in Alberta and Ontario currently emit the most carbon and so they have the greatest potential for reducing emissions. The specific benefit of the actions undertaken will vary depending on the size, age and type of

greentargets buildings, as well as the choice of energy sources and the carbon intensity of the regional electricity grid.

Fou r key a ct ions i nclude: commissioning/re-commissioning, deep retrofits, fuel switching and on-site renewable generation.

A ROADMAP FOR RETROFITS BY REGION AND ACTIVITY MEGATONNES GHG EMISSIONS REDUCTION BY 2030

Net emissions reductions in 2030 are influenced by changes in population and the carbon intensity of the electrical grids (business as usual scenario, or BAU) as well as emissions reduction activities. Alberta and Ontario have the largest roles, followed by Saskatchewan, Quebec, Nova Scotia, and British Columbia. The uptake of each activity is ambitious and requires significant contribution by every province and real estate segment to meet Canada's target.

Emissions reduction shown as negative (-) values, emissions increases shown as positive (+) values.

LEGEND Fuel Switching

Recommissioning

COMMISSIONING Prioritizing re-commissioning in large and very large buildings will cut 2.1 megatonnes of carbon dioxide equivalent (MT CO 2e) emissions or 31% of the reduction activity needed by large buildings to meet Canada’s 30% target.

Re-commissioning generally involves improved control and operation of existing assets — making the best of syst e m s a l r e a dy i n st a l le d . T h e re-commissioning process begins with an in-depth investigation of existing system design, cont rols a nd operat iona l performance.

T he resulting optim ization recommendations (typically related to control adjustments, maintenance and minor equipment retrofits) are then implemented. Re-commissioning or ongoing commissioning should be undertaken on a recurring basis to ensure that energy reduction persists over time.

Re-commissioning will benefit all building types and can be implemented at any time in a building’s life cycle. It is most effective for intricate systems in large or complex buildings.

Initial priorities should include recreation facilities, commercial offices, health care and retail. Residential and education facilities must then follow.

DEEP RETROFITS Deep retrofits in 40% of buildings more than 35 years old, which will soon require renewal activities, and of buildings heated using electric resistance systems in regions wit h ca rbon-intensive electricity grids (Alberta, Saskatchewan, New Brunswick and Nova Scotia) will cut 2.0 MT CO2e emissions or 31% of the reduction activity needed. In most provinces, the retail building segment should be prioritized.

Deep retrofits involve major system and equipment replacement or upgrades, and often require greater upfront investment in design, analysis and communication between owner and tenants. They are typically best pursued during building renewal events such as e nvelo p e a n d m ajo r e q u ip m e nt r epla c ement , new ow ner sh ip or

Renewables

-0.03 -0.21

-0.02 -0.02

-0.14

-0.15

-0.14

-0.03

-0.59 -0.62 -0.63

-0.13

-0.13

-0.10

-0.06 -0.06

-0.14

-0.01 -0.01 -0.73 -0.73

-0.32 -0.18

-0.68

-0.01

-0.19

-0.02 -0.04 -0.04

BC

AB

SK

MB

ON

QC

NB

NS

PE

NL

Grand Total

BAU

0.31 (15%)

-2.34 (18%)

-0.91 (-29%)

0.17 (21%)

-1.9 (-13%)

0.24 (7%)

-0.37 (-28%)

-1.02 (-34%)

0.01 (13%)

-0.06 (-14%)

-5.86 (-14%)

Actions

-0.49 (-23%)

-1.97 (-15%)

-0.43 (-14%)

-0.21 (-25%)

-2.15 (-14%)

-0.69 (-22%)

-0.2 (-15%)

-0.38 (-13%)

-0.03 (-23%)

-0.07 (-17%)

-6.62 (-16%)

Total

-0.18 (-8%)

-4.31 (-34%)

-1.34 (-43%)

-0.04 (-5%)

-4.04 (-27%)

-0.45 (-14%)

-0.58 (-43%)

-1.4 (-47%)

-0.01 (-10%)

-0.13 (-31%

-12.49 (-30%)

-0.06

-0.06

-0.13

-0.11 -0.12

Source: WSP National carbon roadmap model

o c c up a n cy a n d g r e e n b u i ld i ng certification.

Deep energy and carbon retrofits must be completed in 40% of all buildings over 35 years old to achieve the carbon reduction target, as well as in 40% of buildings heating with electric resistance systems and located in regions with carbon-intensive electricity.

Since major equipment renewal typically takes place on 15 to 30-year cycles, across Canada in any given year it is estimated that about 3 to 6% of major equipment is replaced or renewed.

Therefore, between 2017 and 2030 (13 years), approximately 40 to 80% of major equipment may naturally undergo major renewal.

FUEL SWITCHING Switching to low-carbon fuel sources (electrification) in 20% of buildings more than 35 years old will result in a 1.6 MT CO 2 e reduction or 25% of the reduction activity needed.

Existing buildings can reduce carbon emissions by switching heating furnaces, boilers, and distributed equipment to high-efficiency electricity-based systems or low-carbon fuels like renewable biomass and low-carbon district heating/ cooling systems in place of natural gas or other carbon-intensive fuels.

Fuel switching (electrification) helps in any region where the electricity grid’s carbon intensity is below 530 grams of CO 2 equivalent per kilowatt-hour, assuming a conservative air source heat

pump efficiency (COP) of 2.5. Every province in Canada is forecasting to operate below this threshold by 2027, only 10 years from now. This means that even regions with carbon-intensive elect r icity gr ids today (A lber ta, Saskatchewan, Nova Scotia) will soon r e a l i z e a c a r b o n b e n ef it f r om electrification.

In complex buildings (commercial and health care) fuel switching must take place as part of major building renewal.

Across Canada between 2017 and 2030, approximately 40 to 80% of major equipment may naturally undergo major renewal.

The low cost of natural gas relative to electricity has historically led building owners to switch from electricity to natural gas — the reverse of the electrification pathway that would lead to carbon savings. The financial viability of electrification needs to be effectively proven and widely communicated if it is to be adopted as common practice.

Despite the increasing cost of electricity, an electric heat pump system will cost less to operate than a gas boiler in most locations, assuming a carbon tax of $50/ton (required across Canada by 2022). Heat pump systems exchange heat with their surroundings instead of producing heat directly, meaning they often perform with a coefficient of performance of 2.5 or more (250% efficiency).

Currently, the combination of GHG reductions and financial benefits make www.REMInetwork.com | November/December 2017 19

greentargets fuel switching particularly attractive in British Columbia, Manitoba, Quebec, Prince Edward Island and Newfoundland & Labrador. In these regions, significant effort should be put into reducing reliance on fossil fuels for heating and increasing the adoption of highly efficient heat pump technology. As grids become less carbon intensive and carbon prices rise, heat pumps will very rapidly become attractive throughout the rest of the country.

ON-SITE RENEWABLE GENERATION On-site renewable energy systems installations (e.g. solar) in 30% of buildings located in provinces with carbon-intensive electricity grids will cut 0.9 MT CO2e emissions or 13% of the reduction activity needed. While many forms of on-site renewable energy generation exist, including solar thermal, biomass, wind and micro-hydro, it is solar photovoltaic (PV) electricity generation that is the most common, particularly for existing buildings.

Renewable energy systems must be installed in 30% of buildings located in provi nces wit h ca rbon-i ntensive electricity grids (Alberta, Saskatchewan,

Despite the increasing cost of electricity, an electric heat pump system will cost less to operate than a gas boiler in most locations, assuming a carbon tax of $50/ton.

New Brunswick and Nova Scotia) to achieve the carbon reduction target.

Ca rbon savi ngs t h rough on-site renewable energy are negligible in British Columbia, Manitoba and Quebec, owing to their low-carbon intensity electricity grids. Nevertheless, there are other benefits to on-site renewable energy within these regions, including increased resilience.

With the cost of commercial solar photovoltaic (PV) systems continuing to decrease steadily, it is expected to one day generate power at a levelized cost of electricity (LCOE) that is less than the cost of purchasing power from the electricity grid. Known as grid parity, this is the point when solar power can

become more viable for widespread adoption without additional subsidies or incentives.

It is estimated that as of December 2016, more than 30 countries had reached grid parity without subsidies and that about two-thirds of the world should reach grid parity in the next couple of years. If electricity costs were to rise by 3% annually, 80% of the global market would reach grid parity in the next couple of years. zz The complete text of A Roadmap for Retrofits in Canada: Charting a path forward for large buildings can be found on the Canada Green Building Council's website at www.cagbc. org/retrofitroadmap.

Enbridge Gas Distribution

Energy solutions for a comfortable building and a better bottom line.

Investing in energy upgrades now can really pay off.

At Enbridge, we are dedicated to helping Property and Facility Managers like you make high-efficiency energy upgrades. Earn up to $100,000 in incentives when you invest in equipment such as high-efficiency boilers and advanced ventilation control technologies.* A dedicated Enbridge Energy Solutions Consultant will assist you through the process.

Earn up to a maximum of

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*

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Contact your Energy Solutions Consultant at energyservices@enbridge.com or 1-866-844-9994

enbridgegas.com/commercial *The incentive is based on projected first year natural gas savings and is remitted upon project completion. Contact an ESC for further details. Incentives will cover up to 50% of the project costs to a maximum of $100,000 per project. Please see www.enbridgegas.com/commercial for additional program terms and conditions.

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2017-10-04 12:36 PM

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• • • •

                                                                                 

 

   

SPONSORED CONTENT

TAKING CHARGE IN THE AGE OF EVS

THE ELECTRIC VEHICLE (EV) revolution is here; and with it, a demand for property stakeholders to accommodate a growing volume of plugged-in commuters.

“This isn’t a passing trend – EVs are definitely here to stay,” says Brookes Shean, General Manager, Central Canada with FLO, Canada’s leading EV charging solution provider. “More and more people are realizing the benefits of driving an EV, not only from a cost-saving and environmental perspective, but also in terms of overall enjoyability and comfort. In fact, when you run the numbers, EV drivers are driving an average of 10-kilometres further per day than traditional gas drivers.”

Certainly, what may have once been dismissed as an eco-friendly fad is quickly becoming the new normal. That’s putting pressure on property managers and owners to support EV drivers with electric charging stations where they work, live, and play. Traditionally, however, the cost of installing, monitoring, and maintaining EV charging stations has made some cautious about making the investment.

22 Canadian Property Management | Part of the REMI Network

And here is where FLO is taking charge.

With over 4,000 EV charging stations throughout the country, the Quebec-based company is already Canada’s largest charging network. Its goal is to foster that network by providing property managers with simple, affordable, and manageable ways of bringing EV charging stations to their tenants. And just recently, FLO launched an innovative business model that provides stakeholders with one more option to get in the game.

