Aust Govt esd-operations-guide by deconstruct

VIEWS: 526 PAGES: 94

           for owners, managers and tenants
ESD Opportunities in Building

ISBN: 0 642 553 505
The Department of the Environment, Water, Heritage and the Arts in collaboration
with the NSW Department of Environment and Climate Change (DECC), with
specific input from Siobhan Spoljaric, Matthew Clake and Luc Farago.
Content written by Dr Dominique Hes of the Faculty of Architecture, Building and
Planning, Melbourne University, in 2007, with input from Sebastian Immaraj and
Jane Toner, Sean McArdle, David Oppenheim and Steve Moller of Sustainable Built
We thank David Pullan from ISPT, Greg Johnson from Stockland, Harry Hullin from
500 Collins Street, Tony Dorotic from ECS and Roger Kluske from Sustainability
Victoria for their time and input through interviews. We also thank Phil Wilkinson from
AIRAH and Stephen Ballesty of Rider Levett Buckrall (also director and immediate
past Chairman of the Facility Management Association of Australia) for reviewing
the draft documents and for their input from an industry perspective. Finally, thanks
goes to Colonial First State Global Asset Management, a partner in the Sustainable
Property Guide project to which this guide is closely linked.

© Commonwealth of Australia 2009
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The views and opinions expressed in this publication are those of the authors and do not necessarily
reflect those of the Australian Government or the Minister for the Environment, Heritage and the Arts
or the Minister for Climate Change and Water.
While reasonable efforts have been made to ensure that the contents of this publication are factually
correct, the Commonwealth does not accept responsibility for the accuracy or completeness of the
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For more information contact:

Photos: all photos are the copyright of the Australian Government
Department of the Environment, Water, Heritage and the Arts (DEWHA)
unless otherwise stated.
Cover photos: main image and inserted image at left, Australian
Phenomics Facility, Australian National University (ANU), Canberra
(Peter Matthews); top insert, John Curtin School of Medical Research, ANU
(Peter Matthews); bottom insert, Cassandra Hamilton climbs staircase at
40 Albert Road, South Melbourne (Erica Lauthier).

                                                             ESD OPERATIONS GUIDE for owners, managers and tenants
managers and tenants

A guide to help building owners, managers and tenants

to operate buildings more sustainably

A collaborative effort involving government, industry

and the research community

ESD Opportunities in Building

The environmental footprint of our            The guide uses examples from the private
buildings is a key sustainability challenge   and public sector to show what has
– both for Australia and the world.           already been achieved in the Australian
                                              marketplace on issues including energy,
The decisions we make about building
                                              greenhouse, water, waste, indoor
design are important. It is at the design
                                              environment quality, transport, materials,
stage that we have the opportunity
                                              and land use.
to make some of the cheapest and
most effective interventions in the           This guide is the product of a partnership
environmental performance of a building       between the Australian Government,
such as an office over its life cycle. But    the New South Wales Government,
we also need to address the performance       and key industry associations, including
of buildings over their operating lives       the Australian Institute of Refrigeration,
– while they are full of people working,      Air Conditioning and Heating. All the
communicating, innovating and                 partners should be congratulated for their
producing.                                    contributions.
 In Australia, only about two per cent of     The ESD Operations Guide is part of a
our office building stock is demolished       developing suite of guidance publications,
and rebuilt each year. Existing buildings     developed with agencies and industry,
offer some of our most cost-effective         including three editions of the ESD Design
pathways to environmental gain,               Guide, the Water efficiency guide – office
especially in areas such as energy            and public buildings and guidance on
efficiency and greenhouse gas emissions       green leasing.
reduction. While these benefits are there,
                                              The Australian Government has released
the property market involves building
                                              Your Building – a comprehensive best
owners, managers and tenants – interests
                                              practice guide for commercial buildings
that do not always coincide.
                                              at all phases of their life-cycles. This
This publication, the ESD Operations          online guide will be a companion to the
Guide, introduces the key environmental       well-known guide for residential buildings
issues relevant to operating existing         called Your Home.
buildings. Importantly, the guide
                                              The ESD Operations Guide shows
covers the opportunities available to
                                              owners, managers, and tenants how
owners, managers and tenants for
                                              to get started on more sustainable
better environmental performance, and
                                              operation of office and public buildings.
how they can collaborate on common
                                              The challenge is now for each of these
objectives. Facility managers have a
                                              groups, across the diversity of Australia’s
particularly important role to play here,
                                              built environment, to implement local
and the guide outlines (particularly
through detailed case studies) the value
of owners and tenants investing in skilled
and effective facilities management

ii                                            ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                     ESD Opportunities in Building

   Foreword                                                                                          ii

   Main issues for sustainable building operations                                                   2

1. Introduction                                                                                      4

2. The business case for introduction of ESD into the operational phase in existing buildings        9

3. Implementation                                                                                   14
   Rating tools                                                                                     15
   Building activity ESD opportunities                                                              18
   Management                                                                                       19
   Reporting                                                                                        24
   Targets                                                                                          26
   Owning and leasing – green lease                                                                 27

4. Opportunities                                                                                    29
   Opportunity 1 – Optimising indoor enviromental quality                                           29
   Opportunity 2 – Minimising energy use                                                            35
   Opportunity 3 – Water conservation                                                               42
   Opportunity 4 – Material choice                                                                  48
   Opportunity 5 – Minimising waste                                                                 53
   Opportunity 6 – Social sustainability                                                            57
   Opportunity 7 – Minimising transport impact                                                      60
   Opportunity 8 – Minimising ozone layer depletion                                                 63

5. Case studies                                                                                     65
   Case Study 1 – Medicare – operational management                                                 65
   Case Study 2 – Centrelink – operational management                                               68
   Case Study 3 – 500 Collins Street, Melbourne                                                     72
   Case Study 4 – QV1 Building, Perth                                                               77
   Case Study 5 – Art Gallery of South Australia, Adelaide                                          79
   Case Study 6 – William McCormack Place, Cairns                                                   82

   Glossary                                                                                         84

   Acronyms                                                                                         89

   References                                                                                       90

ESD Opportunities in Building

Main issues and activities for the ESD
Issue                Information needed           Form of the data           Make it meaningful          How do I get the data, and               Where can I get
                                                  needed                     with…?                      how often?                               more info?

Indoor air quality   What is the overall          Levels of individual       Key contaminants: CO2;      Some of these contaminants               See the indoor
                     quality of the air inside    contaminants and           CO; respirable dust;        (eg CO2) may be measurable using         air pages on the
                     your building? What          total levels. Units will   airborne viable bacteria;   equipment available in the building.     DEWHA website.
                     levels of each of the        vary by contaminant        airborne viable fungi       A full picture of IAQ with appropriate   Also the NABERS
                     key contaminants are         (eg ppm, mg/m3, etc).      and mould; ozone;           sampling methods may require the         indoor environment
                     present? What initiatives    See NABERS indoor          formaldehyde; total         use of a specialist IAQ consultant.      rating calculator
                     are in place to maintain     environment rating         VOCs; individual VOCs.                                               and technical
                     or improve air quality?      calculator for details.                                                                         information.

Occupant             How do the occupants         Results from surveys of    The questions in a          Depending on the method                  The NABERS
satisfaction         feel about working in        occupant satisfaction      survey should be            of surveying or sampling the             indoor environment
                     your building?               need to be issue-          meaningful for the          occupants, you may wish to               rating includes a
                                                  specific, but may also     building occupants          conduct and update this on an            survey of occupant
                                                  be aggregated into         and the results             annual basis. Other frequencies          satisfaction.
                                                  general measures of        communicated back           may make sense if the mix of
                                                  satisfaction, such as      to occupants. Key           occupants changes or if there
                                                  %s of occupants feeling    issues: thermal comfort;    are significant changes to the
                                                  satisfied with their       ventilation comfort;        operations of the building, such
                                                  working environment.       noise; visual comfort;      as new systems or operating
                                                                             health; extent of           parameters. NABERS provides a
                                                                             occupant control over       survey of occupant satisfaction.
                                                                             local conditions.           Other methods (including
                                                                                                         productivity surveys) may also
                                                                                                         work well.

Energy use           Total tenant light and       Total KwH                  Total floor area; average   Monthly use data from BMS and            NABERS Energy
                     power                        MJ/person/m2               occupancy; possibly         utilities.                               rating calculator
                     Central services             MJ/person/m2/day           also hours of operation                                              AGO DECC
                                                                             and total site area (eg                                              Energy utilities
                                                                             grounds)                                                             and regulators.

Greenhouse           Total amounts of             Star rating under          Normalise to total          Use BMS cycles of data, plus billing Use NABERS
emissions            CO2e from all sources        NABERS Energy              kgCO2e/m2, also good        periods. Frequency will vary by      Energy for star
                     (electricity, gas, other                                to express as kgCO2e/       source.                              rating.
                     fuels, waste etc).                                      person

Water use            Total volumes of mains       Total litres of metered Normalise by m2, by            If meters are linked to the BMS,         NABERS Water
                     water                        water consumption in    person and by day.             then monthly series data can be          online rating
                                                  litres or m3 per year.                                 checked against billing (may help to     calculator
                                                  Do not include captured                                identify leaks)                          Local area
                                                  rain or stormwater.                                                                             water utilities

Water reuse          Total volumes of water    Total litres per year, per    L/person/day or by          As for water use if reuse is metered. As for water use,
                     reused (may include rain/ day, and by type.             floor/grounds area.                                               but include health
                     stormwater, grey water,                                                                                                   agencies and
                     black water)                                                                                                              planning schemes
                                                                                                                                               for grey and black
                                                                                                                                               water information.

Stormwater           What proportion of           Measure or estimate       m3 per year                  Annual aggregate readings or             See local water
pollution            stormwater is retained       stormwater volumes                                     estimates. May be more frequent if       authorities and
                     on site? How polluted is     using the run-off factors                              change of use or seasonal variation      local councils.
                     the volume of stormwater     appropriate to the mix of                              is significant.
                     leaving your site? What is   surfaces on the site.
                     the evaporation rate?

2                                                        ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                                                     ESD Opportunities in Building

operational management of buildings

 Issue                    Information needed                  Form of the data                 Make it meaningful                 How do I get the data, and how          Where can I get
                                                              needed                           with…?                             often?                                  more info?

 Sewage outfall           What is the volume                  Total volumes in m3 or You may also wish to                         Three methods: direct measurement Utilities and local
 volume                   discharged to sewer                 litres/kilolitres per year. normalise this by m2                    of metered sewerage outfall volumes; councils may have
                          from your building?                                             and occupancy.                          or, metered estimation where the     advice.
                                                                                                                                  difference between metered inputs
                                                                                                                                  and metered uses is the estimated
                                                                                                                                  outfall volume; or, unmetered
                                                                                                                                  estimation if you do not have
                                                                                                                                  submeters. Quarterly measurement
                                                                                                                                  recommended (by season).

 Waste                    What is the total weight            Total kilograms.                 Normalise for floor area           You can get regular data from           Sustainability
                          of waste leaving the site                                            and for occupancy.                 your own scales/hoists etc.             Victoria, DECC,
                          (including recycling)?                                               Express totals per year            A waste audit can help.                 ACT No Waste,
                          What is the total weight                                             and per day.                       Your contractors should also            other waste
                          going to landfill?                                                                                      be required to provide weights          agencies.
                                                                                                                                  on bills.                               See NABERS
                                                                                                                                                                          Waste online rating

 Toxic materials          What toxic materials                Total list of materials          Key materials:                                                             See environmental
                          are present on the site?            (by weight and/or                Cleaning chemicals;                                                        agency sites
                          How are they stored,                volume for each). For            garden chemicals;                                                          for hazardous
                          used and disposed? Are              some (eg tubes and               pool chemicals; water                                                      materials
                          MSDSs provided and a                smoke detectors)                 treatment chemicals;                                                       information.
                          register up to date?                absolute numbers may             paints, varnishes and
                                                              be relevant.                     thinners; hydrocarbons;
                                                                                               batteries; electronic
                                                                                               equipment; smoke
                                                                                               detectors; fluoro tubes.

 Refrigerant use          Total amounts of                    GWP/m2 [kgCO2e/m2]                                                  Three ways: one is to keep a log of
 (global warming          refrigerants used                   ODP/m2                                                              refrigerant movements; two is to use
 potential and            by substance,                       [R11e/m2]                                                           manufacturer’s specs on chillers and
 ozone depletion          plus estimates or                                                                                       estimate 15% leakage of refrigerants;
 potential)               measurements of                                                                                         three is to estimate leakage of
                          leakage.                                                                                                0.09kg/m2 for water cooled systems
                                                                                                                                  or 0.01kg/m2 for air cooled systems.

 Transport                How do people get to                For a detailed picture, The NABERS Transport                        Surveys of occupants are to             NABERS
                          and from your building?             try a survey of building online rating calculator is                be conducted very infrequently.         transport rating
                          What are the energy,                occupants to provide under development.                             However, it is sensible to keep in      calculator is under
                          greenhouse and                      data on km travelled,                                               touch with the changing transport       development; AGO
                          environmental                       mode and frequency.                                                 needs of the building occupants         Travel Smart; Local
                          consequences of that                This should cover                                                   between surveys.                        transport regulator
                          mix of transport modes?             public and private                                                                                          or service provider;
                                                              transport.                                                                                                  Greenfleet

 Landscape                What species are present            Percentage of native             Landscape diversity is       Measure landscape area in                     Local botanic
 diversity                on your site? How much              species over total area          a proxy for biodiversity.    manageable blocks, such as >25m2              gardens provide
                          of the area is covered              (incl. vertically-stacked        You may wish to provide and assess species on each block.                  help on choosing
                          with native vegetation?             spaces) appropriate              occupants more details                                                     native species.
                          How complex is the mix              for the area.                    about the species used
                          of species?                                                          (incl. plants for indoor air

*Developed and written by Paul Starr
•	 While	this	is	a	fairly	comprehensive	list,	not	all	facilities	and	all	managers	will	be	ready	or	able	to	have	all	of	this	data	available	on	request.	However,	when	
   comprehensive environmental ratings of buildings are being conducted, this suite of issues is what will be measured.
•	 It	is	worthwhile	sitting	down	with	tenants	and	assessing	their	sustainability	awareness	and	priorities	for	sustainability	in	facilities	management.	Many	tenants,	
   such as Australian Government agencies, have requirements to report on their energy and environmental performance. It makes sense to stay in touch with
   these requirements to align your facilities management with the requirements of the tenants for performance data.
•	 For	examples	of	what	may	be	asked	of	a	facilities	manager	from	a	tendering	and	contracting	point	of	view,	please	see	the	Environmental	Purchasing	Checklist	
   for Building Management Services at the DEWHA website



1. Introduction

This guide introduces the key                in terms of the demand for land,              buildings produce 8.8% of national
environmental issues relevant to the         water, energy and other resources.            greenhouse emissions and have a
operation of existing office buildings and   According to the 2006 Australian State        major part to play in meeting Australia’s
public buildings. It also outlines what      of Environment Committee, a long-             international greenhouse targets.2
can be done to address these issues,         term but immediate change in materials
                                                                                           The operational phase of a building
supporting this with evidence from case      and energy balances is needed to give
                                                                                           contributes significantly to its total
studies of leading buildings.                more efficient urban systems, and this
                                                                                           impact. For example, between 70% and
                                             requires a decoupling of resource use         90% of a commercial building’s total
The operational environmental
                                             from economic progress. Reductions            greenhouse gas emissions are produced
performance of buildings is influenced
                                             in both net consumption and waste are         during the operational phase. As only
by three types of stakeholders: building
owners, building managers and tenants.       needed for a more sustainable human           around 2% of total commercial building
This publication aims to provide             environment. This will involve greater        stocks are built new each year, improving
guidance for each, and includes a basic      population densities than currently is the    the environmental performance of
introduction to ecological sustainability    case, significant increases in building and   existing buildings during their life cycle
issues.                                      material recycling, the capture and use of    is a crucial challenge.
                                             stormwater, the recycling of wastewater
Relevant Australian building types           and biological waste, and improvements        The Intergovernmental Panel on Climate
covered by this guide are office             in urban form and urban structures.           Change recently found that:
buildings (Building Code of Australia        It also requires changes in behaviour by
— BCA class 5) and public buildings,         individuals, so education and awareness-      ‘Energy efficiency options for
such as libraries, art galleries, museums    raising are important factors. The            new and existing buildings
and similar cultural institutions (BCA       challenge is to implement this insight.
class 9b).                                                                                 could considerably reduce CO2
                                             Buildings contribute significantly to
                                                                                           emissions with net economic
                                             human impacts on the environment,
EcologicAlly sustAinAblE                                                                   benefit. Many barriers exist
                                             consuming 32% of the world’s resources,
dEvElopmEnt                                  including 12% of the world’s fresh water      against tapping this potential, but
The Australia State of the Environment       and up to 42% of the world’s energy.
2006 report found that the key issue         Buildings also produce 40% of waste           there are also large co-benefits.
arising from human settlements is the        going to landfill and 40% of greenhouse
pressure they impose on the environment      gas emissions.1 In Australia, commercial      • By 2030, about 30% of the
                                                                                             projected GHG emissions in the
                                                                                             building sector can be avoided
                                                                                             with net economic benefit.
                                                                                           • Energy efficient buildings, while
                                                                                             limiting the growth of CO2
                                                                                             emissions, can also improve
                                                                                             indoor and outdoor air quality,
                                                                                             improve social welfare and
                                                                                             enhance energy security.’3

                                                                                            OECD, Environmentally Sustainable Buildings: Challenges
                                                                                           and Policies. A report by the OECD, OECD Publishing,
                                                                                           France, 2003.

                                                                                            Department of the Environment and Heritage, Australia State
                                                                                           of the Environment 2006 report, DEH, Canberra, 2006.

                                                                                            IPCC, Summary for Policy Makers, IPCC Fourth Assessment
                                                                                           Report, Working Group
Canberra office area (DEWHA, Mark Mohell)                                                  ar4/wg1/ar4-wg1-spm.pdf Accessed 7/5/2007. pp18–19

4                                            ESD OPERATIONS GUIDE for owners, managers and tenants

Esd And AustrAliAn                             •	 dealing	cautiously	with	risk	and	               jurisdictions, for example, now require
govErnmEnt policy                                 irreversibility (the precautionary              minimum levels of energy efficiency and
                                                  principle)                                      greenhouse performance before they
Ecologically sustainable development
                                                                                                  will consider entering into a lease for
(ESD) represents one of the greatest           •	 recognising	the	global	dimension.
challenges facing Australia’s government,                                                         office space. Australian governments
industry, business and community.4                                                                have collaborated on common tools
                                               Esd And stAtE And tErritory                        and systems for evaluating aspects of
In 1990, Australian governments
endorsed the following definition for          govErnmEnt policy                                  building environmental performance
ESD in Australia:                              As well as sustainability policies and             (such as the NABERS scheme), and have
                                               programmes from the Australian                     then included these as requirements
‘....using, conserving and                     Government, state and territory                    for their own properties and leases.
                                               governments have also responded to                 Table 1 outlines the extent to which
enhancing the community’s
                                               the challenges of ESD, including issues            NABERS Energy requirements have been
resources so that ecological                   related to the environmental performance           integrated into public agency property
processes, on which life depends,              of existing buildings. Most Australian             and leasing policies.

are maintained, and the total
quality of life, now and in the                Jurisdiction                   NAbERS targets
future, can be increased.’5                    Australian Government          4.5-star NABERS Energy by 2011/2012
ESD is development which aims to               New South Wales                4.5 star NABERS Energy and Water by 2011/2012
meet the needs of Australians today,           Victoria                       Base building < 2000m2 – 4 star NABERS Energy
while conserving our ecosystems for                                           Base building > 2000m2 – 5 star NABERS Energy
the benefit of future generations. To do                                      Tenancy – 5 star NABERS Energy
this, we need to develop ways of using                                        New building – 4.5 star NABERS Energy Commitment Agreement
those environmental resources that form        Queensland                     4.5 star NABERS Energy for new buildings, refurbishments, fitouts
the basis of our economy in a way that                                        and leases > 2000m2
maintains and, where possible, improves                                       4 star NABERS Water, 3 star NABERS Waste, 3 star NABERS
their range, variety and quality. We also                                     Indoor Environment
need to use those resources to develop
                                               South Australia                5 star NABERS Energy for new leases and new buildings
industry and generate employment.
                                               Western Australia              Base building – 3.5 star NABERS Energy
The Australian Government has                                                 Tenancy – 4 star NABERS Energy
developed several strategies and                                              New building – 4.5 star NABERS Energy Commitment Agreement
policies in response to the need
                                               Australian Capital Territory   4.5 star NABERS Energy for new buildings, new leases and new
to ensure ecologically sustainable
development. The National Strategy for
Ecologically Sustainable Development
                                               Table 1 — Various state and territory energy and NABERS Energy requirements (2009)
(NSESD) was launched in 1992 after
extensive consultation with industry,
the community, conservation groups,
scientific organisations and all levels
of government. It identifies five key
principles of ESD:
•	 integrating	economic	and	
   environmental goals in policies and
   activities (the integration principle)
•	 ensuring	that	environmental	assets	are	
   properly valued (the valuation principle)
•	 providing	for	equity	within	and	between	
   generations (the intergenerational

                                                                                                   Australian Government, National Strategy for Ecologically
                                                                                                  Sustainable Development, Canberra, 1992, Introduction.
                                                                                                      Ibid, Introduction.



Esd And locAl govErnmEnt                                Esd And thE privAtE sEctor
                                                                                                     David Pullan — Portfolio Operation
policy                                                  As well as government policy responses       Manager, ISPT — the main trigger
Many local governments have their own                   to ESD and buildings, Australian             for ISPT
ESD policies with regards to building                   companies — whether they are tenants,
operations. Their greatest influence is                 owners, managers or suppliers to             ‘The main reason for this … is
when buildings require approvals for                    property — are also acting on ESD            that the company needs to future
refurbishment. Some councils, such as                   issues. Similar to government, many          -proof its properties, we (ISPT)
the City of Melbourne, require NABERS                   large companies with significant office      are long-term owners and the
Energy and Green Star ratings, while                    tenancy needs (such as large financial
                                                        services organisations) are requiring
                                                                                                     market requires energy efficient
others offer incentives such as reduced
                                                        that their new buildings and existing        and Green Star rated facilities.
approval times and application fees for
projects with clear ESD initiatives.                    buildings meet minimum requirements          One of the big drivers for this
                                                        for energy, greenhouse, water and other      approach … is that we want to
                                                        environmental issues.                        retain our PCA quality rating, and
 The City of Melbourne requires 4.5                     For leading companies of various sizes       these require ratings.’
 NABERS Energy for all new buildings                    and from different sectors, demonstrating
 in the Melbourne CBD:
                                                        good ESD practice is seen as good                            David Pullan
 ‘The City of Melbourne’s Environmentally               business practice, allowing them to                          (Erica Lauthier)
 Sustainable Office Buildings (ESOB) Policy             better manage risk (including reputational
 (Clause 22.19 of the Melbourne Planning                risk), attract and retain talented staff,
 Scheme) is intended to ensure that all new             reduce their costs and stay ahead of their
 office developments in the municipality                competitors. More explanation of the
 incorporate measures to reduce their
                                                        benefits to industry of ESD consideration
 impact on the environment.
                                                        in building operations will be provided in
 The policy applies to all new office                   the business case section of this guide.
 buildings and to the new portions of an
 existing office building (such as additional
 floors of a building). It also applies to the          industry lEAdErship
 refurbishment of existing buildings or where           The Property Council of Australia has
 an office will be constructed as part of use           changed the market’s expectations of         Stephen Ballesty — Director & Head
 (such as an office in a warehouse). Where              buildings by integrating ESD requirements    of Advisory, Rider Levett Bucknall
 the office component is small or an existing           into their Building Quality Grades. They     and Convenor of the PCA’s Building
 building is involved, the policy will be applied
                                                        advocate a ‘triple bottom line approach to   Quality Steering Committee
 on a case-by-case basis depending on the
                                                        business, balancing environmental, social
 circumstances.                                                                                      ‘The inclusion of environmental
                                                        and economic accountability.’[1] The PCA
 The policy requirements are triggered                  2006 A Guide to Office Building Quality      criteria in PCA’s ‘a Guide to Office
 wherever a planning permit is required for             includes assessment criteria using both      Building Quality’ was crucial to
 an office development. Applicants need                 the Green Star rating tools available from
 to provide sufficient information to support                                                        reflect current perceptions of
                                                        the Green Building Council of Australia      quality; higher, bigger, brighter
 their planning permit application and
 demonstrate how the policy requirements
                                                        ( and the NABERS
                                                        Energy (formerly ABGR) base building
                                                                                                     is not necessarily better.’
 will be achieved.
                                                        rating. They specify that a Premium
 Offices between 2500 and 5000 m2 gross                 grade new building should achieve a 4
 floor area:
                                                        Star Green Star and 4.5 star NABERS
 •	 general	environmental	criteria	PLUS                 Energy rating, a Grade A new building
                                                        should achieve a 4 Star Green Star and
 •	 specific	performance	outcomes	Minimum	
    4.5 NABERS Energy Base Building
                                                        4.5 star NABERS Energy rating, and
    Rating.                                             Grade B new building a 4 Star rating for
                                                        both. Only existing buildings can qualify
 Offices greater than 5000 m2 gross floor               for a Green Star rating of below 4 Star,
                                                        due to the different considerations of
 •	 general	environmental	criteria	PLUS                 older properties.
 •	 specific	performance	outcomes	4-star	
    Green Star Office Design rating; Minimum
    4.5-star NABERS Energy base building
    rating; and Maximum water consumption
    of 30 litres/day/person using the Green
    Star Water Calculator.’

6                                                       ESD OPERATIONS GUIDE for owners, managers and tenants

                                                  • Sustainable Property Guide — this
 Principles of environmentally                      online manual provides in-depth step       FMA environmental policy
 sustainable building operations                                                               Source:
                                                    by step guidance on the business
 Australian ESD legislation, policies and           integration of ESD into property           ‘… FMA Australia’s members
 industry action provide a clear direction for:     portfolios, including proformas,           must strive to give significant
 •	 planning	and	managing	buildings	with	a	         check-lists and templates for practical    consideration to the need to
    view to the long-term while being feasible      implementation.                            achieve sustainable development.
    in the short-term                                                                          FMA Australia recognises the
                                                  • Your Building — this online resource
 •	 using	the	precautionary	principle	in	all	       provides in-depth national and             importance of caring for the
    decision making                                 international knowledge on all aspects     environment and acknowledges
                                                    of commercial building design and
 •	 taking	a	global	approach	to	issues	–	for	                                                  that all members have a
    example approaching greenhouse gas              operations. It will be the one-stop­
                                                    shop for information on ESD building       responsibility to the community
    reduction through energy efficiency
                                                    opportunities aimed at the entire          to act positively and look for
 •	 input	from	users	and	communities	on	
                                                    industry.                                  ways to protect and enhance the
    building projects
                                                  There are also existing tools which          environments in which they live and
 •	 avoiding	the	use	of	materials	that	have	a	
                                                  will be discussed in Chapter 3 on            work.’
    negative effect on biodiversity
 •	 ensuring	healthy	indoor	environments
 •	 reporting	on	performance.                     AudiEncE                                    The tenant looks for a space in which to
                                                  Building owners, managers and tenants       carry out their business as effectively and
                                                  each have distinct opportunities and        productively as possible. They look for
structurE of thE guidE And                        reasons for implementing sustainability     spaces that are healthy, attractive, and
othEr usEful rEsourcEs                            in existing buildings.                      help them retain and get the most out of
                                                                                              their employees. The operational cost for
After the introduction, this guide outlines       The building owner needs to ensure          tenants is made up of salaries, energy,
the business case for the integration of          a return on investment. The main            water and other service costs. As more
ESD into building operations for owners,          driver is to provide highly desirable       than 90% of operating costs in office
managers and tenants. This is followed by         accommodation and therefore consistent      buildings are salaries, any workplace
an overview of the major environmental            returns for their shareholders. This        productivity benefits arising from better
issues in building operations, as well as         guide provides the business case and        buildings can make for a persuasive
steps that owners, managers and tenants           fundamentals to show how integrating        business case supporting sustainability
can take to improve performance. Finally,         ESD into the operations of the building     initiatives. This guide will introduce
the guide closes with some case studies           will support these objectives.              tenants to the benefits for their staff
demonstrating the achievements possible                                                       of many of the ESD opportunities.
when considering ESD in operating a
building.                                          John Arthur — Former Managing
                                                   Director, Investa Property Group.
Wherever relevant, the guide will refer to         Resigned as MD of Investa in 2007
                                                                                               ‘As tenants increasingly use
existing tools and documents that will                                                         sustainability as a criteria for
help in the implementation of strategies           Source: Green Lease Guide
                                                                                               location selection, those property
outlined, including:                               ‘Investa believes there is a direct         owners who overhaul these older
• ESD Design Guide: office and public              connection between the success              buildings using Environmental
  buildings, 3rd edition — this guide              of our tenants and our long-term            Sustainable Development (ESD)
  provides an introduction to the design           investment returns.’                        principles will be rewarded with
  opportunities for optimising the
  potential efficiency of office buildings.                                                    cost reductions such as lower
  It is specifically designed to demystify                                                     energy costs, waste disposal and
  ESD in building design.                         The building manager wants to make           water costs, lower environmental
                                                  sure the building runs efficiently and       and emission costs and lower
• Water Efficiency Guide: office and              provides the best possible outcomes
  public buildings — this guide provides          for those owning and occupying the
                                                                                               operations and maintenance
  in-depth information on water efficiency        building. They are driven by improving       costs.’
  in buildings, including useful strategies       performance from the point of view of                          Romilly Madew, Chief
  and performance benchmarks.                     least cost and least risk. This guide                          Executive of the Green
                                                  will provide both an outline of low risk                       Building Council of
• Green Lease Schedules — integrating
  effective ESD performance requires              effective opportunities and stories from                       Source:
  the commitment of all stakeholders              the industry to demonstrate successful
  and this set of schedules provides              integration.
  the tenant and building owner clear
  guidance opportunities for leases to
  drive better performance.


cAsE studiEs
                                              Example of how one industry body has worked with its members to
Several case studies are presented in this    integrate ESD throughout their building operations
guide to illustrate the integration of ESD
                                              The Tertiary Education Facilities Management Association (TEFMA) developed a guide
opportunities in the operation phase of
                                              to incorporating sustainability into facilities management. This includes a guide book
buildings. They focus on those managing
                                              and a series of documents and tools to help in its application. Guidance is given on the
the building, as good performance is          importance of how to:
often related to good management and
occupant behaviour. The building design       •	 gain	commitment	from	senior	management
sets up the potential for highly effective    •	 find	a	champion	at	a	senior	level	to	support	the	change
ESD buildings, but without buy-in from
those operating and using the building,       •	 identify	risks	and	priorities
it may not reach its potential.               •	 set	policies,	objectives	and	targets	(long-	and	short-term)	in	conjunction	with	
The case studies are:
                                              •	 develop	a	plan	to	implement	the	process
Case study 1 – Medicare corporate ESD
               management                     •	 allocate	resources	to	action	the	plan
Case study 2 – Centrelink corporate ESD       •	 effectively	communicate	those	details	to	all	internal	and	external	stakeholders.
                                              Particularly useful is their alignment of ESD opportunities to facilities management
Case study 3 – Kador Group, Kamirice          practice, as outlined in Figure 1:
               Pty Ltd
Case study 4 – Investa and SAS Trustee
               Corporation, QV1 Building,
                                                                                           Strategic Asset                              Environmental
Case study 5 – Art Gallery of South             Site Development Plan                      Management Plan                              Management Plan
               Australia                        • Take advantage of natural                  • Funding for ESD projects.                • Statutory compliance.
Case study 6 – Queensland Department                                                         • Holistic approach for                    • Protect natural habitat
                                                • Orientation and positioning of               sustainability in the life                 on campus.
               of Public Works, William           buildings and infrastructure.                cycle of a facility.                     • Awareness training and
               McCormack Place, Cairns.         • Encourage use of public                    • Greater integration of FM                  ESD promotion.
                                                  transport and bicycles.                      areas to overall ESD                     • Protect against pollution
                                                • Opportunities for stormwater                 outcomes.                                  to the surrounding
                                                  and greywater harvesting.                  • Refer to TEFMA ‘Guidelines                 environment.
 Harry Hullin — Building Manager,               • Transport networks.                          for Strategic Management’.               • Monitoring, sample,
                                                                                                                                          and report.
 500 Collins Street                             • Provide for bicycle commuting

 ‘If I hear of something new I might
 look it up online or read what the
 consultants give me, but if I really            Operational Plan                                                                      Design Guidelines

                                                 • Accelerate recycling                                                                • Influence culture of
 want to know if it works I ring up                programs.                                                                             designers and builders.
 other building managers and see                 • Minimise waste in all
                                                                                                                                       • Greater protection of
                                                   activities of maintenance,                                                            institution’s natural assets.
 if there are any installed in their               cleaning, grounds, security,
                                                                                             with current FM                           • Environmentally friendly
                                                   transport, warehouse, etc.
 buildings and then I go and have                • Proactive and innovative                     practices
                                                                                                                                       • Use of recycled materials.
 a look at it and ask them how it is               energy and water saving
                                                                                                                                       • Energy and water conservation.
                                                   initiatives and practices.
 going … you have to ask people at               • Green purchasing.
                                                                                                                                       • Great consideration of waste
                                                                                                                                         management and recycling
 the coal face....’                                                                                                                      opportunities.

                 Harry Hullin
                 500 Collins Street
                 (Erica Lauthier)
                                                               Institution’s Teaching and                               Space Management Plan
                                                               Research Programmes
                                                                                                                        • Increase accountability for
                                                               • Engage students to undertake                             consumption of resources
                                                                 real FM ESD projects.
                                                                                                                          (space charging).
                                                               • Develop campuses for ESD
                                                                 research and teaching.                                 • Rationalise existing space
                                                                                                                          – minimise space wastage.
                                                               • Provide real FM case studies
                                                                 for academic application.                              • Save resources in having to
                                                                                                                          provide less new space.
                                                               • Increase awareness of ESD
                                                                 throughout institution.                                • Reorganise existing space
                                                                                                                          for improved ESD practice.
                                                                                                                        • Refer to TEFMA “Space
                                                                                                                          Planning Guidelines”.

                                              Figure 1 – TEFMA Facilities management practice and sustainability

8                                            ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                                   Business case

2. The business case for introduction of ESD
into the operational phase in existing buildings

This section provides the background and          •	 direct	costs	of	purchase — these
arguments for why ESD is good business.              include cost of purchase, depreciation,         Drivers for environmental sustainability in
                                                                                                     the commercial property sector:
When integrating ESD, it is crucial to be            labour, etc
able to provide an effective argument for                                                            •	 Lower	operational	costs
                                                  •	 direct	operational	costs — these
the initiatives from a whole-of-life and                                                             •	 Help	achieve		premium	or	A-grade	
                                                     are the day-to-day operational costs;
total cost perspective.                                                                                 quality
                                                     energy use, maintenance and so
                                                     forth — the costs of staff attraction,          •	 Increased	attraction	and	retention	
 The Sustainable Property Guide (DECC,               retention and productivity should also             of tenants
 2009) provides a good set of tools to help          be considered here
                                                                                                     •	 Limit	or	prevent	environmental	liabilities	
 property owners develop a business case
                                                  •	 potential	hidden	costs — these                     and risk
 for ESD projects. It includes a sustainability
 business case template and a sustainability
                                                     can include costs of maintenance                •	 Improved	reputation	through	corporate	
 project evaluation check-list.                      and upgrades, cost of design,                      responsibility leadership
                                                     meeting regulatory requirements,
                                                     voluntary operational activities such           •	 Lower	employee	turnover	and	help	
                                                                                                        retain talented staff
                                                     as reporting and monitoring, future
                                                     decommissioning and disposal                    •	 Meet	tenant	and	community	
                                                  •	 contingent	costs	— these are costs
                                                     that are not currently clear, but which         •	 Increased	shareholder	value	and	
                                                     may occur — the best example is                    access to capital
                                                     future carbon prices                            •	 Long-term	product/service	
                                                  •	 relationship	and	image	costs —
                                                     these are costs associated with market          Source: Sustainable Property Guide (DECC, 2009)

                                                     perception, goodwill, ethical investment
                                                     and so forth
                                                                                                 Some organisations, such as Industry
                                                  •	 societal	costs — these costs are            Superannuation Property Trust (ISPT)
                                                     very hard to determine but may include      and Stockland, are taking this approach
                                                     externalities such as impact on an          when looking at the acquisition of
                                                     indigenous culture, environmental           buildings. Instead of just looking at the
                                                     degradation, health etc.                    building and its outgoing costs during
                                                  The benefits of taking the full costs into     the due diligence period to determine
costing sustAinAbility                            consideration include6:                        the business case for purchasing the
                                                                                                 building they are carrying out the National
Any investment, whether in a new fit-             •	 identification	of	where	ESD	costs	are	      Australian Built Environment Rating
out or a new building, should include                greatest                                    System for energy (NABERS Energy
consideration of the upfront costs and
                                                  •	 better	informed	decisions	about	how	        formerly ABGR) water ratings. Based on
benefits, and also the costs and benefits
                                                     ESD will save the organisation money        the results of these, they then estimate
over the life of the investment. When
                                                                                                 the cost of bringing the buildings up to
evaluating the financial costs and benefits       •	 identification	of	potential	productivity	   acceptable ratings.
of ESD, it is important to identify, quantify,       gains
and allocate the direct and indirect
environmental and financial costs of              •	 greater	ease	justifying	ESD	to	senior	
operations over time.                                management and ‘bean-counters’

In considering the full cost of an                •	 demonstrating	to	investors,	financial	
investment, the following six tiers                  institutions, customers, employees and
of costs could be relevant:                          the community that the organisation
                                                     is committed to forward planning and
                                                     environmental responsibility.

                                                                                                   Adapted from Sustainability Victoria’s document of full
                                                                                                 costs accounting for waste management projects - www.
                                                                                                 accessed 27/5/2007.


