Residentially, is sustainability finally becoming more mainstream, asks Gareth Bailey?
As the world grapples with the uncertainty surrounding the long-term implications of Covid-19, there is a measure of agreement on one thing – the global pandemic has fast-tracked numerous trends which were already emerging prior to the crisis.
“Remote working, co-living, dark kitchens and online retail are just some of the trends identified during the pre-Covid years. Several of these have now been more widely adopted, as companies worldwide scramble to adjust and survive in the post-Covid environment,” says Anthony Stroebel, head of New Business Development for Pam Golding Properties and a director of the Green Building Council South Africa.
While the business sector is likely to change many of the ways in which it operates in the new post-Covid world, households are also likely to reconsider how they live – both in terms of the homes they live – and now work – in, and their consumption patterns.
“Scientists have long warned that our resource-intensive lifestyles are unsustainable and that the relentless destruction of our natural environment would ultimately unleash a global pandemic – a prospect that few of us could imagine until Covid-19 and the ensuing worldwide lockdowns effectively brought the entire global economy to a standstill last year.”
Even now, many hope the global vaccine programme will ultimately allow a return to “normal” towards year-end. However, it is far more likely that life will be forever recalibrated amidst a growing acknowledgement that the consequences of the prevailing “endless growth” economic model that prevails in much of the world are an increasingly extreme climate and a heightened risk of global pandemics.
“In this regard, Kate Raworth’s ‘Doughnut Model’ comes to mind, whereby humanity’s 21st-century challenge is to meet the needs of all within the means of the planet, in order to ensure that no one falls short on life’s essentials (from food and housing to healthcare and political voice) – namely, the ‘centre’ – while ensuring that collectively we do not overshoot our pressure on earth’s life-supporting systems, on which we fundamentally depend – the ‘crust’. This moment in time, therefore, feels like somewhat of a tipping point.”
Buildings and their construction together account for 36% of global energy use and 39% of energy-related carbon dioxide emissions annually, according to the United Nations Environment Programme. As a result, real estate is under the spotlight.
While this presents numerous challenges it also provides an opportunity for real estate investors to make a significant difference.
South Africa is already a leader in the growing global green building sector. Initially, the focus has been on the commercial sector – and the benefits are already evident. It is estimated that green buildings reduce operating costs by 8% on average – primarily through reduced energy and water usage as well as lower long-term operating and maintenance costs.
According to the most recent MSCI Green Property Index, certified green office buildings, being perceived as low-risk investments, yielded better investment returns than non-certified buildings and enjoyed lower vacancy rates.
Furthermore, worldwide evidence is growing that green buildings actually deliver a multitude of benefits beyond their financial returns – helping to address climate change, creating thriving, sustainable communities, and driving economic growth through the creation of new jobs and industries.
With many people spending the majority of their time indoors, the importance of a healthy building is self-evident. There is a growing awareness that the quality of our indoor environments plays an increasingly important role in our overall productivity, health and wellness.
While this was traditionally eight hours a day at our place of work, making a green office environment important, Covid has made the home a more important consideration – partly because of lockdown but also, in the longer-term, because of the increase in remote working. This will in all likelihood accelerate the adoption of green buildings in the residential sector.
While a green home is important for our health, it is also crucial for our financial well-being, perhaps particularly in South Africa, as we share the global awareness of the urgent need to live a more sustainable life – both to address the imminent threat posed by climate change but also to offset ever-rising utility costs and to ensure the availability of these resources in our homes.
As we adjust to life in the post-Covid world it seems green buildings will finally be embraced by the mainstream. While sustainable green living offers welcome utility efficiencies, it is essentially a more holistic concept. Stretching from upstream considerations such as building materials and design, all the way downstream to energy consumption and waste generation, a sustainable lifestyle is – at its heart – about the quality of life and the future health of the planet.