The idea is simple. Through a single, monthly fee, FLO will install and maintain EV charging stations for their clients, as well as monitor their usage and ongoing operations remotely from its operation centre.

“Think of it like a smartphone plan or internet subscription,” offers Shean, explaining, “For a predictable monthly fee we take care of everything, and we monitor it on our end to guarantee reliability and service quality. ” It also makes more fiscal sense for property stakeholders as the model reduces – or, in

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some cases, eliminates – the upfront capital expenditures, turning them into a more flexible operating expense.

“It does away with the high upfront cost of installation and it makes sure property owners aren’t stuck with something that might be outdated or in ill-repair because it is entirely up to us to keep the services and equipment running,” says Shean, adding, “Ultimately, it’s about giving property owners peace of mind by supplying the market with an easier and more costfriendly way of staying ahead of the EV evolution.”

FUTURE PROOFING The demand for electric charging stations is only growing. This is not only presenting opportunities for residential property stakeholders to differentiate themselves from the competition, but for commercial and office building managers to accomodate EV drivers where they spend most of their days: in the workplace.

Surely, as more and more consumers in the workforce adopt EV-driving habits, having EV charging stations available where they work will become an increasingly important factor in attracting and retaining talent.

Yet while FLO’s EV charging model was designed to meet growing market demands, it was also created to ensure its clients are prepared for EV advancements to come. As more tenants and employees make the EV leap, the need for electric charging stations at offices, homes, retail outlets, and along travel routes will only increase. And as EV technologies advance to meet those needs, property owners will be challenged to not only provide EV

charging stations, but make sure they are up-to-date and working at full potential.

FLO addresses that concern in multiple ways. First, its EV charging stations are built to withstand all Canadian climates thanks to their aluminum enclosures which are designed to be far more resilient to changing weather conditions than existing alternatives.

Secondly, explains Shean, FLO’s business model is supported by a team of technical experts who are on call for clients whenever repairs, updates, or all-out replacements are needed: “It’s an ongoing, turn key operation that gives property owners the

flexibility to add more units down the line or replace the units they have when it comes time to upgrade.”

Certainly, as the EV revolution continues to build, it’s not a question of ‘if’ property owners need to catch up, but ‘when’. And with FLO as a partner, Shean says the time is now: “EVs are here to stay, so for us, it’s about making sure our locations are being provided with the best equipment, the best service, and the most options they can over the lifetime of this growing market.”

Brookes Shean is General Manager of Central Canada with FLO Inc. For more information, visit Flo.ca. www.REMInetwork.com | November/December 2017 23

greenreturns

CONTEMPLATING THE ECONOMICS OF DEEP RETROFIT

Costs are Stabilizing and Dropping, Returns Remain Lucrative

By Jennifer Thorne Amann

JUST OVER a decade ago, zero energy was largely an aspirational goal, made real in a few cases through one-off designs and niche technologies that achieved the efficiency gains needed for zero-energy buildings (ZEBs). Since then, much progress has been made as advances in technologies, products and construction techniques have permitted significant improvements in the energy efficiency of new construction, while bringing down the associated costs.

Today there are more than 200 commercial buildings and 6,000 homes operating as ZEBs in the United States

alone. Moving ultra-low-energy (ULE) concepts and practices from new construction to existing buildings will be an important step in transforming the buildings sector since it is estimated that more than half of the homes and buildings that will be in use in 2050 are already built and in use today.

Existing buildings provide a much larger stock of buildings to develop, demonstrate and improve advanced design strategies, technologies and practices. They also provide a much greater energy savings opportunity than new construction, particularly for homes.

24 Canadian Property Management | Part of the REMI Network

There are signs of progress. A few deep energy retrofit approaches and strategies have proven successful at delivering ULE homes and buildings that meet a range of owner objectives, including vastly improved comfort, resilience and durability. A review of research reports, case studies and other compilations of deep energy retrofit projects suggests that dozens of existing homes and buildings are operating at ULE levels. A sizeable portion of these are ZEBs. Home and building retrofits have yielded energy efficiency improvements

greenreturns of 50 to 90% — the levels needed to achieve zero-energy performance with the addition of renewables. This level of savings goes far beyond the 15 to 30% savings resulting from typical retrofit projects.

TECHNICAL CHALLENGES, COST DIFFERENTIALS Achieving ULE performance in existing buildings presents a different set of technical challenges than those found in new construction. The first step in designing an ultra-low-energy building is to reduce building energy loads. In new construction, designers can position the building on the site to optimize natural daylighting, passive heating and cooling strategies, and roof orientation for photovoltaic (PV), and can specify materials and methods to ensure an airtight, well-insulated building envelope.

With an existing building, the design team has little to no control over building orientation (except in cases of very extensive renovations/rebuilds) and may face limitations in achieving envelope performance levels found in high-

Existing buildings provide a much larger stock of buildings to develop, demonstrate and improve advanced design strategies, technologies and practices. efficiency new construction due to construction type, structural features, or historic designations. To address these challenges, ULE designs for existing buildings may rely more heavily on the installation of super-efficient equipment and the use of sophisticated energy management and controls, and place greater emphasis on strategies to reduce plug loads.

Beyond the envelope, some retrofit projects face constraints on equipment choices. The cost and disruptions associated with changing heating,

cooling or water distribution systems can pose a significant hurdle.

However, as project planning proceeds, the strategies and technical options available for existing buildings are very similar to those for new construction.

Existing buildings can benefit from the same advances in appliance, equipment a nd l ig ht i ng ef f iciency, energ y management and control strategies, e n e r g y r e c ove r y a n d o c c u p a nt engagement , a lt hough costs a re sometimes higher and continue to present a barrier in retrofit situations.

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greenreturns While much of the first cost differential for zero-energy new construction has been eliminated for many building types, retrofits continue to present cost burdens. In new construction projects, the design process affords opportunities to identify cost reductions to offset h ig h e r c omp onent , m a t e r ia l or construction costs.

In contrast, retrofits often present building owners with costs they could avoid

— by simply not doing the project, delaying the project, or opting for basic equipment replacements and repairs — and the effort to pursue deeper savings often requires materials and labour beyond those of a simple retrofit project.

Costs associated with removing existing equipment, completing repairs or remediating defects and changing or enhancing structures can add other costs that are unique to retrofit projects.

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MATERIAL, EQUIPMENT, LABOUR Retrofit project costs can be divided into th ree broad categor ies: mater ials, equipment, and labour. Energy-efficient building materials (e.g., insulation) are often among the lower-cost components in a retrofit (with the exception of highperformance windows) and, since many of these materials represent mature technologies and products, the potential for further cost reductions is small.

The cost of many high-efficiency appliances and equipment types has declined as standards increase the baseline efficiency, growing market share leads to economies of scale and the learning curve allows manufacturers to reduce production costs. For example, the cost of general service (A-lamp) and directional LED lamps dropped roughly 50% f rom 2012 to 2014, a nd a re projected to decrease another 10 to 20% by 2020.

L E D repla c ement s for l i nea r fluorescent lamps dropped 40% from 2012 to 2014 and already cost less than the 2020 projections developed for the U.S. Department of Energy in 2014.

Ductless heat pumps costs declined steadily from 2009 to 2016 — a trend that is expected to continue as the ma rket grows. These products a re among the innovations that enable ULE homes and buildings.

Labour costs are a significant portion of retrofit costs, though they vary widely depend i ng on t he specif ic measures and the project’s scope, the needed maintenance or repairs and the degree of structural change, demolition or other labour the project requires.

Evidence is emerging that the cost of ULE retrofits is declining as experience and understanding of the most effective measures and techniques grows. For example, the Vermont Zero Energy Now p i lo t p r og r a m i s a ch iev i ng significant energy efficiency gains for less than half the cost of earlier deep retrofit pilots with an anticipated return on investment averaging 9%. zz

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Jennifer Thorne Amann is Director of the Buildings Program with the American Council for an EnergyEfficient Economy. The preceding article is excerpted from her July 2017 whitepaper, Unlocking Ultra-Low Energy Performance in Existing Buildings. For more information, see the website at www.aceee.org.

26 Canadian Property Management | Part of the REMI Network PremierElevator_Island_2017.indd 1

2017-04-05 2:15 PM

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SPONSORED CONTENT

THE SUBMETERING APPROACH TO HIGH-RISE WATER BILLS

28 Canadian Property Management | Part of the REMI Network

Leaky faucets and long showers may not make a big impact on a homeowner’s water bills, but it’s a different story for high-rise stakeholders.

“It adds up,” agrees Andrew Beacom with Priority Submetering Solutions.

“Individually, the water being used by each occupant of a high-rise isn’t much, but multiply that over hundreds of units and you can see why apartment and condo property owners and managers are starting to take a longer look at how they can control their costs.”

Considering Canada is home to the highest per capita water users in the world – an average of 328 litres per person, per day – efforts to curb water usage have risen in recent years. Much of those efforts are driven by an overall shift towards green and sustainable practices, but rising water rates in the Greater Toronto Area have also been a source of motivation.

“Currently, there are plans in place to hike Toronto’s water rates up by another 5% in 2018, which is no small increase,” adds Beacom.

The responses to rising waters bills have been varied. They’ve ranged from upgrading units with low-flow toilets to incorporating automation technology into irrigation systems, and implementing building-wide conservation programs.

Among these strategies, however, is the concept of water sub-metering – the process by which individual meters can be installed to measure each suite’s consumption rates and patterns. Unusual water patterns are identified and all consumption data is fed into Priority’s billing platform, which produces an accurate, transparent, and on time bill for each resident depending on their specific usage.

“It’s a cliché but it’s true: knowledge is power. In the case of water usage, metering by individual suites allows property stakeholders to see where their

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Beacom and the Priority team have seen these types of sub metering benefits first hand. In their work with one townhouse client in Hawaii, for example, it was discovered that a leak between the main water meter and the townhouse was resulting in approximately $2000 (US) in extra water expenses each month. Through sub-metering technologies, the problem was identified, located, and immediately fixed with help from local utilities.

water is being used, how much it’s being used, and where that usage can be reduced or eliminated,” Beacom explains.

Through suite metering, property owners hold tenants more accountable for their water usage habits, while ensuring low-volume users aren’t footing the bill for highvolume users. In this respect, water sub-metering is not only effective for making tenants aware of their water habits, but in making sure the rising cost of water is shared equally and fairly across all parties.

On a larger scale, incorporating sub-metering technology in a high-rise condo or apartment can give property owners a better idea of what systems are doing more harm than good. Notes Beacom, “You may find out that a large percentage of your water usage is going into your irrigation system. So that might prompt you to ask if you really need to water your property that often, or it might prompt you into exploring new technologies or conversation methods that can cut that cost down.”