Business case

                                               For new buildings, the application of          usually identified under these plans is
 Greg Johnson, National Sustainability         the BCA is pertinent to all aspects of         equipment such as chillers. In general,
 Manager, Stockland Commercial                 construction. However, for new work            people who activate these triggers will
 Property                                                                                     be the portfolio managers or property
                                               associated with an existing building
 ‘Stockland is working towards                 the BCA is generally only applicable           agents, or the project managers and/or
                                               to the new work itself, to those parts         consulting engineers who provide advice.
 better integration of sustainability
                                               of the building directly affected by the       It is therefore important that all of these
 decision making processes into                new work, or to those parts where the          people are aware of, and involved in, the
 acquisition strategies. When we               building’s use is being changed. Under         setting of ESD priorities for the building.
 include analysis of energy and                some circumstances (such as for change
                                                                                              The assets list and essential
 water ratings as a part of our overall        of classification), the whole of an existing
                                                                                              services list — the creation, review and
                                               building may be required to achieve
 due diligence, we can model the                                                              implementation of these lists could also
                                               compliance with the BCA. Under other
 likely cost to upgrade a building to                                                         be a trigger for ESD initiatives. The people
                                               circumstances (such as work undertaken
 meet tighter environmental ratings.                                                          who activate these triggers will be the
                                               on heritage buildings), exemptions may
                                                                                              same as above. The assets list is used
 This can influence our decision to            apply.
                                                                                              for maintenance and to show a building
 buy an asset where the capital cost           Building control is the responsibility of      owner what is included in the property.
 to upgrade a building may make                each state and territory, and details of       It identifies individual assets and their
 the acquisition less attractive.’             when the BCA must be complied with             state of repair, giving recommendations
                                               and how legislation should be applied          as to when they should be replaced.
                                               varies around the country. Owners or           This is a key opportunity for replacement
                         Greg Johnson,         designers undertaking refurbishment            with better, more efficient systems, but it
                         National              work always should consult their               is also a time when new strategies that go
                         Manager,              jurisdiction to check their obligations.       beyond the piece of equipment could be
                         Stockland                                                            considered. For example, when replacing
                         Commercial and        Property Council of Australia                  a HVAC system, it should be asked
                         Industrial Division                                                  whether the building could be upgraded
                                               The Property Council of Australia has
                                               changed the market’s expectations of           so as to require a smaller system.
                                               buildings by integrating ESD requirements      The essential services list is a check-list
                                               into their Building Quality Grades. They       that outlines the major elements of the
                                               advocate a triple bottom line approach to      building services (fire, sanitary, lifts etc)
                                               business, balancing environmental, social      and is a sub-component of the assets list.
                                               and economic accountability. The PCA
WhEn to Act                                    2006 A Guide to Office Building Quality        Long-term service and maintenance
Various triggers can occur throughout          includes assessment criteria using both        contracts — the renewal of long-
the life of a building that provide an         the Green Star rating tools available from     term contracts is a prime opportunity
opportunity to improve ESD performance.        the Green Building Council of Australia        to integrate the ESD objectives of
This section briefly outlines regulatory       ( and the NABERS               the building and the property owner.
triggers such as the Building Code             Energy (formerly ABGR) base building           Contracts are generally negotiated and
of Australia’s new energy efficiency           rating. They specify that a Premium            committed to by the building owner.
requirements, as well as non-regulatory        grade new building should achieve a            There is scope in these documents to
triggers, such as demands from tenants,        4 Star Green Star and 4.5 star NABERS          undertake ESD initiatives, and the trigger
investors and the market.                      Energy rating, a Grade A grade new             for this will be the preparation of the
                                               building should achieve a 4 Star Green         contract and its approval by the owner/
building Code of Australia                     Star and 4.5 star NABERS Energy rating,        owner’s agent. The people who activate
                                               and Grade B new building a 4 Star rating       these triggers will be consultants and/or
In 2006, the Building Code of Australia
                                               for both. Only existing buildings can          lawyers who prepare documentation
(BCA) introduced energy efficiency
                                               qualify for a Green Star rating of below       for the maintenance contract, and the
provisions for commercial buildings
                                               4 Star, due to the different considerations    owner/owner’s agent. It is essential that
(classes 5 to 9) and made existing
                                               of older properties.                           the ESD objectives of the owner are
provisions for residential buildings
                                                                                              well known and understood by these
more stringent. BCA energy efficiency
                                               Triggers through building practice             key stakeholders in the preparation
provisions may affect building areas
                                               The building maintenance plan                  of the contracts. There are numerous
such as external glazing, building
                                               — a trigger for the integration of ESD         examples where the renegotiation of a
sealing, air movement, air-conditioning
                                               into a property may be the periodic            long-term contract has not only led to
and ventilation systems (HVAC), artificial
                                               requirements of building maintenance.          greater efficiency, but has also generated
lighting and power, hot water supply
                                               Many larger properties have a building         cost savings, particularly if reporting and
and maintenance.
                                               maintenance plan, funded using a ‘repairs      monitoring become part of the contract
                                               and maintenance budget’ organised              requirements.
                                               by portfolio managers or property
                                               agents. An example of the type of item

10                                             ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                                               Business case

Waste and recycling service                                     the contract. The people who activate                  commitment and collaboration between
contracts — as above, the renewal of                            the trigger will be the managing agents/               the tenant and the building owner,
contracts provides an opportunity to                            facility managers and beforehand, the                  facilitated by the building manager.
introduce various ESD objectives, and the                       pro-active cleaning company. In 2007 the               The tenants may also have data
triggers and integration into the contracts                     IFMA Foundation www.ifmafoundation.                    requirements on environmental
are similar. It is therefore crucial that the                   org published ‘The Business of Green                   performance as part of their own
consultants and lawyers who are part of                         Cleaning’.                                             corporate responsibility initiatives.
this process are aware of the waste and
                                                                Incoming electricity or gas bills for                  Tenant complaints — tenant complaints
recycling objectives of the organisation.
                                                                payment — owners who see no interest                   can be a trigger to review aspects of
Green cleaning — cleaning contracts,                            or benefit in ESD opportunities, and who               the building, such as the HVAC system.
as with the management contracts                                seek only an immediate return on their                 The people who action this trigger would
discussed above, are a major opportunity                        investment, will be interested in reducing             be those who receive the complaints.
for the integration of ESD initiatives.                         opex (operational expenditure), but with               This varies from the owner in small
Cleaning contracts are generally arranged                       no capital outlay. Triggers for this type of           buildings to the building manager/
by managing agents or by tenants.                               owner could include an energy audit that               engineer in larger buildings.
Cleaning companies are beginning                                identifies actions that have an immediate
to provide additional ESD services, if                          payback, and other actions that can                    Triggers from the property cycle
clearly specified up front, this can extend                     employ an Energy Performance Contract                  Traditionally, the property cycle is
products, processes and procedures.                             (EPC) to provide the upgrade. This audit               approximately seven years from peak to
Waste and recycling can also be included                        may to be triggered by an incoming bill                peak. In that time, it also swaps from a
in this. The trigger will be the signing of                     from the utility. The utility could also offer         tenants’ market to a landlords’ market.
                                                                to assist in the installation of meters                When it is a tenants’ market, tenants
                                                                and appropriate Building Management                    will call for keen prices and incentives.
 Investa Property Group
 Source: Green Lease Guide                                      System upgrades that could assist in the               The need for attractive features, such as
                                                                auditing process.                                      ESD initiatives, could act as a trigger to
 An ongoing dialogue between
 cleaners and waste contractors has                             Monthly reports by building                            undertake ESD work on property being
                                                                managers/engineers back to                             refurbished. The trigger for this would
 helped Investa to increase recycling
                                                                owners/agents/building management                      have to come from the leasing agent.
 levels by enabling everyone to
                                                                committee — the monthly building                       When it is a landlords’ market, there is
 learn about what works and what                                reports are a major chance to highlight                less incentive to offer buildings with an
 doesn’t, and what strategies could                             problems in the building and to identify               emphasis on special features, such as
 be employed to make recycling                                  ESD opportunities that might resolve                   ESD initiatives. However, astute landlords
 more effective.                                                them. The people who activate these                    will seek to develop properties that are
                                                                triggers will be the portfolio managers or             future-proofed, by incorporating into them
                                                                property agents who prepare and submit                 ESD initiatives, for a time in the future
                                                                these reports, and a wider range of ESD                when it becomes a tenants’ market.
                                                                initiatives could be proposed.                         The trigger for these actions would
                                                                                                                       come from the landlord.
                                                                Tenant sustainability commitments
                                                                — one of the triggers that could stimulate             For example, in early 2007 the Melbourne
                                                                the integration of ESD into building                   commercial market was seen to be rising,
                                                                operational management is the request                  but is expected to be approaching its
 Green Cleaners                                                 of tenants for Green Leases. These                     zenith in 2009-10 (Figure 2). Currently,                   will be covered in more detail later, but              vacancy rates are very low and leasing
                                                                are a clear request for demonstrated                   incentives are high.

                                                                                                                                                     Sep, 2008 F
                                                                                    Mar, 2002

                                                                                                                                              Sep, 2007 F
                                               Sep, 2001
                                             Mar, 2000                                          Sep, 2002
                                         Mar, 2001
                                                                                                                                                    Sep, 2006
                                     Sep, 1999                                                       Mar, 2003                                     Mar, 2006
                                   Sep, 2000
                                                                                                       Sep, 2003                                Sep, 2005
                                  Mar, 1999
                                                                                                          Mar, 2004
                                                                                                           Sep, 2004

                                                                                                                                 Mar, 2005

                             Figure 2 – Melbourne commercial property cycle 1999–2006 (with forecasts for 2007–08)
                             Source: API September 2006 Property Direction Survey

Business case

rolEs, bEnEfits And
                                                   Valuation model by Jones Lang LaSalle, 2006
opportunitiEs for oWnErs,
                                                   A case study presented on a Sydney CBD, single-tenanted building showed that with
mAnAgErs And tEnAnts
                                                   an investment in lighting, HVAC and commissioning costing $320 000, outgoings were
                                                   reduced by $3.32/m2 or $99 700, and $3 million in capital value return was added on an
building owners
                                                   investment of 10.67%. The NABERS Energy rating was also raised by 1 star.
The attitude of owners to ESD issues
ranges from antipathy and total
indifference, to pro-active and positively          building Service                 Saving           Cost of          Payback Scope
engaged. The attitude of the owners will            Element                          $/annum          Intiative        in Years
affect the potential benefit they see in            Chilled water pumps              $4172            $11 000          2.64           Install variable speed drives
implementing ESD initiatives. The uptake
                                                    Condenser water                  $3872            $12 000          3.10           Install variable speed drives
of ESD initiatives into some very large             pumps
property portfolios, such as Investa, ISPT,
Stockland, Colonial and Lend Lease, has             Cooling tower fans               $2767            $7000            2.53           Install variable speed drives
pushed a change in attitude away from               Water cooled chillers            $14 348          $61 000          4.25           Increase effeciency of chiller
the antipathy and indifference end of the           Primary supply air fans          $15 480          $19 500          1.26           Install variable speed drives
                                                    Base floor lighting              $39 131          $184 615         4.72           Install higher performance
What are the benefits of ESD for building                                                                                             lights
owners? The benefits are varied and
                                                    BMCS commissioning               $19 934          $25 000          1.25           More thorough BMCS tuning
range from adding to the value of their
stock (see JLL example below), to good              Totals                           $99 704          $320 115         3.21
corporate responsibility, to reducing future       Table 2 – Sustainability initiatives and costs benefits
risk and attracting long-term tenants.             Source: Jones Lang LaSalle, Assessing the Value of Sustainability, February 2006

                                                  building managers
 Owners and managers of property, Investa                                                                              Will tenants pay more for an ESD
                                                  For building managers, the reason
 sees the integration of sustainability into                                                                           building? No, not yet, but they
 business practice as providing the following
                                                  for actively integrating ESD principles                              expect to pay less for, or will not
 benefits:                                        into buildings is to provide a better                                lease, a non-ESD one.
                                                  service to the building owner and the
 •	 creates	a	culture	which	generates	            tenants. Further, a well-integrated ESD                              ‘Surveys conducted by Jones
    confidence in the landlord
                                                  strategy and a thorough environmental                                Lang LaSalle have indicated that
 •	 encourages	long-term	national	                management system that have the                                      whilst tenants currently may not
    relationships                                 commitment of the building owners
                                                                                                                       be willing to pay a premium rental
 •	 sponsors	a	culture	of	efficiency	and	
                                                  may mean that the management of
                                                  the building can be carried out more                                 for buildings with sustainability
    innovation that benefits owners in the
    long-term, if not immediately                 efficiently, with fewer emergencies and                              features, some tenants will very
                                                  complaints.                                                          soon come to expect a discount
 •	 is	a	motivator	of	its	people	through	
    alignment with personal values.               Different sized buildings are managed                                to occupy buildings that do not
 Source: Sustainable Property Guide (DECC 2009)
                                                  in different ways:                                                   have these features. This switch
                                                  •	 smaller	buildings	may	be	managed	by	
                                                                                                                       from a ‘sustainability premium’ to
                                                     a cleaner and/or owner who organises                              a ‘non-sustainability discount’ is
                                                     the appropriate response as required                              expected to gather pace over the
                                                  •	 medium-sized	buildings	might	be	                                  next two to four years.’
                                                     managed by a leasing agent who                                    Source: Jones Lang LaSalle, Assessing the Value
                                                                                                                       of Sustainability, February 2006, p6.
                                                     manages several properties at once,
                                                     but is resident in none of them
                                                  •	 larger	buildings	may	have	a	permanent	
                                                     building manager/engineer on site,
                                                     who reports back monthly to a portfolio
                                                     manager and the owner, and should
                                                     also report to tenants.

12                                                ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                                  Business case

Tenants                                                                       Rent 14%            Energy 1%      Maintenance 1%
While costs to tenants from office
energy use, water consumption and
waste disposal can be significant, their
major expense will be staff salaries
(Figure 3). From the tenant point of
view, if investments in environmental
performance can produce a happier and
more productive workforce — one that
sees their values aligned to those of their
employer — then that investment can
make excellent financial sense.
Research has shown that buildings in
which ESD has been taken into account
have higher employee satisfaction.
Buildings that have introduced ESD
initiatives usually have improved lighting
and air-quality, which can lead to
improved productivity, particularly through
increased concentration and reduced sick
The DECC Sustainable Property Guide
provides tools to support the process of
integrating ESD into property acquisition.
It provides an evaluation worksheet and
outlines their four step process:
Step 1 — Align responsibility                                                                     Salaries 84%

Step 2 — Agree on benchmarks by                              Figure 3 – Breakdown of typical business costs
         which to assess the building                        Source: Browning and Romm (1994)
Step 3 — Use an appropriate assessor
Step 4 — Assess and record

 ZEE Upton, programme leader in tissue
 repair and regeneration in the School
 of Life Sciences, has been in the $70
 million Institute of Health and Biomedical
 Innovation at Kelvin Grove with researchers
 and laboratories since it was opened. She
 admitted to being very cynical about the
 new open plan office:

 ‘Most of us thought “what a load
 of rubbish”… we had no faith
 in the architectural and design
 profession in providing us spaces
 that weren’t noisy and disruptive
 … but it really works … recently I
 was just offered a new role taking
 up a more senior position … but
 I didn’t take it because I do not
 want to leave this building … I
 mean I have a great team as well
 … but I just love working in this
Open plan meeting spaces, Kelvin Grove
(Zee Upton, Institute of Health and Biomedical Innovation)


3. Implementation

This chapter outlines how to achieve          The chapter begins by outlining the             Poor access to knowledge, research
ESD integration into building operations.     barriers and challenges of integrating          and resources — this is no longer the
It is about setting up good management        ESD into the operational phase. It then         case; the amount of knowledge that
systems, being able to build in ESD and       examines the rating tools and other             is now available in the market place
monitor its integration and performance,      approaches that have been developed to          provides clear guidance and support for
and about planning for appropriate            help minimise many of these barriers and        ESD integration. Some of the resources
interventions depending on the                to facilitate implementation. In particular,    that are available include: the tools and
operational building activity.                it provides details on the management of        information published by the Green
                                              ESD in buildings and other opportunities        Building Council of Australia; NABERS;
                                              within the maintenance and refurbishment        various design, building management,
 ‘If I was to distil the lessons              stages of a building’s life. This is followed   leasing and reporting guides and tools;
                                              by a discussion of various options for          and the Your Building online information
 learned in my time managing
                                              building space leasing, performance             source, which will provide comprehensive
 sustainability into the key elements         reporting and target setting.                   national and international knowledge on
 of a successful sustainability                                                               ESD and commercial buildings.
                                              The implementation of ESD in the
 strategy, I would say firstly you
                                              operational management of buildings             Green strategies are not well-tested in
 need to have a clear commitment              often faces barriers. While many of these       the market — this is rapidly changing
 from an executive level so that              are real, they can also be based on             as many of the buildings that innovated
 everyone can see that it is part             outdated notions of what sustainability         ESD integration now have several years
 of a broader business strategy.              costs, and what the market can deliver.         of performance data on which to report.
                                              Commonly raised barriers to integrating         National and international experience is
 Secondly you need to have an
                                              ESD into existing buildings (and                used to illustrate the ESD opportunities
 effectively integrated management            responses to these) include:                    throughout this guide. Further, key bodies
 system including a reliable source                                                           such as the PCA and the Green Building
                                              Sustainability and ESD costs more — in
 of utilities data to establish your                                                          Council of Australia have recognised
                                              the short-term, some initiatives may cost
 baseline. Thirdly make use of                                                                the benefits of ESD and provide clear
                                              more, but if an owner cannot lease a
 environmental rating tools to                                                                guidance, technical information and
                                              building out because it does not have the
                                                                                              rating tools.
 measure performance and set                  ESD aspects expected by the market,
 targets for improvement and finally          then the investment becomes more cost-          Professionals are not well informed
 you need to invest in technology             effective. Further, ESD investments need        — engineers, builders and other
                                              to be seen beyond their initial upfront         tradespeople are quickly coming up
 such as sub-metering to see                  costs; the full life cycle needs to be taken    to speed with the requirements of
 where energy and water is being              into account, particularly the future cost      ESD. Their professional organisations
 used. Running a building without             of carbon needs.                                are supporting them with professional
 sub metering is like driving a car                                                           development and training. There is
                                              Lack of awareness of the market
 without a dashboard. Without                                                                 also increasing integration of ESD into
                                              — there has been a marked increase in
                                                                                              postgraduate studies and an increasing
 reliable data and access to timely           market awareness of ESD, particularly
                                                                                              number of conferences.
 information on performance it                from government agencies (federal,
 is so much harder to effectively             state and local), the property industry
                                              (e.g. PCA quality guidelines) and major
 implement sustainability action
                                              corporations. They not only see the
 plans.’                                      benefits to their staff, but are also keen
                        Greg Johnson,         to demonstrate commitment to their
                        National              stakeholders.
                        Commercial and
                        Industrial Division

14                                            ESD OPERATIONS GUIDE for owners, managers and tenants

                                              The tenant is responsible for a significant
  Garth Bradbury — Manager                    amount of the impact — this is the reason
  Facilities Management, City                 that rating tools have base building and
  of Melbourne
                                              tenancy variations. The tenants can be
  ‘… it is hard work — and the                engaged in the ESD initiatives by being
                                              informed of their role though a building
  more you work in this area, the
                                              user’s guide and green leases. Also,
  more specialised knowledge you              through initiatives such as those by ISPT,
  need … particularly with this one           relationships can be established with the
  (CH2 ) … with other buildings, it           best suppliers of materials (such as paints
  is a little easier … this building is       and carpets) who not only provide a more
  like owning a BMW — a lot more              environmentally responsible product but
                                              do so at a reduced cost. The tenant can
  smarts, efficiency and features,            reduce this barrier through commitment,
  but needs integration for the               education, buy-in and behaviour change.
  whole package to work … it is
  up to our contractors to be able
  to manage the system … We try
  to build a strong relationship with          Greg Johnson, National Sustainability
  them and they need to have a                 Manager, Stockland Commercial
  background and understanding
  of the systems … and they do                 ‘…at Stockland sustainability is
  step up … they have to …’                    one of the core pillars that drive our
                                               strategic business plan (along with
                                               growth, product, stakeholders,
                                               brand, systems and processes
                                               and people). After this commitment
                                               the first step to understanding our
                                               footprint is getting some idea of
                                               the performance of the portfolio.
                                               The first place to start is to
                                               understand how your portfolio is
  Garth Bradburry, CH2 , Melbourne             performing particularly in relation
  (Erica Lauthier)                             to market expectations. Tools
                                               such as NABERS Energy and
                                               Water will help with this and for
Split incentives and traditional               Stockland, has helped determine
approaches — taking in the whole-of­           what benchmarks and targets
life costs of ESD initiatives means that       we should set and over what
traditional ways of financing need to
                                               timelines. Stockland has set a
be reviewed. This requires high-level
policy and support, and is an issue that       portfolio average base building
needs serious attention at the start of        NABERS Energy target of 3.6 stars
any project. There also seems to be less       and for new buildings at 4.5. In
incentive for the owner-investor as they       2005, the portfolio average was
do not benefit from the ongoing savings,
                                               2.6 stars. By setting targets, we
although this is starting to be addressed
by market demand for ESD in their              can identify potential improvement
tenancies. It is not the ongoing costs that    strategies and then it is a matter
are the incentive, but the retention and       of implementation, measurement,
attraction of key tenants. Green leases        evaluation and reporting.’
and thorough service contracts are
                                               Stockland headquarters, Sydney
helping to overcome this barrier.              (Stockland)


rAting tools                                   phase the most appropriate rating tools
                                                                                                Greg Johnson, National Sustainability
A range of building environmental              are Green Star – Office Interiors v1.1 and
                                                                                                Manager, Stockland Commercial and
rating tools that have been developed          Green Star – Office Existing Building.
                                                                                                Industrial Division
internationally and in Australia to measure
                                               GREEN STAR – OFFICE INTERIORS
various aspects of the environmental                                                            ‘One of the main lessons I have
                                               RATING v1.1
performance of buildings. There are two                                                         learned is that it is fine to design
main approaches to ratings:                    This rating tool enables office
                                               building tenants and owners to rate
                                                                                                a building to achieve a NABERS
(1) a design-based approach, which             the environmental attributes and                 Energy rating, it is another to
    seeks to predict the performance of a      characteristics of their fit-out designs and     deliver and maintain it.’
    building based on an analysis of the       refurbishments. More sustainable fit-outs
    design features and                        may include features such as access to
                                               natural light combined with efficient office
(2) an outcome-based approach, which
                                               lighting, energy and water conservation
    measures the actual consumption of
                                               measures, waste management, fit-out
    resources and environmental impacts
                                               items with no emissions or low emissions
    of the building in operation.
                                               and reduced environmental impacts, and
Both approaches provide useful                 timber from sustainable sources. The
information to building owners, managers       Green Star – Office Interiors rating tool
and tenants, and have the potential to         has been developed to assess a tenancy
drive continuous improvement of the            fit-out once construction is complete, but
building stock. For assessing a range of       should also be used during the design
environmental and sustainability aspects       phase to ensure ‘greener’ fit-out initiatives
of commercial buildings in Australia, the      are incorporated at the earliest possible
Green Building Council of Australia’s          stage.
(GBCA) – Office Interiors v1.1 rating
tool assesses a project’s approach             GREEN STAR – OFFICE ExISTING
to fit-outs and refurbishments, while          bUILDING v1
other Green Star tools can assess the          Green Star – Office Existing Building
design, construction and procurement           rates the environmental and sustainable          Innovative lighting and ventilation, Stockland
sustainability initiatives and attributes of   attributes of existing buildings, defined        Headquarters, Sydney
new buildings, with a separate rating tool     as buildings that have been constructed          (Stockland)

to gauge sustainability characteristics        and handed over not less than 24 months
of existing buildings. Green Star rating       prior to an application for a Green Star
tools do not assess behaviour of               Certified rating. The rating tool assigns a
building occupants, although the Green         Green Star rating to the physical building
Star – Office Existing Building rating         and its services, independent of its
tool addresses Management Efficiency           tenants’ operations or behaviour, and
and elements of performance. The               assesses projects against a core group of
National Australian Built Environment          categories including Management, Indoor
Rating System (NABERS) uses an                 Environmental Quality, Energy, Transport,
outcome-based approach to assess the           Water, Materials, Emissions, Land Use
environmental performance of existing          and Ecology and Innovation. Each of
buildings. Within this tool are subtools       these categories has points available
to assess energy, water, waste and             for different credits relating to separate
the indoor environment. The NABERS             areas of the building, to provide a more
Energy and Water tools are those most          integrated, holistic rating of sustainability.
mentioned by the property industry as the      The Management Efficiency tool
tools they use for assessing a project.        embedded within the rating tool enables
                                               proper assessment of the building’s
Green Star                     performance on an annual basis, and is
The Green Star suite of rating tools           designed to complement the Green Star
has been developed by the GBCA with            rating achieved by the property.
support from industry and government
agencies. Green Star represents a range
of rating tools that can be used according
to the type of building and stage of
development. Many of the rating tools
for new buildings assess the attributes
of the property, but for the operational

16                                             ESD OPERATIONS GUIDE for owners, managers and tenants

NAbERS                            In the near future, it may be
NABERS (National Australian Built                                                                  Taking buildings from a 2.6 star portfolio
                                                    mandatory to disclose NABERS                   average NABERS Energy to 3.6 stars —
Environment Rating System) is a tool
                                                    Energy ratings for all commercial              Stockland
for rating actual building performance.
NABERS gives scores based on                        buildings at point of sale. As                 Stockland is taking its average portfolio
benchmarked research in the areas
                                                    discussed previously, this may                 NABERS Energy to 3.6 by: (1) installing
of Energy, Water, Waste and Indoor
Environment. NABERS is a national                                                                  sub-meters in its buildings on major
                                                    have significant implications on
initiative, managed by the NSW                                                                     energy and water consuming plant and
Department of Environment and Climate               the ability to sell a building7.               equipment; (2) identifying inefficient
Change.                                             NABERS Energy provides an excellent            operational and housekeeping issues
This tool makes it possible to report on            tool for defining the requirements of          that can be improved such as ensuring
both the base building performance                  both the building owner and the tenant.        the buildings have been commissioned
and the tenant performance of existing              It represents a clear target for the
                                                                                                   properly, ensuring lights are not on
buildings. Therefore, it is a powerful tool         building manager to use when planning
                                                    operations. It is also a way of self-rating,   when not required, ensuring lifts power
for building stakeholder commitment
                                                    allowing owners, managers and tenants          down at night, building controls and
to reduce operational costs and
environmental impacts. The tool allows              to look at how they are performing             HVAC systems are performing optimally,
users to carry out their own assessment             compared to national data.                     systems that can be on economy cycle
and analysis for integration into building          NABERS Energy was first designed to            are working, etc; (3) installing variable
environmental management plans, but if              rate the actual energy performance of          speed drives to pumps and fans, lighting
an official assessment is required, then it         existing buildings while in use, with the      control systems and upgrading Building
needs to be carried out by an accredited            rating based on energy consumed. It has
assessor. To carry out a self-assessment                                                           Management Systems on existing
                                                    since been modified to also be useful at
using NABERS Energy, Water or Waste,                the design stage, with building designers      buildings.
the data requirements are:                          or owners being able to commit to a            When building refurbishments are
•	 area	of	the	office	premises	(m²	NLA,	            predicted performance rating. This rating
                                                                                                   necessary, upgrading and replacing
   preferably to PCA standards)                     is granted provisionally and only becomes
                                                    a formal rating after a year of post-          inefficient plant and equipment is a great
•	 occupancy	(in	hours	per	week)	                   occupancy performance data is available.       opportunity to improve performance and
•	 location	(postcode)	                             Many major owners and tenants of office        avoid the risk of future obsolescence.
                                                    building space, such as government,
•	 number	of	computers	(for	office	tenants	         are requiring minimum levels of energy         Greg Johnson, National Sustainability
   and owner-occupiers)                             performance as a condition of leasing          Manager, Stockland Commercial and
                                                    and managing buildings.                        Industrial Division
•	 energy	and	water	use	of	the	premises	
   over the last 12 months                          Each of the tools report in the form of a
                                                    5 star rating in a little more detail:
•	 waste	and	recycling	in	grams	per	
   person per day over an audit period              NABERS Water – is based on water bills.
                                                    It allocates a star rating of water used
NAbERS Energy (formerly AbGR)                       per square meter. NABERS Waste –
To date, more than 40% of commercial                uses a guidance document for carrying
office space nationally has been rated              out a waste audit called the ‘NABERS
using NABERS Energy. As shown by the                Waste for offices Waste Audit Guidance
interviews carried out for this publication         Document’. It outlines the data to collect
it has broad industry support and is                on waste streams and recycling streams.
being used for energy rating, target                NABERS Indoor Environment – assesses
development and design requirements.                the indoor environment based on thermal
The NABERS Energy scheme rates                      comfort, air quality, acoustic comfort,
buildings from one to five stars, with five         lighting and office layout.
stars representing exceptional energy
and greenhouse performance. NABERS
Energy can be used for the base building
(central services), individual tenancies or a
whole building. Buildings that display the
rating must be re-rated every 12 months,
to ensure that the rating represents
current building usage.
                                                                                                   Stockland Headquarters, Sydney

accessed 17/5/2007.


Tools in practice                                             Programme Measure Target                                   Achieved at end of stage 3
Two programmes – CitySwitch Green
                                                             NABERS Energy rating       Improved by 1 star               Average improvement of 0.2 stars
Office (previously 3CBDs), which is
active in eight CBDs around the country,                     NABERS rating              Improved by 1 star               Average improvement of 0.6 stars
and Building Tune-Ups in Adelaide –                          Energy consumption         Reduce by 6616 MWH p.a.          Reduced by 3233 MWH p.a.
have been in place for several years to
                                                             Energy savings             $840 000 p.a.                    $341 955 p.a.
support the integration of ESD. These
programmes used NABERS for energy                            Reduce greenhouse          6351 tonnes of CO2 p.a.          2883 tonnes of CO2
and water targets (Green Star was not                        emissions
available when they began). The Adelaide                     Water savings              $36 750 p.a.                     $27 790 p.a.
programme has had varied success, with                       Reduce water               48 000 kL p.a.                   27 160 kL p.a.
some buildings improving by 1.5 stars for                    consumption
both water and energy (see Table 3).
                                                             Table 3 – Summary of Adelaide building tune-ups results (2006:5)8
The main lessons from these
programmes have been:
•	 get	commitment	from	high	up	in	the	
   organisation for changes                                   Stage                    Opportunities

•	 ensure	audit	results	and	                                 Tenant operations         Tenant Environmental Management Systems (EMS), behaviour change,
                                                                                       procurement, etc.
   recommendations are put into practice
                                                             Management                Management system, incremental improvement, procurement, etc.
•	 if	audits	are	planned,	also	ensure	
   the resources to implement the                            Maintenance               Sensors, meters, improved lamps, filters, etc.
   recommendations are committed and                         Level 1 refurbishment     Low emission carpets, paints, fittings, etc., minimise waste from churn
•	 plan	implementation	in	line	with	                         Level 2 refurbishment     Windows, HVAC system, open plan, shading, thermal mass, etc.
   maintenance schedules.
                                                             Table 4 – Operational building phases

building Activity Esd
Four main activities occur in the operation
of a building (see Tables 4 and 5):
(1) the building is used by the tenants
(2) the building is managed with
    management plans and reporting
(3) the building is maintained through
    periodic replacement of components
    and correction of failures, from
    replacing lights to temperature
(4) the building is retrofitted. There are
    two levels of retrofit activity. The first
    is minor activity, related to cosmetic
    alterations such as paint, office walling
    and carpet replacement. The second
    is major activity, where a significant
    retrofit is planned, such as façade
    and HVAC replacement. The ESD
    opportunities for each activity are
    different. These are introduced below
    and expanded on in the specific
    sections under opportunities.                            50 Lonsdale Street, ISPT target 4.5 Star Base Building
                                                             NABERS Energy and 4 Star Green Star

Final%20Report%20Public%20Release.pdf, accessed 15/5/2007.

18                                                           ESD OPERATIONS GUIDE for owners, managers and tenants

Stage                      Owner                            Manager                                     Tenant
Tenant operations          Support tenant in their ESD      Meet tenant requirements                    Develop and implement ESD policy and
                           requirements                     Respond to complaints Support               systems Participate in the ESD committee
                                                            information and reporting needs of tenant   Tenant behaviour and education

Management                 Set priorities and policy        Set up EMS                                  Participate in ESD committee
                           Allocate appropriate             Develop building user guide                 Comply with management initiatives
                           resources                        Propose improvement opportunities           Use procurement strategy
                           Read and review EMS              Integrate ESD into contracts
                           Set ongoing priorities
Maintenance                Approve appropriate              Carry out maintenance                       Use procurement strategy especially if
                           resources                        Continually look at maintenance plan for    organising own cleaning contract
Level 1 refurbishment      Approve appropriate              Ensure communication with tenants on        Use procurement strategy
                           resources                        activities and ESD initiatives
                                                            Update building user guide
                                                            Manage commissioning if required
                                                            Ensure procurement strategy is followed
                                                            Monitor and report on results
Level 2 refurbishment      Approve appropriate              Ensure communication with tenants on        Use procurement strategy
                           resources                        activities and ESD initiatives
                                                            Update building user guide
                                                            Manage commissioning
                                                            Ensure procurement strategy is followed
                                                            Monitor and report on results

Table 5 – Roles and responsibilities for implementation of ESD at each activity level

mAnAgEmEnt	                                            The building manager — for the                   ‘If you look at the tenants as your
The management of the building                         building manager, the management of
                                                       the building includes ensuring that the          allies, then you have 15 000 pairs
means different things to each of the
stakeholders.                                          building functions and that the tenants 	        of eyes that can let you know
                                                       are satisfied. Managers have a crucial
The building owner — for the owner,                    role in understanding the building and 

                                                                                                        when things aren’t right…’
building management is crucial for                     being able to make it run optimally. 

the maintenance, improvement and                       Central to this is the ability to work and 

continued occupation of the building.                  communicate effectively with the tenants, 

Owners must set the strategic direction                as noted by Harry Hullin, the Building 

for the building and make sure that                    Manager of 500 Collins Street:

resources and tools are available to 

                                                                                                         Activities for the facilities
meet that direction. 
                                                                                   manager within the Environmental
                                                                                                         Management Plan (EMP):
                                                                                                         •	 measuring	current	performance
 David Pullan — Portfolio Operation Manager, ISPT
                                                                                                         •	 integrating	sensors,	meters	and	other	
 ‘The first thing I did when I started at ISPT was determine what was                                       methods of data collection
 wanted from the integration of sustainability … I felt it was important to                              •	 identifying	issues	and	anomalies
 approach these things strategically … by having an integrated policy
                                                                                                         •	 planning	and	integrating	improvements	
 and implementation plan. It was also important to make sure the                                            over time
 direction came from the top of the organisation, so the chairman and
                                                                                                         •	 keeping	an	eye	out	for	future	
 many of the members of the board sit on the sustainability committee                                       developments and technologies that
 with the portfolio staff.’                                                                                 could be integrated into the building.



The tenant — tenants are central to the                  Summary of ESD opportunities in                   Environmental management system
building’s performance; without them,                    building management                               (EMS) — to integrate ESD into a building,
there would be no building or impact, so                 Management is an activity of everyday             it is very important that there is a
their commitment to ESD and its impacts                  checking and reviewing of performance             thorough and well-planned management
on their own behaviour are critical. For                 of the building and its systems. This             system. These can take many forms
the tenant, there is also a role to play                 occurs before maintenance is needed,              and be as simple or complicated as is
in the management of the building. Not                   though it often brings up inconsistencies         required. An EMS is usually a broader
only are they the eyes and ears of the                   that lead to things needing to be                 document with targets, procedures
building, but they can also push the ESD                 replaced or serviced. ESD opportunities           and reporting protocols (sometimes at
agenda back onto the building manager                    will be maximised if the following                a portfolio level), while environmental
and owners. They can request to have a                   management initiatives are developed              management plans (EMPs) and plans for
green lease, can be involved in building                 and implemented:                                  energy, water, waste and so forth, tend to
committees, can provide feedback, and                                                                      be site, and sometimes aspect, specific.
often have their own service contracts                   Commitment from the building                      These plans are part of the broader EMS.
with providers such as cleaners, IT                      owners — key to the integration of
                                                         ESD into building projects is building            An EMS is the over-arching system
services and recycling system providers.
                                                         owner commitment. There needs to be               that catches a variety of compliance
If these contracts are commissioned by
                                                         policy from the top that supports the             requirements, and can also capture the
the tenants, they need to be aligned with
                                                         development and integration of initiatives,       information requirements of the building
the aspirations of the building owners and
                                                         as well as adequate resourcing and                owners, managers, tenants, regulators
                                                         support.                                          and investors. An EMS can be initiated by
                                                                                                           the tenant, the building manager or the
                                                                                                           building owner.

‘…it is not just ‘green’ buildings,
it is about good integrated design
and ongoing implementation
that incorporates users’ needs
and wants and that minimises
the environmental impact of
the workplace … both of these
key elements can result in
performance improvement...’
— Monica Vandenberg, Principal,
Encompass Sustainability
Melbourne, sustainability
consultant and author.9

                                                         Evacuated solar hot water tubes. 40 Albert Road, South Melbourne.
                                                         (Erica Lauthier)

 CSIRO media release:
mr1998/Beating12BillionCostpollutedAir.htm accessed
27 May 2007

20                                                       ESD OPERATIONS GUIDE for owners, managers and tenants

                                                The EMS is a well-known and                      Audits — to develop an effective EMS,
 An environmental management
 system (EMS) is a tool for measuring           standardised method of planning and              it is critical to carry out baseline audits
 and improving an organisation’s                enacting a cycle of monitoring, reporting,       of the performance of the building or
 compliance with regulations and                reviewing and continuous improvement.            portfolio. Generally these are carried out
 management of environmental risks.             The international standard for this is           on energy, water and waste, though there
                                                ISO 14001:2004. Several organisations,           are some organisations that also carry out
 The procedures that are implemented at a
 building level are called an environmental
                                                including DEWHA and PCA, have guides             an occupant satisfaction audit. There are
 management plan (EMP). The main phases         that can be used to help set up these            three non-assessable guides for carrying
 of an EMP are outlined below. Phases           systems. If aiming for certification, it must    out environmental audits:
 directly related to everyday facilities        be noted that the EMS process is often
                                                                                                 •	 ISO	14010:	1996	Guidelines	for	
 management are phases 2, 3, 4 and 5            quite time consuming and may not be
                                                                                                    environmental auditing — General 

 (but particularly phase 3).                    appropriate for individual small buildings.

 1. The environmental policy phase
                                                The important lesson to take on board
    documents the organisation’s                is the continuous process of positioning,        •	 ISO	14011:	1996	Guidelines	
    commitment to protect the environment.      review, planning, implementation and                for environmental auditing
                                                reporting.                                          — Audit procedures — Auditing of
 2. The planning phase identifies the
                                                                                                    Environmental Management Systems
    scope of the organisation’s operations
    and its major environmental impacts,          Medicare Australia is committed                •	 ISO	14012:	1996	Guidelines	of	
    develops a set of objectives based on         to best practice environmental                    environmental auditing — Qualification
    the environmental policy, and documents       performance through an                            criteria for environmental auditors.
    a program of action to achieve those          environmental management
    objectives.                                   system (EMS) that aligns to the                There is a difference between baseline
                                                  international standard ISO 14001.              audits and EMS certification audits.
 3. The implementation and operation
    phase establishes a set of procedures to                                                     A baseline audit can be done by an
                                                  A structured management approach
    achieve the identified objectives. These                                                     external auditor to determine current
                                                  has been adopted to report the ongoing
    procedures include communicating and          performance of managing Medicare
                                                                                                 performance (including against NABERS
    documenting the requirements of the           Australia’s environmental risks and            benchmarks). Once the EMS is up and
    EMS, and training staff to identify and       environmental initiatives. After undertaking   running an accredited provider can be
    meet these requirements.                      an environmental review of Medicare            used to have the EMS certified to the ISO
 4. The checking phase monitors the               Australia’s environmental impacts, an          14001: 2004 standard. In Australia, the
    success of the EMS and implements             environmental policy was developed             NABERS tools specify how ratings are to
    corrective measures where practices are       to systematically address these issues         be conducted.
    not being followed or where the system        – namely in business decision and
                                                  procurement processes, energy, water,          building users guide — this is an
    is in some way deficient.
                                                  paper and waste management.                    important tool to engage tenants in ESD
 5. Finally, in the management review                                                            opportunities. It details the systems with
    phase, the EMS is reviewed in detail          After a number of environmental audits
                                                  and data gathering exercises to determine
                                                                                                 which the building users, occupants and
    and the progress towards achieving                                                           tenants will interact to provide better
    the defined targets and objectives is         baseline measurements, Medicare Australia
                                                  has developed a series of initiatives          performance outcomes. This document
    determined. This phase may also involve
    a review of the environmental policy and      surrounding energy, water, paper and           can also be used to provide guidance
    its appropriateness in the light of the       waste management. These initiatives are        on how the building’s performance
    evolving nature of the organisation or a      performance managed (or governed) under        can continue to be optimised through
    change in its environmental obligations       Medicare Australia’s corporate scorecard       monitoring and improvement. A key to
    and expectations.                             through environmental key performance          this guide is that it provides pertinent
                                                  indicators and targets.                        useful information, such as the all-hours
                                                                                                 phone number for reporting problems.
                                                                                                 Green procurement system — most of
                  Continual improvement                                                          the procurement in buildings is done by
                                                                                                 the tenant. However, building managers
                                                                                                 and owners also make key procurement
                               Environmental                                                     decisions; for example, of base building
                                   Policy                                                        electricity purchases and replacement
  Management                                                                                     components such as lamps etc. Part of
    Review                                                                                       the management of a building is to have
                                                                                                 an effective procurement system. These
                                                                                                 also provide an excellent opportunity
                              Implementation                                                     for ESD. The system can ensure that
                               and Operation
                                                                                                 the standard materials that are ordered
                                                                                                 as part of the procurement system
                                                                                                 of the building are as environmentally
Diagram representation of EMS                    Computer based training screen                  responsible as possible.
(Source: ISO 14001:2004: v)                      (Russell Kerrison)


It can also give guidance on equipment;
                                                Australian Government use of EMS
for example, the use of high performance
office equipment that reduces the amount        Progress reports indicate more than 60 EMS projects underway in the Australian Government.
of energy consumed by a product by              For example, government departments certified to ISO 14001 include Defence, Department of
either automatically switching it into          the Environment, Water, Heritage and the Arts, the Australian Greenhouse Office, Airservices
a ‘sleep’ mode when it’s not being              Australia and Centrelink. The main reason for the use of EMS is that it is seen as an effective
                                                way to integrate risk management and performance improvement.
used and/or reducing the amount of
power used when in ‘standby’ mode.
Power is another element that can be                                                                                                                   1821
covered under a procurement plan; the                                1800
purchase of green power can mean a
significant reduction in the climate change
impact of building operations. Finally,                              1400   1356

the procurement system can provide               Emissions (tCO2e)
guidance on negotiating the cleaning
and other contracts for the building.                                1000




                                                                                                                     162           166      166
                                                                      200                       137                          129
                                                                            Tenant light %       Transport              Waste        Gas                  Total

                                                                                    Emissions prior to EMS (business as usual)           Emissions post EMS

                                              Figure 4 – DEH net greenhouse emission emissions
                                              (Source: DEH TBL report 2003–04)

                                              Tools that support ESD                                                  The then Department of the
                                              integration into building                                               Environment and Water Resources
                                              management                                                              installed a multi-site EMS, aided
                                              Environmental management system                                         by dedicated management system
                                              software — there are various tools                                      software. Figure 5 shows the elements
                                              available that can help with the integration                            that this software encompasses.
Checking air flow readings from supply
                                              of an EMS within building management.
air diffuser
(Source: AIRAH)

Tuning and re-commissioning — a
significant opportunity in the management
planning of a building is to have regular
tuning of systems, and even regular
re-commissioning. Tuning tends to
be carried out on a system by system
basis, adjusting minor elements, while
re-commissioning looks at the whole
system, examining opportunities for
efficiency gains as well as testing that
the system as a whole is functioning to
its optimum capacity.

