Pictured above: Graeme Bradley
The property sector is finding that sustainability matters,
according to a Birmingham legal expert.
And Graeme Bradley, head of DLA Piper's Engineering &
Construction business group in the UK, says companies now realise
it can represent a saving rather than a cost.
"Despite the downturn, sustainability is very real to the
property and construction industries, and has become a more
significant issue over the past 12 months," noted Mr Bradley, a
partner in the law firm's Birmingham office.
"As we move into a new decade, sustainability programmes will
become increasingly important in all the construction and
engineering industry sectors. It will become the norm for
environmental protection measures to be integrated into the
management systems of organisations."
Such measures would include the reduction of greenhouse gas
emissions, and mitigation of and adaptation to the effects of
climate change. Ineveitably in such sectors as the power
sector there is a real challenge where innovation is bound to be
rewarded.
Mr Bradley predicted the UN Climate Change Conference, which
takes place in December in Copenhagen, would further develop
international binding agreements for the reduction of carbon
dioxide and other harmful gases. Governments were expected to agree
measures which each nation would have to implement across industry
sectors and businesses.
He went on: "For the property sector sustainability means
focusing on the development and on-going management of buildings
with environmental protection measures, including: procuring raw
materials from sustainable sources and reduction of transport;
addressing the effects of climate change; waste minimisation and
management; appropriate provisions in leases; energy performance
certificates; and reducing energy consumption to assist in
compliance with the carbon reduction commitment.
"We are now seeing developers incorporate incentivisation
mechanisms into their contracts with designers and building
contractors, particularly in relation to waste management. A
reduction in overall waste, and a further reduction of waste which
ends up in landfill, must bring cost benefits to a project.
"So, businesses appear to have recognised the financial benefits
that adopting sustainable practices will offer, with 'bottom line'
being the primary driver for being green. We expect the number
switching to sustainable practices motivated by financial saving to
increase."
Mr Bradley said research had indicated that, globally, occupiers
and investors alike may be willing to pay a premium for sustainable
buildings of about seven per cent, a figure which rises
considerably when looking at government occupiers and occupiers in
industries such as oil - "signs that businesses may be prepared to
take a longer term view in relation to recovery of initial capital
outlay".
Market perception of customers was also a relevant driver.
Mr Bradley continued: "History tells us that, as the economy
pulls out of recession, businesses will re-evaluate their mid and
long-term business plans. If we believe some of the pundits that we
will pull out of recession in 2010, this timing coincides with
further UK legislation on environmental protection.
"We would not be surprised to see revised business plans
including further provisions on sustainability and for
organisations to increasingly demand sustainability performance
indicators from their supply chain partners."
Indeed, the concept of green supply chains was a key factor in
aligning western and eastern global action on climate change.
"It is a well known fact that up to 30 per cent of the UK's
emissions can be attributed to embedded carbon within imported
goods. By working with manufacturers who import into the EU to make
their products more sustainable and compliant we can achieve
significant reductions in the indirect carbon footprint of western
consumers and in the direct footprint of eastern manufacturers.
"We at DLA Piper are champions of this concept and have worked
with many companies on greening their supply chains," said Mr
Bradley.