“You can imagine how relieved they were when they fixed that problem.

You can also imagine how much more extra costs they would have incurred if it had gone unnoticed,” says Beacom, adding that the client

went on to secure over $59,000 in annual savings through addition conversation methods spurred by the sub metering program.

Still, while suite metering has proven successful with Priority’s clients, there remains a misconception that the technologies are not effective in high-rise buildings. Adds Beacom, that simply isn’t the case: “The technology is there and its proven effective across high-rises of all shapes and sizes. The reality is that water costs are increasing drastically, so if property owners want greater control over the money pouring out of their buildings, sub-metering is proven strategy.”

Andrew Beacom is the President & CEO of Priority Submetering Solutions, a licensed, full-service utility Suite Metering and billing company serving multi-unit buildings across Canada and the United States. For more, www.prioritymeter.com.

1-866-836-3837 info@prioritymeter.com prioritymeter.com

www.REMInetwork.com | November/December 2017 29

greenstandards

CARBON IS THE NEW KEY INDICATOR

CaGBC Launches Standard to Steer Zero Emission Emergence

By Mark Hutchinson IN DECEMBER 2016, the Pan Canadian Framework cited sustainable buildings as one of the means to attain reductions in greenhouse gas (GHG) emissions, specifying specific measures to help drive down the industry’s emissions. This watershed moment for the green building industry put a spotlight on building performance as a critical solution to climate change.

Building on the industry’s progress, the Canada Green Building Council (CaGBC) has been working to spearhead the next evolution of green building, aimed at meeting the needs of the emerging lowcarbon economy. Launched in May 2017, the CaGBC’s Zero Carbon Building Standard is a critical step toward mitigating

building emissions. As Canada’s first green building program to ma ke carbon emissions the key indicator for building performance, the Standard positions Canada in an elite group of c o u n t r i e s wo r k i n g o n s i m i l a r initiatives, including Australia, France, Brazil and the United States.

Recognizing carbon emissions as a key indicator of building performance is an important and fundamental shift for the buildings industry. To date, regulators and those incenting carbon emission reductions (including CaGBC) have focused on energy efficiency.

However, the most important factor in the carbon footprint of a building is often not its energy performance, but the carbon

30 Canadian Property Management | Part of the REMI Network

intensity of the electricity and fossil fuels used. Recognizing the differences in regional electrical grids and fuel choices is therefore critical to accurately assessing environmental impacts and guiding investments. The CaGBC Zero Carbon Building program reinforces the importance of energy efficiency, while also driving careful choices about the types of energy used and encouraging more renewable energy generation both on the building site and offsite.

CaGBC is not alone in expanding from a strict focus on energy efficiency.

Regulators are increasingly recognizing the importance of addressing building emissions holistically, and carbon is bound to become increasingly important

greenstandards

to both new construction and the operation of existing buildings. For example, the City of Vancouver’s updated Green Buildings Policy for Rezoning includes GHG intensity requirements and Toronto is considering the same.

On the existing buildings front, the Province of Ontario recently mandated energy and water reporting for large buildings, and others are planning to follow suit. It is not at all inconceivable that carbon emissions will also be part of reporting and disclosure requirements at some point in the future. Finally, all Canadian provinces will soon be impacted by one form or another of carbon pricing, changing how different forms of energy impact operating costs.

Leaders who are quick to address building emissions will benefit from recognition while future-proofing their assets — positioning themselves for long-term savings and securing their place in the growing low-carbon economy.

SIMPLICITY AND FLEXIBILITY The ultimate measure of success is the actual volume of carbon emissions from building operations year over year. In order

to recognize the inherent limitations of existing buildings, the requirements of the CaGBC’s Zero Carbon Building Standard have been kept minimal, focusing primarily on the key outcome: reduced carbon emissions.

Cost effectiveness is enhanced by providing the flexibility to drive carbon reductions by whatever means make the most sense for a given building. This can include energy efficiency measures, fuel switching and generating renewable energy on the building site or off-site.

The themes of simplicity and flexibility also apply to the requirements for the design of new construction projects. Recognizing that the design stage provides a unique opportunity to make decisions that will yield reliable long-term carbon reductions, a couple of key design elements were incorporated in order to guide industry.

Specifically, there are requirements for thermal energy demand intensity (a measure of the building envelope and ventilation strategies) and for on-site renewable energy generation. Both of these strategies are going to be key to meeting carbon emission reduction targets in the long run.

Shifting the focus to emissions and providing flexibility to meet a zero-carbon

balance creates an opportunity to apply new approaches, technologies and products, spurring Canadian innovation along the way. Carbon emissions are going to be a key metric of building performance going forward, both for environmental and economic reasons.

The CaGBC, through the release of the Zero Carbon Building Standard, is providing commercial, institutional and multi-family asset owners and managers with a framework, developed through extensive industry consultation, which allows them to begin the process of transitioning to the low-carbon economy of the future.

The Standard is not intended to overwhelm with the possible challenges of immediately achieving a zero-carbon balance. Rather, it aims to raise awareness of the growing importance of carbon emissions, provide a framework for assessing those emissions and inform strategies to reduce them. zz Mark Hutchinson is Vice President of Green Building Programs with the Canada Green Building Council. For more information, see the website at cagbc.org/zerocarbon.

BOOSTING INVESTOR CONFIDENCE IN RETROFITS The Canada Green Building Council (CaGBC), Green Business Certification Inc. (GBCI) and the Advanced Energy Centre at MaRS Discovery District are working together to bring the Investor Confidence Project (ICP) and its Investor Ready Energy Efficiency (IREE) certification to Canada.

In the Pan-Canadian Framework, the Canadian federal government recognized the role that retrofitting buildings will play in reaching Canada’s targeted emissions reductions. Additionally, CaGBC’s A Roadmap for Retrofits in Canada report (see page 18) found that existing buildings could potentially reduce overall emissions by up to 51% by 2030.

ICP is expected to help facilitate the mass retrofits required to achieve these goals, while the IREE-certified projects will provide clarity on the long-term performance of energy efficiency technologies and help create greater access to competitive financing, which will be necessary to achieve retrofits on a large scale.

ICP is a GBCI-administered global underwriting standard for developing and measuring energy efficiency retrofits. Its IREE certification signals to investors that a project has adopted best practices that can help

reduce transaction costs and increase savings.

The protocols offer investors a consistent roadmap for assessing risk and expected outcomes from deep retrofits. Project owners, investors, engineers and insurance companies in the United States and Europe are already relying on the certification.

“The Advanced Energy Centre is pleased to play a role in introducing the Investor Confidence Project and supporting the IREE Certification’s launch in Canada,” says Shawn Peterson, Senior Associate of the MaRS Advanced Energy Centre. “Our cities need innovative financing mechanisms for improving building performance at scale.

Ontario’s large concentration of institutional real estate, financial capital and support to invest in low-carbon building solutions makes it an ideal market for investors.”

“We believe that the ICP can play a critical role in the acceleration of Canada’s retrofit economy by instilling investor confidence in green retrofits and by providing a tested, ready-made tool that government and industry can leverage to accelerate uptake across the country,” adds CaGBC President and CEO Thomas Mueller.

— REMI Network

www.REMInetwork.com | November/December 2017 31

greenstandards

ACTIVE RENEWABLE GRID FORTIFIES PASSIVE HOUSE Thermal Comfort Deemed Standard's Major Strength

By Cheryl Mah INTEREST IN the Passive House standard has increased significantly in the last two to three years throughout North America and especially in Western Canada. It is setting a new benchmark for energy-efficient building design and construction and offers a roadmap to achieving carbon reductions.

With all levels of government in Canada setting a timeline for climate change commitments, the building industry is looking at the Passive House

standard as a tool to achieve net-zero carbon and healthy buildings — two current key green building trends.

“Passive House is primarily focused on achieving deep energy reduction consumption in buildings through a science-based approach with proven results,” said Kamilia Vaneck, Project Manager, Sustainability and Energy, WSP. “Passive House can be used as a roadmap to help us take those first steps of reducing, optimizing and even generating.”

32 Canadian Property Management | Part of the REMI Network

Vaneck was one of three industry experts speaking at the Canada Green Building Council (CaGBC) 2017 conference in Vancouver earlier this year. The session focused on evaluating the Passive House Standard as a means to achieving net-zero carbon and healthy buildings.

In pursuing solutions, there is “no one size fits all to CO2 reductions,” noted James Woodall, Sustainable Design Specialist at HCMA Architecture + Design. “A balanced

greenstandards DESIGN AND WELL-BEING PRINCIPLES SERVE DIVERSITY Accessibility and inclusiveness are on the agenda for a pending update of the model green office lease that has become an entrenched standard in Canada’s commercial real estate sector. Responding to a question about benchmarking diversity at the recent Canadian release of 2017 Global Real Estate Sustainability Benchmark (GRESB) results, Michael Brooks, CEO of REALPAC, identified the green lease, now nearing its 10th anniversary, as a potential effective guide for both landlords and tenants.

He suggested the next version may reference Rick Hansen Foundation Accessibility Certification, a two-level rating system for commercial, institutional and multi-residential buildings. In addition to credible third-party verification from professionals trained in accessible design fundamentals, participating buildings get a detailed scorecard advising where and how improvements can be made.

Green lease drafters are also interested in University of Toronto’s inclusive design research. “It’s looking at ways to make buildings amenable and welcoming to people of different cultural backgrounds,” Brooks reported.

Health and well-being specialist Whitney Austin Gray, also speaking in conjunction

approach is critical to charting a course to a more sustainable built environment.”

While buildings are the biggest source of greenhouse gas emissions, it’s also an opportunity for change, said Vaneck. Canada has committed to a carbon emissions reduction target of 30% below 2005 levels by 2030 and similarly, the City of Vancouver will eliminate emissions from all of its new buildings by 2030.

For existing buildings, energy-use labelling could be adopted as early as 2019, said Vaneck. The City of Vancouver also released a new rezoning policy in May that requires all applications to meet nea r-zero or low-em issions buildings and has suggested Passive House as a path for achieving those carbon reductions.

While Passive House provides a proven roadmap for achieving deep energy consumption reduction in buildings, cer tif ication does not guarantee net-zero carbon. Vaneck

with the GRESB results release, suggested property and facilities managers can embrace diversity through “canaries” who may have heightened health sensitivities and/ or be among the approximately 2.5% of people at either end of the height and weight spectrum. Accommodating their needs will almost invariably appeal to a broader range of building users.

She cited task lighting, which is an important visionary aid for cataract sufferers and simply a preference for many office workers with better eyesight. As a spinoff bonus, it can contribute to energy savings by reducing requirements for overhead lighting.