                                              Intelex document and dashboard screens, used by DEWHA.
                                              (Source: Intelex)

22                                            ESD OPERATIONS GUIDE for owners, managers and tenants

              Measure                          Metric                            Frequency       Updated         Actual   Target      Target Date
Energy        Electricity and gas
              Office tenant light and power    MJ/person pa                      Yearly          Nov             6 944    7 500       EEGO 2011-12
              Office central services          MJ/m2 pa                          Yearly          Nov             325      400         EEGO 2011-12
              Other buildings                  MJ/m2 pa                          Yearly          Nov             119      119
              Green power                      % of total electricity            Yearly          Nov             2.5%     8.0%        EEGO 2011-12
              Note: Medicare Australia is currently meeting the Energy Efficiency (EEGO) targets for 2011–12 set by the Government.
              Motor vehicles
              Vehicle fuel consumption         MJ/km                             Yearly          Nov             3.99     3.79        Aug-07
              E10 usage                        % used of total petrol            Monthly                         4.9%     20%         Jul-07
              Green vehicles                   % of fleet over 10.5 GVG rating   Yearly          Nov             30%      39%         Jul-07
              Total energy
              Total energy 2005-06             GJ                                                Nov             78 876   TBA
Paper         Internal recycled A4 Paper use   % of total copy paper (reams)     Monthly                         31%      100%        Jun-07
              Internal A4 copy paper use       A4 sheets/person pa               Yearly          Feb             6 234    5 735       Jan-08
Waste         Landfill waste (net refurb)      kg/person pa                      Yearly          Feb             33       24          Jul-07
              Fluorescent tubes recycled       % of total tubes                  Monthly                         0%       100%        Jul-07
Water         Potable water use                kl/m2 pa - air con                Yearly          Feb             0.345    0.345       Feb-08
                                               kl/m2 pa - personal use           Yearly          Feb             0.371    0.334       Jul-08
                                               kl/m2 pa - total                  Yearly          Feb             0.716    0.679       Jul-08

Table 6 – Balanced score card.
(Source: Medicare)

benchmarking and performance tools                                                                     estimated greenhouse gas emissions
— the NABERS building performance                     ‘Not installing meters because it                and could also advise, for example, half-
benchmarking tools also provide a good                is time consuming and expensive                  hourly fluctuations in the price of energy
methodology by which to locate building               is a real fallacy because you may                to encourage low use during peaks.
performance within the broader Australian             end up in a position where you may               These provide real opportunities for both
building market. These tools have been                be investing much larger amounts                 understanding energy use in a building
used by numerous large building portfolio                                                              and for generating savings by using
                                                      of money addressing issues that                  energy outside peak times.
owners to determine what they would like
to aim for and where their portfolio is in            aren’t there! Further, how are you
regards to these targets (Figure 19 shows             going to know if your investment is
an approach to using this information).               paying off if you aren’t measuring
They provide an excellent starting point              what is going on ?’
for determining where to focus resources
and to report relative improvement.
Submetering — among all of the
people interviewed for this guide, there
was one lesson that was repeated: the
fundamental importance of submetering.
Metering allowed them to quickly
determine where the main loads were,
identify errors and demonstrate the
effectiveness of efficiency initiatives.
                                                      Roger Kluske
Smart meters are meters that can provide              (AIRAH)
real-time information on energy use and

                                                                                                       Typical clamp meter used by HVAC technician
                                                                                                       to check correct electrical current


Revenue metering refers to measuring        DEWHA — EMS                                Initiative (GRI). The GRI has emerged as
the usage of a particular resource,                    the internationally accepted framework
such as electricity, gas or other fuel.     settlements/publications/                  for sustainability reporting and is widely
The revenue owed to the retailer or         government/ems/model.html                  supported by Australian organisations.
supplier is calculated from these meters.
                                            Victoria EPA — Victorian Government        Founded by the Coalition for
Digital meters are installed and data is
                                            EMS             Environmentally Responsible Economies
collected and reported on by accredited
                                            projects/government_ems.asp                (CERES), the GRI is an official
service providers. Digital meters for
                                                                                       collaborating centre of the United Nations
buildings over 2000 m2 for combined         Accredited EMS certifiers are listed at
                                                                                       Environment Programme (UNEP),
meter data services and meter provision
                                                                                       which, since its first publication in 2000,
cost no more than $750 a year. Minor
                                            Revenue metering www.greenhouse.           has focused on assisting reporting
leased premises should expect to pay
                                              organisations and their stakeholders in
approximately $65 for installation and
                                            pubs/eego-fs12.pdf                         articulating their overall contribution to
$65 a year.
                                                                                       sustainability through the Sustainability
                                            rEporting                                  Reporting Guidelines. The third version of
Online resources —
                                                                                       these guidelines, the G3, was developed
Environmental management                    Building owners, managers and tenants      through a multi-stakeholder process.
system (EMS)                                may all have internal and external         The G3 defines an international voluntary
DECC — template of EMS for building         requirements to report on sustainability   reporting framework for triple bottom line
data collection in section 3.3E shows       performance. One point for guidance        (TBL) performance.
what data needs to be collected in          on what needs to be reported on, and
order to produce useful figures on all      therefore what information needs to
ESD operational aspects. look on            be collected, is the Global Reporting and

  Tony Dorotic — National Sales &           to mean that after 6pm all the air         hot water system, we found that
  Marketing Manager ECS, 40 Albert                                                     our gas usage was unusually high
                                            conditioning fancoil units needed to
                                            go on ... so in the first winter in this   and we weren’t getting any of the
  ‘The most important lesson from           building, we would spend all day           hot water from the solar system.
  this project was the importance           heating up the building and at 6pm,        Through looking at the meter
  of metering and ongoing                   all the heat would get sucked out!         information, we found that in fact
  commissioning.                                                                       the solar hot water system was
                                            … to go back to the metering, our          generating sufficient hot water but
  For example, with the night purge,        solar panels did not seem to be            it wasn’t being circulated through
  our intention was that the windows        working; without the meters we             the building because the pumping
  would open automatically when             would not have found out that the          system was not connected
  the climatic conditions were right        inverters had failed, as with high         correctly. So we had tanks of solar
  and cool the building. The BMS            levels of sunshine we assumed that         hot water going to waste for over
  programmer understood this                things were working. With the solar        12 months.’

                                                                                       Tony Dorotic

                                                                                       Christopher Seeley looking at
                                                                                       BMS online at 40 Albert Road
                                                                                       (Erica Lauthier)

24                                          ESD OPERATIONS GUIDE for owners, managers and tenants

                                                 Category          G3 — Indicator (core are in black, additional in green)
 Reporting requirements for
 Australian Government agencies10:               Materials         EN1 Materials used by weight or volume

 Mandatory                                                         EN2 Percentage of materials used that are recycled input materials
 •	 The	annual	energy	consumption	data	
                                                 Energy            EN3 Direct energy consumption by primary energy source
    and relevant normalisation factors for all
    relevant end-use categories                                    EN4 Indirect energy consumption by primary source
 •	 Energy	use	over	which	they	have	direct	
                                                                   EN5 Energy saved due to conservation and efficiency improvements
    control, based on a financial year basis,
    by fuel type and by end-use category                           EN6 Initiatives to provide energy-efficient or renewable products and reduction
 •	 Building	floor	area	(NLA)	and	number	of	                       in energy required
                                                                   EN7 Initiatives to reduce indirect energy consumption and reductions achieved
 •	 Central	services	energy	use
                                                 Water             EN8 Total water withdrawal by source
 •	 Kilometres	travelled
                                                                   EN9 Water sources significantly affected by withdrawal of water
 •	 Reasons	for	any	major	changes	in	
    energy use                                                     EN10 Percentage and total volume of water recycled or reused
 Voluntary                                       Biodiversity      Not as relevant for operational phase, unless building is in a sensitive habitat
 Some public and private sector
 organisations are choosing to report            Emissions,        EN16 Total direct and indirect greenhouse gas emissions by weight
 publicly on their environmental                 effluents,
                                                 and waste         EN17 Other relevant indirect greenhouse gas emissions by weight
 performance. Others are choosing to
 provide information about their social and                        EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved
 financial performance in a sustainability
 report (or a triple bottom line report).                          EN19 Emissions of ozone-depleting substances by weight
 This means collecting and reporting on:
                                                                   EN20 NO, SO, and other significant air emissions by weight
 •	 financial	year	figures	on	water	use,	
    waste, complaints, materials purchased,                        EN21 Total water discharge by quality and destination
    refrigerants used and cleaning materials
    used as outlined below (Table 7)                               EN22 Total weight of waste by type and disposal method

 •	 all	of	the	above,	linked	to	specific	                          EN23 Total number and volume of significant spills
    activities and organisational units
                                                                   EN24 Weight of transported, imported, exported, or treated waste deemed
 •	 previous	years	figures	and	explanations	                       hazardous under the terms of the Basel Convention Annex I, II, III, and VIII,
    for any major changes.                                         and percentage of transported waste shipped internationally

                                                                   EN25 Identity, size, protected status, and biodiversity value of water bodies
                                                                   and related habitats significantly affected by the reporting organisation’s
Table 7 is adapted from GRI G3
                                                                   discharges of water and runoff
guidelines11 and indicates some of
the information that will be requested           Products          EN26 Initiatives to mitigate environmental impacts of products and services, 

of facilities managers by their own              and services      and extent of impact mitigation

organisations, or by owners or tenants, 

                                                                   EN27 Percentage of products sold and their packaging materials that are
to feed into internal and external
                                                                   reclaimed, by category
sustainability reports. To meet these
demands, this information needs to be            Compliance        EN28 Monetary value of significant fines and total number of non-monetary
planned for, collected and summarised                              sanctions for noncompliance with environmental laws and regulations
periodically as part of everyday business
                                                 Transport         EN29 Significant environmental impacts of transporting products and other
                                                                   goods and materials used for the organisation’s operations, and transporting
                                                                   members of the workforce

                                                 Overall           EN30 Total environmental protection expenditures and investment by type

                                                 Table 7 – Summary of G3 environmental indicators

                                                                                                      Summarised from
                                                                                                    epbc/guidelines/index.html and
                                                                                                    government/index.html Accessed 9/5/2007.

                                                                                                      Global Reporting Initiative, RG Sustainable reporting
                                                                                                    guidelines v2 (2006),
                                                                                                    GuidelinesENG.pdf, Accessed 9/5/2007, pp. 28–9.



tArgEts                                                 At the building owner level, the Stockland      ‘I remember the day when the
Targets are central to ongoing                          and ISPT representatives interviewed
                                                        both spoke of NABERS Energy and                 final month’s energy data was
improvement in building operations.
These targets should be set with the                    Water as their main portfolio-wide, short-      added into a spreadsheet, [the]
building manager and owner for base                     term targets. These were 3.5 NABERS
                                                        Energy stars for existing buildings, at least
                                                                                                        result was proved, and the 15%
building performance, and by the building
manager and tenant for tenancy-level                    4.5 stars for new buildings and 3–3.5           energy reduction was delivered.
                                                        stars NABERS Water rating.
targets. Tenants may also want to set                                                                   After six years of work, that was it!
targets with their cleaning, waste and IT               For building managers, these broader
contractors. ISO 14001 EMS use targets                  targets act as guides for setting their         A few close colleagues were
as part of the management framework,                    own specific building targets based
and these need to be achievable and
                                                                                                        conciliatory and peers outside
                                                        on energy, water and waste volumes.
verifiable.                                                                                             the department knew the effort
                                                        For tenants, targets can include tenancy
                                                        ratings with Green Star, but also specific      involved and were happy for
 Example of targets in the Australian                   per person and per m2 of NLA energy,            me. But energy management
 Government                                             water, material use reduction, and waste
                                                        targets. Roger Kluske12 writes:                 is like that; a lot of hard work
 The Australian Government has a specific
 policy regarding government energy                                                                     for no thanks and no rewards.
 use. This was originally announced in                                                                  “Energy management” isn’t seen
 November 1997 as part of a package
 of measures in Safeguarding the future:                                                                as “sexy”. However, as we now
 Australia’s response to climate change,
 and was launched as the Energy Efficiency
                                                                                                        know, energy management is
 in Government Operations (EEGO) Policy                                                                 about the simplest and most
 in 2006. This is an updated version of
 the Australian Government’s 1997 policy,                                                               cost-effective way of stopping
 Measures for Improving Energy Efficiency                                                               and reversing climate change.
 in Commonwealth Operations.
                                                                                                        It is a good method of saving
 Some of the targets the policy sets are:
                                                                                                        money and has no adverse
 •	 energy	intensity	portfolio	targets	by	the	
    2011–12 financial year: 7500 Megajoules                                                             determent on business
    (MJ)/person/annum for office tenant light
    and power; and 400 MJ/m2/annum for
                                                                                                        productivity or profits.
    office central services                                                                             There are bigger rewards!
 •	 minimum	energy	performance	standards	
    (generally 4.5 stars on the NABERS                                                                  On the day when I delivered the
    Energy Rating or equivalent scheme)                                                                 15% energy reduction target I did
    in contracts, leases and other relevant
    documentation for new buildings, major                                                              treat myself to a lovely bottle of
    refurbishments and new leases over
    2000 m2
                                                                                                        Shiraz, in celebration!’
 •	 annual	reports	on	energy	performance.

 Les Cruikshank checking lighting control
 board, Medicare.
 (Russell Kerrison)

                                                                                                        Roger Kluske
  Roger Kluske – Sustainability Victoria, formerly                                                      (AIRAH)
Manager Sustainability for the Department of Treasury
and Finance – Victorian Government Property Group

26                                                      ESD OPERATIONS GUIDE for owners, managers and tenants

oWning And lEAsing –                          energy targets set in the Energy Efficiency   Attaching a GLS to a lease for a
grEEn lEAsE                                   in Government Operations (EEGO)               commercial building obliges both the
                                              policy. Green lease schedules have been       tenant and building owner to work
For owners and tenants, the lease is          developed where the rent is gross and         towards achieving the operational
the binding contract that can drive ESD       the net lettable area of the premises         NABERS Energy requirement.
integration into a building. There are        is 2000 m2 or more. There are slightly        The emphasis is on prevention and
specific green leases, which are outlined     different schedules, depending on the         rectification, rather than retribution. The
below, although tenants can include           percentage of occupancy:                      GLS and EMP templates make it easier
targets on performance in the body of                                                       to identify problems, work out who is
standard leases.                              •	 Schedule	A1	(Gross	Lease	-	Tenant	
                                                                                            responsible, and ensure that appropriate
                                                 occupies 100% of the building)
The Green Lease Schedule (GLS) is                                                           steps are taken to remedy the situation
a new type of leasing arrangement             •	 Schedule	A2	(Net	Lease	-	Tenant	           promptly (EEGO 2006:6).
developed by the Department of the               occupies 100% of the building)
                                                                                            Caution needs to be taken though, as
Environment, Water, Heritage and the                                                        even with a green lease in place, owners
                                              •	 Schedule	B1	(Gross	Lease	-	Tenant	
Arts and the Australian Government                                                          and tenants also need to ensure that
                                                 occupies 50-99% of the building)
Solicitor (AGS) for government agencies.                                                    contracts for facilities management
It contains mutual obligations for tenants    •	 Schedule	B2	(Net	Lease	-	Tenant	
                                                                                            services, cleaning services, waste
and owners of office buildings to achieve        occupies 50-99% of the building)
                                                                                            management services and recycling
efficiency targets. The GLS improves                                                        services all support the environmental
                                              •	 Schedule	C1	(Gross	Lease	-	Tenant	
energy efficiency by setting a minimum,                                                     performance improvement objectives of
                                                 occupies 49% or less of the building)
ongoing, operational building energy                                                        the building. Good facilities management
performance standard. It also provides        •	 Schedule	C2	(Net	Lease	-	Tenant	
                                                                                            requires good facilities management
methods for incorporating water and              occupies 49% or less of the building)
                                                                                            professionals and skilled services should
waste targets. The standard used is the                                                     be priced into what owners and tenants
                                              •	 Schedule	D1	(Gross	Lease	-	Voluntary)
NABERS Energy rating.                                                                       are prepared to pay.
                                              •	 Schedule	D2	(Net	Lease	-	Voluntary)
For the building owner, NABERS Energy
gives clear expectations and performance
parameters, while for the building                                                           Mini case study — State Law, 50
managers, it gives specific expectations                                                     Ann Street, Brisbane — Investa and
                                               ‘Stockland’s recent relocation of its         QLD State Government — energy
of their services and the tenants
engagement. It addresses traditional           Sydney Head Office to one of its              opportunities written into lease
structural barriers to ESD implementation,     trust buildings led to the signing of         agreements
such as split incentives between               a ‘Green Lease’ which embodies                Space — 25 382 m2
developers, building owners and tenants,       some of the requirements of the               Driver — State Government lease
by ensuring that the parties with influence
                                               Australian Government’s EEGO                  requirements
over key aspects of energy performance
obtain some benefit from implementing          policy as well as the intent of               Facilitator — Investa’s Greenhouse
the improvements. The GLS provides             Green Star. Under the lease, we               Guarantee
a transparent legal and management             are developing management plans               Outcome — $2 million valuation uplift,
framework, to ensure that the parties          for energy, waste and water. We               improvement from 2.5 stars to 4 or 4.5
identify and address problems promptly         intend to promote this lease with             stars (NABERS Energy), saving $150 000
and efficiently. The lease is a way of                                                       a year, emission reduction of 16.2% and
                                               our tenants as an addendum to                 water savings of 11.7%
acknowledging the need for cooperation
between building owners and tenants            their leases.’                                Source:
(and any relevant service providers and        Greg Johnson, National Sustainability         case_studies/energy_opportunities.asp

contractors).                                  Manager, Stockland Commercial
DECC — Sustainable Property Guide has
an excellent Green Lease check-list (see
section 3.4B), which gives an overview
of the roles of the tenant and the owner
in achieving the aims of ESD. It also has
model lease clauses that can be used in
standard leases (see section 3.4A).
DEWHA green leases can be used and
adapted by industry, as Stockland has
done, but were initially developed to
help the Australian Government meet its

                                               Stockland Headquarters, Sydney


Clarification of the opportunities              If gross leasing is the preferred option,         The DECC Sustainable Property Guide
in leasing                                      then an adequate monitoring, metering             provides tools to support the process of
Leasing is an opportunity to achieve            and management plan must be in place.             integrating ESD into property acquisition.
ESD outcomes in building operations.            Australian Government policy is for               It provides an evaluation worksheet and
As discussed above, a lease can                 agencies to prefer gross leases.                  outlines their four step process:
encourage all agents involved in a                                                                Step 1 	 Assign responsibility for
building to work together. Leases can be        Clarification of the opportunities
                                                                                                           the sustainability evaluation
gross, net, double net or triple net. Gross     in property acquisition
                                                                                                           within the acquisition team
means that the tenant pays a fixed rate         Property acquisition is a major part of the
and the building owner pays for most            portfolio owner’s day-to-day activities.          Step 2     Gather information
of the outgoings (tenants may still pay         There are significant risks and benefits          Step 3     Assess the property and
for light and power, waste and cleaning         in which ESD issues, particularly energy                     benchmark it
services). A net lease means that the           and water, are starting to be considered.         Step 4     Liaise with the property
tenant pays both for rent and for all other     Both ISPT and Stockland consider the                         appraisal team
outgoings. A double net lease means             NABERS Energy and Water rating of a
                                                building during the acquisition process.          Step 5     Develop a building improvement
that both the tenant and owner pay for
maintenance, while a triple net lease
means that the tenant pays rent to the
owner, as well as all taxes, insurance,          David Pullan — Portfolio Operation Manager, ISPT
and maintenance expenses that arise
from the use of the property.                    ‘Our ESD strategy for new acquisitions depends
                                                 on what we are planning to do with it … for new
Which type of lease does the                     acquisitions, for example, at 363 George Street
market prefer?
                                                 in Sydney, we take it into consideration during the
Landlords may prefer gross leases
                                                 due diligence period … we undertook an NABERS
                                                 Energy rating and carried out a gap analysis of what
•	 they	can	compete	in	the	market	place	         was required to bring it up to an acceptable level.
   on gross lease prices
                                                 Particularly in terms of cost. This is then factored
•	 if	they	operate	the	building	efficiently,	    into the acquisition investment model. The question
   they make additional profit                   we ask is “how much will it cost us to buy this
•	 they	can	reduce	the	level	of	aggravation	     property [and] to take it from the rating it has got to
   in recovering outgoings from tenants.         the rating the market requires?”’
Tenants may prefer gross leases because:
•	 they	know	what	their	costs	are	going	to	
   be and can budget for them
•	 they	may	not	have	the	skill	set	to	
   operate the building efficiently and
   benefit from lower running costs
•	 they	are	usually	covered	for	quality	
   of services in the building by special
   provisions in the lease.
With respect to ESD, gross leases are
preferred because:
•	 lower	operating	costs	should	result,	
   as those looking after the building are
   more skilled at reducing costs and
•	 landlords	can	take	a	long-term	view	
   and invest.
With respect to ESD, net leases have
some advantages, as they link resource
use with the user, encouraging tenants to        David Pullan and Sebastian Immaraj converse in a Lincolne Scott,
                                                 reused shipping container meeting room, Melbourne
be more mindful of their energy and water        (Erica Lauthier)
use practices

28                                              ESD OPERATIONS GUIDE for owners, managers and tenants

4. Opportunities
Optimising indoor environment quality
Indoor environment quality (IEQ) is a                                             Several studies have established links                   the best interest of tenants and owners
measure of the indoor environment that                                            between increased productivity and                       to ensure that workers are content with
considers air quality, noise, thermal                                             improved IEQ; these can be seen in                       their surroundings and that their needs
comfort, visual amenity and control.                                              the ESD Design Guide as well as other                    are being met, particularly as a large
Indoor air quality, in turn, depends on                                           publications, such as Green Buildings                    percentage of organisational costs are
pollutants released within the space from                                         Pay (Edwards, 2003) and The Dollars and                  associated with salaries (see Figure 6).
furnishings and equipment, ventilation                                            Sense of Green Buildings (GBCA, 2006
rates and cleanliness of the air being                                            and 2008).                                               Sick building syndrome
supplied.                                                                                                                                  Sick building syndrome (SBS) is the
                                                                                   Source of                         Potential Annual      name given to a range of symptoms that
                                                                                   Productivity Gain                 Savings of Gains      arise from exposure to a poor indoor
Why is it importAnt?
IEQ is important because people spend                                              Reduced respiratory               $1 - $2 billion       environment. SBS symptoms include18:
around 90% of their time indoors.13                                                                                                        •	 headache
Minimising the toxicity of their indoor                                            Reduced allergies and             $0.1 - $0.5 billion
environment is therefore a priority,                                               asthma                                                  •	 eye,	nose,	or	throat	irritation
particularly when indoor air is shown to                                           Reduced SBS                       $1.1 - $3.5 billion   •	 dry	cough
be more toxic than outdoor air.14 The                                              symptoms
US EPA estimates that 20% to 35%                                                                                                           •	 dry	or	itchy	skin
                                                                                   Increased work        $2 - $15 billion
of all workers in modern mechanically                                              performance: improved                                   •	 dizziness	and	nausea
ventilated buildings may experience                                                thermal, lighting,
negative air-quality related signs and                                             acoustics
                                                                                                                                           •	 difficulty	in	concentrating
symptoms.15 Furthermore, it declares                                                                                                       •	 fatigue
                                                                                   Total                             $4.2 - $21 billion
that indoor pollution is estimated to
cause thousands of cancer deaths and                                              Table 8 – Potential productivity gains in Australia      •	 sensitivity	to	odours.
hundreds of thousands of respiratory                                              from improved indoor environments
health problems each year.
                                                                                  Source: Adapted from Fisk (2002)
                                                                                                                                           building manager
                                                                                                                                           For the building manager, IEQ is crucial
A 1984 World Health Organisation                                                  IEQ can have a significant impact on the                 because the management of the building,
                                                                                  health, well-being and satisfaction of the               particularly air handling and heating and
Committee report suggested that
                                                                                  building’s occupants, which in turn has an               cooling systems, will significantly affect
up to 30% of new and remodelled                                                   impact on worker productivity, sick days                 comfort and can impact on performance.
buildings worldwide may be the                                                    taken and staff retention. According to                  The sections below will go into more
                                                                                  CSIRO estimates, the cost of poor indoor                 detail but the key lesson for building
subject of complaints related to                                                  air quality in Australia may be as high as               managers, which can be relatively
indoor air quality.16                                                             $12 billion per year17, while Fisk (2002)                inexpensive, is to give users a sense of
                                                                                  puts the figures at between $4.2 and $21                 control over their space and to respond
                                                                                  billion per year (Table 8). Therefore, it is in          quickly to any reasonable complaints.

                                                     Average Annual Expenditures ($/Square Foot)
 Dollars Per Square Foot

                           $104                                                                                                            13
                                                                                                                                             P Wargocki, DP Wyon, YK Baik,G Clausen, & PO Fanger,
                           $78                                                                                                             ‘Perceived air quality, sick building syndrome (SBS) symptoms
                                                                                                                                           and productivity in an office with two different pollution loads’,
                           $52                                                                                                             Indoor Air, 1999, p 9, 165–179, and WJ Fisk & AH Rosenfeld,
                                                                                                                                           ‘Estimates of improved productivity and health from better
                                                                                                                                           indoor environments’, Indoor Air, vol. 7 (3), 1997, pp. 158–172
                            $0                                                                                                             14
                                                                                                                                             K Patrick, ‘IEQ: coming to a building near you’, Property
                                   Salaries              Gross Rent            Energy               Electricity             O&M            Australia, Property Council of Australia, Sydney, 2004, p. 8
                                  & Benefits
                                                                      Office Building Costs
                                                                                                                                                ibid, p. 8

                       Average office employee                    Average square feet                         Impact of 1% loss
                                                                                                                                             Indoor Air Facts No. 4 (revised) Sick building syndrome,
                            cost per year                     of office space per employee                      of productivity            20th April 2007,, Accessed
                             $40,00 per year                           150 square feet                     $2.66 per square foot*          17
                                                                                                                                             SK Brown, ‘Beating the $12 billion cost of polluted air’,
                       *BOMA and BOSTI estimate $2-$18                                                                                     CSIRO media release,
                                                                                                                                           mr1998/Beating12BillionCostpollutedAir.htm, Accessed
Figure 5 – Relative operational costs                                                                                                      8/5/2007.
(Source: Advanced Buildings Benefits Guide 2004:28)                                                                                         Indoor Air Facts No. 4 (revised) Sick Building Syndrome,

                                                                                                                                 , Accessed 8/5/2007



People’s perception of control                                      Numerous studies have indicated                •	 Daylighting - daylight factor of 2% to
                                                                                                                      >60% of floor plate (NLA)
over their environment affects their                                that lack of environmental control
                                                                                                                   •	 Air change effectiveness - >0.95 (ref.
comfort and satisfaction … People                                   is the single most important                      ASHRAE F25-1997)
seemed to be more tolerant of                                       concern for people, followed by
                                                                                                                   •	 Thermal comfort - PMV + or – 1
conditions if control opportunities                                 lack of control over noise.22                     (Predicted Mean Vote)
(switches, blinds and opening                                                                                      •	 Views - all seating within 8 m of glazing
windows, for example) were                                                                                         •	 Occupant control - of temperature, air
available to them. 19                                                                                                 flow, internal shading or other
                                                                                                                   •	 Acoustic - acceptable levels nominated
                                                                                                                      in AS ISO 717, choose lowest (better
                                                                                                                      performance) values
                                                                                                                   •	 Ventilation rates - fresh air values set by
                                                                                                                      AS1668 Part 2, generally 10 L/second
                                                                                                                      per person.

                                                                                                                   Measuring indoor air quality
                                                                    55 St Andrews Place, task lighting
                                                                    (Cundall)                                      An IAQ (indoor air quality) audit is a
                                                                                                                   systematic inspection of the indoor
                                                                                                                   environment of a building. It provides a
                                                                    hoW do WE mEAsurE indoor                       profile of the building, its operation and its
                                                                    EnvironmEntAl quAlity?                         performance.
                                                                    IEQ is commonly measured by assessing          The IAQ audit involves a review of existing
                                                                    thermal comfort, air movement (air             records to identify original design intent
                                                                    change effectiveness), ventilation rates       and operational performance. Next, a
                                                                    (quantities of fresh air), acoustics, access   walkthrough is conducted to identify
                                                                    to daylight and views, and user control.       obvious IAQ problems and clashes
                                                                    Some measures are instrumental or              between original design intent and
Blinds help people to be more tolerant                              observational, while others are based          current occupant behaviour. This will
of their conditions                                                 on surveying building users — see
(Dominique Hes)                                                                                                    also highlight areas that have been
                                                                    Attachment 1 for a summary of measures         changed from the original design. Next,
                                                                    for ESD.                                       a thorough review is conducted of the
Internal noise is a significant factor in                           Underneath these general headings              HVAC plant and equipment to test that
terms of occupant satisfaction and                                  that comprise the elements of indoor           it is in correct working order. Finally, the
well-being. It can have a major influence                           environmental quality, what performance        building occupants are interviewed to
on productivity in the workforce and is                             targets are used by industry at present?       obtain anecdotal evidence of building
recognised as a health hazard by the                                The list below identifies some of these        performance and to assist in discerning
World Health Organisation.20 Sources                                [from Green Star — Office Design               real complaints from those that may stem
of noise include internally generated                               Technical Manual v2]:                          from sources other than IAQ.23
noise (photocopiers, speech), externally                                                                           The result of an IAQ audit may take
generated noise (traffic, planes), impact                                                                          the form of an IAQ management plan,
noise (door closure, steps) and noise from                                                                         containing guidelines on how to address
building services (lifts, fans). Note that it                                                                      operational and occupant behaviour
is common to find productivity scores of                                                                           issues as well as how to address systems
-5% because of exposed hard surfaces                                                                               that may need maintenance
reflecting noise.21                                                                                                or adjustment.

   A Leaman and B Bordass, Productivity in buildings: the
‘killer’ variables,
pdf, Accessed 9/5/2007.
 Green Star Office Design Technical Manual, Version 2, 2006,
 ‘Building green – the sound of silence’, Ecolibrium,

November, 2006, p 10.
   A Leaman and B Bordass, Productivity in buildings: the
‘killer’ variables,
Accessed 9/5/2007.
     AIR-DA26-2004: Indoor Air Quality, p. 65.

30                                                                  ESD OPERATIONS GUIDE for owners, managers and tenants

Air quality health goals – pollutant          It follows that PPD is the inverse of
concentrations                                PMV. In an existing facility, PMV can be
There are no best practice standards as       measured with a suite of tools measuring
such for NABERS Indoor Environment.           each of the PMV variables, or an actual
Instead NABERS Indoor Environment             survey of staff can be taken at intervals
uses pollutant threshold levels and an        to record their level of satisfaction over a
overall quality synthesis index calculated    given duration.
from the measured pollutant levels, and
their weighting based on their health         Occupant satisfaction
impacts and ability to effect productivity.   It is important to develop procedures
For example, particulate matter (PM10) is     to gain an understanding of occupants’
considered a very high priority pollutant     satisfaction with their workplace and
with a weighting of 3, compared with          the building, and to ensure that any
carbon monoxide that is ranked lower          problems that may arise are appropriately
as an indoor pollutant.                       addressed. This can be achieved by:
NABERS Indoor Environment Air quality         •	 developing	a	survey	that	covers	
– pollutant concentrations thresholds:           occupant thermal, acoustic and visual
                                                 comfort and their satisfaction with
•	 Particulate	matter	(PM10)
                                                 heating, cooling, ventilation, lighting
   – 0.05 mg/m3
                                                 systems etc. Complete the survey
•	 Formaldehyde	–	0.10	mg/m3                     annually with staff, collate the results
                                                 and compile an action list. Ensure
•	 Carbon	monoxide	–	10	ppm
                                                 that the issues raised are addressed
•	 Total	VOCs	–	0.5	mg/m3                        by the appropriate person within an
                                                 appropriate timeframe
•	 Ratio	of	Indoor	Airborne	
                                              •	 providing	a	building	user	manual	that	is	
Microbials to Outdoor Airborne Microbials        accessible to all staff. It should contain
(measured as cfu/m3) is 1                        basic information on how the building
                                                 and its systems operate and their
Measures of thermal comfort                      controls
and discomfort
                                              •	 conducting	regular	staff	education	
PMV (Predicted Mean Vote — test of
                                                 seminars to ensure that staff
perceived thermal sensation for a large
                                                 understand how the building works
number of people) and PPD (Predicted
                                                 and how their actions affect indoor
Percentage of people Dissatisfied) are
                                                 environment quality and other ESD
methods of predicting user comfort within
buildings beyond the standard measure
of temperature. They also include air
movement, radiant heat and humidity,
and can take account of other adaptive
comfort measures such as radiant
sources, air movement, clothing etc.
A successful PMV is usually given as a
range. A PMV of + or – 1 for example
indicates 90% of the occupants are
predicted to be comfortable, and a PMV
of + or – 0.5 indicates 95% are predicted
to be comfortable.



Measuring daylight availability                             •	 Provide	individual	and	direct	control	
The standard that gives guidance on                            over the thermal environment for the
how to assess this is AS 1680.2.                               building occupants by positioning
                                                               labelled heating, cooling and ventilation
Measuring noise levels                                         controls in a central, easily accessible
                                                               location. Ensure occupants are able to
AS 1191–2002 Acoustics: Method for
                                                               control the amount of daylight entering
laboratory measurement of airborne
                                                               their workspace.
sound insulation of building elements.
                                                            •	 Include	an	outline	of	how	the	HVAC	
ApproAchEs to improvE                                          system and controls operate in a tenant
                                                               manual accessible to all staff.
indoor EnvironmEntAl
quAlity                                                     The international standard for thermal
                                                            comfort is ISO7730.
Management and operation strategies
for maintaining and optimising indoor
                                                            Fisk and Rosenfeld (1997)
environment quality relate to thermal
comfort, visual amenity, ventilation,                       conducted studies where sample
pollutants, humidity and noise.                             calculations indicated that the
                                                                                                            Allen McCowan checking light levels
1. Thermal comfort                                          potential financial benefits of                 at CH2 , Melbourne
                                                                                                            (Erica Lauthier)
The building should be operated                             improving indoor environments
for occupant thermal comfort, not                                                                           •	 Install	or	retrofit	fluorescent	lighting	
                                                            exceed costs by a factor of 18
                                                                                                               with high frequency electronic ballasts
•	 Optimise	thermal	comfort	in	the	office	
                                                            to 47.24                                           in place of low frequency magnetic
                                                                                                               ballasts to promote energy efficiency,
   environment by obtaining a balance of
                                                            2. visual amenity                                  reduce eye flicker and promote visual
   air temperature (internal temperature
                                                            •	 For	major	refurbishments	where	                 comfort.
   range should relate to ambient
   conditions), air movement, relative                         increased access to windows is               •	 Provide	individual	and	direct	control	
   humidity and the radiant temperature                        possible, optimise the amount of                over the visual environment for the
   of surrounding surfaces.                                    natural daylighting, carefully balancing        building occupants by positioning
                                                               any heat loss, heat gain or glare               labelled lighting controls (e.g. switches,
•	 If	carrying	out	a	major	refurbishment,	                     problems that may result. As a general          dimmers) in a central, easily accessible
   undertake thermal modelling to design                       rule, the average daylight factor for           location.
   for appropriate comfort levels.                             offices should be 2.5%. To control
                                                               daylight and minimise glare, install         •	 Include	an	outline	of	how	the	lighting	
•	 Zone	office	spaces	appropriately	to	
                                                               appropriately designed external                 system and controls work and how
   reflect usage patterns and activity 

                                                               shading and/or adjustable internal              the daylight and glare control devices

                                                               blinds/screens that are able to be              operate in a tenant manual accessible
                                                               directly controlled (automatically or           to all staff.
                                                               manually) by building occupants.
                                                            •	 Maximise	views	to	the	outside	by	
                                                               carefully locating the internal spaces
                                                               and partitions. All workstations should
                                                               be within 8 m of the façade and have
                                                               a direct line of sight at eye level to the
                                                               outside through glazing.
                                                            •	 Optimise	the	electric	lighting	levels	
                                                               for each office space by ensuring
Stephen Moses checking the BAS, 50 Lonsdale                    the correct level of luminance is set
Street, Melbourne                                              according to the tasks and activities
(Erica Lauthier)                                               undertaken in that space. AS1680.2.2
                                                               – 1994 Interior Lighting – Office
                                                               and Screen-based Tasks specifies
                                                               recommended values for illuminance
                                                               for a range of office-based tasks.

  WJ Fisk and AH Rosenfeld, ‘Estimates of improved
productivity and health from better indoor environments’,
Indoor Air, vol. 7 (3), 1997, pp. 158–172.

32                                                          ESD OPERATIONS GUIDE for owners, managers and tenants

                                                                                               4. Pollutants
  Mini case study — 2% productivity                                                            •	 Ensure	that	there	is	no	asbestos	in	
  gain can be worth $270/m² per
                                                                                                  the occupied spaces. If there is, it
                                                                                                  should be removed in accordance with
  After 30 years of research into the effects                                                     legislation.
  of indoor environment on occupants, there
  is now intensive research and assessment                                                     •	 Ensure	that	any	products	or	materials	
  of the effects on occupant productivity and                                                     within the office space contain low
  payback via life cycle cost analysis.                                                           levels of volatile organic compounds
                                                                                                  (VOCs), including those that emit
  Dr Vyt Garnys of CETEC attended the
  two major IEQ International Conferences,                                                        formaldehyde.
  namely, Indoor Air 2005 in Beijing and                                                       •	 Ensure	that	printing/photocopying	
  Healthy Buildings ‘06 in Lisbon. It was                                                         facilities are located in a separate room
  confirmed to him and fellow attendees
                                                                                                  to the general occupied office space
  that a consensus has now been reached
  that a better indoor climate creates better
                                                                                                  and have a dedicated exhaust to
  productivity and improved well-being for                                                        extract the air contaminants.
  building occupants. For example, in one       CH2 wind turbines for drawing air out of the   •	 Ensure	that	all	thermal	and	acoustic	
  study, relative performance was enhanced      building
                                                (Erica Lauthier)
                                                                                                  insulation material and plant refrigerant
  by 15% for a 7°C reduction in temperature
                                                                                                  has zero Ozone Depleting Potential
  and that a 2% office productivity gain        •	 For	mechanically	ventilated	buildings	
  can	be	worth	$270/m²	per	annum	to	                                                              (ODP) and low Global Warming
                                                   that recirculate a proportion of air,
  employers.                                                                                      Potential (GWP).25
                                                   install sensors in the return air ducts
  This has culminated in a consensus               that monitor carbon dioxide (CO2) levels    •	 Ensure	that	combustion	plants	are	
  European protocol, representing 31               and adjust ventilation and fresh outside       maintained to minimise pollution and
  countries, for methods of measuring the          air supply accordingly. CO2 sensors            greenhouse gas emissions. Ensure
  financial benefit to organisations of their      are not necessary for buildings that           that cooling plants are maintained to
  improved IEQ by integrating productivity         are mechanically ventilated with no air        eliminate water-borne atmospheric
  into life cycle cost analysis of building                                                       pathogens.
                                                   recirculation or for naturally ventilated
                                                   buildings where air flows can be            •	 Introduce	suitable	indoor	plants	into	the	
  Dr Garnys previewed these findings at a          controlled by the occupants.                   office environment. One per person is
  productivity workshop for IIR’s 4th Annual
  Green Buildings Conference on 28 June         •	 Incorporate	an	active	humidity	control	        a rule of thumb used in some projects,
  2006 in Sydney (CETEC, 2006).                    system into the mechanical ventilation         like CH2.
                                                   system that regulates and adjusts the
                                                   relative humidity in the supply ductwork
                                                                                                    Plants to use for IEQ benefits:
                                                   and occupied spaces.
                                                                                                    •	 Weeping	Fig
3. ventilation                                  •	 Ensure	that	HVAC	controls	are	regularly	
•	 When	redesigning	air	handling	systems	          checked and adjusted to ensure                   •	 Peace	Lily
   and HVAC, optimise the building’s               maximum use of economy cycles.                   •	 Aglaonema	or	Silver	King
   ventilation rates, intake of fresh outside      Regularly test HVAC equipment for
                                                                                                    •	 Kentia	Palm
   air and air change effectiveness, in            contaminants and recommission.
   order to facilitate the distribution of                                                          •	 Dracaena	deremensis	or	Janet	Craig
                                                •	 Regularly	clean,	maintain	and	service	
   air through the occupied spaces, to                                                              •	 Areca	Palm
                                                   filters, coils and ducts to prevent
   eliminate the build-up of stale air and
                                                   contaminants developing and to                   Source: Investa Property Group, Green Lease Guide
   to expedite the dilution and expulsion
                                                   eliminate mould growth.
   of indoor air contaminants (e.g. VOCs,
   body odours).                                •	 Regularly	monitor	and	test	indoor	
                                                   air quality. Devices to test indoor air
•	 Ensure	that	ventilation	rates	in	
                                                   quality are available and there are
   mechanically ventilated buildings
                                                   some firms specialising in this service,
   exceed AS 1668.2-1991. The
                                                   including CETEC, a private firm in
   Australian Institute of Refrigeration,
                                                   Melbourne, Australia, and Mobile
   Air Conditioning and Heating (AIRAH)
                                                   Architecture and Building Environmental
   recommends a minimum fresh air
                                                   Laboratory (MABEL) from Deakin
   supply of 10 L/second/person. Ensure
   that naturally ventilated buildings
   are ventilated in accordance with            •	 Provide	an	appropriate	level	of	control	         Lincolne Scott Office
                                                                                                    (Erica Lauthier)
   AS 1668.2-2002. The mechanical                  over the atmospheric environment for
   ventilation component of a mixed-mode           the building occupants by positioning
   building should exceed AS 1668.2­               labelled ventilation controls (e.g.
   1991 and be naturally ventilated in             variable speed fan switches) in a            Green Star – Office Design Technical Manual v2.

   accordance with AS 1668.2-2002.                 central, easily accessible location.        Emi-1 & Emi-9


•	 Develop	a	procurement	strategy	                            •	 suppressing	dust	with	wetting	agents                           installing acoustic insulation and/or
   where environmentally preferable                                                                                             absorbing materials where appropriate.
                                                              •	 increasing	the	cleaning	frequency	of	the	
   office products, equipment, cleaning
                                                                 site (using high powered HEPA filtered                      •	 Good	practice	for	ambient	internal	
   products, processes and services are
                                                                 vacuum cleaners is recommended)                                noise levels is considered to be 40–45
   outlined and implemented.
                                                                                                                                dBLAeq in open office spaces and
                                                              •	 ensuring	all	surfaces	and	furnishings	
•	 Ensure	that	cleaning	and	maintenance	                                                                                        35–40 dBLAeq in private offices.27
                                                                 are covered or relocated during 

   contracts stipulate that low emission
                                                                 construction activities
                                    •	 Undertake	periodic	sound	and	
   cleaning agents will be used.
                                                                                                                                acoustics measurements to verify
                                                              •	 using	cleaning	compounds	sparingly.	
The AIRAH IEQ guide DA26 identifies                                                                                             levels.
                                                                 Spills of an offensive or contaminant
the following indoor pollutants and their
                                                                 nature should be removed as soon as
Carbon                     From car parks and                 •	 keeping	areas	dry	after	clean	up	to	
monoxide                   tobacco smoke                         avoid moisture accumulation, which
Carbon dioxide             People                                could lead to future microbial exposure
Ammonia                    Wet process copiers                   issues
Ozone                      Photocopiers
                                                              •	 keeping	porous	material,	such	as	
Formaldehyde               Particle board within
                                                                 carpets and internal insulation in air
                                                                 handlers, dry. Where they become wet,
Other volatile             Paints, solvents, adhesives
                                                                 it is recommended they be replaced.
compounds                                                     Cleaning requirements for areas of
(VOCs)                                                        significant hazard will dictate more
Methanol                   Duplicating machines               stringent approaches.
Radon                      Building materials derived
                           from soil and rock taken           5. Humidity
                           from radioactive areas
                                                              Optimal levels of humidity will help control                   Recycled cardboard meeting room,
Trichloroethane            Found in correction fluids         the spread and health risk caused by                           acoustically isolated from open office, 50
Vinyl Chloride             Found in most plastics             bacteria, fungi, viruses, mites and so forth                   Lonsdale Street, SV, aiming for worlds best
                                                                                                                             practice in sustainable office fitout
                                                              (refer to Figure 7).                                           (Erica Lauthier)
Table 10 – Recommended maximum
concentrations of these pollutants, as identified                       Decrease in bar width indicates decrease in effect
                                                                                          OPTIMUM ZONE
in the AIRAH IEQ guide DA26, p.39
                                                              Bacteria                                                        Resources
GREEN CLEANING OPTIONS                                        Viruses                                                         Standards Australia
Attention should be paid to the products                                                                            
used during the cleaning process.                                                                                             Australian Institute of Refrigeration
Products that have low irritant and                                                                                           Air Conditioning and Heating
reduced off-gassing properties should                         Infections                                            
be favoured. Wherever there is a                              Allergic Rhinitis
                                                              and Asthma                                                      National Occupational Health and Safety
chemical-free alternative these should                        Chemical
be pursued, such as micro fibre cleaning                      Ozone                                                 
cloths. Materials and finishes that require                   Production
intensive maintenance might be tagged                         *Insufficient data 0 10 20 30 40 50 60 70 80 90 100             The Australian Environmental Labelling
                                                              above 50% rh               Relative humidity, %
for replacement in future maintenance
                                                              Figure 6 – Humidity ranges and implications           
and capital works programmes.
                                                              Source: ASHRAE Handbook HVAC Systems and Equipment
                                                              2004                                                            EcoSpecifier
STRINGENT SITE CLEANING AND                                                                                         
DECONTAMINATION DURING                                        Periodic testing of humidity should                             International Organisation for
REFURbISHMENT 26                                              be undertaken, in association with                              Standardisation
During construction and renovation                            inspections of ductwork and filters.                  
activities, large amounts of dust
                                                                                                                              The Chartered Institution of Building
and potential contaminants are                                6. Noise
                                                                                                                              Services Engineers (UK)
often generated. Controlling these                            •	 Minimise	noise	by	locating	rooms	                  
contaminants can be achieved by:                                 with comparable internal noise levels
                                                                 together, by ensuring a clear separation                     American Society of Heating, Refrigerating
                                                                                                                              and Air-Conditioning Engineers
                                                                 of quiet rooms from noisy spaces and
                                                                 services and utility areas (lifts, toilets),
     AIRAH-DA26-2004: Indoor Air Quality, pp. 76-81              by carefully locating apertures away                         Environmental Protection Agency (US)
                                                                 from noise sources, by limiting air                
  Green Star – Office Design v2 Indoor Environment Quality,
Technical manual IEQ-12 ‘Internal Noise Levels’                  speeds in ducts to 3 or 4 m/s, and by

34                                                            ESD OPERATIONS GUIDE for owners, managers and tenants

Minimising energy use

In 1990, Australian greenhouse gas                                        Energy consumption by end-use (MJ/a.m_)
emissions totalled 379.6 Mt/annum
CO2-e, of which 293.3 Mt/annum                700
were energy-related (Commonwealth
of Australia, 1997). Of this, 80.9 Mt/        600
annum is attributable to the building
sector (EMET Consultants, 1999),
                                              500                                                                                         Hot water gas
which represents 27.6% of energy-
                                                                                                                                          Heating - gas
related emissions. Figure 8 shows
an approximate break-up of where              400                                                                                         Cooling

this energy is consumed in a range of                                                                                                     Ventilation
climates.                                     300                                                                                         Lifts

In addition to the resource depletion                                                                                                     House L and P

and greenhouse gas emission issues,           200                                                                                         Tenant lighting
energy consumption represents a                                                                                                           Tenant power
significant and controllable outgoing cost    100
for building owners and tenants. Good
energy performance can also be linked
to performance payments in facilities
                                                              Brisbane                     Sydney                     Melbourne
management services contracts, giving
these managers a financial incentive to       Figure 7 – Office building energy consumption by end use
improve energy efficiency.                    Source: adapted from EMET Benchmarks, 2007

Energy is charged based on consumption
and, on many tariffs, peak demand.            Monitoring on a more detailed level                    Equipment that is left operating
Typical energy costs range from $6 to         (weekly, daily, hourly, real time daytime/             continuously, even though only required
$12/m²	per	annum	for	owners	and	$5	to	        after hours) for short periods of time can             during office hours, can have a large
$10/m²	per	annum	for	tenants28, though        provide valuable insights into patterns of             impact on overall energy consumption,
this is expected to increase significantly.   energy consumption. This analysis can                  as operating hours are often only 1/3 of
As a demonstration of this, the price of      extend down to individual items of plant               total hours in a year. A programme to
electricity for the federal government has    or groups on a single circuit, using trend             identify and control this equipment will be
increased by about 50% on the whole of        logging on a BMCS or a stand-alone data                rewarded.
government electricity contract.              logger.
                                                                                                     The Energy Smart Tracker software
                                                                                                     programme can assist businesses
EnErgy – hoW do WE                            Smart meters are meters that
                                                                                                     to monitor energy consumption and
mEAsurE it?                                   can provide real-time information                      greenhouse gases, and to minimise
                                              on energy use and estimated                            energy costs (refer to Resources for
Energy monitoring                                                                                    a link to download).
Energy consumption should be monitored        greenhouse gas emissions, and
at least on a monthly basis to provide                                                               Energy auditing
ongoing feedback on performance.
                                              could also advise, for example,
                                                                                                     An energy auditor will examine the
This can be done manually by walking          half-hourly fluctuations in the                        equipment within the building, as well
around, recording each meter and sub
                                              price of energy to encourage                           as operating patterns, to estimate
meter, or automatically via the building
                                                                                                     the break-up of energy consumption
management system (BMS) or as a               low use during peaks. These
                                                                                                     between various systems. This estimate
service from the energy supplier.             provide real opportunities for both                    will be adjusted to match patterns of
Sub-metering should be attached to each       understanding energy use in a                          consumption indicated by billing and
tenancy and to systems or areas that use                                                             other energy monitoring. The energy
substantial amounts of power (>100KW),        building and generating savings                        audit will identify opportunities for
such as HVAC plant rooms and data             by using energy outside peak                           reducing energy consumption and may
centres.                                                                                             extend to a cost/benefit analysis of the
                                              times.                                                 options (refer to Resources for a list of

                                                                                                       Property Council of Australia, Energy Guidelines, PCA, 2001
                                                                                                     (Electricity tariff 9 cents/kWh).



                                                                ApproAchEs to minimisAtion                    COMMITMENT
                                                                                                              A successful energy conservation
                                                                NAbERS Energy commitment                      programme relies on the ongoing
                                                                ratings                                       commitment of upper management
                                                                NABERS Energy facilitates the ability to      to planning, funding and educational
                                                                set commitment ratings for both base          aspects. It is important to give
                                                                building and tenancy energy operations.       responsibility for the programme to one
                                                                This gives clear guidance to the building     individual, so that it becomes a part of
                                                                owner, manager and tenant of what is          normal business operating and review
                                                                being aimed for and a way of assessing        processes and not always left until there
                                                                their performance.                            is ‘spare time’.

                                                                Energy management
                                                                                                               Mini case study — the impact of poor
John Gerantidis measuring energy use CH2 ,
                                                                OvERvIEW                                       energy management
(Erica Lauthier)                                                Energy management is the business of           A building within the Australian Government,
                                                                understanding where and when energy            simply through poor management of its
Re-auditing may prove beneficial after                          is consumed within the building and            energy system, used 16% (or 186 200
major changes to the building or after                          implementing processes to control it,          kWh/yr or around $28 000 per year29)
several years of operation.                                     while ensuring that services are delivered     more energy than it should.
                                                                and indoor environmental quality is            This consisted of:
Costs                                                           maintained.
Between 10% and 20% of annual energy                                                                           •	 energy	using	systems	being	on	when	
costs should be allowed for an audit,                                                                             they weren’t required on public holidays,
                                                                                                                  leading to 26% or 6200 kWh/year
depending on the level of detail and                             Investa greenhouse guarantee
                                                                                                                  unrequired energy use
complexity of building services. It may be
possible to split costs between the owner                        ‘The Investa greenhouse guarantee             •	 energy	using	systems	being	on	when	
and tenant(s).                                                   allows tenants easy access to                    they weren’t required on weekends,
                                                                 savings in their energy bills through            leading to 29% or 80 000 kWh/yr
 AS 3598:2000 building energy audit types                                                                         unrequired energy use
                                                                 better energy management.
 Level Scope                     Accuracy                                                                      •	 energy	using	systems	being	on	when	
                                                                 The guarantee cuts energy use,
 1     Evaluate overall energy   +/- 40%                                                                          they weren’t required on weekdays,
       consumption for site                                      greenhouse gas emissions and                     leading to 21% (off-peak hours) or nearly
       using billing data, brief                                 costs by challenging management                  100 000 kWh/yr unrequired energy use.
       report with list of high                                  practices and incorporating new
       priority actions.
                                                                 systems into the design of your
 2     Site investigation,       +/- 20%
       reconcile energy                                          new or existing fit-out. Potentially,
       accounts with                                             the guarantee can deliver you
       loads, recommend                                          savings of up to 20–30% off your
       improvements with brief
       description of work                                       energy bill, covering the cost within
       required, full written                                    a year or two and generating rates
       report.                                                   of return in the order of 20% per             Figures 8 and 9 – Well functioning system
 3     Level 2 plus, on-site     +/- 10%                         annum. If your energy consumption             showing consistent energy usage compared
       metering, detailed                                                                                      to an erratic system
       analysis of improvements                                  exceeds the guaranteed target,
                                                                                                               Source: AGO
       with cost/benefit                                         the cost of any energy consumed
       analysis, presentation to                                 in excess of those targets will be
       senior managers.
                                                                 refunded and Green Power will be
Table 11 – AS 3598:2000 Building energy                          purchased to deliver the reduction
audit types
                                                                 in greenhouse emissions. If the
Note: An energy audit is different to a NABERS Energy rating.
The NABERS Energy assesses the greenhouse performance
                                                                 tenancy performance is better
of the building at a point in time, whereas an audit is          than the guarantee, you keep the
more focussed on determining actions to improve energy
performance.                                                     savings.’

  Note that this is as of early 2007 prices; expectations are
that this will increase significantly over time.

36                                                              ESD OPERATIONS GUIDE for owners, managers and tenants

Maintenance                                   From time to time, it may be prudent
                                                                                                  Tony Dorotic — National Sales &
A programme of regular maintenance            to review new technology becoming                   Marketing Manager ECS, 40 Albert
must be designed to reflect the specific      available in each of the key energy end-            Road
equipment in a building. It should also       uses. The asset plan should identify
be designed to maintain each item of          equipment that is nearing the end of its            ‘The most important lesson from
equipment in peak condition and to            economic life and highlight opportunities           this project was the importance of
detect problems. In many cases, a             for energy-efficient replacement.                   metering.
damper or valve can stick open or shut        Energy Allstars makes it straightforward
and the system will simply work harder to                                                         For example with the night purge,
                                              to find and compare the most energy
compensate.                                   efficient appliances and commercial and             our intention was that the windows
Under BCA Section I, maintenance for          industrial equipment for sale in Australia          would open automatically when
energy efficiency is now mandatory for        (see               the climatic conditions were right
new and refurbished buildings (sample         details200517-allstars-database.html).              and cool the building. The BMS
activities are shown Table 11).                                                                   programmer understood this
                                                                                                  to mean that after 6pm all the
Action                            Interval    Explanation
                                  months                                                          exhaust fans needed to go on ...
                                                                                                  so in the first winter in this building,
1. Check fan operates.            1
                                                                                                  we would spend all day heating up
2. Check for vibration, bearing   1           Vibration can be due to out of balance of the
noise or overheating.                         fan rotor or failure of one of the bearings. Heat
                                                                                                  the building and at 6pm, it would
                                              or noise from the bearing will confirm that this    all get sucked out!
                                              is the source of the problem and appropriate
                                              steps can be taken to replace the offending         … to go back to the metering, our
                                              bearing. It is frequently necessary to replace      solar panels did not seem to be
                                              both bearing as vibration from one can cause        working; without the meters we
                                              damage to the second.
                                                                                                  would not have found out that the
3. Adjust belt tension as         1           See 5-150 Drives for the steps to be taken.
                                                                                                  inverters had not been connected
necessary, check for wear.
                                                                                                  properly and would just have
4. Check mounts and holding       1
down bolts for security.
                                                                                                  assumed that things were working.
                                                                                                  With the hot water solar system,
5. Check drive and drive shaft    1           All drives should be checked in accordance
guard firmly in place.                        with the appropriate section of “5-150 Drives”.     we found that our boosters were
                                                                                                  continually on and we weren’t
Table 12 – Sample table from AIRAH manual:
DA19 HVAC&R Maintenance.                                                                          getting any of the hot water from
                                                                                                  the solar system. Through looking
                                                                                                  at the meter information, we found
Equipment purchase                            Commissioning
                                                                                                  that the temperature sensor in the
When equipment is being purchased,            Commissioning is a process of confirming
either as a new item or as a replacement      that systems and controls are operating             solar hot-water system was not
for an existing item, an opportunity arises   the way the designers intended. Air and             connected correctly so the system
to improve energy efficiency. An estimate     water systems are balanced to ensure                continually thought the water
of the annual energy consumption and          that the correct flow rates are available           wasn’t warm enough and just
cost should be made. High efficiency          in each duct or pipe. Commissioning                 used the gas hot-water system.
equipment may cost more to purchase,          is normally done when construction is
but savings in energy can quickly             completed.
                                                                                                  So we had tanks of solar hot water
outweigh the difference in purchase price,                                                        sitting there, not being used.’
                                              Re-commissioning may be required
so life cycle costing should be used to
                                              when tenancy changes occur or to solve
support the decision. Improving the
                                              operational problems after a number of
efficiency of equipment located in an air-
                                              years. For instance, valves, dampers and
conditioned space will also save cooling
                                              other controls may have been adjusted
                                              in an ad-hoc manner and this may have
When replacing existing equipment,            ‘upset’ the system balance.
current and future requirements should
be evaluated, rather than just replacing
‘like for like’. The requirements may
have changed since the original
equipment was selected and/or the                                                                 Sebastian Immaraj checking meters
actual requirements may be able to be                                                             measuring water, electricity and gas
determined from system measurements.                                                              at 40 Albert Road, Melbourne
                                                                                                  (Erica Lauthier)


                                                            Useful case studies                                      Cleaners
                                                                                                                     Need to be instructed to switch lights
                                                            Department/             Case study topic                 ON and OFF as they work through the
                                                            Department              Energy management
                                                            for Victorian                                            Security staff
                                                            Communities                                              Need to know which items of equipment
                                                            Victoria Police         Variable speed drives for        can be switched off after hours.
                                                                                    the World Trade Centre
                                                            Department of           The Arthur Rylah                 Energy procurement
                                                            Sustainability and      Institute                        Different energy sources have different
                                                            Environment                                              costs and different greenhouse gas
                                                            Equal Opportunity       Energy reduction at little       coefficients. Substituting one source
                                                            Commission              or no cost                       for another may save energy costs or
                                                            Department              Switch Off campaign              emissions.
                                                            of Innovation,          scores big results
                                                            Industry and                                             In particular, gas is approximately one
                                                            Regional                                                 third of the cost of electricity per unit of
                                                            Development                                              metered energy and has approximately
                                                            Department of           Energy savings                   one eighth of the greenhouse gas
                                                            Infrastructure                                           emissions compared to electricity.
                                                            Victorian               Energy improvement               Opportunities to replace electricity
                                                            Government              project at Geelong State         include gas hot water, absorption chillers,
                                                            Property Group          Office                           co-generation and gas engine drives.
Commissioning return air: testing to ensure
required air rate is being achieved                        Set of case studies outlining specific                    Gas boosted solar hot water systems
(Source: AIRAH)                                            initiatives undertaken in various government              may be appropriate for some buildings.
                                                           departments in Victoria.
The top ten deficiencies discovered                        (Source:   Accredited green power can be
                                                           html, Accessed 22/5/2007)
when commissioning new and existing                                                                                  purchased at a premium in order to
buildings30 are:                                                                                                     reduce greenhouse gas emissions.
                                                                                                                     Alternatively, carbon offsets may be
•	 incorrect	scheduling	of	HVAC	and	                       Education is a key component of                           purchased that aim to balance the
   lighting equipment                                      a successful energy management                            emissions associated with energy
                                                           programme. The building and equipment                     consumed by planting trees or investing
•	 incorrect	cooling	and	heating	                          can be designed or selected for energy
   sequences of operation                                                                                            in renewable energy — look for offsets
                                                           efficient operation, but if equipment is left             certified under the Greenhouse Friendly
•	 incorrect	calibration	of	sensors	and	                   switched on or incorrectly controlled, then               label.
   instrumentation                                         good energy performance will remain just
                                                           a target. The responsibilities of various                 Renewable energy may be directly
•	 lack	of	control	strategies	for	optimum	                 personnel are outlined below:                             incorporated to actively utilise solar,
   comfort and efficient operation                                                                                   wind or geothermal energy sources to
                                                           Managers                                                  reduce fossil-based energy consumption.
•	 malfunctioning	air	and	waterside	                       Need to understand the major energy
   operation                                                                                                         Rebates are offered by various
                                                           consumers and the plans for energy                        governments to reduce the cost of
•	 under-utilised	computer-based	control	                  management.                                               installation.
   systems                                                 Service personnel
•	 short	cycling	of	HVAC	equipment,	                       Need to understand how each system                        EnErgy consErvAtion
   leading to premature failure                            should operate and how to check that                      opportunitiEs
                                                           controls are working as designed.
•	 non	adherence	to	design	intent	and	                                                                               This section gives an overview of energy
   missing building documentation                          Occupants                                                 conservation opportunities that arise
                                                           Need to understand the influence their                    during a building’s operational phase.
•	 lack	of	training	for	building	operators	                switching habits can have on energy                       Naturally, the benefits of heating and
   or service contractors on complex                       consumption. Well-informed and                            cooling related strategies will vary with
   systems                                                 motivated staff can alert operations staff                climate.
•	 missing	specified	and	paid-for	                         to potential problems (e.g. I was in on
   equipment.                                              Saturday and the air-conditioning system
                                                           was still running) and can also identify
                                                           energy saving opportunities. Energy
  Portland Energy Conservation Inc., Benefits Guide™
                                                           conservation should be included in
A design professional’s guide to high performance office   induction procedures.
building benefits, PEC, 2004 p.19

38                                                         ESD OPERATIONS GUIDE for owners, managers and tenants

 Mini case study — Martin Street and                     Mini case study — HVAC upgrade                   Mini case study — retrofit of chilled
 smart meters                                            and tune-up                                      beams into 500 Collins Street
 Analysis of the smart metering data at 39               The	HVAC	system	for	a	19	000	m²	office	          When discussing his initial
 Martin Place Sydney showed a mismatch                   building in Parramatta, NSW was upgraded
 between occupation and operating hours                  and tuned-up, which resulted in the
                                                                                                          scepticism about the ‘greening’
 that led to a reduction of over 80% in                  building’s ABGR (now NABERS) improving           of 500 Collins Street, Harry Hullin
 overnight base load from 400 kWh to 75                  from 1.5 stars in 2002 to 3.5 stars in 2005.     reflected: ‘you know, I am a convert
 kWh. This, together with other initiatives,             The HVAC upgrade included:
                                                                                                          to this sustainability stuff … I was
 saved $9 660 per annum.
                                                         •	 installing	new	Variable	Speed	Drives	(VSD)	   very interested when we started
 (Source: DECC Sustainable Property Management Guide)       on chilled and condenser water pumps
                                                                                                          on the first floor to retrofit beams
                                                         •	 recommissioning	Variable	Air	Volume	          [chilled beams]. I thought ‘this isn’t
HvAC                                                        boxes and fan VSD controls
                                                                                                          going to work’ … but then we had
Heating, ventilating and air-conditioning                •	 repairing	leaking	water	control	valves	and	   a function and they came on and
(HVAC) plants can account for up to 70%                     correcting fresh air damper operation
                                                                                                          worked! It is really a clever and
of all energy consumed in a commercial                   •	 adjusting	chilled	water	and	condenser	
building. A range of strategies exist for                                                                 logical system ... the more heat
                                                            water temperature controls
maintaining and/or improving the energy                                                                   that goes up, the more cooling
efficiency of HVAC systems.                              •	 switching	off	pumps	with	the	related	         occurs, which comes down …
•	 Control	settings	—	operating	schedules	                                                                and it provides a better working
                                                         Total cost was $98 000, excluding                environment for the tenants ...
   and thermostat settings should be
                                                         replacement of the Building Management
   adjusted to suit the current tenant’s                 and	Control	System	($5/m²).
   requirements. Irregular requirements
                                                                                                          … we did productivity studies of a
   for after-hours operation should be                   (Source: Parramatta CBD Greenhouse Leaders       couple of levels in their old offices
                                                         Programme, ABGR Re-Rating Report, 2005)
   handled with ‘on demand’ controls,                                                                     and then their new ones (with the
   rather than just extending the operating                                                               chilled beams, etc.). You know, the
   hours.                                               ventilation                                       ones where we ask them how they
                                                        Good ventilation is critical to indoor air        felt, what they thought their levels
•	 Maintenance	schedules	should	be	
                                                        quality, but at times ventilation carries
   developed to show up operating                                                                         of comfort were and how many
                                                        an energy penalty. When ambient
   problems and verify correct operation.                                                                 sick days they had … we found
                                                        temperatures are comfortable to cool,
   They should require the service person
                                                        increased ventilation rates can save              a marked improvement in how
   to read and record a gauge reading,
                                                        cooling energy, but when ambient                  they felt about their work and their
   rather than just ‘ticking a box’.
                                                        temperatures are too cold or too warm,            productivity …’. (Results of this
•	 Sub-metering	of	major	HVAC	plant	                    there is additional heating or cooling
   groups will enable performance to be
                                                                                                          survey are shown in Figure 10.)
                                                        energy required. However, some
   monitored and improved.                              buildings are able to achieve good energy
                                                        efficiency while also using 100% fresh air
HVAC controls are initially commissioned
                                                        (no recirculation).
to provide comfortable conditions for the
occupants. Considerable scope exists                    AS1668 Part 2 1991 sets out minimum
to fine tune these controls to improve                  ventilation rates required by the BCA
efficiency.                                             for various space usages, based on
                                                        design occupancy levels. From an
                                                        energy point of view it makes sense to
                                                        control ventilation rates to this minimum
                                                        level when ambient temperatures are
                                                                                                          500 Collins Street chilled beam
                                                        too cold or too hot, but this should be           (Erica Lauthier)
                                                        balanced with negative impacts on IEQ.
                                                        Control systems are available to sense                                    Overall satisfaction
                                                        occupancy levels (using CO2 sensors) and            20

                                                        increase ventilation levels when needed.            15
                                                        Similarly, car park ventilation systems can         10
                                                        be controlled using CO2 sensors.                     5
                                                                                                                        Previous office
                                                                                                                                                    New office



                                                                                                          Figure 10 – Overall satisfaction study 500
                                                                                                          Collins Street, Melbourne


Lighting                                                                                           PURCHASING POLICY
Energy efficient lighting involves getting                                                         It is important to ensure that energy
the right level of light to each space using                                                       consumption is considered when
the most efficient combination of lighting                                                         equipment is being purchased. Annual
fixtures and controls. Perimeter groups                                                            energy consumption and cost can be
of lights can be automatically dimmed                                                              estimated. A multiplier of 1.3 should be
or switched off in response to natural                                                             applied to include the impact of cooling
daylight levels. The right level of lighting                                                       energy required to remove the heat gain
must be determined based on the tasks                                                              from equipment. For photocopiers,
being performed in the space.                                                                      this analysis should extend to all
                                                                                                   consumables: (paper, cartridges etc.).
                                                                                                   The cost of operating equipment can
 Mini case study — Treasury Place,                                                                 quickly overtake its purchase price.
 Access to daylight and high quality sources
 of artificial lighting are vital for good office
 conditions, leading to productivity gains
 and less eye strain and associated issues.
 At Treasury Place, the following initiatives       Lisa Feleppa using dimmer at 40 Albert Road,
 were put in place to achieve this:                 Melbourne
                                                    Erica Lauthier
 •	 In	1999–2000,	an	Energy	Conservation	
    System (ECS) lighting control system was        EFFICIENT LIGHTING AND CONTROL
    installed through both buildings.
                                                    Existing lighting fixtures can be improved
 •	 Most	meeting	rooms	were	fitted	with	            by removing excess tubes, fitting efficient
    occupancy sensors and the buildings             tubes and ballasts, adding reflectors and
    were re-tubed at the same time.                 replacing old, cloudy diffusers. Typical
 •	 In	2003,	the	automatic	‘on’	time	was	           controls improvements are grouping of
    revised from 7am to 7.30am. As an aid           light switches into more logical zones,
    to staff, appropriate (high quality) signage    motion detectors, and dimming in
    was installed adjacent to light switch’         response to daylight levels. Low glare
    panels and ‘out of hours’ buttons. The          ambient lighting, combined with task           Most computers in use today have
    automatic ‘off’ time is 7pm. The cleaners       lighting appropriate to each area, can         ENERGY STAR energy saving features
    were also engaged to assist in energy           produce an efficient lighting outcome.         built in, but are not always ‘enabled’ to
    management by ensuring that lights in all                                                      use these features. Enabling energy
    enclosed offices and meeting rooms are                                                         saving simply involves changing some
                                                    Office equipment
    switched off when cleaning is completed.                                                       settings within the ‘control panel’ and
                                                    The modern office environment contains
 •	 A	lighting	survey	found	areas	where	                                                           can be done manually or automatically
                                                    an array of electrical and electronic
    lights were on all the time and this was                                                       on a single PC, or across a company
                                                    equipment that enables business to
    corrected.                                                                                     via its network. EZ Wizard is a free,
                                                    function, such as computers, printers and
                                                                                                   simple programme that will enable power
 •	 The	opportunity	was	also	taken	to	              photocopiers, refrigerators, microwave
                                                                                                   management on a monitor in seconds.
    selectively remove fluorescent lamps            ovens and coffee machines. This
    in back-of house areas and to label                                                  
                                                    equipment not only consumes substantial
    fittings appropriately (the signs stated                                                       downloads/PMWiz-XP.exe
                                                    amounts of energy, but also contributes
    that the tube was removed on purpose                                                           If left inactive, ENERGY STAR enabled
                                                    to the load on the cooling system.
    – do not replace). Timer delay switches
                                                                                                   computers enter a low-power mode
    were installed in selected areas, such as       Successful energy management of office
    lighting over compactuses.
                                                                                                   and use 15 watts or less. New chip
                                                    equipment involves:
                                                                                                   technologies make power management
 These changes contributed to the significant       •	 purchasing	energy-efficient	equipment       features more reliable, dependable, and
 overall energy saving of 15% for this                                                             user-friendly than even just a few years
 building, with the new lighting strategies         •	 operating	equipment	in	the	most	            ago. A key recent improvement is the
 specifically resulting in savings of $74 900          efficient manner                            ability to ‘wake’ on a signal from a LAN,
 a year.
                                                    •	 switching	equipment	off	when	it’s	not	      which enables software updates, system
                                                       needed.                                     settings and the like to occur after hours.

40                                                  ESD OPERATIONS GUIDE for owners, managers and tenants

                                350                                                                     52.5
                                                                                                                                      Registered energy auditors can be
Greenhouse gas emissions (kg)

                                300                                                                     45.0
                                                                                                                                      found at

                                                                                                               Electricity cost ($)
                                250                                                                     37.5
                                200                                                                     30.0
                                                                                                                                      Energy Smart WA - http://www1.
                                150                                                                     22.5
                                                                                                                                      Sustainability Victoria
                                100                                                                     15.0                          – Buildings page:
                                50                                                                       7.5
                                                                                                                                      The Australian Energy Star website
                                 0                                                                       0                  
                                      On continuously   Switch off    + Power manage   + Power manage                                 details200517-allstars-database.
                                                        after hours       monitor         computer
                                                                                                                                      html has information about how to
                                                                                                                                      purchase and operate energy efficient
Figure 11 – Annual greenhouse gas emissions
                                                                                                                                      office equipment.
and electricity consumption for PCs and laptops.
(Source: Green Office Guide)
                                                                                                                                      Working Energy website of the AGO
                                                                                                                                      provides a simple and structured
After hours and weekend operation                                                                                                     solution for ensuring the more
                                                                           rEsourcEs                                                  efficient use of energy in Australian
There are 168 hours in a week, yet most
                                                                           Australian Building Greenhouse Rating:                     Government operations and
offices are only used for 50 to 60 of those
                                                                                              achievement of energy performance
hours. In the 118 hours that the office
                                                                           asp                                                        targets through development of best
isn’t occupied, anything unnecessarily left
                                                                           Developing an Energy Management                            practice.
on consumes more than twice the energy
it does during occupied hours. Standby                                     System                                                     Printed Resources
mode reduces this energy waste,                                                               Tenant energy management handbook
although not to zero.                                                      resources/documents/Module4.pdf                            is a step-by-step guide to assist
                                                                           EMET Consultants and Solarch Group,                        commercial tenants and building
summAry of opportunitiEs                                                   Baseline Study of Greenhouse Gas                           managers in using energy more
Outlined below is a summary of                                             Emissions from the Commercial Building                     efficiency. Hard copy available from
opportunities for minimising energy use:                                   Sector. Report for AGO. May 1999.                          offices of the Property Council of
•	 Tenant	operations	—	consider	energy	                                    Energy Allstars makes it easy to find
   efficiency when purchasing new 
                                        and compare the most energy efficient                      Energy guidelines was published by
   equipment and implement a staff 
                                       appliances and commercial and                              Property Council of Australia in 2001.
   energy awareness campaign.
                                             industrial equipment for sale in Australia                 Covers setting energy targets and
                                                                                            operation, maintenance issues.
•	 Maintenance	—	develop	maintenance	                                      details200517-allstars-database.
   schedules and report forms specific                                                                                                Sustainable property guide, to be
                                                                           html                                                       published in 2009 by Department of
   to the building, and check for correct
   operation of HVAC controls.                                             Minimising office energy use after hours,                  Environment and Climate Change,
                                                                           on weekends and on holidays at                             gives an excellent approach to
•	 Management	—	set	energy	                                                                   improving sustainability in the
   targets, monitor and report energy                                      summer_push/minimising_office_                             operating phase.
   consumption, audit energy on                                            energy_use_after_hours%2c_on_
   acquisition and periodically thereafter,                                weeke.html
   educate staff and tenants, install sub
   meters and obtain NABERS Energy                                         Energy Smart Tracker — CD with
   ratings.                                                                information at
•	 Level	1	refurbishment	—	review	lighting	                                management-toolkit.asp
   fixtures and controls, and reduce solar
   heat gain.                                                              Green Office Guide: A guide to
                                                                           help you buy and use environmentally
•	 Level	2	refurbishment	—	consider	                                       friendly office equipment
   alternative energy sources, HVAC 
   upgrade and tune-up.
•	 Re-occupancy	—	ensure	there	is	                                         HVAC ESD training is available from:
   training for new tenants, introduce 
   efficiency benchmarks into leases, 

   and rebalance HVAC.



Water conservation

Why is it importAnt?                                           Water use and impacts on                          while 5 stars represent possible best
Water scarcity is a major issue for                            owners, managers and tenants                      practice. Most companies spoken to
Australia. While buildings, including                          For owners, water efficiency can ensure           have said they are aiming at 3 to 4 stars
residential ones, only consume 11% of                          the continued viability of their assets (as is    as a minimum for their portfolios.
water in Australia (the major user being                       the case for energy). Several of the large
agriculture at 65%)31, it is easy to get                       property portfolio managers interviewed           hoW you mEAsurE it?
20%–50% reductions in building use                             for this guide mentioned that when they           As with energy, the key to the
through simple measures. It is also worth                      looked at the acquisition of any property,        management of water in the operational
mentioning that though office buildings                        they carried out an NABERS Water and              phase of a building is to measure
only use such a small percentage of the                        Energy assessment. The performance of             consumption through adequate sub-
total water in all catchments in Australia,                    the building then became a factor in the          metering. This data can then be used for
they are drawing from urban catchments,                        decision about whether the building was           comparisons with benchmarks, audits,
and therefore have a much larger impact                        worth purchasing.                                 ongoing planning and improvement.
on the water availability in cities.
                                                               For managers, water is now a critical             The Water Efficiency Guide developed by
The main driver for water efficiency in                        operational consumable that needs to be           the then Department of Environment and
office buildings comes from restrictions                       monitored and reported on, as energy              Water Resources (DEW, 2006) provides a
that are being placed on water usage.                          has been for the last ten years. If the           thorough outline for carrying out a water
These restrictions are in place in cities                      pressure is on building owners to ensure          management plan, auditing and effective
because of the limited supply of water                         that their buildings perform, then it is up       water minimisation.
from their catchments; Melbourne’s                             to the building manager to ensure that the
catchments, for example, have dropped                          building is managed to facilitate this.           Water audits are a key part of water
under 30% capacity in 2007. The main                                                                             management. There is no standard for
                                                               For the tenant, the main implication              carrying out water audits, though many
uses of water in a commercial building
                                                               of considering ESD and water is                   lessons can be learned from energy.
are amenities, HVAC and leakages
                                                               ensuring processes are in place within            A variety of companies can deliver water
(see Figure 13).
                                                               the business to support water use                 audits. The Water Efficiency Guide
                                                               minimisation. For example, if waterless           (DEW, 2006) divides audits into basic
      Retail 3%            Irrigation 1% 
                     urinals are in place and the tenant               and detailed, depending on the project,
      (primarily food      (landscaping, irrigation)
          manages the cleaning contract, they               suggesting that the basic audit be used
      outlets)                     Leakage 26%                 need to ensure proper procedures are              to highlight the benefits of carrying out
                                   (taps, urinals, cisterns,   communicated on the management
     Other 2%                      piping, valves, pumps)                                                        a comprehensive audit while already
     (cleaning,                                                and cleaning of these urinals. Tenant             identifying key problem areas.
     car wash)                                                 behaviour will influence the water used
                                                               through leakage and amenities. Tenants            The audit scope should include:
                                                               can alert building managers if there are          •	 a	breakdown	of	usage	across	the	site	
                                                               leaks and ensure that toilets, showers               and site activities, reconciled against
                                                               and taps are used effectively.                       total metered water consumption
                                                               The main benchmarks used nationally               •	 inspection	of	equipment,	devices	and	
                                                               to rate a building’s water performance               processes
                                                               are those developed within the NABERS
                                                               framework. A score of 2.5 stars                   •	 investigation	of	consumption	by	major	
                                                               represents Australian average practice,              equipment, devices and processes
 Cooling towers 31%              Amenities 37%
 (air-conditioning,              (toilets, kitchenettes,
 cooling towers)                 showers)                      Level       Sydney       Melbourne       Canberra       Adelaide    brisbane    Perth
                                                               1 star      1.73         1.03            0.99           1.08        2.53        1.41
Figure 12 – Water usage figures
                                                               2 stars     1.39         0.86            0.83           0.9         1.99        1.14
Source: Water Efficiency Guide (DEW 2006:5)
                                                               2.5 stars   1.21         0.77            0.75           0.8         1.72        1.01
                                                               3 stars     1.04         0.69            0.67           0.71        1.44        0.88
                                                               3.5 stars   0.87         0.6             0.59           0.62        1.17        0.75
                                                               4 stars     0.7          0.53            0.51           0.53        0.9         0.61
                                                               4.5 stars   0.52         0.43            0.43           0.44        0.62        0.48
                                                               5 stars     0.35         0.35            0.35           0.35        0.35        0.35

  Australian Bureau of Statistics, Water account, Australia,   Table 13 – NABERS benchmarks for office buildings (kL/m2/year).
2004-05, cat. no. 4610.0, ABS, Canberra, 2006.