Similarly, curb cuts to accommodate mobility devices benefit people pushing strollers or pulling rolling briefcases.

“Pay particular attention to the canaries.

These are the people who actually have the secret for the rest of us,” asserted Gray, who is Senior Vice President at Delos Living LLC, the company that devised the WELL Building Standard. “When you design for the extremes, you benefit the means.”

explained that Passive House has int roduced new cer tif icat ion requirements that make renewable energy production mandatory in two new classes: plus and premium.

“Passive House addresses carbon by re-imagining a future with 100% renewable grid,” she said.

Kaitlyn Gillis, Director of Well-being and Sustainability at the Light House Sustainable Building Centre discussed Passive House in relation to health and well-being. Gillis, along with Woodall, reviewed the gaps and opportunities in the standard by focusing on four impact areas: indoor air quality, lighting, acoustic and thermal comfort.

The focus on health and well-being is not new but there is “a new interest and focus today that looks at the issue more holistically and how the built environment engages with humans — socially, psychologically and physiologically,” she said.

Passive House covers thermal comfort well but falls short on requirements in the

— Barbara Carss

other three areas, according to Gillis.

Healthy buildings have many design requirements.

“So other strategies need to be considered if we’re actually designing for people. What we can do with a Passive House design project is to create an environment that gives us this opportunity to be healthy,” she said.

Vaneck noted that Passive House is not a zero-carbon building standard nor is it a healthy building standard.

But Passive House has a role and can provide a foundation for achieving both of those goals.

“We can have a healthy net-zero building that’s certified to Passive House standard but that may not necessarily achieve those goals by just following the standard — we have to go beyond the foundation to achieve those goals,” she concluded. zz Cheryl Mah is Managing Editor of the REMI Network publication, Design Quarterly. www.REMInetwork.com | November/December 2017 33

greenpioneering

GLASS TOWER ALTERNATIVE

Vancouver Developer Pursues Passive High-Rise

A PROPOSED NEW PROJECT at 14 0 0 A lb er n i St re et wi l l m a ke Vancouver home to the world’s tallest passive house towers. The joint venture d evelo p m e n t by L a n d a G lo b a l Properties and Asia Standard Americas will feature two condominium towers of 48 and 43 storeys. The tallest Passive House in the world is currently a 31-storey high-rise residential building in Bilbao, Spain.

34 Canadian Property Management | Part of the REMI Network

“These types of buildings are the future and we want to be at the cutting edge of that shift,“ says Kevin Cheung, CEO of Landa Global Properties.

“While they are more complicated to build, we are looking forward to being pioneers and creating prototypes for a lot of equipment that doesn’t yet exist. We believe we can be leaders in zeroemission building development and design and pave the way for other projects like this in future.”

Passive House is a rigorous building standard developed in Germany that significantly improves energy efficiency and comfort, and it reduces a building’s ecological footprint. This standard can be applied to any building type and reduces the amount of energy needed to heat and cool it by almost 90%. As a result, they produce very little carbon pollution. It’s why both Vancouver and the province of British Columbia are supportive of these buildings.

“Vancouver is famous for its concrete glass towers but what’s exciting about this announcement is that the city can show the world how to build a highperformance Passive House tower,” says Passive House consultant, Eesmyal Santos-Brault. “If we can build a tower that still makes money and is good for the environment and doesn’t consume much energy or carbon, that’s a win-win for everybody.”

Designed by New York-based Robert A.M. Stern Architects and the Vancouver firm, MCM Partnership, the project will feature 450 homes including 129 rental units and a 10,000-square-foot daycare. The anticipated completion date is by 2022.

greenpioneering

ll deal ficient e and assive ldings from speak a total er 50 assive ning in .

“While they are more complicated to build, we are looking forward to being pioneers and creating prototypes for a lot of equipment that doesn’t yet exist.”

The City of Vancouver is aiming to have all new buildings produce zero emissions by 2030, and the province is aiming for all new buildings to be net-zero by 2032. W h ile Passive House is the norm in some cities and cou nt r ies a rou nd t he world , it’s relatively new to North America.

Metro Vancouver is home to most of them, including single-family homes, duplexes and low-rise multi-family residential.

“There will be tremendous value for the trades, manufacturers, designers, builders and developers to learn and find innovative solutions to see these towers built to the Passive House standard. And those solutions will translate into better and healthier homes for the families who will occupy them,” says Gil Kelley, General Manager of Planning, Urban Design and Sustainability for the City of Vancouver. zz

uction n the vative wentyat the focus. assive nd for "Bolueta" in Bilbao, Spain. www.REMInetwork.com on to © G. Velázquez/VArquitectos nts or artens, assive Yet another Passive House high-rise which the conference will focus on: "Bolueta" in Bilbao, Spain. s and © G. Velázquez/VArquitectos The new McIntosh Perry increases our disciplines, expertise and services for the benefit assive of you - our number one priority.

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www.REMInetwork.com | November/December 37 2017-11-16 2017 2:06 PM

green&smart

ARTIFICIAL INTELLIGENCE

IN REAL ESTATE Much to Ponder in the Queue of Advancing Technologies

By Amy Erixon

38 Canadian Property Management | Part of the REMI Network

green&smart

AUTOMATION HAS already displaced one-third of all manufacturing jobs in the world, while increasing demand for modern industrial and manufacturing space.

Automation is now starting to absorb jobs in the banking, research, retail and other pinkand-white-collar arenas. Will the office sector also see space requirements grow?

Or will this workspace shrink or evolve?

Will location criteria change?

Adm inistration, transpor tation, construction and extraction industries are next in the automation queue. A glance at the signature technologies currently under development suggests that far more sectors, including medicine, education and even government, are poised to see significant work transformation in the near future. How quickly this change happens will depend on a number of factors.

Artificial intelligence (AI) has evolved slowly over nearly 70 years of research.

Major breakthroughs have come from multiple directions, including increases in raw computing power, algorithm development, the incorporation of sensor feedback, experiential learning and distributive computing. What AI teaches us about all technologies is that it is in the rethinking of the process where the major progress is made, and potential for disruption gains the most traction.

Hindrances to AI development and adoption have been philosophical as much as technological. Since AI’s inception, its proper purpose has been debated. Are computers best used to provide advice or make decisions? What ethical, moral and regulatory considerations should constrain and inform the deployment of automation?

Will we need new models of governance and oversight, given the difficulty in completely eliminating coder bias and potential for dislocation of the workforce?

DEPLOYMENT OPTIONS No matter how lifelike machines can appear, sound and act, they will likely always lack sentience and be constrained to understanding the world in terms of rules, optimized choices and sophisticated patterns. As well built as they might become, machines, like humans, can fail.

Questions around whether it makes sense to employ AI are easier to make in the context of confined systems where competing variables are easily quantified, measured and optimized, and there is consensus on outcomes. For example, the Avison Young's 2016 topical report, Technological Disruption and the Real Estate Industry, states that building automation systems utilize extensive sensor systems and AI to optimize specific features, such as occupier comfort and energy efficiency. As AI systems become more sophisticated, additional layers can be added, such as digitized ID access and security, automated inventory tracking and/ or responsive equipment maintenance.

Owners and operators of smart buildings of the future will need to answer questions like these: Smart for whom? Secure from what? Connected or integrated with where?

Smart building owners and operators will also need to develop protocols for handling data collection with integrity, systems resiliency and appropriate privacies.

DEEP LEARNING When applied to advanced applications such as autonomous vehicles, stock trading and medical diagnosis, these questions become significantly more complex. An AI system in dynamic interaction with changing surroundings or morally impactful decisions needs context to make judgements.

Can we program a machine to follow social, cultural and emotional norms that www.REMInetwork.com | November/December 2017 39

green&smart

underlie the essential trust underpinning societies? Some researchers think we can, but these systems sometimes surprise their creators — even those working at Google’s Deep Mind and IBM’s Watson.

In recent years, researchers have been able to combine AI techniques of neural networks and expert systems in a process known as deep learning to design programs capable of writing their own algorithms based on what it is learning experientially. Some of these

programs are so sophisticated that no one really knows what they do or how they work. This situation occasionally results in astonishingly impressive results, such as the ability of computers to make medical diagnoses with greater statistical accuracy than doctors can.

Yet, unless the computer can also be taught to explain how it arrived at its conclusions, should a doctor recommend what might be a risky procedure or pharmaceutical treatment to a patient?

On the flipside, if the computer can be

made to “show its work” as we were taught in school, we would be presented with a chance to learn a very great deal about how we are inf luenced and sometimes obstructed by our own implicit beliefs and biases.

ADOPTION CYCLE Most technologies move through a predictable and long cycle of adoption, from beginning to broad deployment of a useful innovation or application.

Expectations rise as early adopters see

PREDICTIVE vs. PREVENTATIVE MAINTENANCE

By Peter Greaves Like anything that is smart or intelligent, buildings of the future have a nervous system with embedded digital ‘organs’ that capture and monitor consumption and usage in order to optimize building performance over the long haul. This enables a more proactive posture of anticipating the problem before it arrives.

While a preventative maintenance approach relies on performing regular, prescheduled maintenance checks and repairs, a better way to go about it is by using a predictive maintenance approach based on the actual condition of the equipment. In this way, repairs and maintenance are prioritized according to what the building owner and operator deem important.

When supported by analytics, an optimized system can reduce a building’s maintenance and energy costs by up to 20%. When analytics and predictive maintenance are coupled, building owners and operators have real-time information that allows them to make decisions quicker and easier.

System faults and physical malfunctions

are fast detected and dealt with accurately, which sets a positive ripple effect into motion.

Operational costs are reduced as the overall process becomes more efficient.

Instead of playing guessing games, with breakdowns only a matter of time, designers and patrons of future buildings can keep their finger on the pulse of their assets and even see them improve over time.

The analytics around these maintenance systems are robust.

Stakeholders will look at everything from maintenance logs to inspection reports, repair invoices to warranty claims, and operator profiles to test results, when building resilient systems.

Algorithms and ‘machine learning’ will be able to make the ‘smartest’ maintenance choices almost instantly and precise calls will be made around predictive failure almost immediately, which will allow businesses to focus on the more important matter of serving clients and delivering to shareholders.

Turning to construction, prefabricated construction, automated technology such

40 Canadian Property Management | Part of the REMI Network

as robotics to install these prefabricated construction materials, and additive printing are all construction technologies that can be implemented to make construction and building maintenance easier — driving down short- and long-term costs. These buildings will be highly accurate, with small tolerances. They will achieve a high quality finish throughout any storey level and will be fully planned and documented very quickly.