42                                                             ESD OPERATIONS GUIDE for owners, managers and tenants

•	 investigate	usage	trends	and	patterns        Metering, as discussed previously,                          ApproAchEs to minimisAtion
                                                is crucial to understanding what is                         There are many water minimisation
•	 preparation	of	Key	Performance	
                                                happening in buildings. The story below                     opportunities and specific initiatives that
   Indicators (KPIs) of consumption
                                                from 40 Albert Road, highlights the                         can be used as part of the management
   (using baseline data) in relation to an
                                                potential of thorough metering. The use of                  plan. Using the water management plan,
   appropriate business activity indicator
                                                sub-metering allows for the apportioning                    a systematic approach can be applied
•	 comparison	of	monthly	KPIs	with	             of water use to tenancies, equipping                        to the building. The Water Efficiency
   industry benchmarks considering              them with the information needed to                         Guide (DEW, 2006) provides resources
   influential factors, such as climate         manage their own water use.                                 and guidance on this process. Figure
•	 linking	equipment	to	water	usage	            Common issues with metering (DEW,                           17 shows the priority of activities.
   through a flow chart                         Water Efficiency Guide, 2006, p.11)                         As with energy, the first step is good
                                                include:                                                    housekeeping and data collection, either
•	 identification	and	feasibility	assessment	                                                               through an audit or installation of meters
   of water savings measures — simply           •	 no	metering	at	all	for	a	building                        and sub-meters. The next steps are
   noting cost is not a true assessment of                                                                  to review and assess where the major
                                                •	 no	sub-metering	for	sections	of	a	
   the value of water (adapted from Water                                                                   water use is and if it is required. Next, it
                                                   building (e.g. base building or retail
   Efficiency Guide, DEW, 2006, p.11).                                                                      is simple to look at the data and develop
Hot water related costing should also                                                                       priorities for areas where water use can
                                                •	 no	sub-metering	for	individual	                          be reduced. The last two stages relate
include considerations of energy prices.
                                                   tenancies                                                to re-use and recycling opportunities.
 Tony Dorotic — National Sales &                •	 meter	oversized	for	the	actual	load.                     All of these will be discussed in more
 Marketing Manager ECS, 40 Albert                                                                           detail below.
 Road                                           Regular monitoring of meters and sub-
                                                meters, either manually or by connection                    Using the green lease to encourage
 ‘…our water system is another                  to the building management system is                        water reduction
 story; if we didn’t have meters and            necessary; this is particularly useful in                   Tenants can encourage good water
                                                establishing base flow rates and then                       practice by setting water intensity targets
 didn’t have it all online for anyone to
                                                identifying leaks when water use exceeds                    as part of their green lease agreement.
 check, we would never have had the                                                                         NABERS Water offers a clear way of
                                                normal variability ranges.
 following interesting story to tell. I got                                                                 doing this, suggesting that targets should
 to work early one Monday morning                                                                           be set as kL/m2 NLA and/or at the
 and saw an email from someone                                                                              desired NABERS Water star rating.
 from outside the organisation saying
 that we should check our plumbing
 because we had a significant leak.                                                              1. Rectify leaks
 What had happened was that we
 hadn’t had rain or grey water to fill                                                           2. Review
 our tanks and the sensor telling the                                     Is the process/activity really necessary? Is it necessary
                                                                            to use water or is there a cost-effective alternative?
 tank to use main water was not
 working, so we had no water for                                                                 3. Reduce
                                                                              Could water be used more efficiently? Is there an
 flushing our toilets. So I went down                                         alternative process/activity which could be used?
 there and overrode the system and
                                                                                                  4. Re-use
 just filled both tanks up with main                                                 Could the water be treated/filtered and
 water, so our water use spiked                                                       re-used within the process/activity?
 significantly … that is, there was no                                                              5. Recycle
 leak, but if there had been one, we                                                          Can the water be recycled
                                                                                                 for use elsewhere?
 would have been alerted …’                                                                        eg process/grey

                                                Figure 13 – Hierarchy of action in water management
                                                Source: Water Efficiency Guide (DEW 2006:6)

 Craig Middleton checks water tanks
 at 40 Albert Road
 (Erica Lauthier)


Reduce — water reduction                                        desensitised to leaks over time, so
opportunities                                                   regular inspections of all facilities are also
There are many opportunities that can                           recommended with regular reporting
be implemented quickly and cheaply to                           of performance to maintain motivation.
reduce water consumption.                                       It is important to carry out frequent
                                                                inspections of toilets, urinals, taps and
…studies show that reductions                                   showers, particularly in areas where
                                                                tenants do not have access.
of up to approximately 80%
of scheme water demand and                                      Choosing efficient appliances
90% of sewage discharge can                                     — labels
                                                                The Water Efficiency Labelling Scheme
be achieved in a sustainable                                    (WELS) introduces mandatory water
commercial building compared to                                 efficiency labels for all showerheads,
                                                                washing machines, toilets, dishwashers,
a conventional building, through                                urinals and some types of taps, as well
the integration of innovative                                   as minimum water efficiency standards
                                                                for toilets, and voluntary labels on flow
water efficiency measures, rainfall
                                                                control devices.
capture and use, treated effluent
                                                                Smart Approved WaterMark is Australia’s
re-use and evapotranspiration                                   water saving labelling program for
through roof gardens.32                                         products and services which are
                                                                helping to reduce outdoor water use.
                                                                The voluntary and not-for-profit Smart
     ‘The potential savings available                           WaterMark was set up as a sister
     from Australian Government                                 scheme to WELS. Both WELS and
     buildings and operations are                               Smart WaterMark are being used as
     between 4296 and 7405 ML/                                  criteria within water rebates. For a list of
                                                                approved products and services visit:
     year. This is based on savings
     assumptions by building type
     developed through the desktop
     study and site assessments.
     Achieving these savings would
     cost between $8.2 and $14.6
     million based on cost assumptions                                                                           Waterless urinal – 40 Albert Road, Melbourne
     derived from empirical case                                                                                 (Erica Lauthier)

     studies in the literature.’33
                                                                                                                 For urinals, there are now many options
                                                                                                                 to minimise water usage. Waterless
Leak avoidance
                                                                                                                 urinals avoid the need to use water
One way of detecting leaks is to install                                                                         altogether. Some require a change
adequate sub-metering. However, even                                                                             in the cleaning regime and have a
with sub-metering, leaks may still take a                                                                        larger ongoing cost, while other newer
little while to be detected by the building                                                                      models have overcome the need for the
management system. Communicating                                                                                 cartridge. New products have also come
with tenants is a clear and simple method                                                                        onto the market that can be used to
to ensure leaks are detected. The building                                                                       retrofit existing urinals. Small dissolvable
occupants need to be aware of where                                                                              cubes contain surfactants and microbes,
and to whom they can report any leaks.                                                                           which allow for an odourless, waterless,
                                                                Toilets and urinals
Clear, concise signage will help with                                                                            effective urinal.
this communication. It is important to                          A dual flush toilet (4.5/3 litre) replacing
promptly fix any reported leakages for                          a single flush unit (11 litre) in an office
                                                                                                                   The Pier Hotel in Port Lincoln, South
positive feedback. Tenants do become                            building will save approximately 170 litres
                                                                                                                   Australia, recently saved 80 000 litres of
                                                                each working day (60kL per year) in a
                                                                                                                   water in three months by using the cubes,
                                                                female toilet. This represents an annual           which were nominated for an annual SA
  V Chanan, S White, M Jha, & C Howe, ‘Sustainable water        financial saving from potable water alone          water industry alliance award.
management in commercial office buildings’, paper presented     of about $150 per year (per unit) in
at Innovations in Water: Ozwater Convention & Exhibition,                                                          Source: Water Efficiency Guide (DEW 2006:24)
Perth, 6–10 April, 2003.                                        Sydney.
  T Berry, N Edgerton, G Milne, M Jha, & S White, Feasibility
study for a policy on water in government operations, ISF,
Sydney, July 2004.

44                                                              ESD OPERATIONS GUIDE for owners, managers and tenants

The Water Efficiency Guide (DEW,              Water sensitive landscaping                                       Source substitution
2006) has many more suggestions on            (xeriscape)                                                       Other than water efficiency measures,
water saving options. Some of the key         •	 Use	native	and	indigenous	plants	for		                         three additional options for reducing
opportunities it outlines are:                   the garden, as they require less water                         water use from mains are:
•	 Showers — typical showers use 15–25           compared to exotic varieties.
                                                                                                                (1) collect and use rainwater
   litres per minute. Instead, use flow       •	 Use	mulch	in	the	landscape	to	minimise	
   regulators to reduce pressure (but                                                                           (2) re-use grey water
                                                 the loss of water from the soil by
   take care to provide adequate spray),         evaporation.                                                   (3) recycle all waste water (including
   or replace shower heads with efficient                                                                           black water). There may be additional
   ones that only use 6–7 litres of water     •	 Schedule	the	irrigation	time	using	timer	
                                                                                                                    substitution options involving
   per minute.                                   controls, so that irrigation is done after
                                                                                                                    stormwater from other surfaces,
                                                 sunset, to minimise loss of water to
•	 Taps — typical taps discharge 15–18                                                                              such as roads and car parks.
   litres per minute. Low-flow and aerating
   models may use as little as 2 litres per   •	 Install	soil	moisture	sensors.
   minute, depending on the intended
                                                   Mini case study — extensive garden water retention 

Cooling towers                                     system, Investa

The Water Efficiency Guide (DEW, 2006)             The Kings Row complex on the outskirts of the Brisbane CBD was 

discusses opportunities for reducing               heavily affected by water restrictions, particularly in maintaining 

cooling tower water loss, including                its gardens. To still comply, yet retain their gardens, they used a 

overflow, leaks, evaporation, bleed, drift,        water-storing product called Hydrocell. This product was injected 

splash, plant management, maintenance,             into the soil under the grass and plants. This has reduced water 

water treatment and tower water and                consumption by 40% (9.45 million litres), by capturing moisture 

air infiltration. The publication not only         in the soil after rain. Figure 14 demonstrates these savings and 

                                                   savings from other measures:

gives guidance on how to minimise
these impacts, but presents the case
for sub-metering and connecting them
to the BMS. The other option is to use a
system that is based on air chillers, which                      2500
reduces water consumption dramatically,
can reduce energy use and eliminates
chances of legionella. The drawbacks of
these systems include increased special
                                               Kilolitres (KL)

requirements, such as space.                                     1500

Sprinkler water testing
•	 Ensure	sprinkler	testing	water	can	
   be captured for re-use.
•	 Preferably,	use	captured	water	
   for potable uses.
                                                                        APR                JUL                       OCT                          JAN

                                                                              2004 - 05          2005 - 06

                                               Figure 14 – Water consumption at Kings Row
                                               Source: Investa (Brisbane Water Invoices)



Rainwater                                                                                                    Stormwater effective landscaping
This is water collected off the roof                                                                         refers to:
or other surfaces of a building. It is                                                                       •	 using	landscaping	to	absorb	
dependent on collection area, rainfall and                                                                      stormwater runoff from paths
the amount of space available for water
                                                                                                             •	 using	semi-permeable	surfaces.
storage tanks.
                                                                                                             On-site stormwater detention
     Mini case study — Investa rain water                                                                    (OSD)34
     collection and use
                                                                                                             Best practice on-site stormwater
     At 73 Miller Street, North Sydney, a system                                                             detention involves:
     was installed to capture rainwater from the
     roof. This was then held in the basement                                                                •	 increasing	the	quality	of	the	water	
     and pumped through a dedicated riser to                                                                    captured by separation of first flushes
     drip feeders for use in the daily irrigation of                                                            from later flows. First-flush water can
     balcony and rooftop gardens.                                                                               be contaminated by dust on roofs,
                                                                                                                oil on roads and other pollutants.
     sustainability/case_studies/rainwater_capture.asp                                                          These can be diverted to landscaping
                                                                                                                or can be treated

Grey water                                                                                                   •	 using	screened	outlets	to	closely	
                                                                                                                control flow rates and capture litter,
Grey water is the water from showers,
                                                                                                                debris and sediment
clothes washing and non-kitchen
sinks. For most commercial and other                                                                         •	 using	frequency-staged	storage	
government buildings the amount of                                                                              systems that employ ‘storage’ in lawns
grey water is not significant, since there                                                                      and garden soils, depressions in public
is little water generated from these                                                                            open spaces, and open and covered
sources. Local regulations will need                                                                            pavements (such as car parks), which
to be investigated with regard to the                                                                           are designed in a staged fashion, so
classification of grey water. In some                                                                           that each storage comes into operation
states, treated grey water is seen as                                                                           only when the preceding one is full
                                                               Recycled water pipes for car washing,
waste (or black) water, and therefore                          CH2 , Melbourne                               •	 using	tail-water	compensation	to	
requires approval from the appropriate                         (Erica Lauthier)
                                                                                                                control discharge when the bed of the
authorities before being re-used. In
                                                               Stormwater                                       water storage facility lies below the
Canberra, the John Gorton Building
                                                               Stormwater is the rainwater that runs            water surface in the receiving drain
has been recycling grey water since
the late 1990s.                                                off surfaces such as roads and roofs          •	 using	pump	discharge	regulation	for	
                                                               into the stormwater system. This water           controlling pumping from basement
Waste or black water                                           is a potential resource, but currently it        tanks in buildings.
Black water is the water from kitchens                         is mainly collected as run off into rivers,
                                                               lakes and the ocean.                          The benefits of OSD are:
and toilets. Recycling this water is
possible with current technology, but                          For commercial buildings, the main issues     •	 it	can	be	funded	immediately	(i.e.	by	the	
requires appropriate permits and a                             with stormwater (adapted from DEW                developer) and does not require capital
thorough system of maintenance and                             stormwater guidelines — see link below)          outlays from stormwater management
monitoring. There are two types of                             are stormwater effective landscaping,            authorities
recycling — biological (using bacteria and                     on-site detention, roof gardens and           •	 it	protects	downstream	properties	
worms) and mechanical (using filters).                         aquifer storage.                                 against increases in flooding resulting
Some examples include the 60L building
                                                                                                                from new developments.
in Melbourne (a mixed system), the
Bendigo Bank HQ in Bendigo (which
uses a biological system), and CH2,
which has a mechanical system.

  Ribbons, S., Warwick, M. and Knight, G. (1995). Section
94 contributions or on-site detention: Council’s dilemma. In
Preprints of papers: the second international symposium on
urban stormwater management 1995: Integrated management
of urban environments, p. 27.
  H Urriola, ‘Roof gardens: an environmental asset’, in JA
Wood (ed.), Water sensitive design and stormwater re-use:
seminar proceedings, Stormwater Industry Association:
Sydney, 31 March 1999, p.1.

46                                                             ESD OPERATIONS GUIDE for owners, managers and tenants

Roof gardens                                     summAry of opportunitiEs                     •	 Level	2	refurbishment	—	invest	in	
In cities, roofs cover 40%–80% of built          •	 Tenant	operations	—	ensure	that	             opportunities to upgrade cooling
areas, leading to problems including                all new staff understand the water           towers, investigate water storage,
higher volumes of stormwater runoff.                management policy of the office,             recycling and third pipe options,
A number of countries in Europe have                including who to contact if leaks are        replace appliances and fittings with
acknowledged this problem and have                  detected. Run an information campaign        the highest WELS rating possible,
legislated that all public buildings should         on water efficiency and encourage staff      benchmark base flows before
be covered with a roof garden.                      to reduce their water use.                   refurbishment, identify leaks and fix
                                                                                                 while carrying out refurbishment, and
                                                 •	 Maintenance	—	ensure	prompt	                 introduce sub-meters.
 The German Government contributes                  response to leaks, carry out regular
 50% to the cost of building a roof garden          checks of appliances and fittings,        •	 Re-occupancy	—	ensure	that	there	is	
 on either private or public buildings. Roof
                                                    install sub-meters as part of ongoing        training for new tenants and introduce
 gardens absorb about 76 litres of water                                                         efficiency benchmarks into leases.
                                                    maintenance, and minimise stormwater
 per square metre of garden space. Super-
 imposed loads on the roof structure, plus          pollution through clever landscaping
 retained rainwater, means that the roof            and car park area design.
 needs to be designed for the extra loading.35   •	 Management	—	ensure	regular	
                                                    monitoring and reporting of water              Water Efficiency Guide – DEWHA
Green roofs are an example of one                   usage, include reviews of water      
initiative that minimises several impacts;          efficiency in commissioning, choose the        settlements/publications/
stormwater run off, insulation of the roof,         highest WELS rating when replacing             government/water-efficiency­
and importantly, reduction of the urban             fittings or appliances, put in place           guide.html
heat island effect (the significant increase        specific management systems for                Stormwater
in air temperature in built-up areas).              cooling towers, provide training on  
Further, roof gardens not only have many            water efficiency measures for staff,           publications/stormwater/pubs/
benefits environmentally, but can also add          include proactive management of                stormwater.pdf
to the social spaces available to tenants           valves, washers and other leakage
in the building.                                    points, include water intensity targets
                                                    in new leases, and benchmark water   
Aquifer storage and recovery                        performance as soon as possible.               Clearwater
                                                 •	 Level	1	refurbishment	—	invest	in	
This involves the harvesting of surplus             opportunities to upgrade cooling
stormwater from a variety of sources and                                                           Water Efficiency Labelling
                                                    towers, investigate water storage and
then storing it below ground. Stormwater            recycling, replace appliances and
can be temporarily stored in a suitable                                                            publications/wels-brochure.html
                                                    fittings with the highest WELS rating
aquifer, and then retrieved for potable,            possible, benchmark base flows before          Water Saving Gardens - Melbourne
irrigation or industrial applications by            refurbishment, identify leaks and fix          water www.conservewater.
pumping it underground.36                           while carrying out refurbishment, and
                                                    introduce sub-meters.                          water-wise_gardens/water-wise_
                                                                                                   CITY WEST WATER – Water
                                                                                                   conservation solutions

Roof garden CH2                                                                               36
                                                                                                NZ Gerges, Aquifer storage and recovery: type and selection
(City of Melbourne)                                                                           of aquifer, Primary Industry and Resources, Canberra.



Material choice

Why is this importAnt?
Materials impact the environment in the                                                      Mini case study — ceilings: landlord’s
following ways, which are discussed in                                                       opportunity, Investa
more detail below:                                                                           The impact of ceilings relate mainly to the
                                                                                             raw materials they are made of and how
•	 consuming	energy	in	manufacture	and	
                                                                                             often they are replaced. Fricker supplies
   transport (embodied energy)                                                               and installs ceilings for a large proportion
•	 potentially	having	an	impact	on	toxicity	                                                 of Investa’s portfolio and collaborated on
   in manufacture and in use                                                                 addressing both these issues.
                                                                                             In their online case studies, they give an
•	 using	water	in	manufacture	(called	
   embodied water)
•	 consuming	other	materials	that	have	                                                      ‘… at 55 Market Street, Sydney
   their own impacts (e.g. mining, land                                                      as tenants vacate and new ones
   clearing, etc.).                                                                          arrive we are progressively “making
Materials choice is an activity that                                                         good” the ceilings, using replicas
impacts ESD. The owner, the manager              Recycled aluminium tiles, 40 Albert         of the original ceiling tiles with
and the tenant each have a role to play          Road, Melbourne                             the original face pattern. This
                                                 (Erica Lauthier)
in minimising this impact. Though the                                                        has allowed us to maintain the
initial construction of the building has                                                     building’s as new appearance and
a considerable material impact, it is in
fact the ongoing building management,
                                                 1. REFURbISHMENT AND CHURN                  avoided the need to replace the
                                                 The choice of materials used in             aluminium grid, reducing materials
refurbishment and fit-out churn that
                                                 refurbishing a building has an impact       churn and costs.
results in a larger impact. In minimising
                                                 on the environment. Whether it is
material impact in the operation of a
building, there are two distinct areas to
                                                 plasterboard, paint, electrical conduits,   The new tiles have a high mineral
                                                 carpet or glazing, each has the             fibre content, which is made
focus on: (1) the refurbishment and fit-out
                                                 opportunity for being specified in a
churn (plasterboard, carpet etc.); and (2)                                                   from blast furnace slag, a
                                                 manner that reduces their impact.
the procurement of everyday business                                                         bi-product of the steel industry.
(paper, pens, lights, etc.).                     2. PROCUREMENT                              They are formaldehyde free, VOC
Materials can also have an impact on             Procurement has a significant impact        free, have naturally high thermal
the indoor environment quality of a              because of its sheer volume over the        resistance and have been certified
building, as they can emit volatile organic      life of a building. Choices of paper,       as “environmentally friendly”
compounds that can cause headaches,              lights, pens, computers and so forth
nausea and so forth (see Opportunity 1).         can significantly impact the overall
                                                                                             by Eco Mark. Eco Mark is a
                                                 environmental performance of the office.    Japanese certification programme
                                                                                             in accordance with “Type 1
 LCA-indicated environmental impacts
 of building materials range from 2% (of                                                     environmental label programmes”
 total national emissions in energy and                                                      defined in ISO 14024 and operated
 greenhouse) to 30%–40% (of the demand                                                       by GEN (Global Ecolabelling
 on minerals use and solid waste generation).
 Specific impact areas are as follows:                                                       Network)”.
 •	 photochemical	oxidant	emissions	(smog)	                                                  case_studies/ceilings.asp
    are dominated by cement production
 •	 cumulative	energy	demand	is	dominated	
    by steel, softwood and brick production
    and construction energy
 •	 water	use	is	dominated	by	steel,	concrete	
    and polystyrene production
 •	 land	use	is	dominated	by	softwood,	
    followed by hardwood production.
 Source: Your Building

48                                               ESD OPERATIONS GUIDE for owners, managers and tenants

hoW you mEAsurE it?                                                                          There are tools that can help identify
The measurement of material impacts                                                          manufacturers and suppliers. These are
is mainly in volume of materials                                                             often based on a life cycle approach and
consumed and in documentation of                                                             are outlined in the resources section at
the environmental credentials of the                                                         the end of this chapter.
materials. The volumes of materials used                                                     Churn (also covered in the waste section
can be collected through reports from the                                                    of this guide), is a major source of
suppliers, and need to be linked with the                                                    unnecessary material use and expense.
waste audits. Material ESD credentials                                                       Though the same rules of thumb apply for
can be obtained from manufacturers                                                           selecting material for fit-out, the specific
through environmental performance data       Recyclable Carpet 40 Albert Road, Melbourne     emphasis should be on how to minimise
                                             (Erica Lauthier)
sheets, eco-labels and material safety                                                       removing completely viable materials.
data sheets.                                                                                 For more information on what is possible
                                                                                             see the New Zealand guide to sustainable
ApproAchEs to minimisAtion                   Material selection                              fit-outs (
For both refurbishment and standard          1 – REFURbISHMENT AND CHURN                     sus-dev/office-fitouts-dec05/html).
operations, a purchasing policy can be       A comprehensive way of comparing                2 - PROCUREMENT
a useful way to minimise the impact          and selecting materials is Life Cycle
                                                                                             Guidelines are available for the
of materials. This policy should be          Assessment (LCA). This allows for the
                                                                                             specification of materials for everyday
developed at the various levels of           analysis of different materials with very
                                                                                             use. For example, purchasing guidelines
stakeholder influence. For example,          different impacts, for example aluminium
                                                                                             have been developed by various
there should be a procurement policy         windows that have a energy and climate
                                                                                             government bodies:
for maintenance activities and a policy      change impact and do not perform
for tenant activities. There should also     as well thermally with timber windows           •	 the	Department	of	the	Environment,	
be a policy for materials specification in   that have biodiversity impacts, need               Water, Heritage and the Arts — in
refurbishment and churn. ISPT provides       more maintenance and perform better                example below
a good example of how a building owner       thermally. The main barrier to using LCA
                                                                                             •	 the	Queensland	government	—	
can work with the tenant to provide          through is that material decisions tend to
clear opportunities of material impact       be made quickly and may not be able to
minimisation with clear financial benefits   wait for an LCA, and there are also many        •	 the	NSW	government	—
(see below).                                 other factors that need to be considered:
                                             costs, functionality, aesthetics and so
                                                                                             •	 the	Victorian	government	—	
                                             forth. For this reason, simplified methods,
 David Pullan — Portfolio Operation          guides and rules of thumb are often used
 Manager, ISPT                               for choosing materials. For example,            In general materials that need to be
                                             choose materials:                               considered are:
 ‘ISPT have also worked to offer
 improved services to their tenants.         •	 with	a	high	recycled	content                 •	 paper	—	high	recycled	content
 We have set up a relationship with          •	 that	are	reused                              •	 electrical	equipment	—	high	energy	
 the best performing environmental                                                              star rating (see opportunity 3)
                                             •	 with	no	or	low	toxic	emissions
 paint and carpet manufacturers.                                                             •	 pens	—	refillable,	recycled	and	
 As part of being tenant in our              •	 that	do	not	contain	toxic	materials	
                                                listed in the National Pollutant Inventory
 buildings, you can order from                  (NPI)                                        •	 cartridges	and	inks	—	refillable,	
 these companies and get the                                                                    recycled and recyclable
                                             •	 with	low	embodied	energy	and	
 best performing green products
                                                embodied water                               •	 lighting	elements	—	fluorescent	
 on the market with improved
                                                                                                and energy efficient
 indoor air quality and eco-footprint        •	 with	an	ability	to	be	easily	recycled
 credentials — it will also save you                                                         •	 cleaning	supplies	—	low	emission,	
                                             •	 easy	to	clean	and	maintain
                                                                                                natural, non-toxic, biodegradable,
 5%–10%.’                                    •	 pre-finish	or	no	finish	requirements	           in reusable containers
                                             •	 independently	certified	by	a	third	party	    •	 toilet	supplies	(soaps)	—	natural,	
                                                – the Forest Stewardship Council (FSC           refillable
                                                for timber) and Australian Environmental
                                                                                             •	 toilet	supplies	(paper)	—	recycled.	
                                                Labelling Association etc.



                                                             One way of minimising the embodied                      Toxicity falls into two areas: (1) toxicity
     Australian Government: the                              energy in products is to use products that              to the users of the building; and (2)
     Commonwealth procurement guidelines                     have recycled content. Many products                    toxicity to the environment through the
     and best practice guidance                              use much less energy to be recycled                     production of materials and electricity.
     The core principle governing Australian                 than the initial manufacture: for example,              Toxicity to building users is covered in
     Government procurement is value for                     only 10% of the energy used to make                     the Indoor Environment Quality (IEQ)
     money, a concept evaluated on a whole­                  aluminium is needed to make recycled                    section and the guide to volatile organic
     of-life basis for the goods or services being           aluminium. Embodied energy impacts                      compounds (VOC) limits in Green Star
     procured. Yet ‘officials should be aware                can be justified in a building designed for             — Office Design.37 VOC emissions
     of any relevant environmental legislation
                                                             longevity or in the refurbishment of an                 are a problem because some (such as
     and targets set by the Commonwealth,
                                                             existing building to increase its life.                 formaldehyde) have been shown to be
     and ensure they take into account matters
     affecting the environment … when                                                                                carcinogenic.38
     formulating requirements. They should                   Embodied water
                                                                                                                     VOCs also have an impact on
     include relevant environmental criteria in              Like embodied energy, embodied water is                 concentration and can cause (to a
     specifications and requests for tender’.                the amount of water needed to produce a                 varying degree) headaches and nausea.
     Purchasing guidance can be downloaded                   product. Currently there are no Australian              Minimising the impact on the environment
     from:               guides and databases on this issue.                     from the production of particular
     government/purchasing/index.html                        The most up-to-date information on                      materials can be achieved by specifying
                                                             embodied water and its calculation can                  substances that avoid or minimise
     Specific environmental purchasing checklists
                                                             be found in the BDP Edge guide GEN58.                   toxicity. Toxic substances are listed in
     for goods and services relevant to existing
     building available from that site include:
                                                             This resource contains tables that include              the National Pollutant Inventory (NPI).
                                                             some embodied water figures, showing                    Minimising the impact of the production
     •	 building	management	services	                        how important it is to think about material             of pollution from power stations can be
     •	 cleaning	services	                                   re-use and recycling, not only from a                   achieved by manufacturers using green
                                                             waste and energy perspective, but also                  power.
     •	 dishwashers	                                         in terms of water.
     •	 fax	machines	                                                                                                biodiversity
     •	 miscellaneous	office	equipment	                       Mini case study — Investa, Melbourne                   This refers to being efficient with material
     •	 office	equipment	consumables	                         Carpet                                                 use and careful in the choice of materials
                                                                                                                     that may effect the environment and
     •	 packaging	                                            Investa use modular carpet to minimise
                                                                                                                     biodiversity. There are two elements to
                                                              waste when replacing damaged or stained
     •	 paper	and	cardboard	                                  areas. They use suppliers and products                 minimising these impacts: (1) choose
                                                              including InterfaceFLOR, which is made                 materials with a high recycled content
     •	 personal	computers	and	monitors	                                                                             and which can be recycled at the end
                                                              of 80% recycled yarns and recycled vinyl
     •	 printers,	photocopiers	and	multi-function	            backings. In addition, a large proportion              of their life; and (2) choose materials that
        devices                                               of the worn out carpet is reclaimed via                have third-party certification, indicating
                                                              InterfaceFLOR’s ReEntry™ programme.                    that sustainable management strategies
     •	 printing	services	                                    An added advantage with this system                    are in place.
     •	 recycled	products	                                    in practice is that the InterfaceFLOR’s
                                                              Renovisions™ furniture lifting system allows
     •	 refrigerators	                                        replacement with a minimal amount of
     •	 task	lighting/desk	lamps	                             disruption to staff. Products from Onteracre
                                                              also used.
     •	 waste	management	services.	

Embodied energy
Embodied energy is a term used to
                                                             Toxicity in manufacture and use
describe the inherent amount of energy in                    Toxicity is the release of substances into
all the materials used to make a product.                    the environment that are detrimental
For a building, this is the sum of energy                    to its normal functioning. Its effects are
expended to make the bricks, windows                         often talked about in human life year
and steel beams etc. To minimise                             equivalents (i.e. the number of years early
embodied energy, less energy intensive                       the average person will die because of an
products that perform the same function                      emission) or human disability equivalents
should be chosen.                                            (the amount of impairment to normal
                                                             function because of an emission). Toxicity
                                                             has a much broader impact to animals
 Green Star — Office Design v2 Indoor Environment

Quality credits IEQ-13 ‘Volatile Organic Compounds’          and plants. This is too broad a topic to                                              be fully explained in this guide, but the
  International Agency for Research on Cancer (part of the   strategies for minimising human toxicity
World Health Organization), Formaldehyde classified as
human carcinogen, press release, 06/15/04,
                                                             are linked to reduction in other toxic                  Endangered spotted-tailed quoll
DesktopModules/ArticleDetail.aspx?articleId=40 accessed      impacts.                                                (Source: DEWHA, Dave Watts)

50                                                           ESD OPERATIONS GUIDE for owners, managers and tenants

 Principle                                 Questions                                                           summAry of opportunitiEs
Water and energy                           Do you have an energy and water management programme                •	 Maintenance	—	ensure	that	equipment	
conservation                               for the manufacture of the product?                                    and fit-out elements, such as carpets
                                                                                                                  and partitions, are maintained in
                                           Is the product energy and/or water efficient (i.e. energy
                                           efficiency/water conservation rating schemes)?                         accordance with recommendations
                                                                                                                  from the manufacturers to ensure
                                           Does the product have a water and/or energy efficiency
                                                                                                                  longevity and the potential for future
                                                                                                                  re-use. When ordering products,
Minimal impact on indoor                   Does the product release volatile organic compounds (VOCs),            ensure that they are protected
air quality                                formaldehyde or other emissions that reduce indoor air quality         with either recyclable or returnable
                                           during its manufacture or use?
Toxic and hazardous                        Does the product contain toxic or hazardous materials or
materials minimised                        use toxic or hazardous materials in its manufacture, use or         •	 Management	—	ensure	that	the	
                                           disposal?                                                              procurement system includes the
Reduction of waste                         Can I buy the product in the exact size and quantity I need (i.e.
                                                                                                                  most environmentally responsible
                                           what sizes are available)?                                             products. Have a review process as
                                                                                                                  part of the periodic reporting to discuss
                                           Can the product be re-used, refilled or recycled at the end of
                                                                                                                  new materials that can be included
                                           its useful life?
                                                                                                                  — for example, lighting technology
                                           Does the product have recycled content?                                is continually improving. When
                                           Will you take back the packaging?                                      ordering products, ensure that they
                                           Do you have a waste minimisation programme?                            are protected with either recyclable or
                                                                                                                  returnable packaging. Further, ensure
                                           Is the product made of a single material or materials that are
                                           easily separated for recycling and re-use?
                                                                                                                  that there are appropriate facilities for
                                                                                                                  the collection and storage of products,
Renewable and sustainably         Are the materials in the product obtained from renewable and                    so that they stay clean and in good
harvested materials, biodiversity sustainably harvested sources?
protection                        Do you have a positive management programme for habitats
                                  and native species?                                                          •	 Level	1	refurbishment	—	in	
                                                                                                                  carrying out a ‘spruce-up’ type of
Minimal pollution of air, land             Do you have a pollution prevention programme?
and water
                                                                                                                  refurbishment, ensure that glues,
                                           Do the instructions supplied with the product provide guidance         caulking, paints, varnishes and other
                                           on minimising pollution when installing, operating, maintaining
                                                                                                                  finishes are all water-based and
                                           and disposing of the product?
                                                                                                                  have low VOC emissions. Choose
Environmental stewardship	                  Is your company ISO 14000 certified? Do you have an                   new fittings that support energy-
                                           environmental policy statement? Do you provide information             efficient lighting. Choose carpets that
                                           about the composition of products, take-back schemes, lease
                                                                                                                  are modular, recycled or recyclable
                                           options, and other information over and above regulatory
                                                                                                                  (see the resources at the end of this
                                                                                                                  chapter for more specific check­
Durable and upgradeable                    Does the product contain upgradeable, repairable or                    lists for material and equipment
                                           replaceable parts?
                                                                                                                  procurement). Ensure that design
                                           Is the product durable (life expectancy)?                              considers resource efficiency; that is,
                                                                                                                  using materials efficiently, minimising
Table 14 – Questions to ask materials manufacturers
                                                                                                                  off-cuts and waste. Where possible,
(accessed 8/5/2007)                                                                                               look for recycled or re-used material
                                                                                                                  opportunities. When ordering products,
                                                                                                                  ensure that they are protected
                                                                                                                  with either recyclable or returnable
                                                                                                                  packaging. Further, ensure that
                                                                                                                  there are appropriate facilities for the
                                                                                                                  collection and storage of products,
                                                                                                                  so that they stay clean and in good



•	 Level	2	refurbishment	—	in	major	
   refurbishments where major structural      Resources
   elements and windows are being             DECC Sustainable Property management
   rearranged and replaced, in addition       Guide, look on www.environment.nsw.
   to the energy saving opportunities, and
   also look for opportunities to use         Green Building Council of Australia
   high recycled content concrete, steel,
   aluminium, certified timbers and
   effective insulation etc. Ensure that      NZ Sustainable fit-outs guideline
   design considers resource efficiency,
   that is, using materials efficiently,
   minimising off-cuts and waste. When        EcoSpecifier
   ordering products, ensure that they
   are protected with either recyclable or    Australian Government procurement
   returnable packaging. Further, ensure      guidelines –
   that there are appropriate facilities to   settlements/government/purchasing/
   collect and store products, so that they   index.html
   stay clean and in good condition.
                                              The Queensland Government procurement
•	 Tenant	operations	—	develop	a	             guidelines
   green procurement plan for material        The NSW Government procurement
   purchases, such as computers,              guidelines
   paper and other stationary, electrical
                                              The Victorian Government procurement
   equipment and toner cartridges etc.
   Encourage employees to see the value
   of paper and materials, and encourage      National Pollutant Inventory
   effective use, such as double siding,
   re-use of pens and so forth. Also, if
   managing cleaning contracts, ensure
   environmentally responsible materials
   are used to minimise VOC emissions
   and toxicity.

52                                            ESD OPERATIONS GUIDE for owners, managers and tenants

Minimising waste

Australians are the second                               and 20 tonnes in site and resource                  Star rating                     Recycling rate %
                                                         extraction. Secondly, this waste needs
highest producers of waste, per                          to be stored somewhere. If it is placed
                                                                                                            1 star                           42–47%
                                                                                                            1.5 stars                        48–53%
person, in the world with each                           in landfill, it takes up land, can cause
                                                         run-off into water ways, and results in            2 stars                          54–59%
of us sending almost 690 kg of                           visual pollution and pollution into the air,       2.5 stars                        60–65%
waste to landfill each year (the                         including greenhouse gasses, such as               3 stars                          66–71%
                                                         methane, that effect climate change.
United States is the highest waste                                                                          3.5 stars                        72–77%
                                                                                                            4 stars                          78–83%
                                                                                                            4.5 stars                        84–89%
                                                          Mini case study — Treasury EMS
                                                          results: food waste to compost                    5 stars                          ≥90%

 Waste estimates for office buildings                     The Federal Treasury has an environmental         Table 16 – Recycling rate
                                                          management system (EMS) in place,                 (tenants/whole buildings)
 - 7.8 kg of waste and recycling generated/
                                                          which includes energy management, water           Source: NABERS
   m2/year *
                                                          conservation, waste and recycling, and
 - 173 kg of waste and recycling generated/               purchasing. This EMS and its associated           In the above NABERS benchmarks, the
   employee**/ year                                       plans and activities have resulted in the         whole building ratings are determined
                                                          recycling of 2.4 tonnes of food waste to          by the average of waste generated and
 - 1.7 reams of copy paper are thrown out                 compost each year.                                recycled, with a double weighting on the
   or recycled/ m2/year
                                                          Source: Paul Starr, DEWHA                         rating for waste generated.
 - 39 reams of copy paper are thrown out or
                                                                                                            Measuring waste requires reliable data on
   recycled/ employee/year
                                                                                                            the total kilograms of the materials sent to
 - 55% paper and 10% cardboard is in the
                                                         hoW you mEAsurE it?
                                                                                                            recycling, landfill and re-use. There is also
   general waste stream                                  During the life of the building, waste             the waste created by the tenants and the
                                                         minimisation is a building management              waste created by building operational
 - 5% commingled (glass and plastic drink
   containers, aluminium cans) is in the
                                                         and tenancy issue. There is a real                 maintenance; these should be accounted
   general waste stream                                  opportunity for savings by implementing            for and reported on separately.
                                                         a programme of waste and recycling                 A separate waste management plan
 - $23 worth of reusable stationery thrown               reporting, auditing and management
   out/ employee/year                                                                                       should be put in place for refurbishments
                                                         as part of the everyday management of              that functions outside of this.
 * Year = based on 261 working days                      the building (see the Property Council’s
                                                         building EMS). Particularly important is
 **Employee = full-time employee, or the                                                                         One government agency recently carried out
                                                         measuring the actual waste leaving the
                                                                                                                 an audit of the waste being taken away by
                                                         building and knowing where it is taken
 Source:                                                           a contractor over the period of two weeks.
                                                         (e.g. recycling or landfill), as this allows for
 FS.pdf                                                                                                          They were paying on the basis of a service
                                                         active management of the waste streams.                 (not mass charging) arrangement. They
                                                         NABERS waste benchmarks                                 found that the contractor’s guess about the
Why is it importAnt?                                                                                             amount going to landfill was 16 times more
The two main sources of waste in the                                                                             than their direct audit. The audit also found
                                                         Star rating                  g/person/day               that they could reduce their waste to landfill
operational phase of a building are:
                                                                                                                 by 75% by simply getting all staff to use the
                                                         1 star                       420
(1) the waste created by the running of                                                                          recycling facilities already available.
                                                         1.5 stars                    392
the building — packaging, papers, etc.
and                                                      2 stars                      365
                                                         2.5 stars                    337                   As part of the EMS, it is important that
(2) the waste created by the various
maintenance and refurbishment cycles.
                                                         3 stars                      310                   a waste audit is undertaken on the day-
                                                         3.5 stars                    282                   to-day operation of the building. Data on
Waste is a problem for several reasons;                  4 stars                      255                   the amount of waste produced can be
firstly it is an inefficient use of resources                                                               derived from the building’s scales and
                                                         4.5 stars                    228
— for example, of the trees used to                                                                         hoists, and the waste contractors should
produce the fibre used for paper. A good                 5 stars                      200
                                                                                                            provide total weights on their invoices.
rule of thumb is to remember that for one
                                                         Table 15 – Waste generation
tonne of product, there have been five                   (tenants/whole buildings)
tonnes of materials used in manufacturing                Source: NABERS                                     39
                                                                                                              Sustainability Victoria, Waste wise fact file www.
                                                                                                            Accessed, 27/05/2007.



Data collected should be normalised                      ApproAchEs to minimisAtion                        Churn
for floor area, and tenant specific waste                In the everyday operation and                     Churn is one of the main opportunities to
by FTE (full time equivalent). Cleaning                  management of a building, waste                   reduce waste in the operational phase of
services are a good resource to use for                  minimisation can be achieved via a                the building. Landlords, managers and
the waste accounting procedure. Below                    waste management plan (WMP), which                tenants can work together on this so that
is an example of how one cleaning                        can be part of an overarching single or           everything that has been put in place for
service provider now reports on this as                  multi-building EMS. A WMP sets out                the old tenant is not automatically pulled
part of their everyday service to their                  the expected waste types, volumes,                out before the new tenant comes in. This
clients.                                                 storage and onsite treatment plan,                will require some communication with the
An organisation’s IT services should                     destination and contractor details. Critical      new tenants on the benefits of not seeing
also be brought onboard with any ESD                     in minimising waste for the building owner        a ‘blank’ space.40 These benefits include
initiatives, particularly for waste and                  and manager is that waste minimisation            cost savings in not needing to install new
energy. A great deal of packaging and                    requirements are clearly outlined in              fit-out items, reduction of waste, and the
electronic waste can be incorporated                     the contract to the service or material           reduction of the indoor air impacts of new
into any waste minimisation and recycling                provider (for several model clauses for           materials.
plan.                                                    contracts, refer to the resources section
                                                                                                           Another building manager opportunity,
                                                         at the end of this chapter). For example,
                                                                                                           which may also apply to the tenant if they
                                                         if the supplier is to take back any faulty
                                                                                                           manage cleaning contracts, is to ensure
                                                         equipment or packaging materials,
                                                                                                           waste management occurs through
                                                         this needs to be part of their contract.
                                                                                                           the cleaning contracts. As mentioned
                                                         When waste minimisation is part of a
                                                                                                           above, not only can cleaners help in the
                                                         refurbishment or fit-out, as shown below
                                                                                                           collection of waste data, they can actively
                                                         with the Investa case study, then it is
                                                                                                           support the waste initiatives in a building.
                                                         crucial to work with the contractors and
                                                         ensure that planning is done up front.