Because they will be manufactured, not built, there will be reduced weather delays and waste, and carbon generation and site time will be reduced.

This safer way to build will require only low or semi-skilled labour for fast on-site assembly/installation.

Peter Greaves is Buildings of the Future Leader with the Australian consulting engineering firm, Aurecon. The preceding article is excerpted from the white paper, Buildings of the Future: Bottom Line Benefits. For more information, see the website at www.aurecongroup.com

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green&smart results, and this situation typically coincides with peak valuations.

As implementation lags due to any of a number of factors, from lack of training to limited interfaces to resistance to change, a trough of disillusionment is inevitable. As the product improves and awa r e n e s s i n c r e a s e s (slo p e of enlightenment) eventually a plateau of productivity is reached.

Unobstructed adoption rates correlate with how compelling the revised value propositions are — and what problems they solve. But, ultimately, adoption depends on a number of factors, including user experience and ease of use, and can be substantially delayed by potential resistance on any number of grounds, including lack of familiarity and transparency, opposition by legacy companies or regulatory entities.

Generally, technology is deployed most readily where it 1) reduces difficulty, danger and/or negative side effects (such as pollution or safety concerns); 2) reduces transactional friction: time, distance, and/or cost; 3) improves outcomes: solving vexing problems, or providing new features or convenience; and 4) legacy investments

REVERBERATIONS FROM THE ROADWAY Several converging trends in automobile production and operation could have significant impacts on real estate locations and configurations. First: the increase in ridesharing and ride-hailing options corresponds with a significant reduction in the need for parking spaces in major cities and rising tolerance for distance commuting.

Second: the rapidly improving cost and performance of electric vehicles will continue to gain advantage, but require different refuelling infrastructure. Unlike petrol, electricity is even more broadly distributed so the public will see refuelling stations popping up everywhere — at work, shopping malls, hospitals, libraries and, of course, at home.

Third: experiments in autonomous vehicles are taking multiple forms from long-haul trucks (which are very practical for large, thinly populated countries) to small vans and buses operating in pedestrian-only downtown districts in Scandinavia. Each jurisdiction will need to decide how it wants to leverage this technology and phase in the impact on its workforce, but these changes are already upon us. Best to be ready.

and/or stakeholders do not have sufficient lever age to st a l l or prevent implementation.

Technology is an input, just like labour, materials and energy, and subject to regulatory and social interference.

Adoption rates vary based on the alchemy of these four features and are frequently difficult to forecast. zz

Amy Erixon is a Principal and Managing Director, Investments, with Avison Young. The preceding article is excerpted from her July 2017 topical report, Architecture of the Fourth Industrial Revolution: Distributed Networks and Artificial Intelligence, Impacts and Opportunities for the Real Estate Sector. The complete text can be found at http://www. avisonyoung.com/en _ CA/research/white-papers.

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The 23rd Annual Su rvey

of the Canadian Real Estate Industry’s Major Players & Portfolios

Who’s Who 2018

Here’s how to participate in the 23rd 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 16, 2018.

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

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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 Sean Foley at 416-512-8186 ext.225 or 1-866-216-0860 ext. 225 or by e-mail at seanf@mediaedge.ca www.REMInetwork.com | November/December 2017 43

green&smart

SMART COMMUNITIES STRETCH UP Montreal Strategizes to Boost Downtown Population

By Rebecca Melnyk

44 Canadian Property Management | Part of the REMI Network

green&smart

MONTREAL IS EXPERIENCING something of a renaissance in its 375th year. Tourism is booming, the skyline is full of cranes and several infrastructure projects are in the works, including the Old Port of Montreal revitalization.

The h-shaped HUMANITI project, which broke ground in the summer of 2017, is among the prominent undertakings. The $200-million hoteloffice-condo-multifamily development is envisioned to be its own smart city within a city — complete with its own mobile app — once it opens in 2020.

Developers are aiming for a human-centred project. Cogir Real Estate has teamed up with the Fonds immobilier de solidarité FTQ, designer Lemay and manager Urgo Hotels Canada on the project, which will occupy the entire block bordered by Viger, De Bleury, de la Gauchetière and Hermine streets. Well-being and connectivity are central in this endeavour, with emphasis on the “sharing of societal values within a space of collective diversity.”

Three buildings will interconnect as distinct entities. Mixed-use plans include a 200-room hotel, more than 300 rental units and 150 condo units, 60,000 square feet of office space across five floors and 15,000 square feet of commercial space with a grocery store.

In June, the City of Montreal unveiled an ambitious, 15-year strategic plan to attract more young people, seniors and families to the downtown core. Doing so is premised on rejuvenating the area with more mixed-use developments, public spaces and parks, and also reflecting the times.

“HUMANITI is not just a place to live and work; it’s a place with a lot of common areas, with sustainability and wellness, where there is a community of sharing,” says Cogir Chairman and CEO Mathieu Duguay. “It’s part of the next generation of real estate. The experiences are based on the users much more than the concrete.”

From left to right: Renée Benhaïm, P.Eng., Project Director – HUMANITI Program; Janie Béïque, Senior Vice President, Natural Resources, Industries, Entertainment and Consumer Goods, Fonds de solidarité FTQ; Normand Bélanger, President and CEO, Fonds immobilier de solidarité FTQ; Mathieu Duguay, Chair of the Board and CEO of COGIR (CNW Group/Cogir immobilier).

www.REMInetwork.com | November/December 2017 45

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A New Age for Sustainable Projects To reach Canada and Ontario’s environmental commitments, the property management industry needs to renovate 3% of its existing stock every year for the next 33 years. It’s no easy task, and it’s one that assumes new builds are built perfectly and that all stakeholders are committed to improving building efficiencies, reducing energy usage, and making other eco-forward investments.

Fortunately, the tide is turning. Industry trends point to a renewed focus on sustainability, both to the benefit of owner budgets and tenant comfort. Those trends include: Going beyond status-quo: Installing LED fixtures and low-flow toilets are low hanging fruit. Now, stakeholders are tackling more complex and impactful retrofit projects. Today, it’s not just about replacing light bulbs; it’s about rearranging floor plates, tenant engagement, and integrated projects that holistically reduce operational costs and greenhouse gases.

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by GRESB creating a strong appetite for sustainability projects. Now’s the time to pitch large-scale sustainability initiatives.

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“It’s a place with a lot of common areas, with sustainability and wellness, where there is a community of sharing.”

COMMUNITY SMARTS AND WELL-BEING The project is being called the city’s first smart, vertical community, one that Duguay says isn’t aiming for the “luxury level,” but more “mid-up.” At the heart is a mobile app.

The buildings won’t just connect physically; the people in the buildings will interlock through the app, which is currently being designed by a local IT company.

“There will be about 1,500 people working or living there, and we believe the sense of community will be big,” says Duguay, who predicts the technology will maximize efficiency and give people more access to one another.

Office occupants and home dwellers, for example, could request janitorial services from the hotel and food and beverages from the on-site restaurants. Users could reserve and pay for other services or access the hotel concierge, who can recommend local events, entertainment and restaurants.

Occupants will be able to post to the community on the app, offering or inquiring about everything from dog-walking to yoga classes. Users can also observe their energy consumption within a space and remotely control and monitor their heating and cooling systems, while human presence sensors will guide smart lighting.

HUMANITI is designed to promote the well-being of those who inhabit its spaces.

When doors open, particularly within the multifamily component, it will be the first WELL-certified project in Quebec, and the first multifamily LEED-certified building in Montreal. Developers are currently targeting WELL, which measures a space’s impact on occupants' health by looking at seven factors: air, water, nourishment, light, fitness, comfort and mind.

Many features will reflect these concepts.

For example, there will be physical installations on site for promoting activity, rooftops terraces with a pool and relaxation areas, and restaurants with healthy menus.

Public transportation will be accessible, including five HUMANITI-branded

electric vehicles and bikes, communityowned and shared between users.

MIXED-USE IMPERATIVE What will be the first Marriot Autograph Collection hotel in Quebec will overlook the Place Jean-Paul-Riopelle in the centre of Quartier international. Urgo Hotels Canada, which currently manages 20 hotels and resorts under the Marriot banner, will manage the four-star boutique property.

Once finished, HUMANITI Hotel Montréal will offer 193 rooms between the 10th and 18th floors, a 100-seat restaurant, a 60-80-seat lounge-bar, reception and meeting rooms with capacity for 300 guests, a spa, a gym, an outdoor rooftop pool and access to the building’s indoor parking.

“Each one of Marriott’s Autograph Collection hotels is unique in terms of location, luxury, trendiness, design and personality,” says Serge Primeau, Vice President, Operations and Development, Urgo Hotels Canada. “The HUMANITI project was very inspirational in this regard due to the value it offers and its local inspiration.”

The HUMANITI team looked to similar projects in notable cities that have embraced mixed-use and public spaces, New York being one. Silicon Valley in California also inspired developers with its sense of community.

They observed housing and sustainable developments and tried to identify what modern urban residents are looking for now.

They realized “green, vertical, smart and human” is an imperative, no longer a luxury.

“We believe we’re pushing the trend of mixed-use to a whole new level,” says Duguay. “We’re shooting to be pretty large because we’re an urban location, at a very good site between Old Montreal and the Quartier des Spectacles, right within the international business district — in the centre of a lot of fields of interest.” zz Rebecca Melnyk is Online Editor with the REMI Network at www.REMInetwork.com.

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www.REMInetwork.com | November/December 47 2017-11-07 2017 9:14 AM

greenengagement

PORTFOLIO-WIDE GREENING Top-Down Meets Bottom-Up for Maximum Corporate Reach

By Simone Skopek and Bob Best ACHIEVING A SMART, green and productive workplace in a single office is not complicated. Achieving it across an entire portfolio requires a slightly different approach and mindset — one that is focused on helping every workplace in an organization to reflect a corporate culture of sustainable growth, and to pursue efficiency, innovation, wellness and productivity.

Meeting this goal while keeping a close eye on the financials requires a systematic approach and a basic knowhow of the current technologies, best practices, and industry standards related to a smart, green and productive workplace — as well as some idea of their return on investment.

For companies that have many office locations, the most effective and costefficient approach is to develop a green and productive portfolio-wide strategy aimed at: i) achieving sustainability goals and operational and cost efficiencies; ii) ensuring that employees are comfortable and have the conditions needed to do their best work; 48 Canadian Property Management | Part of the REMI Network

and iii) providing a layout of the workplace that helps to foster human connections.

A strategic portfolio approach consists of: baselining, benchmarking and tracking performance of all the facilities in the portfolio; recognizing high performance; and focusing resources where they are needed.