                                                          Mini case study — INVESTA: waste 
                 •	 integrate	cost-control,	reporting	and	
                                                          minimisation in office refit, landlord 
              monitoring of waste minimisation 

                                                          and tenant collaboration, Sydney
                     throughout the course of the project 

                                                          As part of the re-leasing of 255 Elizabeth 
       •	 make	arrangements	for	site	separation	of	
                                                          Street, Sydney, Investa had the opportunity 
         materials and contractor collections.
                                                          to work with fit-out contractors FDC and 

                                                                                                             On completion of the works, Investa verified
                                                          Eastview to maximise recycling of all waste 

                                                                                                             dockets and declarations that showed
                                                          from the strip out, demolition, make good 

                                                                                                             307.61 tonnes of waste had been either
                                                          and subsequent preparation of four floors 

                                                                                                             re-used or recycled, with only 15 tonnes

                                                                                                             sent to landfill. This represented a diversion
                                                          To ensure this was achievable the 
                rate of more than 95 percent.
                                                          tender specification also included a 

                                                          reporting section, setting out a system for 

                                                          determining, reporting and verifying the 
                                                                                                                     Rubble (masonry)          5%
                                                          volume/mass of waste re-used on-site, 
                                                                                                                  Glass                                   (miscellaneous)
                                                          recycled off-site and disposed to landfill 
                                                          on a monthly basis.
                                                          The contractor was required to:                  Cable/Wire
                                                          •	 focus	on	the	elimination	of	waste	as	the	        3%
                                                          •	 identify	and	communicate	responsibilities	    Other (landfill)
                                                             for waste minimisation to staff contractors       5%
                                                             and suppliers
                                                          •	 educate	and	inform	personnel	about	the	                    Timber (joinery)
                                                             reasons for waste reduction and provide                        29%
                                                             training in support of this communication
                                                          •	 conduct	an	analysis	of	the	projected	           Figure 15 – Material recycling break-down
Waste segregation 50 Lonsdale Street,                                                                        from releasing retrofit of INVESTA property
Melbourne                                                    waste profile
(Erica Lauthier)                                                                                             case_studies/fit-out_churn.asp

studies/fit-out_churn.asp Accessed 29/05/2007

54                                                       ESD OPERATIONS GUIDE for owners, managers and tenants

Tip — shredding paper will                     Florescent lamps — can harm the
                                               environment, as they contain mercury.                Mini case study — fluoro lamps waste
reduce the length of the fibres                There are companies who will safely                  Investa recycles the fluorescent lamps
and reduce its recyclability; only             recycle these lamps — consider also                  it takes down as part of its regular
                                               offering this recycling service to all staff.        maintenance schedule; current figures show
shred sensitive papers.                                                                             they have recycled around 17 600 lamps.
                                               Batteries — are another waste stream
Tenant management is another area of                                                                ‘The recycling process from Investa’s end
                                               that can create environmental damage.
opportunity for waste reduction. Tenant                                                             is very simple; we simply place the tubes
                                               They can be disposed of safely, but need
behaviour can be influenced by ensuring                                                             in a box for collection. Once they leave
                                               to be kept separate from general waste
easy access to recycling facilities,                                                                the building, the fluorescent tubes are fed
                                               —install a specific battery recycling bin on         directly into a compact crusher separator
describing what happens to the recycling
                                               each floor.                                          machine that separates the glass, aluminium
and waste streams from the building,
and including reports to the tenants on        Mobile phones — need to be recycled                  end caps and the phosphor powder. The
                                                                                                    machine captures the phosphor powder
performance. This can also be integrated,      once they are no longer used. Most
                                                                                                    containing 80% of the mercury, as well as
from the tenant’s perspective, into a          mobile phone companies will happily
                                                                                                    the vapour that accounts for the other 2%.
green lease requiring the building owner       take an old phone when a new one is                  Up to 99.9% of the recovered mercury
to provide reporting of waste and facilities   purchased — within the procurement                   can be re-used for other purposes and
for recycling. Tenants should develop their    plan, ensure that staff are aware of this            the process reclaims 100% of the glass,
own simple waste management plan (see          and can effectively collect and return               aluminium and other metals for re-use as
the resources sections for useful links to     phones. A free recycling service is                  well.’
best practice office waste management.         available.                                           Source:
An important element of managing               Electronic equipment, printers and                   Chemsal provides this service in most areas in Australia
waste in a tenancy is effective                computers — with the high rate of          
communication with staff. Signage is           obsolescence in many equipment
a key communication device and the             categories, these can become a large
organisations mentioned previously have        waste problem. There are companies that         Amount of space for adequate
dedicated signage developed specifically       re-use and recycle electronic equipment,        recycling storage
with clear communication in mind.              ensuring that all data are removed              A rule of thumb used in the UK for
                                               before re-use. A free recycling service         planning recycling space allocation is
Specific material waste                        is available.                                   that 2 m2 of area per 1000 m2 of net floor
minimisation opportunities                                                                     area (and up to 10 m2 when areas are
                                               Commingled recyclables — the general
This section outlines the opportunities                                                        over 5000 m2) are required (BCO 2006).42
                                               term for any materials that can be
for waste minimisation for many of the                                                         There is also a trend not to allocate a
                                               recycled and are generally collected
operational waste streams.                                                                     general bin under every desk, and this
                                               together for separation at the recycling
                                                                                               ensures that people consider their waste
Paper — Paper is completely recyclable         plant. These tend to be aluminium and
                                                                                               every time they have to stand up to go to
and needs to be collected in such a way        steel cans, plastics (1–7 and unsealed
                                                                                               the bin. Alternatively, there are innovative
as to meet the recycling providers’ needs.     food grade rigid plastics), cardboard and
                                                                                               bins with various compartments for
Some providers can take coffee cups and        glass. What is recyclable varies in each
                                                                                               different waste streams.
paper hand towels, while others need the       state and will need to be verified before
paper to be completely uncontaminated          informing tenants and staff.
— check what the requirements are when                                                         summAry of opportunitiEs
                                               Organic waste — includes food scraps,
negotiating the contract and ensure this is                                                    •	 Maintenance	—	ensure	that	bins	that	
                                               leftovers, coffee grounds, tea leaves and
passed onto the tenants and staff.                                                                are damaged and have odours are 

                                               things that have been left in the fridge
                                                                                                  cleaned, and ensure that there is a 

Approximately 1.35 million tonnes              for too long. These can be recycled
                                                                                                  rapid response process to full bins. 

                                               into organic soil enhancers through
of printing and writing paper was              composting and use of biological agents         •	 Management	—	under	the	procurement	
used in Australia in 2002–03.                  such as worms. Managing these systems              strategy, ensure that single life products
                                               is more complex than simply putting                (plastic/paper cups, single portions
However, only a fraction of this               things in a bin — if the facility is on site,      of sugar, milk, paper towels, etc.) are
paper (169 000 tonnes) was                     it needs to be integrated effectively into         not purchased unless there are no
                                               the waste management plan. In some                 viable alternatives. Integrate a waste
recovered though recycling.41                  regions, organic waste can be collected            management policy and plan into the
                                               for recycling off site.                            general building management plan,
Toner cartridges — are completely                                                                 and include regular audits, reviews and
re-usable unless damaged. Special
collection services are available from
service providers and free collection is
available.                                                                                     41
                                                                                                 Sustainability Victoria, Waste wise fact file www.
                                                                                               Accessed, 27/05/2007
                                                                                                BCO, BCO guide to environmental management, British

                                                                                               Council of Offices, London, 2006.



  improvement opportunities. Provide
  clear signage to tenants to encourage
  understanding and participation             Waste wise office guide
  in recycling and waste collection 
  schemes.                                    waste-wise-office-kit/

•	 Level	1	refurbishment	—	ensure	that	       Clauses which can be used in waste
                                              management contracts
   any material taken away is re-used or
   recycled. Plan storage areas for waste
   and recycling.                             contract_clauses.pdf
•	 Level	2	refurbishment	—	ensure	that	       Waste collection contract checklist, waste
   any material taken away is re-used or      minimisation plan form and model property
   recycled. Plan storage areas for waste     waste review form – DECC Sustainable
   and recycling. Use recycled content        Property Management Guide look on
   materials, such as concrete and carpet, and
   etc. Use recyclable materials. Use
   modular and reusable materials that are    Clean Up Australia
   easy to replace when damaged without
   major cost or impact.
                                              The Nowaste best practice in office waste
•	 Tenant	operations	—	ensure	all	            management guide
   new staff understand the waste   
   management policy of the office.           and_Waste
   Negotiate packaging type (recycled and     Computers for schools
   recyclable) or take back services with
   suppliers. Include waste management
   objectives and clauses into service
   contracts, such as cleaning and
   maintenance. Collect waste data and
   disseminate information to staff.

56                                           ESD OPERATIONS GUIDE for owners, managers and tenants

Social Sustainability

Why is it importAnt?                            Planning and community issues                  Harry Hullin — building Manager, 500
Buildings are places for people.                Managing a building according to ESD           Collins Street, Melbourne: building
They function as both social and physical       principles requires a certain amount of        manager and creating inclusion, access
spaces and are connected to the broader         attention to be paid to the local contexts,    and quality of life for the tenants
community around them. Sustainability           such as planning requirements and
                                                                                               When talk of sustainability and the retrofit
requires the integrated consideration           local needs. For example, the major            of 500 Collins Street came on the agenda,
of environmental, social and economic           redevelopment (level 2 refurbishment) of       Harry was sceptical, particularly as the new
factors, which is why social aspects            a building could include the integration of    owners wanted the project to be completed
of buildings are relevant for this guide.       a community facility, such as a crèche or      while the tenants remained in the building.
The social opportunities of a building          meeting space. Agenda 21, adopted in           To his and the project’s credit, Harry was
are in its interaction with the community,      1992 by the United Nations Conference          involved in all of the planning, design,
its ability to cater to all building users,     on environment and development,                project and construction meetings, and so
                                                highlights the importance of community         could be the interface between the builders
and in its fit within the context of the site
                                                                                               and the tenants: ‘I had to make sure that
(including heritage). More generally, social    consultation and participation. Thus
                                                                                               they did not get impacted too greatly by
sustainability is about equity, inclusion,      when planning major work, local Agenda
                                                                                               the project. I needed to be there to make
access and quality of life.                     21 plans and council ESD objectives            sure that the builders — who don’t have
                                                should be considered, and a community          an understanding of our tenants — didn’t
                                                consultation process should be included.       plan or do things that disrupted our tenants’
Mini case study — thinking about the            Local community education opportunities        ability to do their work.’
social and collaborative potential of           that could also be explored, such as
space                                                                                          Harry also gave input into the best ways
                                                highlighting and teaching about ESD            to plan and implement new technologies
The Queensland University of Technology         innovation in the building, or providing       and design changes as the building went
found surprising results when they designed     online information that can be used by         through a floor by floor upgrade to a 5 star
their laboratories by focusing on their staff   students, as well as those looking at          Green Star rated building.
and supporting potential collaboration. In      doing similar projects. Many projects
designating their new laboratories, they        also put money and space aside for
located different disciplines in an open        community and public art projects; this
plan layout around a central atrium. This
                                                shows commitment to the community
created what Zee Upton describes as ‘an
                                                and provides a visual representation of
opportunity to do things differently … the
fact that we can see each other all the time,   the project’s commitment. Finally, the
passing each other in the corridors and in      impact of any proposed changes to
the lifts, in the open spaces, people drop in   landscaping, external façades, shading,
to chat and attend each others’ seminars’.      noise and wind that may affect the local
In this way, the building’s design supports     context and community should
increased collaboration and innovation.         be considered.

                                                Working with tenants                           Harry Hullin outside 500 Collins Street
                                                Crucial in engaging the tenants                (Erica Lauthier)

                                                in operational and refurbishment
                                                ESD activities is inclusion and clear
                                                communication. Consultation with              Catering for building users
                                                tenants should be carried out before          There are two main elements to catering
                                                major maintenance or refurbishment            for building users. The first is meeting the
                                                works, both to get their input into the       Disability Discrimination Act (DDA) when
                                                activities and to ensure they know when       planning changes to building layouts,
                                                disruptions will take place.                  spaces and access. The second is
Programme leader Zee Upton working                                                            meeting the needs of the building users
with students in the tissue repair and
regeneration laboratory in the School
                                                                                              through information provision, response
of Life Sciences, Brisbane                                                                    to complaints, and supporting their own
(Zee Upton)                                                                                   ESD objectives. Tied into both of these
                                                                                              are the concepts of health and safety.


Fitting within the context
                                                Mini case study — 30 The Bond                  Social sustainability —TEFMA
Managing how buildings fit in with their
immediate site context (visually, physically    The results — Social                           Cultural heritage
and socially) is crucial, especially with                                                        The Queensland Environmental Protection
                                                •	 Building	occupants	extensively	consulted	     Agency (EPA) highlights that ‘cultural
regards to heritage issues. Any changes            throughout the design and construction        heritage significance’ of a place or object
to a building’s external appearance will           phases                                        includes its aesthetic, architectural,
have an effect on its aesthetics and                                                             historical, scientific, social or technological
                                                •	 Post-occupancy	surveys	and	actions
can have implications for its value as a                                                         significance to the present, past and
historical representation of architecture       •	 Local	residents	group	formed	to	work	         future generations. Cultural heritage
at a particular period. The integration            with Bovis Lend Lease throughout              places are protected under various pieces
of ESD within heritage requirements                construction and move-in                      of legislation. Lodge a permit with the
means sensitivity in the design of façade       •	 Ongoing	youth	mentoring	programme             relevant authority before commencing any
interventions, and the addition of floors,                                                       activities that could impact on the cultural
plant and so forth.                             •	 60-place	childcare	centre	on	the	ground	      significance of a heritage-listed facility.
                                                                                                A part of implementing sustainability
                                                                                                is creating a better workplace.
                                               ApproAchEs to intEgrAting                        This begins in the planning process
                                               sociAl sustAinAbility                            by practising good design principles
                                                                                                for natural ventilation and lighting,
                                               As the aim of social sustainability is           and minimising toxic emissions in the
                                               to foster equity, inclusion, access and          workplace.
                                               quality of life, actions by the owners,          A cleaner indoor environment leads
                                               management and tenants need to                   to increased productivity.
                                               facilitate this. This requires a combination     There should be an emphasis on
                                               of education of each stakeholder and             continual improvement and knowledge
                                               consideration of social sustainability           improvement.
                                               issues in decisions made during the             Human rights
                                               operational phase of the building.                Incorporating human rights into facilities
                                                                                                 management is as easy as being aware
                                               For the owner, there needs to be a clear          of the consequences of your choices.
                                               commitment to the principles of social            In the life cycle of the products that you
                                               sustainability, with a translation of what        choose, are human rights being exploited
                                               this means for their portfolio. For the           to supply a ‘cheaper’ end product or
                                               building manager, integrating social              does any part of a product life cycle have
40 Albert Road, solar pergola and social
space with BBQ
                                               sustainability is centred on the tenants in       negative environmental impacts that
(Erica Lauthier)                               the building, supporting their needs and          ultimately affect the lives of others?
                                               keeping them informed. For the tenant,            Always consider the real cost of the
                                               the responsibility lies in being aware            product that you use.
hoW do you mEAsurE it?
                                               of the best ways to function within the         Community involvement
To measure the social sustainability of        building, setting plans for achieving social    and development
those in the building, an occupancy or         sustainability, and ensuring the plans are        Include the community in the decision
satisfaction survey can be used. Most          monitored, reported and reviewed.                 making process in all stages of facilities
of these surveys also look at IEQ and                                                            management. Consider and include
employee self-perception of their working      The Tertiary Education Facilities                 aspects in the project that will enhance
environment. The Global Reporting              Management Association has a guide for            community development.
Initiative (GRI) has specific indicators       incorporating sustainability into facilities
                                                                                               Stakeholder inclusion
for social sustainability, including           management, which includes a succinct             Include stakeholders in every stage
labour practices (a number of core             description of what this means for                of the facilities management cycle.
and additional reporting criteria — 12),       facilities and building managers. Under           Stakeholders include all of those who will
human rights (7), society (8), and product     social responsibility, they discuss how to        have input into the project such as the
responsibility (9). Several international      ensure the integration of cultural heritage,      client, planners, architects, designers,
                                               workplace, human rights, community                engineers, environmental managers,
and national organisations offer survey
                                               development and stakeholder inclusion.            energy specialists, services managers,
services either online or face to face
                                                                                                 operations and maintenance managers,
(these get a higher response rate but are                                                        compliance agencies and government
more costly) — see the resources section                                                         departments, plus those who will
below.                                                                                           be affected by the outcomes of the
                                                                                                 project, such as community members
                                                                                                 and building users. Communicate
                                                                                                 sustainability aspects through all areas
                                                                                                 of facilities management.
                                                                                               Source: Tertiary Education Facilities Management
                                                                                               Association — A guide to incorporating sustainability into
                                                                                               facilities management.

58                                             ESD OPERATIONS GUIDE for owners, managers and tenants

summAry of opportunitiEs
•	 Maintenance	—	ensure	quick	
   responses to complaints.
•	 Management	—	instigate	a	plan	of	
   communication with tenants and
   community, develop a corporate
   responsibility plan, and develop a
   communication/training/building guide
   for tenants.
•	 Level	1	refurbishment	—	look	for	
   opportunities to improve access,
   reference heritage and culture, and
   include input from tenants and the
   public into proposals.
•	 Level	2	refurbishment	—	look	for	
   opportunities to improve access,
   reference heritage and culture, and
   include input from tenants and the
   public into proposals. Ask whether it
   is possible to increase public space or
   improve external spaces, and aim to
   respect heritage aspects.

                                             QV1, Perth
                                             (CB Richard Ellis Pty Ltd)



Minimising transport impact

Why is it importAnt?                                                                                      ApproAchEs to minimisAtion
                                                         Example of transport survey
Transport to and from work, and within                   questions:                                       Tenants
the working day, can have a significant
impact on the environment. Vehicles                      •	 Where	do	you	live?	(home	suburb	and	          Tenants should ensure that contracts with
                                                            postcode)                                     travel service providers — such as travel
produce emissions such as carbon
dioxide (CO2), particulates and nitrous                  •		How	did	you	travel	to	work	during	the	last	   agents — deliver the data needed for
oxides (NOx). Public transport also                         week (tick one box for each day?              reporting and achieving ESD performance
produces impacts, but these are reduced                                                                   objectives. Further, these should form
                                                         •	 Do	you	have	a	car	included	as	part	of	
because they are divided among a                                                                          part of transport plans, as outlined below.
                                                            your salary package?
greater number of passengers, whereas
the average number of people travelling                  •	 Do	you	have	parking	included	as	part	of	      Transport plan
                                                            your salary package?                          A transport plan should be implemented
in a car is 1.15.43 These emissions
contribute to climate change, smog                       •	 What	time	do	you	usually	arrive	at	work?      as part of the building management
and respiratory problems. Further                                                                         system to minimise transport-related
                                                         •	 If	you	drive	to	work,	what	kind	of	car	do	
issues that result from transport are                                                                     impacts. A transport plan is a structured
                                                            you drive?
congestion and the associated frustration                                                                 method for planning for and managing
with congestion. Air travel also has                     The TravelSmart website has tools to help        the transport needs of staff and visitors.
                                                         in this process, including a business case       These needs include:
a significant environmental impact,
                                                         tool, a planning guide and specific tools for
including emissions of greenhouse                                                                         •	 staff	commuter	journeys
                                                         supporting walking and cycling activities.
                                                         Source:               •	 customer	and	visitor	travel	to	
                                                                                                             the office or events
hoW you mEAsurE it?
The main way to include transport
                                                        Tip: Log all public transport                     •	 staff	travel	whilst	at	work
information in the operational                          providers and sell/give tickets to                •	 purchase	of	company	vehicles.
management of buildings is to collect
                                                        staff at cost, accompanied by
relevant data on travel caused by the                                                                     Commitment and aims
activities carried out in the building                  transit information in building user
                                                                                                          The aim of the travel plan is to reduce the
(i.e. travel to and from work, transport                guides and organisational internet                environmental impact of travel through
of materials to the building, and travel
                                                        sites.                                            targeted programmes of encouragement
because of the activities in the building).
                                                                                                          and education, which allow for wiser
Though the building owner can consider                  Other sources of information are the              and more considered decisions about
transport when planning the building (by                company car logs and corporate fuel card          travelling options. As such, travel plans
providing bicycle facilities, smaller car               reports. Also, travel providers (such as          should include measures to:
parks, proximity to public transport etc.),             travel agents) can often provide summary
and the building manager can ensure that                reports as part of their services on              •	 reduce	flights
transport of materials to and from the                  distances travelled and so forth.                 •	 reduce	car	use	(by	reducing	the	
building are optimised, the main source
                                                                                                             number of trips, by reducing the length
of impact is from the tenants.
                                                         Mini case study — UK transport                      of trips, by increasing the number
                                                         reduction targets                                   of people using one car through
                                                         •	 Introduce	a	travel	plan	which	identifies	        car pooling, and by providing viable
Tenants can manage transport impacts                                                                         alternatives)
                                                            a strategy to reduce overall pollution
by identifying baseline travel patterns (by
                                                            emissions relating to transport due to
conducting a survey), and by planning                                                                     •	 support	alternative	transport	options	
                                                            commuting and travel to meetings
for minimisation opportunities, putting                                                                      (through incentives such as salary
these in place, and conducting an annual                 •	 Target	of	15%	reduction	in	car	use	in	           sacrifice, yearly public transport tickets
review. Various schemes have already                        the initial year of the transport plan           and annual bicycle servicing)
developed proformas and methods to                       •	 Provide	showers,	change	rooms	and	            •	 purchase	energy	efficient	low	emission	
support this activity, such as TravelSmart.                 lockers                                          vehicles for company use and to
                                                         •	 Provide	these	for	5-10%	of	staff                 provide incentives for purchase of
                                                                                                             low emission high efficiency vehicles
                                                         •	 Cut	transport	emissions	by	5%	each	
                                                            year or 25% over 4 years or 50% over          •	 encourage	practices	that	reduce	
                                                            10 years                                         the need to travel, such as video 

                                                         Source: BCO guide to environmental management       conferencing.

 Public Transport Users Association,

myths/carpool.shtml, Accessed: 8/5/2007.

60                                                      ESD OPERATIONS GUIDE for owners, managers and tenants

Carbon offset                                    efficient than standard cars), replacing      Fuel substitution
An increasingly popular method for               high usage cars with efficient small cars,    Below is an outline of options for fuel
minimising the impact of travel is to            and ensuring that the fuels used produce      substitution.
use carbon offsets. This means that,             the least impact (see below). Recycled
                                                 and re-refined oils can also be specified.    •	 Diesel	is	a	good	choice,	if	vehicles	
depending on the vehicle, distance and
                                                                                                  are well maintained, because it is 

fuel type, the amount of greenhouse gas          Day-to-day travel by individuals in cars         less greenhouse gas intensive than 

emissions is calculated and then offset          can also be reduced by supporting car            standard fuel.

by the planting of trees, investment in          pooling, integrating green travel plans and
renewable energy generation, or other            providing adequate numbers of cycling         •	 LPG	is	also	less	greenhouse	gas	
robust abatement measures. An example            facilities. If cycling is to be encouraged,      intensive than standard fuel.
of this type of opportunity is the BP            the building design needs to include          •	 Biofuels	are	made	from	renewable	
Global Choices scheme that allows                enough space for secure bicycle parking,         sources, such as vegetable oils and
businesses to offset the greenhouse              clothes storage, changing facilities and         plant starches. However, caution needs
emissions related to their fuel use.             showers (providing for 5% of the staff           to be taken that the production of these
                                                 is common practice). In addition, by             is not energy intensive or causing other
Fleet management                                 choosing local materials, the transport          environmental impacts.
If travel cannot be avoided, then viable         impact of bringing these materials to the
fleet management alternatives include the        building will be minimised, during both its   Green vehicle Guide ratings
use of hybrid cars (which are much more          construction and operational phases.          This is a rating developed by the
                                                                                               Australian Government to rate new
                                                                                               Australian vehicles, based on greenhouse
                                                                                               and air pollution emissions. The rating
                                                                                               is calculated using data provided by
                                                                                               manufacturers from testing the vehicle
                                                                                               against Australian standards.

                                                                                               building managers
                                                                                               Building managers can support more
                                                                                               environmentally friendly travel to work
                                                                                               by providing amenity for public transport
                                                                                               users, walkers and bike riders by
                                                                                               providing well lit, clean, safe facilities and
                                                                                               secure showers, lockers and bike parking

Bicycle storage, 50 Lonsdale Street, Melbourne
(Erica Lauthier)



At the end of March 2006, 42% of                   Education                                   summAry of opportunitiEs
Centrelink’s pool vehicle fleet had                Education should be provided at all         •	 Maintenance	—	ensure	cycling	facilities	
                                                   levels of the company. Understanding           are adequate, clean and secure.
a GVG rating of 10.5 or higher,                    the impact of transport is the first step
                                                   in integrating and working towards          •	 Management	—	instigate	a	travel	plan,	
which significantly exceeds the                                                                   set targets for emission reductions, and
                                                   its minimisation. The implementation
Australian Government target for                   of the transport plan will also need to        offset impacts.
28% of agency vehicles to have a                   be explained and any processes and          •	 Level	1	refurbishment	—	plan	for	
                                                   opportunities that have been created           the integration of extra bicycle
GVG rating of 10.5 or higher. This                 through the plan should be outlined.           parking spaces and lockers. Plan for
is an increase of approximately                                                                   spaces where effective video and
                                                   Alternatives to face-to-face                   teleconferencing can occur.
50% since 30 June 2005 where                       meetings
28.7% of vehicles achieved this                                                                •	 Level	2	refurbishment	—	as	above,	
                                                   Many companies are now avoiding the
                                                                                                  but increase the number of showers
GVG rating.                                        time consuming and costly practice
                                                                                                  if appropriate. Provide safe, well lit
                                                   of personally attending interstate or
                                                                                                  access to public transport. Plan for
                                                   international meetings by using tele-
                                                                                                  spaces where effective video and
                                                   and video conferencing.
                                                                                                  teleconferencing can occur.
                                                                                               •	 Tenants	—	develop	a	travel	
                                                                                                  management plan and provide
                                                                                                  incentives for alternative means
                                                                                                  of getting to work. Integrate data
                                                                                                  supporting ESD plans into travel
                                                                                                  provider contracts. Provide education
                                                                                                  and training on alternative ways
                                                                                                  of meeting (e.g. how to run a
                                                                                                  teleconference, etc.).

                                                                                                Calculating air travel distance
                                                                                                and associated emissions
                                                                                                Government TravelSmart website
                                                                                                — tool kit for employers
                                                                                                Working 9-to-5 on climate change: an office
                                                                                                guide world
                                                                                                Resources Institute
                                                                                                Green vehicle guide

Electric bicycle, Lincolne Scott Mid Town Plaza, ISPT, Melbourne
(Erica Lauthier)

62                                                 ESD OPERATIONS GUIDE for owners, managers and tenants

Minimising ozone layer depletion

Why is it importAnt                          manufacture, and are scheduled to be              3. three is to estimate leakage of
The ozone layer is a layer of ozone          phased out by 2020.                                  0.09kg/m2 for water cooled systems
(O3) situated far above the build up of                                                           or 0.01kg/m2 for air cooled systems.
                                             Many ozone depleting substances
greenhouse gases that protects the           were replaced by hydrofluorocarbons               Minimising emissions that affect the
earth from harmful (to humans) solar         (HFCs) and other fluorocarbon-based               ozone layer can be done by choosing
radiation. Research has shown a thinning     chemicals. While these substances do              non-ozone depleting refrigerants (such
of the ozone layer all over the globe.       not cause ozone depletion if released to          as HFCs, water, air, CO2, ammonia and
However due to specific meteorological       the atmosphere, most still have a high            hydrocarbons) and ensuring there are
conditions the most dramatic depletion       global warming potential (GWP). Carbon            systems in place to minimise or eliminate
is over Antarctica. Its absence results      dioxide, as the base greenhouse gas, is           refrigerant leaks.44
in increased exposure to solar radiation     taken to have a GWP of 1, and all other
and its detrimental effects – such as skin                                                     Refrigerant leaks can be up to 15%
                                             substances are assigned a value relative
cancer, cataracts, disruption of normal                                                        of the volume of refrigerants per year.
                                             to this. HFC-134a, a common refrigerant
functions of micro-organisms, and                                                              This not only affects the ozone layer, but
                                             gas, has a GWP of 1300, and some
melting of the ice caps.                                                                       also adds to the greenhouse effect. The
                                             HFCs can have GWP values as high as
                                                                                               global warming caused by cooling system
Chlorofluorocarbons (CFCs), halons,          3900.
                                                                                               refrigerant leakage can be as much as
methyl chloroform, carbon tetrachloride,     HFCs fall under the broader category              that caused by the electricity consumed
HCFCs, hydrobromofluorocarbons and           of ‘synthetic greenhouse gases’, the              by the cooling plant.
methyl bromide are responsible for the       import and use of which is governed in
ozone layer depletion. The impact on the                                                       Direct emissions of synthetic greenhouse
                                             Australia by the Ozone Protection and
ozone layer is measured by the Ozone                                                           gases in Australia (of which fluorocarbons
                                             Synthetic Greenhouse Gas Management
Depletion Potential with CFC-11 set as                                                         are the major component) are estimated
                                             Act 1989. The Act requires all importers
one and all other gasses given a relative                                                      to comprise around 1% of total Australian
                                             of synthetic greenhouse gases to hold an
value. Ozone depleting substances used                                                         greenhouse emissions.
                                             authorisation and report on the amount
in buildings include chemical refrigerants   of gas they import. It also requires              As suggested in the NAB case study
used in air-conditioning systems and         anyone who handles these gases to hold            below, the most effective measure that
fridges, and expanded materials such         an appropriate Australian Refrigeration           can be taken immediately to reduce the
as polystyrene.                              Council license (see            emission of ozone depleting substances
Australian Government buildings’                                                               and synthetic greenhouse gases is to
                                             The majority of refrigeration and
responsibility to reduce, and where                                                            ensure that an effective preventative
                                             refrigerative air conditioning equipment
possible eliminate use of ozone depleting                                                      maintenance program is put in place
                                             in use in Australia today contains a
substances, is invoked because Australia                                                       for all equipment containing these
                                             fluorocarbon refrigerant (HCFC or HFC,
is a signatory to the Montreal Protocol on                                                     substances.
                                             thought some small numbers of CFC
substances that Deplete the Ozone Layer.     units are still in operation) to facilitate the   In the case of refrigeration and air
The manufacture, import, and export          cooling process.                                  conditioning equipment, this maintenance
of CFCs, halon, methyl chloroform and                                                          should be carried out by technicians
carbon tetrachloride has been controlled                                                       licensed under the Ozone Protection and
                                             hoW you mEAsurE it
in Australia since 1989. These activities                                                      Synthetic Greenhouse Gas Management
were banned for halon from 31 December       The information required for reporting on
                                                                                               Act 1989. The Australian Refrigeration
1992, one year ahead of the Montreal         performance in reducing the impact on
                                                                                               Council (ARC) is responsible for issuing
Protocol requirements. For the other         the ozone layer and direct greenhouse
                                                                                               these licenses and its website (www.
chemicals, these activities have been        gas emissions is the total amounts of
                                                                                      provides a search facility to
banned since 1 January 1996, except          refrigerants used (by substance, as
                                                                                               find licensed parties.
for a small range of essential uses.         each substance has different ODP/GWP
                                             values) with an estimate of the leakage.          It should be noted that the practice of
Australia banned importation and             The table below shows that data to be             ‘topping up’ the refrigerant gas in a
manufacture of CFCs from 31 December         collected and the most appropriate form           refrigeration or air conditioning system
1995. HCFCs are ozone depleting, but         for reporting. Suggested ways to collect          is not recommended – usually, if a
have a much lower ozone depletion            data are:                                         system requires a ‘top up’ of gas, it is
potential than CFCs, and are considered                                                        an indication that there is a leak in the
a transitional chemical to assist in         1. one is to keep a log of refrigerant
                                                                                               system. In these cases, all refrigerant
the phasing out of CFCs. They are               movements
                                                                                               should be evacuated from the system into
commonly used as refrigerants, solvents,     2. two is to use manufacturer’s specs on
and blowing agents for plastic foam             chillers and estimate 15% leakage of
                                                                                                Green Star — Office Design v2 Emissions Em-1 ‘Refrigerant
                                                refrigerants                                   ODP’ and Emi-2 ‘Refrigerant GWP’,



a safe storage container, and the leak(s)
should be located and repaired before the                 Mini case study – NAB                           Resources
refrigerant is returned to the system.                    sustainability report
                                                                                                          Ozone Layer Depletion Montreal Protocol
Note that while this is a good                            ‘During 2005, in the UK and Australia,­
                                                          we have improved our management of              Protocol/Montreal-Protocol2000.shtml
environmental practice, there are
                                                          ozone depleting substances (ODS) that are
also other reasons behind it – some                                                                       Department of the Environment, Water,
                                                          associated with refrigerants in the cooling
refrigerants contain blends of different                  systems we use. These substances are
                                                                                                          Heritage and the Arts www.environment.
gases, and it can be impossible to                                                              
                                                          found in small volume equipment such as
determine how much of each component                      water chillers or domestic refrigerators or     US EPA
gas has leaked and hence the correct                      in large chillers making up part of building    a list of class 1 ozone depleting substances
mixture in a “top up” situation. Refrigerant              cooling systems.
gas that is unusable should be returned                   In Australia, we developed an inventory of
for disposal.                                             ODS and we have estimated that around           html
In the middle to long term, plans should                  7724 kg of ODS are contained within our
                                                          cooling and refrigeration equipment. We         Bureau of Meteorology
be made to replace these systems with                                                           
                                                          do not currently have data on recharge
ones using less harmful refrigerants                                                                      Teachers/ozanim/ozoanim.shtml
                                                          volumes to allow us to estimate the
                                                          potential contribution to greenhouse            provides an animation on the chemistry
Green Star – Office Design v2 specifies
                                                          emissions from this source. However,            behind ozone layer depletion
that to achieve the relevant credits,
refrigerants need to have an Ozone                        we are now planning a replacement               Standards Australia - (HB 40.1-2001):
                                                          and phase out program for refrigerant           Appendix 3 & 4 summarise OPD potential
Depleting Potential (ODP) of zero and
                                                          gases with the highest global warming           for most common types of refrigerants
a Global Warming Potential (GWP) of                       potential. In the UK, we undertook    
ten or less45. At the time of writing,                    phased replacement of some refrigeration
no fluorocarbon refrigerant could                         and cooling equipment, which saw the            AIRAH Refrigerant Selection Guide 2003
meet these criteria, meaning ‘natural’                    reduction in our use of ozone depleting
refrigerants such as ammonia, carbon                      substances. We also expanded our                RSG2003.pdf
dioxide or hydrocarbons were the only                     preventative maintenance program to help
                                                                                                          DECC – briefing on refrigerant impact on
alternative. Use of these refrigerants in                 early detection of refrigerant gas leaks.’
                                                                                                          ozone for building owners
air conditioning applications in particular               Source:,,76555,00.html
is limited at the time of writing. While
the use of these refrigerants in an
air conditioning system is technically
feasible, careful consideration would need
to be given to both occupational health                  summAry of opportunitiEs                        •	 Level	1	refurbishment	–	as	above
and safety concerns: ammonia carries
                                                         •	 Maintenance	–	ensure	preventative	           •	 Level	2	refurbishment	–	if	replacing	
a B2 (toxic, and medium flammability)
                                                            maintenance programs are put in                 plant – look for effective refrigerant
safety classification and hydrocarbons
                                                            place, using ARC licensed technicians,          systems – where there is automatic
carry an A3 (high flammability) safety
                                                            and that the practice of ‘topping up’ is        leak detection and collection to
classification. Consideration should also
                                                            discouraged.                                    minimise any emissions to the
be given to the projected energy use of
any replacement system.                                  •	 Management	–	plan,	monitor	and	                 atmosphere.
                                                            evaluate performance of refrigerants, 

                                                            and ensure all systems have been 

                                                            switched over to zero ODP and less 

                                                            than 10 GWP in the next 10 years.

                                                         HFCs are not genuinely ozone friendly. The production of
                                                         HFCs uses the very same halogenated CFCs and HCFCs,
                                                         which they were intended to replace, as emissions during the
                                                         manufacturing process are inevitable.

  Green Star — Office Design v2 Emissions credits Em-1
‘Refrigerant ODP’,

64                                                       ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                     Case studies

1. Case studies
Medicare – operational management
Medicare Australia plays a vital role in the   •	 inclusion	of	whole-of-life	cycle	        impact as well as indoor plants to absorb
Australian health and human services              assessment and environmental             the effect of volatile organic compound
sectors. It has in excess of 5000 staff           provisions into the procurement          emissions and improve staff amenity.
nation-wide and operates a network                process, such as the use of certified
of 238 Medicare Offices as well as                environmental labelling meeting ISO      OPPORTUNITY 2 — ENERGY
two contact centres across Australia.             14000 series standards                   MINIMISATION
Medicare Australia also has offices in                                                     Medicare Australia is currently achieving
                                               •	 enhanced	business	planning	
each capital city and a head office in                                                     the 2011–12 energy targets set in the
                                                  processes to mitigate risk of adverse
Canberra.                                                                                  2006 Energy Efficiency Government
                                                  environmental impacts
                                                                                           Operations (EEGO) policy. This is
Medicare Australia adopts an
                                               •	 inclusion	of	environmental	impact	       as a result of using energy-efficient
environmental management approach
                                                  statements into costing templates for    technologies and maximising occupancy
that seeks to improve environmental
                                                  new business proposals.                  density, based on a three dimensional
performance as well as addresses
                                                                                           fit-out design approach.
adverse environmental impacts from             Medicare Australia has developed a
its business operations. To achieve            series of initiatives surrounding energy,   These efficiencies have been achieved in
these outcomes over a large distributed        water, paper and waste management.          a business environment where Medicare
property network, Medicare Australia           These initiatives are performance           Australia has extended its branch office
has introduced a comprehensive                 managed (or governed) under Medicare        trading hours to late night shopping and
environmental policy, which is                 Australia’s corporate scorecard through     Saturday morning trading. Medicare
strongly supported by the executive            environmental key performance indicators    Australia strives for continuous energy
management. The policy is used as an           and targets.                                improvements in its 257-site property
instrument to instigate structural change                                                  network, with independent energy audits
through setting standards for internal                                                     scheduled for 2007. In addition, to offset
processes and external interactions. The                                                   greenhouse gas emissions, Medicare
environmental policy forms the basis for                                                   Australia purchases 2.5% green energy
an evolved Environmental Management                                                        with an expected increase to 8% by
System (EMS) compliant to international                                                    January 2008.
standards – ISO EMS 14001.

Environmental management
system (EMS)
A key requirement of the EMS framework
is raising environmental awareness
among staff, as well as among individuals
and companies that directly or indirectly
contract to the organisation. Medicare
Australia has established the following
processes to meet this requirement:
                                                                                           Checking a HVAC system
•	 fully	interactive	e-learning	modules	                                                   (Russell Kerrison)

   on energy, paper, water and waste
   recycling, which are deployed on the                                                    The total energy consumption for
   corporate intranet site to raise staff                                                  Medicare Australia during 2005–06 is
   awareness                                                                               78 876 gigajoules, which translates
                                                                                           to 18 095 tonnes of gross CO2-e
•	 an	intranet	site	dedicated	to	
                                                                                           greenhouse gas emissions or 3.36
   environmental information, initiatives,     Les Cruikshank audits a water system
                                               (Russell Kerrison)                          tonnes per person. In order to minimise
   targets and general performance
                                                                                           greenhouse gas emissions, Medicare
•	 a	nation-wide	network	of		                                                              Australia has joined the Australian
   environmental coordinators to attain        OPPORTUNITY 1 — OPTIMISING INDOOR           Greenhouse Office Greenhouse
   consistency and standardisation of          ENvIRONMENT QUALITY                         Challenge Plus programme. As part of
   environmental practices                     Medicare Australia uses its environmental   the programme, Medicare Australia will
                                               policy as a management mechanism to         undertake an independent verification to
•	 induction	training	on	environmental	
                                               optimise indoor environmental quality.      quality assure energy data, and will take
   awareness for new employees
                                               It specifies the use of products and        an active role in seeking new energy-
                                               materials that have low environmental       efficient technologies and/or offsets.

Case studies

                                                                                           OPPORTUNITY 5 — MINIMISING WASTE
                                                                                           Medicare Australia consumes 33 million
                                                                                           sheets or 174 tonnes of internal copy
                                                                                           paper per annum. This equates to 6,234
                                                                                           sheets per person per annum.
                                                                                           In order to improve environmental
                                                                                           performance, Medicare Australia has
                                                                                           introduced 50% recycled copy paper for
                                                                                           internal printers, faxes and photocopiers.
                                                                                           This initiative is expected to save 2.7
Checking a lighting system                   Installing flow restrictor
(Russell Kerrison)                           (Russell Kerrison)
                                                                                           million litres of water, 1120 trees, 353 354
                                                                                           kilowatt hours, 215 barrels of oil, 345m3
                                                                                           of landfill, and 353 tonnes of greenhouse
OPPORTUNITY 3 — WATER                        During 2006, the total estimated water        gas emissions.
CONSERvATION                                 usage for Medicare Australia was 54
                                                                                           On a consumption level, internal copy
As the drought continues in most parts of    million litres. This translates to water
                                                                                           paper has steadily grown over the past
Australia, local governments have applied    intensity consumption of 0.72 kl/m2 per
                                                                                           few years due to an increase in business
harsher water restrictions to minimise       annum. On a per person consumption
                                                                                           activity, as well as to the rapid movement
water consumption. Medicare Australia        level, the average water consumption
                                                                                           to high-speed printer technology and
staff and property owners have assisted      during the year was 10 031 litres per
                                                                                           competitive pricing structures of high-
in this process by complying with water      person per annum. Of this amount, air
                                                                                           speed printers. To mitigate this issue,
restrictions and developing initiatives to   conditioning represents 4831 litres per
                                                                                           Medicare Australia has undertaken an
further address water consumption.           person per annum and the remaining
                                                                                           extensive staff education programme
                                             5200 litres per person per annum is for
                                                                                           to reduce consumption through re-
                                             drinking, showers, toilets, cleaning, hand
                                                                                           promoting double-sided printing and
                                             basin, kitchen and garden use. Medicare
                                                                                           introducing a tighter printer policy. It is
                                             Australia expects personal consumption
                                                                                           expected that internal copy paper will
                                             (net of air conditioning) to decline by
                                                                                           reduce by 15% by January 2008 as a
                                             10% over 2007 through the above
                                                                                           result of these initiatives.
                                             initiatives. However, if water restrictions
                                             are lifted during the 2008 summer, water      On an external level, Medicare Australia
                                             consumption for garden use is likely to       has achieved significant environmental
Water minimisation signage for staff         increase marginally.                          benefits with the introduction of
(Russell Kerrison)
                                                                                           e-claiming and the associated declines
                                             OPPORTUNITY 4 — MATERIALS CHOICE              in paper-based claiming channels.
Low flow taps and showers and high           Medicare Australia selects products           Benefits have also been achieved through
pressure flush systems have been             and materials based on a standards            other projects, such as the ‘forms and
introduced into the larger Medicare          approach, where fit for purpose and cost      envelopes consolidation strategy’.
Australia property sites. New technologies   effective. These requirements are outlined    Combined, these initiatives are expected
and innovative designs to conserve water     in Medicare Australia’s environmental         to deliver a saving equivalent to 5 million
will be introduced into existing and new     policy, where all products and materials      A4 sheets or 25 tonnes of virgin fibre
building designs.                            are procured on a life-cycle basis – aiming   paper in 2007. Over the coming years,
                                             to meet environmental labelling standards     Medicare Australia will be seeking to
                                             under the ISO 14020 series. In addition,      introduce recycled paper for external
                                             Green Star principles are applied during      business arrangements, providing that
                                             the planning and design phases for new        the paper is fit for purpose and cost-
                                             building refurbishments.                      effective.