The role of a corporate portfolio m a n a ge r h a s t r a d it ion a l ly b e en t wofold: to provide t he opt i ma l amount and quality of space to house the activities of the organization, while at the same time optimizing the financial and operational performance of those physical assets. There is now also a growing role for portfolio managers to help support the business enterprise.

An annual global study by JLL of corporate real estate executives (CREs) shows that since 2013, there has been accelerated pressure on CRE teams to deliver strategies and tactics related to: productivity, workplace culture, talent attraction and retention, corporate

greenengagement

It’s no accident that some offices have a green and productive culture while others don’t. social responsibility, energy a nd sustainability. These issues were not on the corporate real estate manager’s radar a few years ago.

To illustrate the power of a portfoliowide strategy, consider two contrasting approaches that an organization might take to achieve a high-performance portfolio. One approach could be to undertake piecemeal, ambitious, ribboncutting projects at one or two selected offices. While such disconnected projects might make good headlines, they are also likely to quickly deplete a budget, produce a slow return on investment and fail to address urgent needs in other buildings in the portfolio.

A more effective and cost-efficient approach is to create a hol ist ic portfolio-wide strategy and master plan that is comprehensively planned a n d exe c u t e d . T h i s i n t e g r a t e d approach sets targets and milestones, identif ies pr ior ities a nd steadily raises the performance bar each year across the portfolio.

CLEAR GOALS AND MANDATES When it comes to sustainability, it’s a normal practice for companies to have a sustainability policy statement — a written statement by senior management that is more detailed than a mission statement, but is still of a fairly general nature, which outlines the organization’s aims and principles in relation to managing the environmental effects and aspects of all its operations.

Some environmental policies may relate specifically to corporate facilities. A few well chosen, clearly communicated and well executed portfolio-wide policies can accelerate improved performance across a portfolio and can help to achieve consistency.

Portfolio-wide policies are especially useful to meet two conditions. The first is where an organization wishes to report on certain key performance indicators (KPIs) for the portfolio; for example, those related to allocation of space, GHG emissions, energy, water, waste, wellness initiatives and so on. KPIs such as these require consistent accounting and reporting for the

data to have any value. To ensure consistency, there must be some clear instruction about which data to collect when and how.

The second situation is where an organization wishes to establish certain workplace standards and norms of behaviour. It’s no accident that some offices have a green and productive culture while others don’t. Whether through written or unwritten rules, certain expectations have been made clear at some point in time.

When speaking of portfolio-wide rules, some organizations prefer to use the term "guidelines" rather than "policies" or "directives". The problem with strict directives, they say, is that they do not allow enough freedom and autonomy for the facility managers and green teams, and they fail to take into account the inherent regional or operational differences.

The difference between a policy and a guideline is that a guideline is more like a recommendation and is voluntary, whereas a policy is akin to a directive, which is clearly defined and enforceable.

There is room for both, but it’s important www.REMInetwork.com | November/December 2017 49

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to be clear on whether a certain best practice being proposed is a requirement or merely a voluntary guideline.

When it comes to making a workplace green and productive, the good news is that there aren’t hundreds of best practices to choose from and, for the most part, the choices are pretty simple. For example: Do we (or should we): • dispose of our e-waste responsibly?

• report our carbon emissions?

• offer ergonom ic t ra in ing to ou r employees?

• have a workplace wellness program that covers the basics such as nutrition, exercise and stress management • have a cleaning protocol that uses nontoxic products?

If there are too many restrictive or unrealistic rules, they start getting broken in small but cumulative ways as facility managers and employees tune out. Also, in a portfolio of offices, the policies must take into account that facilities vary in size, location, type of operations and management. Within a large global organization, there will also be some internal differences in the management culture of offices, or regional factors to consider.

DRAWING ON A RANGE OF EXPERIENCES Some portfolios and their staff perform flawlessly while others that have similar facilities may struggle. Researcher Alan Meier, senior scientist at Lawrence Berkeley National Laboratory advises that many of the problems stem from the excessive demands that are being put on building operators without adequate support and training.

Other contributing factors are insufficient feedback on the occupant environment, lack of energy data and technology shor t com i ngs. Under st a nd i ng a nd addressing these challenges is best done using a "top-down meets bottom-up" approach.

A top-down pa radigm puts more emphasis on instructions rather than creative problem solving and peer-to-peer networking. The objective is to achieve rapid adoption and compliance. The paradox is that imposing an unfamiliar system based on the sole authority of management can be disempowering to building staff.

Rather than enabling staff to manage and fix problems themselves, the opposite can h ap p en: u nexp e ct e d fa i lu r e s a nd disruptions, and more calls to come fix things — all of which leads to higher costs,

greenengagement more bureaucracy and poor morale. Topdown management is important, but it needs a l ight touch a nd st rong communications.

A bottom-up approach takes longer. It calls for a strong culture of listening and collaboration with the people who are operating the buildings. Decisionmakers and those who manage the portfolio should also have a general understanding of building science and management in order to be able to explore opportunities and options.

A good bottom-up approach is to assess each workplace then seek the views of the facility managers. This is empowering and — importantly — provides a reality check of whether corporate policies and guidelines are being followed.

Meier and his team at Lawrence Berkeley Nat iona l Laborator y recommend the following practical measures to keep a portfolio program keen-edged: • View a portfolio as a social system, a nd use rea l work pla c es a nd stakeholders to pilot solutions.

• I n c r e a s e t h e v i s i b i l i t y a n d professionalization of building operators and operations.

• Improve technical capabilities for measuring and managing energy.

• Aim for high performance indoor environmental quality and energy efficiency.

The result of a top-down meets bottom-up approach should be: i) a few sensible, helpful policies that establish priorities, ii) a common terminology, iii) practical performance metrics, and iv) the support and resources to implement the necessary measures.

INTEGRATED EFFORT REQUIRED Some organizations view greening the workplace as being somehow related to workplace wellness, and therefore delegate the responsibility entirely to the HR department. This is not ideal. A study by the Society for Human Resource Management found that one of the greatest barriers to having effective green workplace programs is lack of support from business managers.

It is clear that without engagement by the management in each business unit, green and productive programs have little chance of taking hold. Some examples of the responsibilities of a

business unit manager might include: appointing an environmental coordinator or green team for the business unit; a c t ively s u p p o r t i n g wo r k p l a c e campaigns; and ensuring that there is representation in the landlord’s buildingwide green committee (if one exists).

Green teams are as important as they ever were. At the heart of their efforts is employee education and awareness-building with a lot of human interest thrown into the process. Promoting gamification initiatives, conducting midnight inspections to ensure that plug load has been switched off, participating in building-wide campaigns with other tenants and meeting periodically with the facility manager to see how employees could align their efforts — these are valuable tasks that are best done by a green team.

Employees' responsibility is simply to be mindful and responsible in their use of energy a nd resources. Sma ll, everyday actions by employees add up i n i m m e a su r a ble ways fo r t h e organization.

No doubt, one day, most buildings will be able to automatically regulate energy and water through smart sensors and controls. However, there will always be a human aspect. The role of employees is not onerous, but it is essential. Without their involvement, greening the office simply won’t happen.

That said, people generally hate policies and processes when they’ve had no input. It’s human nature to resist mindless obedience or even engage in mindful disobedience if they are directed to do something where they see little value. The closer the message is to a person, the more it resonates.

Making a portfolio of workplaces green and productive is an integrated effort that involves many people and cross functions, but it’s easy for individuals to lose sight of the big picture and of their place in it. The key is to e s t a bl i s h cle a r ow n e r s h ip a n d accountability so that all players understand the part they play. zz

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Simone Skopek is Energy and Sustainability Program Director, based in Toronto, and Bob Best is Head of Energy and Sustainability, based in Chicago, with JLL. The preceding article is excerpted from their pending book, SMART Green + Productive Workplace, A Practical Desk Companion for Corporate Real Estate Professionals. For more information, contact Bob.Best@am.jll.com. www.REMInetwork.com | November/December 2017 51 Partner.Win.Bike.indd 9

11/1/17 2:30 PM

greenmetrics

CANADIAN PARTICIPANTS

PUSH GRESB PACE Survey Field Grows and Achieves Better Results

By Barbara Carss CANADIAN PARTICIPANTS in the Global Real Estate Sustainability Benchmark (GR ESB) are gaining ground on the perennial front-runners f rom Aust ra l ia / New Z ea la nd, narrowing the gap in their scores to just three points for 2017. Two new respondents undertook the rigorous r ep or t i ng exerc ise, wh ich plot s portfolio-wide ESG (environmental, social, governance) intent, practices and outcomes, boosting Canada’s numbers to 18 organizations that collectively achieved an average score of 70 out of a possible 100 points — up from 66 in 2016. Meanwhile, Australia/ New Zealand’s 73 average was a onepoint drop from the previous year.

Many other participants — collectively encompassing 850 entities in 62 countries holding US $3.7 trillion in assets — also made gains, as the global average score climbed three points from 2016 to this year’s 63. North America, with 18 Canadian and 186 American participants, was the most improved among the continental regions, making a five-point step up to attain an average score of 64.

“Canada is dragging the U.S. along,” said Dan Winters, GRESB’s Head in the

Americas, who was in Toronto for the results presentation in early October.

Notably, the North American average was just 47 five years ago (Canada’s average score was 55 in the same year).

T h i s ye a r, C a n a d ia n GR E SB pa r t icipa nts exceeded t he Nor t h American average in all seven of GRESB’s ESG aspects. (See sidebar.)

52 Canadian Property Management | Part of the REMI Network

SCORING SCOPE

“Canada outperforms on Implementation & Measurement due to expansive e n e rg y/wa t e r /wa st e d a t a collection and more green building cer tif ications,” the GR ESB 2017 snapshot of results notes. Nevertheless, Winters reminded attendees that continuous improvement is an inherent performance expectation that

The Global Real Estate Sustainability Benchmark (GRESB) is based 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.

Submitted information is subjected to a three-layer validation process, including random audits, and results are calculated with specialized data analysis software.

Participants receive an individual scorecard and are benchmarked within an assigned peer group based on listed or private status, and types and locations of assets.

GRESB investor members have access to the comprehensive results database by virtue of their membership fees. However, new reporting participants are allowed a first-time grace period with the option to choose whether to disclose their first-year results to investor members.

greenmetrics

doesn’t necessarily merit effusive congratulations.

“GRESB is a dynamic benchmark,” he advised. “We are making progress as a big community so we might have to make it harder.”

His oversight area stretched further this year with 11 South American organizations now taking part. This, along with three African participants, broadens the continental representation of the database, which also includes 66 respondents from Australia/New Zealand, 124 from Asia, 433 from Europe and nine globally diversified funds.

Winters t y pif ied pa r t icipa nts’ involvement as a journey that often begins as a means to comply with their own corporate sustainability and responsibility r e q u i r e m e nt s , ge t s f u el le d by competitiveness, and becomes a revelation of GRESB’s risk management potential and business value. A survey of the 58 investor members — including AIMco, HOOPP, Ivanhoé Cambridge, Ontario Teachers, Oxford Properties Group and Presima in Canada — who have comprehensive access to the data, revealed that 94% of them consider GRESB results in their investment process, while more than one-third set specific targets for GRESB performance.

“The old mantra about what you measure, you manage — that’s passé,” Winters asserted. “It’s: what you measure, you improve.”

That’s a hypothesis Paul Finkbeiner, President of GWL Realty Advisors, reiterates while extolling the company’s 2017 status as the North American leader for office/industrial portfolios. “ We v iew t h e m a n a ge m e nt of environmental, social and governance

INDUSTRY EXECUTIVES EYE 2030 TARGET

Energy-use intensity has been the favoured indicator of building performance and sustainability, but the commercial real estate industry is beginning to look more broadly at all sources that factor into carbon emissions. Canada's national target for a 30% reduction in emissions compared to 2005 levels by 2030, and the role that the buildings sector is expected to play, has sharpened that focus.

"We've got a big mountain to climb. There is an incredible transformation yet to occur for buildings to make that target," Michael Brooks, CEO of REALPAC, observed as he led a panel of senior industry leaders through a wide-ranging discussion at BOMEX, the national conference of the Building Owners and Managers Association (BOMA) of Canada, earlier this fall.

"2030 is really problematic, I think, for everyone in this room," acknowledged Toni Rossi, President of Infrastructure Ontario's real estate division. "Investment has to start today."

She calls energy-use monitoring and the resulting data critical for identifying the best place to begin in the 5,000-building portfolio she oversees, particularly when the owner — the Ontario government — prioritizes services dispensed from the portfolio, such as health care, ahead of the state of the buildings.

"The luxury we do not have is funding," she said. "We are in a pecking order."

Institutional owners/investors enjoy a little more manoeuvrability.

"The bulk of challenging emitters are 25,000 to 30,000-square-foot buildings and there are a lot of them. With a million-square-foot complex, you can do a lot of things that others can't do," reflected Remco Daal, President, Canadian Real Estate, with QuadReal Property Group.

Oxford Properties Group has already reduced energy consumption by 20% across its portfolio and is now strategizing on where an additional 30% cut, to meet the 2030 target, might come from.

"Our guys [operations and energy management] would say with some level of confidence that, over a 10-year period, it is possible," reported Blake Hutcheson, Oxford's President and CEO. "The low-hanging fruit is gone."

Bolstering the effort, tenants are increasingly onside with their landlords' sustainability goals. "In addition to being the right thing to do, and most programs have an economic rationale, the customers want it," said Jon Love, CEO of KingSett Capital.

factors as part of our duty to our clients, being important to reducing long-term risk and improving our financial outcomes,” he said.

Numerically, Canadian participants account for about 2% of all reporting entities, but their share of overall asset value once again reflects the clout of Canada’s key institutional owners. North

American assets are collectively pegged at more than US $2.3 trillion versus about US $804 billion in assets in Europe and US $164 billion worth in Australia/ New Zealand.

“The dominant numbers [of participants] come from the Europeans. ESG is what they do,” Winters observed. “Here in North America, that’s where the money is.” zz www.REMInetwork.com | November/December 2017 53

greenmetrics

WELL-BEING IN A DATA VACUUM Framework Needed to Gauge Healthy Building Paybacks

INVESTORS CURRENTLY encounter inconsistent collection, quality and coverage of ESG (environmental, social, governance) data related to health and well-being. Most reporting agencies’ current views of health are limited to traditional Occupational Health and Safety measures focused largely on manual work (e.g., construction, factory, and textile workers). Disclosure focused on types of injury, rates of injury and occupational diseases is too limited in a rapidly changing economy.

Work in industrialized countries looks vastly different than it did a century ago and different health concerns have arisen. Office workers are more often affected by chronic diseases, illnesses and injuries rather than acute injuries or infectious diseases that more frequently occur in manual work with machinery or hazardous materials.

Mental, neurological and substance abuse conditions alone account for 14% of the global burden of disease. It is estimated that chronic diseases cost employers in the United States up to $1.1 trillion every year.

Employees need the right equipment, procedures and environments to support their health and well-being, but the appropriate interventions are a bit different for knowledge workers. Measurement of these health-related interventions may help businesses manage risk, reduce health care costs, reduce absenteeism/turnover and increase productivity and employee engagement.

Healthy building features are interventions real estate owners/ managers are uniquely positioned to integrate in their own operations and extend to their clients. Research from Dodge Data & Analytics found that 69% of surveyed U.S. building owners who implemented healthy building features reported a corresponding improvement in employee satisfaction and engagement.

Job satisfaction, not surprisingly, has been shown to correlate positively with job performance and overall firm value so it's logical to suggest that businesses that address health and well-being comprehensively are adding long-term financial value. Although correlation between increased financial value and health promotion does not necessarily mean that health promotion is the cause of increased financial value, it is clear that companies that have invested 54 Canadian Property Management | Part of the REMI Network

in their employees’ health and well-being are consistently yielding better value for their investors.

Measuring health and well-being in a standardized, comparable way presents a series of challenges. This is largely due to companies offering different wellness programs that are tracked using various metrics.

It is even more difficult to measure the effectiveness of such programs as demonstrated in a survey of more than 345 Chief Financial Officers conducted by the Integrated Benefits Institute. It found only 23% of CFOs reported making any assessment of whether health benefits were producing positive results, and only 6% said their company calculated return on investment (ROI) of employee health benefits.

PRIORITIZING INVESTMENT Five key factors largely shape human health: social/economic environment, physical environment, behaviour, genetics and access to healthcare. In the U.S., a disproportionate 86% of national health spending is directed toward treating chronic diseases that are generally preventable. The financial burden of this situation on employers is motivation enough for their interest in corporate well-being programs.

Studies show that 85% of large U.S. employers offer some form of wellness programs, but only 60% of employees are aware of these programs and only 40% of those who are aware participate.

Participation often lags when wellness programs are based on interventions trying to encourage employees to actively change their behaviour (e.g., money or gifts in exchange for walking more, eating healthier, or getting enough sleep).

These interventions rely heavily on willpower or self-control, which researchers liken to a muscle that will fatigue with too much use. This is why efforts to change diet or exercise habits are often less effective.

Instead of directly trying to change employee behaviour, some employers find it easier to change their environment. On average, people in industrialized countries spend more than 90% of their time indoors, which means a 40-year-old will have spent approximately 36

greenmetrics SUSTAINABILITY KPIs GUIDE TENANT ENGAGEMENT

By Jennifer Davis In harmony with the commercial real estate sector's growing interest in mining operational savings through tenant engagement, the Building Owners and Managers Association (BOMA) of British Columbia sponsored the pilot of the Green Office Tool — an interactive online program with platforms for both building occupants and owners/managers.

"I think it's a fantastic new product for our industry," observes Paul LaBranche, President of BOMA BC. And his peers at BOMA Canada seem to agree, as the program recently won the 2017 Pinnacle Award for innovation, one of the three annual awards BOMA Canada extends to suppliers to the industry.

The online portal to six key indicators — waste, water, energy, procurement, transportation and leadership — provides the means for tenants to assess and benchmark their sustainability performance, and for property managers to monitor and measure those efforts.

Tenants complete a workplace assessment and receive a scorecard providing a comparative analysis of their efforts relative

years indoors. Scientific studies suggest that the indoor environment has a profound impact on human health and well-being in terms of activity level, exercise, diet, sleep and stress.

Environmental interventions are based on making healthy choices easy, such as by convenient, visible placement of staircases and nutritiously stocked break areas. Completely passive interventions such as filtered air and water or circadian lighting can impact more people and significantly increase wellness program participation rates up to 100% — all building occupants can experience the benefits of cleaner air or better lighting without taking any specific action.

Recent research suggests that these passive interventions could also have positive impacts on employee performance. A 2015 Harvard study, for example, suggests that indoor air quality improvements — low concentrations of volatile organic compounds and carbon dioxide — can improve cognitive function.

PERFORMANCE VERIFICATION The WELL Standard can create the framework and discipline for routine and standardized tracking, documenting and on-site validating of healthy features through its required performance verification for air, water, sound and light. Building professionals have found that all too often, buildings promoted as green or healthy may under-perform when key metrics like energy usage or water quality are not actively monitored or tested by a third party over time, and not just one point in time.

Similarly, it is not uncommon for healthy or green specifications clearly defined in architectural drawings to not be implemented by contractors, or for building professionals to misestimate occupant behaviour. On-site third-party verification can help prevent these issues.

Technology that employees and consumers can now easily deploy to collect, analyze and distribute health-related building data also raises reputational risks for companies. For example, Yan Jiangning, a mother concerned with the air quality of her child’s play spaces in China, started checking the air quality of indoor public play venues herself. After finding several spaces were far outside healthy air quality levels, she publicized the results on a social media account.

Savvy companies may want to consider relying less on government mandated health and wellness regulations, and more on their own internal systems for protecting workers, and ultimately themselves.

to others within their building, industry and across their geographic region. They also receive specific recommendations on how to grow their green workplace program. In essence, it's a sustainability checklist for their business operations.

For landlords, the program presents a focused lens on opportunities within their tenants’ workplace environment, distinct from base building systems. For example, they can identify energy reduction opportunities by equipment choices, design choices, behaviour gaps, policies and procedures. This enables informed discussions with tenants, and also allows landlords to benchmark tenants within a building or compare them to tenants of similar size and/or business function.

Jennifer Davis is President of TurnLeaf Consulting, the developer of the Green Office Tool. For more information, see the website at www.greenofficetool.com.

Existing ESG reporting and benchmarking entities should do more to help investors identify companies that are implementing health promotion measures. zz The preceding article is excerpted from Health, Well-being and the Evolution of ESG, a September 2017 discussion paper from Delos Living LLC, a health and well-being consultancy and the developer of the WELL Building Standard. For more information, see the website at www.delos.com.

From Boiler Room to Boardroom

A professional association focused on advancing and promoting the FM community. Join IFMA Toronto Today at ifma-toronto.org

www.REMInetwork.com | November/December 2017 55

greenmetrics

TRACKING CHEMICAL CONTENT A Survey to Complement Carbon Accounting

THE CHEMICAL FOOTPRINT Project (CFP) is an initiative of investors, retailers, government agencies, nongovernmental organizations (NGOs) and health care organizations that aspire to support healthy lives, clean water and air, and sustainable consumption and production patterns through the effective management of chemicals in products and supply chains. CFP signatories represent more than US $2.3 trillion in assets under management and US $600 billion in purchasing power.