Mick Dawes checks the flow rate
(Russell Kerrison)

66                                           ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                      Case studies

It is Medicare Australia’s aim to maximise                                                   OPPORTUNITY 7 — MINIMISING
recycling streams and to minimise                                                            TRANSPORT IMPACT
waste to landfill. Key to this objective is                                                  Medicare Australia has 156 fleet motor
providing easy accessibility to recycling                                                    vehicles, including both pool vehicles
bins and improved signage. In addition,                                                      and executive vehicles. Of these, 30%
the adverse environmental impacts                                                            have a green vehicle guide rating of 10.5
of landfill and the benefits of recycling                                                    or above, with an expected increase
(waste to resources) are promoted to                                                         to 39% by December 2007 and 57%
staff. Medicare Australia will continue to                                                   by December 2008. Greenhouse gas
develop new recycling streams in order                                                       emissions produced from all fleet
to divert landfill waste.                                                                    vehicles have been offset through an
                                                                                             offset subscription scheme. Medicare
                                                                                             Australia also reports on motor vehicle
                                                                                             fuel consumption and E10 usage in its
                                                                                             corporate scorecard.

                                              Waste minimisation signage for staff           Further information
                                              (Russell Kerrison)                             The material in this case study has been
                                                                                             adapted from the Medicare website:
                                              OPPORTUNITY 6 — SOCIAL               
                                              SUSTAINAbILITY                                 about/governance/emu.jsp
                                              Given its national presence and
                                              responsibilities, Medicare Australia has
                                              sought to position itself as an employer
                                              of choice across Australia. Fundamental
Teresa Kidson recycling corks                 to this outcome is fostering a culture
(Russell Kerrison)
                                              that emphasises social harmony, equity,
                                              respect, teamwork and values its people.
Medicare Australia sends 33 kg of             In the 2006 staff survey, 70% of staff
waste per person per annum to landfill        stated they were satisfied or very satisfied
— net of office refurbishments. With the      with working for Medicare Australia.
introduction of recycling standardisation     These corporate values are extended
practices across the 257-site property        to its customers as well as the diverse
network, as well as improved recycling        network of Australian local communities,
infrastructure and signage, and the           and are measured carefully. For example,
development of new recycling streams,         Medicare Australia received a 96% public
Medicare Australia expects to reduce          satisfaction in its 2006 external market
personal landfill waste by 25% over 2007.     survey.

In addition, Medicare Australia has           Perhaps the most significant challenge
successfully introduced Medicare              to face Medicare Australia, in ensuring
Australia Reuse Stations (or MARS) into       its sustainability, is identifying the
communication centres, as a mechanism         capabilities required in its future
to re-use usable office supplies and          workforce. Intimately linked to this, are
equipment. Staff seeking office supplies      the additional challenges of recruiting
or equipment are encouraged to                people with these capabilities, and
investigate MARS before placing               developing existing staff, helping them
new orders.                                   to acquire those capabilities. With the
                                              ageing of the Australian population and
                                              workforce, the ongoing recruitment and
                                              staff development programs are crucial to
                                              maintain the high standards expected of
                                              the organisation.


Case studies

Centrelink – operational management

Centrelink is an Australian Government       Environmental management                        Environmental management plan
agency with more than 25 000 staff           system                                          and environmental performance
delivering welfare-related services and      Centrelink also implements and                  Implementation of Centrelink’s EMS
payments to the Australian community         maintains an EMS that meets ISO 14001           led to the development of a corporate
on behalf of 25 government agencies. Its     requirements and ensures that the               environmental management plan, which
customers total 6.5 million people (nearly   organisation:                                   created the framework for Centrelink’s
one-third of the Australian population)                                                      environmental performance. Centrelink’s
and include retired people, families, sole   •	 complies	with	all	relevant	environmental	
                                                                                             environmental performance at September
parents, people looking for work, people        legislation and regulations, and
                                                                                             2006 is shown below.
with disabilities, illnesses or injuries,       other initiatives to which Centrelink
carers, widows, primary producers,              subscribes
students, young people, Indigenous                                                           Centrelink environmental
                                             •	 incorporates	environmental	better	
peoples and people from diverse cultural                                                     performance (September 2006)
                                                practice into its core business plans
and linguistic backgrounds. Its aim is to       and management processes                     •	 7%	reduction	in	electricity	consumption	
serve Australia by supporting those in                                                          over the last two years
need and assisting people to become          •	 minimises	negative	impacts	it	may	have	
                                                on the environment, through efficient        •	 15%	reduction	in	fuel	fleet	consumption	
                                                use of resources, and reduction in              over the last two years

Environmental policy statement                  emissions and waste                          •	 7%	reduction	in	greenhouse	gas	
                                                                                                emissions over the last two years
Centrelink has a very large environmental    •	 develops	an	agency-wide	framework	
impact throughout Australia. It is a large      for setting and reviewing its                •	 Almost	30%	reduction	in	Centrelink	office	
consumer of materials and energy, and           environmental objectives and targets,           paper use in the last two years
manages sizeable physical resources.            which includes key environmental             •	 Introduced	greenhouse	gas	abatement	
Due to its size and geographical spread,        management and performance                      strategies to cut emissions by 50 000
it is in a strong position to influence         indicators against aspects of                   tonnes of CO2 over the next three years
environmental better practice and to            Centrelink’s operations                         (equivalent to taking 13 000 cars off the
demonstrate environmental stewardship                                                           road)
and social responsibility to the wider       •	 provides	regular	monitoring	and	
                                                reporting against these indicators           •	 900%	increase	in	Greenfleet	subscriptions	
community.                                                                                      in the 2005–06 financial year, resulting in
                                                to all staff
Centrelink’s environmental policy                                                               a ‘Centrelink-specific’ forest in Eddington,
statement says that:                         •	 incorporates	environmental	better	              Victoria, of 11 000 native trees planted by
                                                practice into all technological solutions,      Greenfleet
‘Centrelink will continually improve            and the fit-out and operation of             •	 42%	of	Centrelink’s	vehicles	have	a	
                                                accommodation                                   green vehicle guide rating of 10.5 or
its business performance and                                                                    higher in 2005–06 (exceeding the
                                             •	 works	closely	with	clients,	suppliers,	
conduct its operations in an                    local communities, and other interested
                                                                                                Australian Government target of 28%).
                                                                                                This represents a 50% increase in the
environmentally responsible                     parties to continually improve                  fleet’s overall performance compared to
                                                processes in environmental better               2004–05 results
manner, clearly reflecting a                    practice
                                                                                             •	 The	building	of	a	4.5	star	NABERS	Energy	
commitment to fostering the                  •	 fosters	the	initiation	and	ownership	           National Support Office headquarters
sustainable use of the Earth’s                  of environmental activities by all
                                                                                             •	 Almost	300	‘environmental	champions’	
                                                staff, thereby promoting a strong,
resources.’                                     environmentally aware business culture.
                                                                                                Centrelink-wide in the 2005–06 financial
                                                                                             •	 100%	of	new	PCs	with	flat	screens,	
                                                                                                reducing energy, raw materials and
                                                                                                hazardous materials usage.

Centrelink team with the 2006 ACT NOWaste
Award for leadership in government
(Source: Centrelink)

68                                           ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                      Case studies

Staff commitment                            Sustainable business processes                  or a saving of 37 000 gigajoules of energy
                                            In October 2005, Centrelink’s CEO               and 8500 tonnes of carbon dioxide over
Staff commitment is the most                                                                the last two years.
                                            issued an eco-efficient chief executive
critical element to ensuring                instruction (CEI). It directed staff to
                                            consider environmental impact and               ‘The majority of Centrelink’s
the success of environmental
                                            value for money in all procurements.            energy consumption and
programmes, the integration of              The CEI has been applied to major IT
                                            procurement activities and is being             greenhouse gas emissions are
environmental considerations into
                                            integrated into standard procurement            generated by tenant light and
resource management decisions,              operating procedures and environmental
                                            purchasing policy (currently under
                                                                                            power and fleet vehicle usage.
and, therefore, in improving
                                            development). Centrelink’s sustainable          Centrelink needs energy in order
environmental performance.                  business processes now include the
                                                                                            to operate effectively, however
Without staff support, many                 following:
                                                                                            through a series of energy
programmes would fail.                      •	 Centrelink’s	environmental	policy	is	
                                               included in the standard Centrelink          efficiency and greenhouse gas
Centrelink has established a number of
                                               Request for Tender proforma                  minimisation and abatement
strategies to build an environmentally
aware business culture. In particular,      •	 an	environmental	risk	management	            strategies we have managed
a set of environmental stewardship             tool has been integrated as standard
principles have been developed for             business practice into the corporate         to reduce our overall energy
staff, allowing them to apply a high           project planning process, to ensure that     consumption and significantly
level of environmental awareness               project managers assess and address
and responsibility within their work.          the environmental impacts of their           reduce our impact on the
These follow the principles as laid out        proposals                                    environment, created by the
in Centrelink’s environmental policy
                                            •	 environmental	initiatives	that	              energy we consume to do our
                                               complement the objectives and
To ensure awareness of the environmental       targets outlined in the environmental
stewardship principles, a corporate            management planning process are              Energy management and audit
environmental stewardship training video       incorporated in organisational business      programme
was developed in November 2005 and             plans where appropriate.                     Centrelink has developed an innovative
endorsed by the CEO. This video is                                                          energy management programme to
shown to new employees via employee         OPPORTUNITY 1 — OPTIMISING INDOOR               reduce energy consumption from office
induction programmes. During 2005–06,       ENvIRONMENT QUALITY                             light and power. Energy audits were
in-house environmental awareness            As part of their energy audits and              conducted in 203 offices to identify the
training was provided to over 400           upgrades, Centrelink has looked for             potential for cost efficient energy saving
employees.                                  opportunities to improve the indoor             upgrades within Centrelink offices,
                                            environment of their offices, aiming for        such as re-lamping inefficient lighting
Centrelink has developed a network of
                                            ‘a lighter, brighter working                    systems with high-energy efficient lamps
volunteer environmental ‘champions’
                                                                                            and implementing automatic timing
— staff members who take on the             environment for our staff with                  controls. Some of the recommended
responsibility to act as role models
                                            less computer glare’.                           upgrades have been implemented, with
for promoting and upholding the
                                                                                            an average reduction of 10% in electricity
environmental stewardship principles in
                                            OPPORTUNITY 2 — ENERGY                          consumption.
their local area, and who provide support
to local and national environmental                                                         Lights off campaigns
initiatives. The champions share best       Centrelink is the third largest greenhouse      ‘Lights off’ campaigns are another
environmental practice via an intranet-     gas producer within the Australian              efficient way of saving energy. By
based discussion forum, newsletters,        Government, due to the number of                encouraging staff to switch off lights
national teleconferences and an annual      employees, its activities and the size of its   when not in use, Centrelink has saved
Environmental Champion Coordinator          property portfolio.                             energy and reduced operating costs. For
conference.                                 Centrelink’s response has been to               example, in the Woden National Support
                                            become a member of the Greenhouse               Office, the implementation of energy
The environmental champions                 Challenge Plus Programme, to look at            conservation measures has resulted
                                            ways to reduce energy consumption               in an average reduction in electricity
are integral to getting Centrelink’s
                                            and combat climate change by reducing           consumption of 12%.
environmental messages out to               greenhouse gas emissions.                       Energy efficient appliances
the network.                                Centrelink has demonstrated a                   Centrelink purchases office appliances
                                            continual reduction in its overall energy       and equipment with energy star ratings.
                                            consumption and greenhouse gas                  This includes multi-functional devices,
                                            emissions, with a 7% reduction in both,         desktop computers and flat screen


Case studies

monitors (that are equipped with sleep            OPPORTUNITY 5 — MINIMISING WASTE                 Work mobile phones no longer in use are
modes for periods of non-use) and                 Centrelink encourages material efficiency,       either returned to the National Support
kitchen appliances.                               by both reducing the generation of waste         Office (where they can be re-used
                                                  at its source and by resource recovery           internally), are sent back to the supplier
Greenhouse gas emission abatement
                                                  (recycling).                                     (where they are recycled), or are recycled
                                                                                                   locally at mobile phone recyclers.
Centrelink has entered a new contract for         Recycling
the supply of 25% Green Balance energy            Tuggeranong Office Park has adopted a            Centrelink currently recycles all its
to 178 Centrelink sites. This arrangement         zero waste to landfill policy for all internal   fluorescent lamps from the energy
will result in approximately 42 000 tonnes        office redesign. The office park uses            conservation measures rollout
of greenhouse gas emissions being                 modular partition components for all             (approximately 20 000 old lamps will have
abated.                                           internal office construction. This allows for    been recycled through the first stages of
                                                  the components to be removed, placed             the programme).
Renewable energy
                                                  in storage and re-used when needed.
In addition to the Green Balance                                                                   Centrelink is aiming to minimise the
abatement programme, 8% of                        Waste audits                                     amount of packaging waste ending up
Centrelink’s energy in the ACT is                 During 2006, waste audits were                   at landfill by ensuring their suppliers are
produced from green power, as part of             undertaken at Tuggeranong Office Park            aware of their focus on minimising waste.
a new Australian Government supply                in NSO and in two sites within the office        For example, all new PCs purchased by
contract.                                         network, so that the core waste streams          Centrelink will be delivered in minimal
                                                  could be understood. The audits will be          packaging, which:
OPPORTUNITY 4 — MATERIALS CHOICE                  used to support the development and
                                                                                                   •	 uses	recyclable	and	re-usable	
One tonne of virgin office paper                  implementation of a new national waste
                                                                                                      packaging materials, such as paper
                                                  management strategy that will focus on
requires the equivalent of 24                     minimising waste to landfill and divert          •	 uses	other	shock-absorbing	materials,	
trees.                                            waste to recycling streams.                         not polystyrene

Since 2004, Centrelink has reduced its            A significant start has been made to             •	 labels	plastic	materials,	facilitating	
office paper purchases by almost 30%.             recycling Centrelink’s most prominent               separation for recycling.
This not only has environmental benefits          waste stream — paper. Paper is recycled
                                                  in all offices across Centrelink through         OPPORTUNITY 6 — SOCIAL
but also substantial financial benefits.
                                                  secure paper waste contracts and via             SUSTAINAbILITY
This result can be attributed to:                 the secure paper waste bins in all offices.      In line with the concept of corporate
•	 the	rollout	of	Windows	XP	operating	           In many cases, Centrelink staff have             social responsibility, Centrelink is in the
   system in mid-2004, which made 
               led by example, demonstrating good               process of developing and implementing
   double-sided printing the standard 
           environmental stewardship behaviour              the Environmental Management (EM)
   default setting for Centrelink’s PC 
          and social responsibility.                       Star Programme — a framework for
                                                                                        acknowledging the efforts of business
                                                  Recycling and re-use                             units that integrate Centrelink’s
•	 an	eco-efficient	office	consumables	           Cairns Call Centre recycles their                corporate environmental management
   programme being integrated into 
              aluminium cans. Money raised from this           plans into their unit business plans.
   business plans, which focused on 
             recycling is donated to the Royal Flying         Acknowledgement will occur through the
   paper reduction
                               Doctor Service.                                  allocation of ratings for ‘planning’ (1 star),
•	 various	local	initiatives	within	Centrelink	   In 2005, Centrelink’s Communication              ‘doing’ (2 stars), ‘sustaining’ (3 stars),
   offices to reduce paper consumption.           Division introduced an initiative to replace     ‘sharing’ (4 stars) and ‘leading’ (5 stars).
   For example, Maryborough Rural Call            plastic bags (which were being used              By joining the EM Star Programme,
   Centre staff re-use non-sensitive office       to deliver publications and products             business units receive a range of
   paper by making notebooks to be used           to customers during roadshows and                incentives, depending on their level of
   by call centre staff.                          exhibitions) with sturdy recycled paper          commitment to improved environmental
                                                  bags. Over half a million plastic bags had       performance. The incentives will range
Other initiatives aimed at increasing the         been used previously for this purpose and
use of recycled paper-based products                                                               from being listed on the EM website
                                                  were most likely ending up in landfill.          pages as a business unit committed
                                                  Toner cartridges are recycled through            to supporting improved environmental
•	 using	recycled	and	re-usable	envelopes	        arrangements with the equipment                  performance, to a special presentation
   in customer correspondence, allowing           suppliers and (if that is not possible)          at the annual Environmental Champion
   customers to re-use these resources            through the Planet Ark programme.                Coordinator conference and nomination
                                                                                                   for Centrelink or external awards.
•	 using	recycled	fibre	content	paper	            When desk phones are no longer
   in Centrelink’s printed information            required or are faulty, they are returned to
   products — 2.5% of customer                    the supplier where they are cleaned and
   brochures were printed on recycled             re-used, either as parts or as whole units.
   paper in 2005–06.

70                                                ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                             Case studies

OPPORTUNITY 7 — MINIMISING                     CASE STUDY OF A NEW CENTRELINk                   Energy efficient systems
TRANSPORT IMPACT                               bUILDING — GREENWAY PROJECT                      The building will incorporate the following
Reducing fuel consumption                      The Greenway project provides a good             features to ensure that it remains energy
Centrelink’s activities in this area have      example of Centrelink’s commitment to            efficient:
centred on reducing fleet size by              ecologically sustainable development.
                                                                                                •	 energy-efficient	fluorescent	lamps
approximately 10% in 2005–06, and
                                               In October 2005, development
the lease of vehicles with smaller engine                                                       •	 the	use	of	a	lighting	control	system	to	
                                               commenced on a 40 000 m2 4.5 star
sizes that are fuel efficient (not to exceed                                                       switch off the lights when rooms are
                                               NABERS Energy national headquarters
10.8 litres per 100 kilometres) and that                                                           unoccupied
                                               building in Tuggeranong, ACT.
have higher Green Vehicle Guide (GVG)
                                               Environmental considerations were at             •	 in-floor	hot/cold	water	air-conditioning	
ratings (rating levels of air pollution and
                                               the forefront of this project, and some             for the atrium floor space
greenhouse gases).
                                               of these are outlined below.
                                                                                                •	 the	design	of	the	office	floor	will	ensure	
At the end of March 2006, 42% of               Use of materials                                    that no office workstation will be further
                                               Most of the building is made from precast           than 12.5 metres from a natural light
Centrelink’s pool vehicle fleet had
                                               concrete panels. This process reduces               source
a GVG rating of 10.5 or higher,                the level of waste (especially to landfill)
                                                                                                •	 the	tying	of	rental	payments	to	the	
which significantly exceeds the                when compared to reinforced concrete
                                                                                                   achievement and maintenance of a 4.5
                                               formwork construction. Fit-out design
Australian Government target for                                                                   star NABERS Energy rating.
                                               is currently being addressed, taking
28% of agency vehicles to have a               materials with low toxicity into account.        In addition to all of the above, there are
                                                                                                arrangements in place with the landlord
GVG rating of 10.5 or higher. This             Water conservation measures
                                                                                                to have the building EMS certified, thus
                                               The building will incorporate the following
is an increase of approximately                water conservation systems:
                                                                                                ensuring continual improvements in
                                                                                                environmental performance.
50% since 30 June 2005 where                   •	 a	grey	water	recycling	system	
                                                                                                Further information
28.7% of vehicles achieved this                                                                 Most of this case study was adapted
                                               •	 rainwater	and	stormwater	recycling	
GVG rating.                                       systems, used to maintain the                 from the document at:
Alternative fuels                                                                     
Centrelink also promotes the use of            •	 50%	solar	hot	water	augmentation	to	          internet/internet.nsf/filestores/co311_
ethanol/petrol-blended bio-fuels in               the underlying gas-fired domestic hot         0605/$file/co311_0605en.rtf
Centrelink fleet vehicles where possible.         water systems
To increase the uptake of this renewable
                                               •	 taps	that	have	a	timing	system	to	
fuel, all new vehicles leased by Centrelink
                                                  reduce water wastage.
after 1 July 2006 will be able to operate
on ethanol/petrol blended fuels.
Travel programme
Centrelink, through its sustainable staff
travel programme, has also encouraged
fleet managers to subscribe their fleet
vehicles to the Greenfleet emissions offset
programme. Since July 2005, the number
of Centrelink fleet vehicles covered by
Greenfleet subscriptions has increased
dramatically from 9% to 89%.
Each Greenfleet subscription facilitates
the planting of 17 native trees to absorb
the carbon dioxide released by the
car. The planting of these trees (or
reforestation) also helps tackle salinity,
improve water quality and increase
habitat for native flora and fauna.

                                               Former Centrelink CEO, Jeff Whalan, with former GreenFleet CEO, Henry O’Cleary,
                                               at the launch of Centrelink’s first environmental performance report
                                               (Source: Centrelink)


Case studies

500 Collins Street, Melbourne

CLIENT                         Kador Group, Kamirice Pty Ltd
PROJECT MANAGER                Bovis Lend Lease
ARCHITECT/DESIGNER             Peddle Thorp Architects
INFORMATION                    David Oppenheim, Sustainable Built Environments (Environmental Consultant)
FACILITIES MANAGER             ECS Property Group

                                                                                                   Stage 1           (2003) replacement of chillers
                                                                                                                     in rooftop plant
                                                                                                   Stage 2           plant, equipment,
                                                                                                                     infrastructure upgrades and
                                                                                                                     refurbishment of ground level
                                                                                                                     retail areas
                                                                                                   Stage 3           reconfiguration of car park
                                                                                                                     and inclusion of 55 bicycle
                                                                                                                     retail to Lt. Collins
                                                                                                                     and Church lane
                                                                                                   Stage 4           floor-by-floor refurbishment
                                                                                                   Stage 5           the extension of levels three,
                                                                                                                     four and five
                                                                                                   Stage 6           improvement of the building
                                                                                                                     façade and crown.
Harry Hullin, entrance 500 Collins Street
(Erica Lauthier)                                                                                   Esd ElEmEnts intEgrAtEd
projEct                                            Why undErtAkEn                                  OPPORTUNITY 1 — OPTIMISING INDOOR
The 28-level building was originally               The initial ESD report prepared by              ENvIRONMENT QUALITY
constructed in the 1970s, and consisted            SBE in 2003 revealed that                       The chilled beams that were installed
of 25 000m2 of lettable office space, a                                                            reduced the need to circulate air around
                                                   ‘Kamirice have expressed the
retail component at ground floor level,                                                            the building, resulting in significant
and a basement car park for 141 cars               desire that this building represent             energy savings. The indoor air quality is
over 1.5 levels.                                   the ethos of their portfolio’.                  enhanced by the ability to increase the
                                                                                                   air change rate by more than 50% of the
When the building was purchased by                 The intention for the project was to            required level of outside air AS1668.2
the Kador Group in 2002, it required               improve the quality of the building and         (1991) (see the response from building
significant upgrades to its services to            raise its profile through the incorporation     users to the air in Figure 16).
meet market expectations. In addition              of ecologically sustainable design
to the service upgrade, additional                 features, as well as demonstrate to the          14
space was added at ground floor level              property market that such a refurbishment        12
to provide a social outlet for building            could be done commercially. The result           10
occupants. 500 Collins Street has                  would be to future-proof the building for a       8
become the first high rise refurbished             market increasingly driven by concepts of         6
building in Australia to achieve a 5 star          sustainability.                                   4
Green Star office design certified rating.46

                                                   ExtEnt of rEfurbishmEnt                           0
initiAtor                                                                                                   Stuffy       Variable          Normal     Fresh
                                                   The strategy for upgrading the                               New Office          Previous office
Building owner — Kador Group, Kamirice             building involved retaining the tenant
Pty Ltd.                                           occupancy rate at 80%, so a staged              Figure 16 – Rate the air quality in your office
                                                   refurbishment was required. The project         (Source: Bevege, 2006)
                                                   team developed a six stage process to
                                                   upgrade the building and its services.

72                                                 ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                              Case studies

Other initiatives undertaken to improve        The old chillers needed to be upgraded
the indoor environment quality include:        and this involved designing a purpose
                                               built crane, getting it onto the building
•	 carbon	dioxide	monitoring	and	control	
                                               roof, and then hoisting the chillers up the
                                               side of the building to the rooftop plant
•	 thermal	modelling	to	determine	levels	of	   room and chilled beams were installed.
   occupant satisfaction during the design
•	 acoustic	modelling	to	determine	
   acoustic treatments needed in the
•	 low	VOC	paint,	carpet,	sealants	and	
   adhesives being used throughout the
•	 pre-	and	post-occupancy	studies	to	
   assess impacts of improvements on
   productivity of tenants
•	 cleaning	contractors	using	
   environmentally friendly products
   and practices
•	 daylighting	and	external	views	
   being maximised.






                              New office




  -25          Old office

Figure 17 – Fresh air index
(Source: Bevege, 2006)

The building has been designed to meet
5 star NABERS Energy base building
levels and is predicted to achieve a
45% CO2 emission reduction compared
to standard practice. Energy savings
were achieved through the upgrade of
existing equipment to state of the art
building services. As the building is still
undergoing the upgrade, these figures are
not yet available.

                                               Communication to building users: list of ESD
                                               features at 500 Collins Street, Melbourne
                                               (Erica Lauthier)


Case studies

A variable air volume system was              The second largest energy user in                14

considered, but instead an active and         the building was lighting. An average            12

passive chilled beam system was chosen.       luminance level of 370Lux and lighting           10
Active beams have been installed              density of 2.8W/m2 per 100Lux was
around the perimeter of the building,         achieved through the replacement of
while passive chilled beams are installed     existing light fittings with T5 recessed
in the interior zones. The chilled beam       luminaries with diffusers. The system
system was designed for flexibility to        also provides tenants with the capacity                Too hot      Too cold
        Variable     Normal
accommodate future changes to office          to install perimeter daylight sensors, and
                                                                                                          New office
         Previous office
layout by incorporating flexible hoses that   occupancy sensors.
can be shifted.                                                                                Figure 18 – Rate the temperature
                                                                                               in your office
‘I was very interested when we                                                                 (Source: Bevege, 2006)

started on the first floor to be
                                                                                               OPPORTUNITY 3 — WATER
retrofitted with [chilled] beams.                                                              CONSERvATION
I thought “this isn’t going to                                                                 The water use in the building has been
                                                                                               reduced through replacing the existing
work”. But then we had a function                                                              toilet cisterns with low flush toilets (3/6L
and they came on and it worked!                                                                dual flushing) and waterless urinals.
                                                                                               To achieve flow rates equivalent to 5 stars
It is really a clever and logical                                                              or 4 L/min, a combination of flow control
system; the more heat goes up,                T5 lighting, 500 Collins Street, Melbourne       valves and o-rings were tested and
                                              (Erica Lauthier)                                 installed on the tap fittings. Flow control
the more cooling occurs which
                                                                                               valves were also added to the showers
comes down’                                   The building has an array of 30 solar            to achieve a lower flow rate than was
                                              thermal collectors for heating domestic          available in the market.
Harry Hullin                                  hot water (DHW). The solar system has
                                              been designed to provide 25% of the hot          A rainwater collection system capable of
                                              water supply to the tower, cutting total         providing at least 90% of the irrigation
                                              DHW energy use by 14%.                           requirements has been set up, with
                                                                                               tanks in the basement leading to trickle
                                                                                               irrigation in the planter boxes.
                                                                                               Finally, the water use in cooling towers
                                                                                               has been reduced by increasing the
                                                                                               cycles of concentration. A rate of 13.8
                                                                                               cycles of concentration was being
                                                                                               achieved on site during initial testing.

                                                                                               OPPORTUNITY 4 — MATERIALS CHOICE
                                                                                               The re-use of the existing building façade
                                                                                               and structure led to a significant saving in
                                                                                               raw materials use. Other considerations
                                                                                               in material choice included the use of
                                                                                               low VOC carpet and paints and a 67%
                                                                                               reduction in PVC through the use of
                                                                                               non-PVC cabling and drainage pipes.
Chilled beam, Level 17, 500 Collins Street,   Solar hot water, 500 Collins Street, Melbourne
Melbourne                                     (Erica Lauthier)
(Erica Lauthier)
                                                                                               OPPORTUNITY 5 — MINIMISING WASTE
                                                                                               The construction waste management
Due to a reduced requirement for fan          Finally, the sub-metering of all major loads     plan for the site committed the contractor
power and the need to reject less heat        and tenancies has allowed for ongoing            to diverting in excess of 80% of
from the building, the system is expected     assessment of potential problem areas            construction waste from landfill.
to reduce energy used for air-conditioning    and tracking of behavioural changes.
                                                                                               500 Collins Street has achieved ‘Waste­
by 30%. In addition, the old oil-fired        An extensive energy management plan
                                                                                               wise’ certification through EcoRecycle
boilers were upgraded to gas-fired boilers    has been developed for the building.
                                                                                               Victoria (now Sustainability Victoria),
and variable speed drives on major plant      The energy consumption data recorded
                                                                                               achieving a 30% reduction in operational
and equipment reduced greenhouse gas          by the BMS will be analysed and
                                                                                               waste to landfill in the first year. As part
emissions further.                            presented to the building owner on
                                                                                               of this strategy, full recycling facilities
                                              a monthly basis.

74                                            ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                                                     Case studies

are available, including a worm farm for                According to Harry Hullin, the Building                 In order to encourage alternative
organic waste.                                          Operations Manager:                                     transport options, the number of car
                                                                                                                parking spaces was reduced and small
                                                        ‘We did productivity studies of
‘We are testing how the worm                                                                                    car parking spaces and motorbike
                                                        a couple of levels in their old                         parking spaces were included.
farm works, feeding them scraps
                                                        offices and their new ones (which
we find until we are happy and                                                                                  OPPORTUNITY 8 — MINIMISING
                                                        includes the chilled beams, etc).                       OzONE LAYER DEPLETION AND OTHER
then we will set up a system to                                                                                 EMISSIONS
                                                        We ask them how they felt,
collect green waste. Hopefully                                                                                  Low Ozone Depletion Potential (ODP)
                                                        what they thought their levels                          refrigerants and insulants were specified
we will end up with five to six
                                                        of comfort were and how many                            and a refrigerant leak detection system
40 gallon drums of active worm                                                                                  was installed.
                                                        sick days they had … we found
farms to deal with the green                                                                                    High WELS rated fittings also had the
                                                        a marked improvement in how                             added benefit of reduced flow,
waste and to produce lovely
                                                        they felt about their work and their                    or emissions, to sewer.
castings for our plants and
                                                        productivity’                                           Commissioning
gardens.’                                                                                                       The Building Operations Manager, Harry
                                                        Harry Hullin                                            Hullin, was included in commissioning
Harry Hullin                                                                                                    meetings from an early stage to ensure
                                                        The results of the studies indicated that               a smooth handover.
                                                        the Satisfaction Index went from -11
                                                        for the previous office, up to +16 for                  ‘I like to get to know any new
In order to assess the effect of changes                the newly refurbished office. The figures
to the building on a social level,                      below show the marked decrease in                       piece of infrastructure that goes
productivity studies were undertaken by                 headaches, decreased concentration                      into my building … I really try
a legal company, Oakley Thompson, and                   and frequency of illness.
a securities trading company, Lonsec.                                                                           to get into it … really get to
The studies were conducted as a
                                                        OPPORTUNITY 7 — MINIMISING                              know it and how it will work with
                                                        TRANSPORT IMPACT
partnership agreement between the                                                                               everything else … so I am not
building owner, a tenant and Sustainability             As the building is located in the
Victoria’s Commercial Office Building                   Melbourne CBD, it has great access                      afraid to adjust things here and
Energy Innovation Initiative. They                      to public transport.
                                                                                                                there … to keep experimenting
considered the results of staff surveys,                Secure bicycle storage facilities with
leave records, ratios of billable hours                                                                         with running things better … it
                                                        associated change rooms, showers and
and keyboard speeds.                                    lockers have been provided for 5% of                    is important that you know the
                                                        the building occupants, or 84 people.                   building well enough that you
                                                        In addition, visitor bicycle parking spaces
                                                        have been provided near the entrances                   aren’t afraid of anything.’
                                                        to the building.
                                                                                                                Harry Hullin

14                                                      14                                                      14
12                                                      12                                                      12
10                                                      10                                                      10
  8                                                       8                                                       8
  6                                                       6                                                       6
  4                                                       4                                                       4
  2                                                       2                                                       2
  0                                                       0                                                       0
          Never          Occasionally      Frequently             Never          Occasionally      Frequently             Never          Occasionally      Frequently

         New office      Previous office   Home                  New office      Previous office   Home                  New office      Previous office   Home

Figure 19 – Frequency of headaches                      Figure 20 – Frequency of poor concentration in          Figure 21 – Frequency of cold and flu
in the office or at home                                the office and at home                                  in the office and at home
(Source: Bevege, 2006)                                  (Source: Bevege, 2006)                                  (Source: Bevege, 2006)


Case studies

Commissioning has been integral to                        ‘Commissioning is the key stage
the process of upgrading the building.
AG Coombs were engaged early on in                        between design and the desired
the Green Star process to look at the                     outcome. The key issue is for
issues surrounding commissioning. They
undertook a commissioning engineering
                                                          people to change the way they
review of the design and documentation                    think about construction away
of the project. This review identified key
                                                          from ideas of practical completion
issues for commissioning that affected
the design; without the review, ‘control’                 to getting a building that performs
issues would not have been in place to                    environmentally and sustainably’.
allow for effective commissioning.
Pre-commissioning of the chilled                          Harry Hullin
beams enabled AG Coombs to make                           A building user’s guide has been prepared
any necessary adjustments prior to                        to assist occupants in maximising the
installation.                                             benefits of the building’s infrastructure.
                                                          The document also provides new tenants
                                                          with ESD guidelines for the design of their
                                                          interior fit-outs. The guidelines are not
                                                          mandatory but their use is encouraged
                                                          to ensure interior fit-outs are compatible
                                                          with, and maximise the benefits of, the
                                                          base building design.
                                                          Rental outcome                                500 Collins Street
                                                                                                        (Source: SBE)
                                                          The current rental rate is $350–$420/m2
                                                          per annum, gross GST exclusive.47
                                                          Special leases
                                                                                                        Not available.
                                                          Direct Lease.
                                                                                                        Return on investment
                                                          Main barriers encountered
                                                                                                        Not available
                                                          As the first high rise office refurbishment
                                                          to achieve Green Star certification, there    Other comments
                                                          were a number of challenges for the           Due to the staging of the project, the final
                                                          project team. The level of documentation      outcome of the refurbishments has yet to
Wayne Melvern auditing digital control unit for           required to achieve certification and the     be measured.
air-conditioning, 500 Collins Street, Melbourne           limited support available for applicants
(Erica Lauthier)                                                                                        Further Information
                                                          were quoted as being the major
                                                                                                        Carey, A, ‘Sustainability — one step at a
                                                          impediments for the design team.
                                                                                                        time’, Ecolibrium, February 2006, www.
A 12-month commissioning plan with
                                                          Where benchmarks exist for new      
quarterly checks was developed and
                                                          buildings and were applied to existing        (accessed 23 May 2007).
conducted by the building’s Independent
                                                          equipment, the design team often had
Commissioning agent in conjunction                                                                      Green Building Council of Australia
                                                          to think laterally about how to achieve
with Warwick Stannus of AG Coombs.                                                                      (2006) Case study: 500 Collins Street,
                                                          the required outcome. A simple example
Warwick comments:                                                                             
                                                          of this was achieving a 5 star tap rating.
                                                          A combination of different types of flow
                                                          control valves and o-rings were tested on     Bevege, L (2006) Business outllook and
                                                          site to ensure that the desired flow rates    evaluation, PowerPoint presentation as
                                                          were achieved — in a new building, one        part of workplace productivity study for
                                                          would simply specify compliant tapware.       Kador Group and Sustainability Victoria.

Accessed: 10/5/2007.

76                                                        ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                                Case studies


QV1 building, Perth

CLIENT/OWNERS                            Investa and SAS Trustee Corporation
FACILITIES MANAGER                       CBRE
bUILDING SERvICES MANAGER                Paul Buss, CBRE

                                                 Why undErtAkEn                                  OPPORTUNITY 3 — WATER
                                                 Many of the building tenants have their
                                                 own requirements for energy efficiency          Tap fittings are being upgraded
                                                 and reduced greenhouse gas emissions.           throughout the building. When flow
                                                 A number of tenancies have focused on           restrictors were installed the previous
                                                 improving the efficiency of the lighting        year, building management received
                                                 systems, as this was their area of greatest     a number of complaints from tenants
                                                 energy use and would provide the most           unable to rinse their hair. Showerheads
                                                 significant returns.                            were replaced with more efficient ones
                                                                                                 and no complaints have since been
                                                 The base building is managed to                 received.
                                                 ensure that its premium grade listing is
                                                 maintained and operational performance          Waterless urinals have been tested,
                                                 is improved.                                    although at this stage there has not
                                                                                                 been one that management has found
                                                 ExtEnt of Work
                                                 Larger tenancies in the building have           QV1 has installed an Ecowash car
                                                 installed smart lighting solutions, including   washing facility to the car park of their
                                                 C-Bus and Lux metres. The base building         building, which has been very well
                                                 obtained a 4 star NABERS Energy in              received.
QV1, Perth                                       2005.
                                                                                                 OPPORTUNITY 5 — MINIMISING WASTE
(CB Richard Ellis Pty Ltd)
                                                                                                 Waste facilities located in the basement
                                                 Esd ElEmEnts intEgrAtEd                         provide for the separation of waste and
                                                 OPPORTUNITY 2 — MINIMISING ENERGY               recycling.
The QV1 Tower was designed by Harry
Seidler and built in 1991. Since that time,      USE
                                                                                                 OPPORTUNITY 6 — SOCIAL
the building has been considered                 The building is constantly reviewed and
a premium grade building.                        tuned. All common lights go to half
                                                 lighting after business hours. Ecolights        A sustainability committee has been
General maintenance of the base                  have been installed in the car park,            established with the tenants and building
building is undertaken by CBRE.                  resulting in a 30% reduction in car park        management (May 2007). The intention
The Building Services Manager has a              lighting energy.                                is for the committee to work through
policy of undertaking an annual review                                                           sustainability strategies for their tenancies
to determine what systems will need to           Lifts had previously been lit with 36x40W       and the building. At the first meeting, the
be upgraded to improve the performance           incandescent globes. These were
of the building.                                 replaced with 7W Megaman compact
                                                 fluorescents for a saving of $13 000 a
                                                 year. Where the incandescent globes
                                                 had a life of 1000 hours, the compact
Tenants are responsible for initiating           fluorescents have a life of 10 000 hours.
their own efficiency and improvement             The chiller is also due to be replaced
programmes within their tenancies.               and a new turbo pack chiller, with a
Maintenance and upgrade works to the             coefficient of performance (COP)
base building are the responsibility of the      of 12 (the higher the better), is being
building services manager. This is done          considered.
through an annual systems review.

                                                                                                 QV1 open social space, Perth
                                                                                                 (CB Richard Ellis Pty Ltd)


Case studies

group determined that they would select                                      Rental outcome
a few high impact strategies to initially                                    Not available
focus on. These strategies are:
                                                                             Special leases
1. Use recycled paper for 50% of printing                                    Not available
                                                                             Main barriers encountered
2. Turn off computers at night.                                              Not available.
3. Turn off lights at night.                                                 Cost/m2
                                                                             The total project cost for the
                                                                             lighting upgrade to the PwC offices
                                            QV1 Generator                    was $25.7/m2.
                                            (CB Richard Ellis Pty Ltd)
                                                                             Return on investment
                                                                             PwC had a 16% return on their
                                                                             investment in new lighting.
                                                                             Other comments
                                                                             PwC report positive feedback from staff,
                                                                             visitors and the broader marketplace.
                                                                             Further information
                                                                             CB Richard Ellis, QV1.Perth,

Energy efficient lighting, QV1, Perth                                        QV1
(CB Richard Ellis Pty Ltd)                                                   (CB Richard Ellis Pty Ltd)

78                                          ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                                Case studies

Art Gallery of South Australia
north tErrAcE, AdElAidE, south AustrAliA, 5000

CLIENT                                     South Australian Department of Administrative and Information Services (DAIS),
                                           on behalf of the Art Gallery of South Australia
FACILITIES MANAGER                         Spotless
DESIGN MECHANICAL ENGINEER                 Connell Mott MacDonald
DESIGN, CONSTRUCT AND INSTALL              Air Con Serve (SMAC system)

The Art Gallery of South Australia is a
heritage-listed building that has been
extended over the years with the addition
of a number of new wings and additional
services to meet modern expectations
(e.g. café, bookshop). The Elder wing
was designed in 1897; the Melrose wing
in 1937; and a back wing in 1962. In
1996, the addition of a new wing on the
west side of the building doubled the size
of the gallery.
Data logging was initially used to analyse
building performance and a staged
strategy for improvement was developed:
Stage 1 variable speed drives, new fans,
        CO2 monitoring
Stage 2 photovoltaic panels installed to
        roof in 2003 (this was not part
        of the original plans)
Stage 3	 shaw method of air-conditioning
         (SMAC) installed to 1996                    Art Gallery of South Australia
                                                     (Sebastian Immaraj)
         building wing in July 2004
         and August 2005
                                                     initiAtor                                         ExtEnt of rEfurbishmEnt/
Stage 4	 CO monitoring to other building
            2                                        The South Australian Government                   procEss
         wings (yet to be done).                     initiated an Energy Efficiency Action Plan        In order to develop a strategy to improve
                                                     in 2002, requiring government agencies            the efficiency of the gallery, a project
                                                     to reach energy reduction targets.                team was gathered to review overall
                                                     Through the Gallery’s energy stakeholder          system performance and determine what
                                                     committee, Arts SA was responsible for            strategies would most feasibly meet
                                                     initiating the project as part of ongoing         government targets.
                                                     energy initiatives to comply with the
                                                     action plan.                                      In order for the project team to
                                                                                                       understand the difference between
                                                                                                       traditional and more innovative air-
                                                                                                       conditioning systems, computer models
                                                     The project was undertaken to                     were developed by Air Con Serve, a
                                                     upgrade the air-conditioning system               building energy management company.
                                                     for effectiveness and energy efficiency.          The Shaw method was determined to
Art Gallery of South Australia – integration of      An unexpected outcome of the project
new and old buildings                                                                                  be the most efficient system to meet
(Sebastian Immaraj)
                                                     was improved humidity control.                    specific indoor climate targets (system
                                                                                                       explained under energy). Air Con Serve
                                                                                                       was contracted on a performance
                                                                                                       requirement to achieve certain levels of
                                                                                                       energy savings.