As with carbon footprint reduction, the participants in CFP recognize that a global transition to a reduced chemical footprint is necessary. CFP gives signatories an invaluable tool to discern which firms bear the highest chemical risk and which are best positioned to capture new markets with safer products.

A lack of a common sustainability metric for chem ical management presents significant risks to corporations.

Tracking chemical inputs and measuring progress to safer chemicals is becoming an important metric in corporate reporting standards such as those developed by t he Sust a i nabil it y Accounting Standards Board (SASB).

The annual CFP survey and report provides a clear map for benchmarking corporate progress away from hazardous chemicals to safer alternatives.

The CFP survey evaluates companies and their chemicals management policies and practices based on four key pillars.

This enables participating companies to benchmark their progress internally and externally, and empowers investors and purchasers to evaluate and hold companies accountable. The pillars are: • Management Strategy: the policies and strategies companies put into place to manage chemicals.

• Chemical Inventory: the information companies collect on chemicals in products and supply chains.

56 Canadian Property Management | Part of the REMI Network

the baseline data companies have on chemicals of high concern (CoHCs) to human health and the environment in products and their tracking of progress to safer alternatives.

• Disclosure and Verification : the sharing of information on chemicals in products with the public, disclosure of scores and responses to the CFP survey, and steps taken to verify responses to the survey.

• Footprint Measurement:

TRANSPARENCY FOR INVESTORS AND PURCHASERS Brands face significant hidden liabilities with chemicals of high concern (CoHCs) to human health and the environment in their products. Costs from these liabilities can run to the tens or hundreds of millions of dollars, tarnish reputations and result in loss of market share and valuation. Until now, i nve st o r s a n d p u r c h a s e r s h a d insufficient information to differentiate

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> SOCIAL MEDIA COLUMN Sponsored by MediaEdge

PERTINENT UN SUSTAINABLE DEVELOPMENT GOALS The United Nations' Sustainable Development Goals (SDGs), underscore the importance of reducing and managing hazardous chemicals to meet the global goals of ensuring healthy lives, ensuring the availability of clean water, and ensuring sustainable consumption and production patterns. These include: • Goal 3. Ensure healthy lives and promote well-being for all at all ages, including

by Indicator 3.9 for substantially reducing the number of deaths and illnesses from hazardous chemicals.

• Goal 6. Ensure availability and sustainable management of water and sanitation for all by improving water quality, including by Indicator 6.3 for reducing pollution, eliminating dumping and minimizing release of hazardous chemicals.

• Goal 12. Ensure sustainable consumption and production patterns, including by Indicator 12.4 for achieving the environmentally sound management of chemicals.

Showing your social media ROI

By Steven Chester

companies on their overall chemicals management approaches, thereby hiding the potential impacts of chemical risks on corporate performance.

H a z a r d o u s ch e m ic a l s p r e s e nt regulatory, reputation and redesign risks to companies for which investors have had no common metric for evaluation.

CFP aligns investors with companies to a dva n c e ch a nge s i n ch e m ic a l s management that will be healthy for people and the planet and advances chemical-related metrics that matter to investors, including SASB’s standards and the global Sustainable Development Goals (SDGs) from the United Nations.

The CFP survey directly addresses risks by gathering data on: where companies stand in addressing current and future regulatory risks; the steps companies take to grow and maintain trust and be transparent about their chemical management practices; and what companies know about chemicals in their products and supply chains and the actions they take to use safer alternatives to hazardous chemicals.

Before the advent of CFP, businesses, health care organizations and government agencies lacked a common third-party standard for evaluating whether suppliers systematically manage their chemical risks and if they have a plan for continuous improvement to safer chemicals use. CFP provides large purchasers with data that readily enables comparisons of suppliers on their corporate-wide chemical footprints. The CFP survey empowers purchasers to request chemical footprint data from suppliers and enables purchasers to recognize and reward suppliers for performance.

CFP aligns with the mission and values of many organizations. Health care

providers, for example, see CFP as aligned with their mission to protect the health and well-being of their patients, workers and communities.

Similarly, many retailers recognize their role in protecting the health of their customers and are working to ensure safer chemicals in products. These retailers see CFP as supporting these efforts.

DEMONSTRATING LEADERSHIP Companies demonstrate leadership by participating in the CFP survey. They open themselves to evaluating and bench ma rk ing thei r chem ica ls management practices to a rigorous third-party standard. These companies recog n ize t hat sound chem ica ls management is a journey that requires continuous improvement, and they now have a clear baseline to measure and publicly report on their progress.

T h e d ive r s it y o f c o m p a n i e s pa r ticipating in the CF P sur vey highlights the relevance and value of chemical footprinting across the business community. Companies participating in the 2016 CFP survey have annual revenues in excess of US $670 billion and market cap valuations greater than US $730 billion.

They sell formulated products and articles. They range in size from small national brands to large multinational corporations. Their products include building products and furnishings, electronics, household and personal care products, apparel and footwear, toys, medical devices and packaging. zz The preceding article is excerpted from the Chemical Footprint Project Annual Report 2017. For more information, see the website at www.chemicalfootprintproject.org.

As the year winds down, a big challenge for many of us in the social media field arises as we produce our analytics reports and show our worth.

Simply saying “I’ve gained 50 Twitter followers a month for the year” doesn’t translate to the business owner who needs to understand how these efforts are furthering their bottom line.

The first step is to understand your goals.

Was your business looking to sell a product online, acquire customers, gain brand awareness, drive traffic to a sign-up page, or increase overall traffic to your website? If the answer to this loaded question is “yes,” then you’ll have to look at several metrics and ensure you’ve built campaigns around each goal.

Then, you’ll need to assign a value to those goals. Think of your hours spent – which you absolutely must be logging for ROI to work – and assign a value to each of those metrics. This is tough, but consider items such as cost per impression and clicks if you were to buy an advertisement.

You’ll be able to track your referral traffic and other goals via your site’s Google Analytics dashboard, and most social platforms have decent internal analytics where you can delve a bit deeper into your numbers. There are a handful of great third-party tools that you can also use, which will provide even more insight.

This is one of the more complex topics that can’t be fully covered in this space.

As always, I invite you to stay social and continue the conversation via my contact info below. Happy holidays, and all the best for 2018.

Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca, or follow him on Twitter at @ chestergosocial.

greenspace

HEALTHY PROPERTIES Research Gauges Influence of Proximity to Urban Green Space

By Barbara Carss CONVENIENT ACCESS to urban green space could improve resistance to diabetes, heart or respiratory diseases.

Canadian researchers recently completed what’s believed to be the first large-scale study of links between residential proximity to greenery and mortality rates from those chronic illnesses, and concluded there’s evidence that municipal policy makers and land-use planners may want to consider.

“Increased amounts of residential greenness were associated with reduced risks of dying from several common causes of death among urban Canadians,” they state in their report, published in the international medical journal, Lancet Planetary Health, in October 2017. “The findings support the development of policies related to creating greener and healthier cities.”

Peer reviewers commend the work, led by Dr. Dan Crouse, an epidemiologist with the New Brunswick Institute for Research, Data and Training, for its expansive sample size of more than 1.26 million respondents to the 2001 Canadian census and follow up of 11 subsequent years of data. This measured exposure to greenery — derived from the study subjects’ postal codes and satellite images supplying what’s known as the normalized difference vegetation index (NDVI) — then linked it to Statistics Canada’s mortality database and factored in several socioeconomic and ambient air quality variables.

“By linking the NDVI, which can be standardized across the world, to mortality data in a well-designed statistical study, Crouse and colleagues have contributed to further advancing the field, as it will now be possible to replicate their study in various geographical regions with different socioeconomic and cultural conditions,” Dr. Matilda van den Bosch of University of British Columbia’s School of Population and Public Health, observed in an accompanying Lancet commentary.

The Canadian research team derived average 10-year values for the impact of

green space within 500 metres and 250 metres of each study subject’s residence.

Risks of mortality were found to be lower in all cases for residents living within 500 metres of green space, with best result exhibited in fewer deaths from nonmalignant respiratory disease and the most minimal benefit seen in deaths from cerebrovascular disease.

DEGREES OF BENEFIT Various cohorts within the overall sample, which was drawn from 30 Canadian cities, also appear to enjoy greater protective benefits. Notably, men aged 35 to 74 with higher incomes who were married or in common law relationships had the most markedly better health outcomes compared to similar subjects who lived at a greater distance from green space.

“Middle age might be an etiologically important window during which living close to greenness might yield the largest benefits to health,” the researchers hypothesize.

Income-related results also proved intriguing since other studies of the links between access to green space and emotional and physiological well-being have found lower-income groups generally record the most distinctive health gains. In those cases, restorative natural environments are deemed to have incrementally less influence on stress and other physical conditions for research subjects who typically begin with a better base level of health.

In this case, Canadian researchers postulate subjects with higher incomes may have more leisure time to enjoy the outdoors and/or superior choices. “The quality of the green space around the homes of more affluent populations might be different from those around people in more deprived populations, which is a factor that we were unable to assess or describe with our existing datasets,” they acknowledge.

58 Canadian Property Management | Part of the REMI Network

Subjects who lived within 500 or 250 metres of green space were benchmarked only within their own urban communities to ensure that other potential variables — climate, access to health care, etc. — matched closely. van den Bosch calls the research findings particularly telling when accounting for air pollutants.

“Crouse and colleagues were able to adjust for several environmental covariates, including PM 2.5 (fine particulate matter), ozone and nitrogen dioxide, but noted these only had a small confounding effect on the green space hazard risks. Thus, in this case, it seems as if greenness has a protective effect that is independent of air quality,” she notes.

FURTHER STUDY URGED However, researchers do underline a few intangibles. The NDVI describes the presence and amount of vegetation at a given location, but not whether it is publicly accessible and/or easily navigable. Nor does the research focus, which is solely on place of residence, contemplate subjects’ possible exposure to greenery in their daily travels and workplace or school settings.

Self-selection among the research subjects could also colour results if, for example, it can be shown that people who have healthy lifestyles are more predisposed to choose homes with convenient access to green space. Both the research team and peer reviewers concur that further exploration is warranted.

“Future studies should build on the approaches of Crouse and colleagues to assess the potential of urban green spaces as inherently health-promoting assets in cities,” van den Bosch maintains. zz Urban Greenness and mortality in Canada's largest cities: a national cohort study was published in the October 2017 issue of The Lancet Planetary Health. For more information, see the website at www.sciencedirect.com/ journal/the-lancet-planetary-health.

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