Case studies

Risk management was considered in                   Heat Transfer and Mass Transfer principle
the installation of the system, with a
single twin coil installed in the common            Conventional Air Handling System
air supply for twelve air handling units                                                                                                                       Temp-sensor
that served the west wing, instead of                          Chilled Water 


individually to each unit. This strategy
meant that the system could more easily                        Chilled Water
                                                                                                                           Modulating Valve
be reverted back to its initial state if it                    Supply
failed to meet expectations.
To ensure that the gallery could remain                                                                                                                           Supply Air
in use while works were going on,                                                        Mixed Air
                                               Outside Air
installation was undertaken over the                                                     Entering Coil
coldest months.

Esd ElEmEnts intEgrAtEd
                                                                                                                                       Cooling Coil
ENvIRONMENT QUALITY                                                         Space Return Air                        SINGLE COIL TECHNOLOGY
The Shaw method has provided a
system that is able to maintain a relative
humidity of less than 55%, with an indoor           New Invention SMAC, Air Handling System
temperature less than 23 °C.                        Chilled Water                           CHWR
CO2 sensors connected to variable speed                                                                                                                         Space
drives increase supplied fresh air in                                    6˚C                                                                                    Temp-sensor
                                                    Chilled Water                                               Modulating Valve
response to demand.                                                                        Flow Bypass
                                                                                           Control Valve

OPPORTUNITY 2 — MINIMISING ENERGY                   Flow Transmitter           F

USE                                                                                                                                                               Space
In 2003, a 20 kW photovoltaic array                                                                                                                               Supply Air
was installed to the roof of the gallery to    Outside Air                                                     Mixed Air
demonstrate solar energy technology to                                                              8˚C                                          FAN
the community. The array is expected
to produce around 32000 kWh of                                                                                                                                      Humidity
greenhouse gas emission free energy                                                                                                                                 sensor
                                                             Outside Air Cooling coil
per year.                                                                                                                       Cooling Coil

                                                                                            Space Return Air
                                               Conventional and SMAC air handling systems.
                                               Image from Wayne Ryan presentation.49

                                               supply air. This system reduces energy
                                               use by not over-cooling air to prevent
                                               condensation through humidity. As the
                                               same water is used by both coils, energy
                                               used in pumping is also reduced.

Kaj Lindstrom and Syd Bower inspect solar      Humidity levels are monitored and
panels at the Art Gallery of South Australia   adjusted through a building management
(Sebastian Immaraj)                            system.
For an art gallery, air-conditioning is one    Variable speed drives are connected to
of the greatest energy uses, due to the        CO2 sensors. The air-conditioning system
need for strictly controlled temperature       operates at 25%–30% of capacity, until
and humidity bands.                            defined levels of CO2 cause the speed
The SMAC system differs from                   drives to ramp up to meet increased
                                               demand for fresh air. Building automation                                   Kaj Lindstrom – General Manager, Art Gallery of
conventional air-conditioning systems                                                                                      South Australia, checks the SMAC system.
through the innovation of an additional        controls for the system were developed
                                                                                                                           (Sebastian Immaraj)
                                               by Air Con Serve.
coil. Outside air is pre-treated through
a dehumidification coil and cooled with        Since the system has been installed, the
chilled water before coming into contact       maximum energy demand for the facility                                      49
                                                                                                                             W Ryan, Demanding reliability – Dealing with air-
                                                                                                                           conditioning load, Powerpoint presentation, 2006, www.
with inside air. The second coil is part       has reduced by 14%, with savings of up                            , Accessed:
of the original system and treats the          to 177 GJ.                                                                  09/05/07

80                                             ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                                 Case studies

Commissioning                                      Art Gallery of SA — West Wing
Performance is being monitored over 12             Year           Process     Annual electricity use                  Electrical peak load
months to compare to the base line for                                        Consumption GWh Base savings            kW         Base reduction
the previous 12 months. Insufficient sub­
                                                  2002 - 2003     Base        2.39                BASE                582        BASE
metering pre- and post- to the retrofit has
made analysis difficult, with only one gas
                                                  2003 - 2004     Variable      1.56                   35%            441         25%
meter for the site, and no electrical sub-                        Speed
metering for different areas.                                     Drives
                                                  2004 - 2005     Shaw          1.38                   42%            393         33%
                                                  Table 17 – Adapted from Wayne Ryan presentation.

                                                  Air Con Serve, still has difficulty in             Government of South Australia (2002)
                                                  gaining acceptance for its use by other            Energy Efficiency Action Plan 2002,
                                                  mechanical engineers. This is seen to be           (Accessed 23/05/07).
                                                  due to competitive tendering processes
                                                                                                     Other buildings with Shaw method
                                                  for air-conditioning systems and the lack
                                                                                                     1 - Barmera Hospital, South Australia
                                                  of time to investigate non-conventional
                                                  practices.                                         2 - Headquarter Building No. 1 of Siam
                                                                                                     Cement, Hong Kong
Syd Bower Operations manager, Art Gallery         The total project cost for installing the          3 - Citi Centre, Adelaide
of South Australia, inspects the pre-filter for
                                                  SMAC twin-coil system was $180 000.
SMAC system                                                                                          The retrofit of the South Australian Health
                                                  This included repairs to the existing
                                                                                                     Commission offices (at Citi Centre in
OPPORTUNITY 6 — SOCIAL                            system.
                                                                                                     Adelaide) was undertaken as part of the
                                                  Return on investment                               City of Adelaide’s Tune-Ups programme.
In order to preserve art work for future          The payback for the system has been                This was the first commercial office
generations, international standards              less than two years.                               building in Australia to have a Shaw
have been developed to define the most                                                               method air-conditioner installed.
suitable indoor environment. Improving            Other comments
the air-handling systems for the gallery          The SMAC system can be retrofitted                 Other elements of the refurbishment
meant that these standards could be met           to existing air-conditioning systems               included:
with greater levels of control.                   through limited modification of existing
                                                                                                     •	 replacing	the	existing	VAV	system	with	
Outcomes                                                                                                induction variable air volume boxes
Since the system has been installed, the          Risk was reduced on the project by Air
                                                                                                     •	 upgrading	the	building	automation	
maximum energy demand for the facility            Con Serve waiving the license fee for the
                                                                                                        system and
has reduced by 14%, with savings of up            equipment and committing to an energy
to 177 GJ. The application of the Shaw            performance contract that guaranteed               •	 providing	energy	management	
method has provided in excess of a 75%            energy savings.                                       technologies.
saving in gas usage and a 50% reduction           Further information                                The Tune-Ups programme required
in electrical consumption and associated          McGowan, S, ’The art of improving                  an NABERS Energy assessment of
greenhouse gas emissions.                         indoor air quality’, EcoLibrium, July 2005,        the building to be undertaken, so
Air Con Serve, who designed and         ­                that strategies to improve building
installed the twin-coil system, has               F03.pdf (Accessed 23/05/07).                       performance could be formulated. The
received a number of industry awards                                                                 initial rating for the building was 2 stars;
                                                  McGowan, S, ‘BMS shows flexibility
for their work at the SA gallery:                                                                    improvements have increased the rating
                                                  in Adelaide’, EcoLibrium, December
                                                                                                     to 5 stars and have resulted in a 50%
•	 NECA	State	Award	of	Excellence	for	            2006,
                                                                                                     reduction in greenhouse gas emissions
   Environmental and Energy Efficiency            (Accessed 23/05/07).
                                                                                                     and a reduced electrical peak demand
   (November 2006)                                Manley, K (2006) The Brite Project —               of 30%.
•	 AIRAH	Excellence	Award	in	                     Innovation case study no. 10, Twin coil air
   Sustainability (December 2006)                 conditioning at the Art Gallery of South
Rental outcome                                    studies/pdfs/casestudy-10_graphics­
Not available                                     version.pdf (Accessed 23/05/07).
Special leases                                    UniSA (2006) Students@UniSA — Art
Not available                                     of airconditioning,
Main barriers encountered                         studentsatunisa/2006/August/aircon.asp
Despite the proven energy efficiency of           (Accessed 23/05/07).
the SMAC system, the patent holder,


Case studies

William McCormack Place, Cairns

CLIENT                    Queensland Department of Public Works
PROJECT MANAGER           Queensland Department of Public Works/Barclay Mowlem Construction Ltd
ARCHITECT/DESIGNER        Cox Rayner and C.A. Architects
FACILITIES MANAGER        Queensland Department of Public Works
NLA                       4568 m2

                                             Low maintenance floor and wall finishes       requirement. After-hours air-conditioning
                                             were specified where possible, in order       is operated by a ‘pay for use’ swipe card
                                             to minimise the use of chemical cleaning      system, which encourages managers to
                                             agents.                                       monitor access and reduce after-hours
                                                                                           air-conditioning demand.
                                             OPPORTUNITY 2 — MINIMISING ENERGY
                                             USE                                           Electrical
                                                                                           All lighting at William McCormack Place
                                             The achievement of a 4 star NABERS
                                                                                           is controlled by the BMS. Normal office
                                             Energy base building rating was a
                                                                                           lighting is on from 8am–6pm, and 50%
                                             contractual obligation contained within
                                                                                           lighting is provided for cleaning staff from
                                             the original project brief. Subsequently,
                                                                                           6pm–8pm. Approximately 5% of lighting
                                             the building has been rated operationally
William McCormack Place                                                                    in the office and lift lobbies is provided at
                                             at 5 stars NABERS Energy, with energy
                                                                                           other times for security.
                                             use being 40% lower than the original
projEct                                      target.                                       Lights in utility areas are switched on
William McCormack Place is a relatively                                                    during office hours, and when the after-
                                             The excellent energy performance of
new 4-storey commercial office building,                                                   hours switch is activated, a low wattage
                                             the building is a product of both its
constructed in 2002.                                                                       light is permanently on so that these
                                             passive and active energy conservation
                                                                                           areas are never in darkness. Stairwell
                                             measures. The building has been
initiAtor                                                                                  lights are operated by movement
                                             oriented to reduce the solar load and
                                                                                           detectors and timer buttons on each
The building is owned and was developed      has also been provided with sun shading
by the Queensland Department of Public       from the extended roofline and external
Works (QDPW). The QDPW manages the           shading elements. External sun shading        There is no external display lighting and
building.                                    provides almost 100% shade throughout         the security lighting is operated on a
                                             the year, while maintaining views, and        daylight sensor.
                                             the shading equipment is also used
Why undErtAkEn                                                                             Due to Cairn’s frequent adverse weather,
                                             to provide maintenance access to the
The office building was developed            façade.                                       the building has a standby generator.
to prove that strict environmental                                                         The generator is tested monthly and
sustainability targets could be achieved     Also reducing the heat load on the            has been set up to use the electricity
by an office development, with it            building are the building materials, which    produced during the test within the
remaining economically and commercially      were chosen to reduce heat transmission       building.
viable in a normal commercial market.        to the building interior and include roof
                                             insulation and thermally efficient façade     Energy performance
The project also met the Queensland
                                             materials and window glass.                   Design based on achieving 4 star
Government energy efficiency guidelines.
                                                                                           NABERS Energy, after construction and
                                             The active energy conservation measures       implementation of facilities management
Esd ElEmEnts intEgrAtEd                      include a heat recovery system that           processes, actually achieved 15% better
                                             pre-cools outside air and has displaced       than 5 star NABERS Energy.
                                             approximately 25% of the cooling load.
ENvIRONMENT QUALITY                                                                        Energy — 109 kWh/m2 per year.
                                             In addition, the chilled water storage
The fit-out was designed to maximise         system means that the chillers operate in     Greenhouse gas emissions — 108 kg
indoor environment quality, and minimise     their most efficient mode and negate the      CO2/m2 per annum (757 060 kg CO2 per
maintenance and churn costs. For             need for a low load chiller, also reducing    annum) normalised.
example, workstations were mechanically      maintenance costs.
fixed to both avoid glue use (minimising
VOCs) and maximise re-use. Also,             All pumps and fans in the building are
painted finishes were minimised by using     operated with variable speed drives
coloured render.                             and the zoned VAV system matches
                                             the energy use to the local cooling

82                                           ESD OPERATIONS GUIDE for owners, managers and tenants
                                                                                                                        Case studies

OPPORTUNITY 3 — WATER                          OPPORTUNITY 6 — SOCIAL                        •	 High	Commendation	in	the	Property	
CONSERvATION                                   SUSTAINAbILITY                                   Council of Australia's Queensland
Artworks were chosen to simulate               Social sustainability was included in            Division Rider Hunt Award 2004
waterfalls, using no water.                    the design brief from the outset. The
                                                                                             •	 Environmental	Development	Award	
                                               building is a pleasant place to work, with
OPPORTUNITY 4 — MATERIALS CHOICE                                                                in the Australian Property Institute's
                                               landscaped open spaces and large scale
                                                                                                Excellence in Property Awards.
Long lasting, low maintenance and              artworks. Social sustainability was also
recyclable materials were chosen.              addressed through the use of local firms      Other comments
These included mobile units, partition         and materials, together with a focus on       With the experience and process of
screens and shelves made of high-density       training apprentices.                         working on this building, Graham
polyethylene (HDPE) and polypropylene                                                        Messenger now sees it as ‘pretty
                                               The management team was included
(PE), sourced from recycled residential                                                      standard’, with the industry and
                                               in the design process so facilities
and commercial waste. Screens are                                                            opportunities for green buildings
                                               management concepts were integrated
upholstered with fabric made from                                                            having moved forward.
                                               into the building at design stage. They
recycled PET bottles. Carpet tiles can
                                               had input into the practicalities of system   Further information
be replaced singly or rearranged around
                                               selections and materials finishes with        Queensland Department Public Works
wear patterns and are also recyclable at
                                               respect to performance, maintenance           (2004), ‘The State of Queensland
the end of their life.
                                               and life cycle costs                          (Department of Public Works), 2003,
Finishes on floors and walls were targeted                                                   Accommodation projects and strategies’,
to minimise maintenance and excessive          OPPORTUNITY 7 — MINIMISING                    FMA Awards for Excellence 2004
chemical cleaning. Walls were rendered         TRANSPORT IMPACT                              — Designing for Sustainability — William
instead of painted and the simple access       The building is located near other            McCormack Place, Cairns,
to the façade, via the sun shades, will        government buildings and consideration (Accessed
encourage regular maintenance and              for pedestrian and cycling access was         23/05/07).
extend the façade life.                        integrated into the landscape design to
                                                                                             Gray, CN (2003) William McCormack
                                               encourage walking and cycling.
The use of PVC was minimised, and                                                            Place, Cairns — The Brisbane Pan
no timber products derived from                Secure bicycle parking and shower and         Project,
non-sustainable sources were used.             change facilities also encourage staff to     panorama/wmp/index.htm (Accessed
                                               cycle to work.                                23/05/07).
                                               Rental outcomes                               Manley, K (2004) Innovation case study
It was a contractual requirement that
                                               The occupancy agreement for this              no. 1 — Outstanding whole-of-life gains
environmental issues, particularly pollution
                                               building is the same as other Queensland      without higher up-front costs, www.brite.
from water run-off, dust, mud and noise,
                                               Government buildings managed by the ­
be minimised during construction.
                                               QDPW.                                         1_text-version.pdf (Accessed 23/05/07).
The office fit-out design was based on
                                               Small refurbishments and alterations          O’Rourke, L, ‘Intelligent thinking design
the Ecologically sustainable office fit-out
                                               to the building are managed within the        construction/projects, 18 May 2007,
guidelines, developed by the Queensland
                                               interior design group of QDPW. This 
Department of Public Works in 2001.
                                               close relationship with the original          Building/Retail_and_Commercial/William_
The fit-out programme was integrated
                                               designers and managers of the building        McCormack_Place_Cairns_Queensland.
into the base building construction
                                               means that all involved can ‘keep an eye’     aspx (Accessed 23/05/07).
programme, to reduce construction/re­
                                               on the material selections and processes
work waste.                                                                                  Queensland Department of Public Works
                                               used, in order to maintain the original
The fit-out design included                                                                  (2000) Ecologically sustainable office
                                               intention of the building as a green
standardisation and construction of                                                          fit-out guidelines,
doors and workstations to facilitate                                                         au/aps/ApsDocs/ESDMasterDocument.
                                               Cost/m2                                       pdf (Accessed 23/05/07).
relocation and re-use, and the use of
                                               $17.1 million/4568 m2 = $3743/m2,
carpet tiles that can be easily replaced
                                               including office fit-out.
on a piecemeal basis, avoiding the waste
normally associated with large scale           Awards
repairs and replacement of broadloom           •	 SEDA	FM	Environmental	Excellence	
carpet.                                           Award by the Facility Management
                                                  Association of Australia, 2004
Provision has been made for the recycling
of paper and cardboard with appropriate
bins and the appointment of a recycling




A                                              design objectives. (Property Council             contractor from a physical facility
Australian building Greenhouse                 of Australia, Sustainable Development            viewpoint. Typically the activities include
Rating Scheme (AbGR) – a voluntary             Guide, 2001).                                    successfully running of all plant and
scheme that rates building energy              Ambient noise – the background noise             equipment (DHS, 1998).
consumption between one and five               level in a space, which is not identifiable      building monitoring systems or
stars, originally developed by SEDA.           as being from a specific source, such as         building management system (bMS)
(Property Council of Australia, Sustainable    a nearby piece of equipment.                     – also referred to at times as the
Development Guide, 2001).                      Aquifer – a geological formation that will       building management system.
                                               yield water to a well in sufficient quantities   A building management system includes
Active noise control – electronic
                                               to make the production of water from             more of the systems and plans for review
masking of sound to cover unwanted
                                               this formation feasible for beneficial use;      and improvement while the building
or intrusive sound such as speech
                                               permeable layers of underground rock or          monitoring system is a computerised
or equipment noise, typically used to
                                               sand that hold or transmit groundwater           system that monitors the engineering
enhance speech privacy by reducing
                                               below the water table. (Property Council         services, security and other building
speech intelligibility.
                                               of Australia, Sustainable Development            systems for the purpose of recording,
Adaptive comfort – adds human                  Guide, 2001).                                    reporting and operational control of the
behaviour to the comfort analysis.                                                              systems to maximise safety, security,
It assumes that, if changes occur in           b                                                operational performance and for
the thermal environment to produce                                                              overall cost minimisation and efficiency.
                                               base building brief – working document
discomfort, then people will generally                                                          (Property Council of Australia, Sustainable
                                               which specifies at any point in time the
change their behaviour and act in a                                                             Development Guide, 2001).
                                               relevant needs and aims, resources of the
way that will restore their comfort. Such
                                               client and user, the context of the project
actions could include taking off clothing,                                                      c
                                               and any appropriate design requirements
reducing activity levels or even opening a
                                               within which all subsequent briefing             Carbon credit – a term that refers to
window. The main effect of such models
                                               (when needed) and designing can take             three types of units of greenhouse gas
is to increase the range of conditions that                                                     reductions defined under the Kyoto
                                               place. (Adapted from definition of brief in
designers can consider as comfortable,         ISO 9699).                                       Protocol:
especially in naturally ventilated buildings
where the occupants have a greater             building Code of Australia (bCA).                •	 emissions	reduction	units	are	generated	
                                               Australian Council of building Design               via joint implementation under Article 6
degree of control over their thermal
                                               Professionals (bPD) – has published                 of the Kyoto Protocol
environment. (Andrew Marsh Square
one –                    a multi-volume Environment Design                •	 certified	emission	reduction	units	are	
                                               Guide containing literature on how to               generated and certified under the
Adhesive – a substance capable of
                                               reduce environmental impact of the built            provisions of Article 12 of the Kyoto
holding materials together by surface
                                               environment. (Melbourne Docklands ESD               Protocol, the Clean Development
attachment. Adhesives are one source
                                               Guide, Oct 2002).                                   Mechanism
of off-gassing in indoor environments.
(Property Council of Australia, Sustainable    biodegradable – a material capable of            •	 verified	emission	reductions	are	
Development Guide, 2001).                      being decomposed by bacteria or other               verified reductions in greenhouse gas
                                               living organisms as a result of the action          emissions below a pre-determined
Australian Greenhouse Office (AGO) –           of micro-organisms. (Property Council               baseline. (Property Council of Australia,
now part of the Australian Government’s        of Australia, Sustainable Development               Sustainable Development Guide, 2001).
Department of the Environment, Water,          Guide, 2001).
Heritage and the Arts.                                                                          Carbon dioxide equivalent gases
                                               biodiversity – the variety of all life           – greenhouse gases that contribute to
Air quality – to do with the level of          forms; the different plants, animals             the greenhouse effect are referred to as
particulate, gases, vapours, pollens and       and micro-organisms, the genes they              carbon dioxide equivalent gases since
micro-organisms in the air. (Property          contain and the ecosystems they form.            this is the most abundant greenhouse
Council of Australia, Sustainable              (Property Council of Australia, Sustainable      gas. (Property Council of Australia,
Development Guide, 2001).                      Development Guide, 2001).                        Sustainable Development Guide, 2001).
Air temperature – a measure of the             brownfield site – land within an                 Chlorofluorocarbons (CFCs)
heat energy contained in ambient air.          urban area on which development                  – synthetic products which do not
Alliance partnerships – a long-term            has previously taken place. (Corus               occur naturally and contain chlorine
commercial partnering arrangement that         Construction Centre glossary, http://            and fluorine; commonly used in various
enhances project team innovation and              industrial processes and as refrigerants
avoids the cost of tendering for team          htm).                                            and, prior to 1990, as a propellant gas for
formation on every new project. This can       building commissioning – refers                  sprays. CFCs are a powerful greenhouse
assist integrated delivery of sustainable      to completion for occupation by the              gas. (Property Council of Australia,

84                                             ESD OPERATIONS GUIDE for owners, managers and tenants

Sustainable Development Guide, 2001).         personnel. (Property Council of Australia,    responsibilities (of developers and the
CFCs are used as a refrigerant. They are      Sustainable Development Guide, 2001).         Docklands Authority for the development
the worst ozone depleting product and         Continuous commissioning – verifies           of Melbourne Docklands). (Melbourne
the most significant cause of ozone layer     that a project continues to meet current      Docklands ESD Guide, 2002).
depletion. CFCs are being phased out as       and evolving project requirements,            Environmental Management System
part of the Montreal Protocol. (Melbourne     activities occur throughout the life of the   (EMS) – this is a document which
Docklands ESD Guide, 2002).                   facility; some of these will be close to      outlines specific requirements for planning
Climate Change Levy – a tax on                continuous in implementation, and others      implementation, operation, checking and
corporate energy use introduced by the        will be either scheduled or unscheduled       correct actions regarding environmental
government in 1999 aimed at reducing          (adapted from ASHRAE Guideline 0­             issues. It is a management system
energy consumption. (Corus Construction       2005).                                        to identify, manage and reduce an
Centre glossary, www.corusconstruction.       Copper chrome arsenate (CCA) – a              organisation’s impact on the environment.
com/page_9041.htm).                           powerful preservative most commonly           (Department of Treasury and Finance,
Cogeneration – generation of electricity      used to treat softwoods for external          Reporting of Office-Based Environmental
combined with the production of heat          use to provide protection against fungi,      Impacts by Government Departments:
for commercial or industrial use. Excess      termites and wood boring insects. Spills      Guidance to Financial Reporting Direction
electricity produced can be fed back          of CCA can leave short-term residues          FRD24, July 2003).
into the power grid. Cogeneration is an       of arsenic and long-term residues             Energy Conservation Systems (ECS)
energy efficient way of using fossil fuels.   of chromium in affected soils, which          Environmentally preferable products/
(National Greenhouse Strategy http://ngs.     have serious health and environmental         materials – products that embody one or                 implications. (Property Council of            several positive environmental attributes
Colour temperature – a method of              Australia, Sustainable Development            as a result of deliberately eliminating or
specifying colour based on an absolute        Guide, 2001).                                 reducing potential environmental impacts
temperature scale, degrees Kelvin (K).        Cost benefit analysis – a method of           across its life cycle. These products do
The colour is equivalent to the colour of     evaluating projects or investments by         not have negative impacts on human
light that would be emitted if a pure black   comparing the present value or annual         health and the environment when
object were heated to that temperature.       value of expected benefits to costs.          compared with competing products. This
Higher colour temperatures are bluer,         (Property Council of Australia, Sustainable   comparison may consider raw materials
lower temperatures are redder.                Development Guide, 2001).                     acquisition, production, manufacturing,
Commercial buildings – typically refers                                                     packaging, distribution, reuse, operation,
to any non-residential building such as a     d                                             maintenance, or disposal of the product.
shopping centre, office tower, business       Double net lease – a property lease           (EcoRecycle 2003).
park, industrial property or tourism          in which the tenant pays rent to the          Environment Protection and
and leisure asset. (Property Council of       owner, as well as all taxes and insurance     Biodiversity Conservation Act
Australia, Sustainable Development            expenses that arise from the use of the       1999 (EPbC Act) – is the Australian
Guide, 2001).                                 property. The owner pays maintenance          Government’s major piece of
                                              expenses.                                     environmental legislation. It protects
Commingles – materials all mixed
together, such as plastic bottles with        Dual pipe system – a system where one         the environment, particularly matters
glass and metal containers. Commingled        pipe feeds potable or drinking water, the     of National Environmental Significance.
recyclable materials require sorting after    second feeds treated water, typically for     Ecologically Sustainable
collection before they can be recycled.       toilet flushing or irrigation – also called   Development (ESD) – development
Current collections in the CBD are            the purple or lilac pipe. (Property Council   that does not compromise the ability
usually plastics marked 1, 2 and 3; glass     of Australia, Sustainable Development         of future generations to enjoy similar
beverage containers and aluminium and         Guide, 2001).                                 levels of development. This is done by
steel cans. Fully commingled collections                                                    minimising the effect of development
also include paper. (Department of            E                                             on the environment. (Melbourne
Treasury and Finance, Reporting of            Embodied energy – the non-renewable           Docklands ESD Guide, 2002) Also
Office-Based Environmental Impacts by         energy consumed in the acquisition            defined by the Australian Government
Government Departments: Guidance to           of raw materials, their processing,           as ‘using, conserving and enhancing the
Financial Reporting Direction FRD24, July     manufacture, transportation to site and       community’s resources so that ecological
2003).                                        the construction process. Also the non­       processes, on which life depends, are
Commissioning – the start-up phase            renewable energy consumed to maintain,        maintained, and the total quality of life,
of a new or renovated building which          repair, restore, refurbish or replace         now and in the future, can be increased.’
includes testing and fine tuning of the       materials, components or systems              (NSESD, 1992).
HVAC, electrical, plumbing and other          during the lifetime of a building. (Corus
systems to assure proper functioning          Construction Centre glossary, www.            f
and adherence to design criteria.            Forest Stewardship Council (FSC) –
Commissioning also includes preparation       Environmental Management Plan                 an international organisation promoting
of the systems operations manual and          (EMP) – this document outlines the            responsible forest management. FSC
instruction of the building maintenance       environmental requirements and                has developed principles for forest



management which may be used for                 Greenhouse gases (GHG) – gases                adequate ventilation air, control of
verifying the management of forest               which contribute to global warming            airborne contaminants and maintenance
holdings and a system of tracing, verifying      by preventing the outward radiation of        of acceptable temperature and relative
and labelling timber and wood products           heat from the Earth which increases           humidity. (Property Council of Australia,
that originate from FSC certified forests.       the atmosphere’s absorption of sunlight       Sustainable Development Guide, 2001).
(Australian Paper www.australianpaper.           (the greenhouse effect). Greenhouse           Indoor environment quality (IEQ) – this                   gases are measured in carbon dioxide          factor describes the cumulative effects
Formaldehyde – a resin used as an                equivalent units. Some greenhouse             of indoor air quality, lighting and thermal
adhesive, surface coating, foam or in the        gases are naturally occurring (water          conditions. Poor IEQ is responsible
manufacture of laminates and sandwich            vapour, carbon dioxide, methane, nitrous      for health problems in the work place.
panels. Formaldehyde adhesives can               oxide and ozone). Others result from          (Melbourne Docklands ESD Guide, 2002).
present a health hazard due to their off-        human activities, the most powerful of
                                                                                               Integrated design – a design process
gassing tendencies. (Property Council            which are: hydrofluorocarbons (HFCs),
                                                                                               that mobilises multidisciplinary design
of Australia, Sustainable Development            perfluorocarbons (PFCs) and sulphur
                                                                                               input and cooperation, ideally to
Guide, 2001).                                    hexafluoride (SF6). (Property Council
                                                                                               maximise and integrate environmental
Fuel cells – used in electrical generation.      of Australia, Sustainable Development
                                                                                               and economic life cycle benefits.
This is an apparatus used for combining          Guide, 2001).
                                                                                               (Property Council of Australia, Sustainable
fuel and oxides to generate electricity. It is   Gross lease – a property lease in             Development Guide, 2001).
the conversion of chemicals to electrical        which the landlord agrees to pay all
                                                 expenses that are normally associated         Intergovernmental Panel on Climate
energy. (Energy Australia
                                                 with ownership, such as utilities, repairs,   Change (IPCC) – the IPCC was
                                                 insurance, and (sometimes) taxes.             established in 1988 by two United
g                                                                                              Nations organisations, the World
                                                 Groundwater – water within the earth          Meteorological Organisation (WMO)
Global warming potential (GWP) –                 that supplies wells and springs; water in     and the United Nations Environment
GWP is a measure of how much a given             the zone of saturation where all openings     Programme (UNEP) to assess the ‘risk
mass of greenhouse gas is estimated              in rocks and soil are filled, the upper       of human-induced climate change’. The
to contribute to global warming. It is a         surface of which forms the water table.       Panel is open to all members of the WMO
relative scale which compares the gas            (Property Council of Australia, Sustainable   and UNEP. Its reports are widely cited
in question to that of the same mass of          Development Guide, 2001).
carbon dioxide whose GWP is one. An                                                            and have been highly influential in forming
exact definition can be found at the IPCC                                                      national and international responses to
                                                 h                                             climate change.
web site. Examples of the GWP of gases
                                                 Heating, ventilating and Air-                 ISO 14000, ISO14001 and ISO14004
are as follows:
                                                 conditioning (HvAC) systems – the             – are international standards concerning
•	 carbon	dioxide	has	a	GWP	of	exactly	          equipment, distribution network and
   1 (since it is the baseline unit to which                                                   Environmental Management Systems,
                                                 terminals that provide either collectively    and include specifications and guidelines.
   all other greenhouse gases                    or individually the processes of heating,
   are compared)                                                                               (Melbourne Docklands ESD Guide, 2002).
                                                 ventilation or air-conditioning to a
•	 methane	has	a	GWP	of	21	                      building. (Property Council of Australia,     ISO 7730 – international standard for
                                                 Sustainable Development Guide, 2001).         thermal comfort – this standard is based
•	 nitrogen	dioxide	has	a	GWP	of	310
                                                                                               on a determination of the PMV (Predicted
•	 some	hydrofluorocarbon	(HFC)	                 Hydrofluorocarbons (HFCs)                     Mean Vote) and PPD (Predicted
   compounds have GWPs of several                – transitional replacements for CFCs,         Percentage Dissatisfied) indices, and
   thousands (HFC-23 is 11 700).                 they - are also greenhouse gases.
                                                                                               specification of the conditions for thermal
Green Lease Schedule (GLS) – a                   (Property Council of Australia, Sustainable
                                                                                               comfort. (Melbourne Docklands ESD
lease schedule that sets out the mutual          Development Guide, 2001).
                                                                                               Guide, 2002).
obligation for building owners, managers         Hydrochlorofluorocarbons (HCFCs)
and tenants regarding environmental              – HCFCs were used as the original             j
performance.                                     replacement for CFCs and are still
Green power – electricity generated              commonly used. HCFCs, like CFCs,              k
from clean renewable sources, such as            cause ozone depletion, but to a lesser
                                                                                               kyoto Protocol – an international
the sun, wind, water and organic matter.         extent. HCFCs are being phased out
                                                                                               agreement reached in 1997 in Kyoto,
The electricity is bought by energy              under the Montreal Protocol. (Melbourne
                                                                                               Japan, which extends the commitment
suppliers on behalf of their customers.          Docklands ESD Guide, 2002).
                                                                                               of the United Nations Framework
(Property Council of Australia, Sustainable                                                    Convention on Climate Change. In
Development Guide, 2001).                        i
                                                                                               particular, it sets targets for future
Green Star – Green Star has been                 Illuminance – the standard international      emissions by each developed country
developed by the Green Building Council          unit that is used to measure the amount       over the first commitment period and
of Australia (GBCA) with support from            of light per unit of surface area, also       foreshadows further action over future
industry and some government agencies.           known as lux (symbolised lx).                 commitment periods. (Property Council
It is a rating tool that assessed a              Indoor air quality (IAQ) – includes           of Australia, Sustainable Development
building’s ability to meet ESD goals.            the introduction and distribution of          Guide, 2001). An international agreement

86                                               ESD OPERATIONS GUIDE for owners, managers and tenants

to limit greenhouse gas emissions. The         as energy and greenhouse, water, waste        Ozone layer depletion – the ozone layer
protocol was adopted in 1997 and has           and indoor environment. NABERS is a           protects earth from ultra violet rays, which
been ratified by 54 countries, including       national initiative managed by the NSW        are known to cause cancer. Refrigerants
most developed countries. (Melbourne           Department of Environment and Climate         such as CFCs and HCFCs contribute
Docklands ESD Guide, 2002).                    Change on behalf of federal, state and        greatly to ozone layer depletion.
                                               territory governments.                        (Melbourne Docklands ESD Guide, 2002).
l                                              National Strategy for Ecologically
LAeq – this scale measures the                 Sustainable Development (NSESD)               p
average energy of the noise level. It is       – sets out the broad strategic and policy     Phase change materials – materials
the equivalent steady state level of a         framework under which governments will        which turn from one phase to another (for
fluctuating noise level. When considered       make decisions cooperatively and take         example liquid to gas, or solid to liquid) at
over a period of time T, this is represented   actions to pursue ESD in Australia. It will   a certain temperature – such as water at
by the scale dB LAeqT. ASINZS                  be used by governments to guide policy        zero degrees Celsius.
1269.1:1998 sets out the method for            and decision making, particularly in those    Photo electric cell (PE) – these are
calculating this level. (Green Star- Office    key industry sectors which rely on the        used to monitor the amount of light in a
Design (v2)).                                  utilisation of natural resources.             room.
Life cycle assessment (LCA) – a                Net lease – a property lease in which the     Photovoltaic – generation of electricity
technique for assessing the environmental      tenant agrees to pay all expenses that are    from the energy of sunlight using
aspects and potential impacts associated       normally associated with ownership such       photocells. (Property Council of Australia,
with a product or process, by compiling        as utilities, repairs, insurance and taxes.   Sustainable Development Guide, 2001).
an inventory of relevant inputs and            Also called a closed-end lease.
                                                                                             Predicted Mean vote (PMv).
outputs, evaluating the potential                                                            This international measure, used for
environmental impacts associated with                                                        determining thermal comfort, is based on
those inputs and outputs, and interpreting     Off-gassing – the release of gases or
                                                                                             surveys of the most acceptable levels of
the results of the inventory analysis and      vapours from solid materials in a form of
                                                                                             indoor temperature, humidity and radiant
impact assessment phases in relation           evaporation of a slow chemical change
                                                                                             heat for different clothing and activity
to the objectives. (Property Council of        which produces indoor air pollution for
                                                                                             levels. (Melbourne Docklands ESD Guide,
Australia, Sustainable Development             prolonged periods after installation of a
Guide, 2001).                                  material. (Property Council of Australia,
                                               Sustainable Development Guide, 2001).         Polychlorinated biphenyls (PCbs) – a
Life cycle costing (LCC) – a technique                                                       group of synthetic chlorinated organic
that enables a comparative cost                Operational commissioning – refers
                                                                                             compounds, toxic to humans and
assessment to be made for various              to activities undertaken leading up to
                                                                                             identified as a carcinogenic substance,
                                               handover of the building to the users.
investment alternatives, over a specified                                                    which were used mainly in older electrical
                                               Typical activities include familiarisation
period of time, taking into account all                                                      capacitors or transformers. (Property
                                               of staff with safety, security and
relevant factors, both in terms of initial                                                   Council of Australia, Sustainable
                                               communications systems (DHS, 1998).
capital costs and future estimated cost.                                                     Development Guide, 2001).
The objective is to identify the most          Operational energy – the energy
                                                                                             Polyvinyl chloride (PvC) – this common
economic overall choice. (Property             consumed in heating, cooling, lighting
                                                                                             building material is mostly used for pipes
Council of Australia, Sustainable              and powering equipment and appliances
                                                                                             and electrical cables. Production of
Development Guide, 2001).                      in buildings. (Corus Construction Centre
                                               glossary, http://www.corusconstruction.       PVC requires toxic chemicals and heavy
Lux – measure of the amount of light                                                         metals. These additives risk polluting soil
at a certain point.                                                                          and waterways during PVC disposal.
                                               Operative temperature – a measure             (Melbourne Docklands ESD Guide, 2002).
                                               representing perceived temperature,
m                                                                                            Potable water – water that is fit for
                                               which can be approximated as the
Montreal Protocol – on Substances that         average of air and radiant temperatures.      human consumption. (Property Council
Deplete the Ozone Layer this international                                                   of Australia, Sustainable Development
                                               Ozone Depletion Potential (ODP) – a           Guide, 2001).
treaty was first signed in 1987 (now
                                               number that refers to the amount of
signed by 181 countries). It sets a                                                          Predicted Percentage Dissatisfied
                                               ozone depletion caused by a substance.
time schedule for the reduction and                                                          (PPD). This measure is linked with PMV.
                                               The ODP is the ratio of the impact on
eventual elimination of ozone depleting                                                      A PMV of 0 indicates a PPD of 5% and
                                               ozone of a chemical compared to the
substances. (Melbourne Docklands ESD                                                         a PMV of +/-1 indicates a PPD of 25%.
                                               impact of a similar mass of CFC-11.
Guide, 2002).                                                                                This means that 25% of occupants
                                               Thus, the ODP of CFC-11 is defined to
                                               be 1.0. Other CFCs and HCFCs have             perceive the space to be either warm or
n                                              ODPs that range from 0.01 to 1.0. The         cool. (Melbourne Docklands ESD Guide,
NAbERS – National Australian Built             halons have ODPs ranging up to 10.            2002).
Environment Rating System – measures           Carbon tetrachloride has an ODP of 1.2,       Project brief – typically a response
and compares the environmental                 and methyl chloroform’s ODP is 0.11.          to a client brief and is prepared by the
performance of a building. NABERS              HFCs have zero ODP because they do            integrated design team. (Property Council
can be used to rate a variety of building      not contain chlorine. (US EPA web site        of Australia, Sustainable Development
types, for environmental impacts such ).               Guide, 2001).



q                                             Council of Australia, Sustainable               u
                                              Development Guide, 2001).
r                                             Renewable energy – renewable                    v
Radiant temperature – the average             energy is obtained from sources that            visual Display Units(vDU) – computer
temperature of the objects and surfaces       can be sustained indefinitely. Examples         monitors and other office equipment
that surround us, which radiate heat          of renewable energy systems include             which include artificially illuminated
to (and absorb radiant heat from) our         photovoltaic solar collection, solar thermal    surfaces.
bodies.                                       turbine generation and wind power.
                                                                                              volatile organic compounds (vOCs)
Re-commissioning – focuses upon               (Melbourne Docklands ESD Guide, 2002).
                                                                                              – chemical compounds based on carbon
verifying and documenting that any            Retro-commissioning – is carried out            and hydrogen structure that are vaporised
new or updated systems or equipment           on a building that did not have or only         at room temperatures. VOCs are one
planned, designed, installed, tested,         had partial commissioning at the end of         type of indoor air contaminant. Although
operated, and maintained to meet the          the construction period (adapted from           thousands have been identified in indoor
project requirements (adapted from            ASHRAE Guideline 0-2005).                       air, only a few are well understood and
ASHRAE Guideline 0-2005).                     Reuse – the recovery of a material to           regulated. (Property Council of Australia,
Recycled material – material that             be used again for a similar application         Sustainable Development Guide, 2001)
would otherwise be destined for disposal      without reprocessing. (Property Council         These chemicals are found in paints and
but is diverted or separated from the         of Australia, Sustainable Development           other building products. They are known
waste stream, reintroduced as material        Guide, 2001).                                   to cause health problems, including
feedstock, and processed into marketed                                                        asthma and other respiratory ailments.
end products. (Property Council of            s                                               (Melbourne Docklands ESD Guide, 2002).
Australia, Sustainable Development            Site Environmental Management Plan
Guide, 2001). Materials that have been        (SEMP) – this document guides and sets          W
reprocessed from recovered material           standards for construction and operation        Waste – all waste placed in landfill waste
by means of a manufacturing process
                                              of new developments. It includes                and recycling streams (paper, green
and made into a final product, or into
                                              strategies and processes to manage              waste, composts, commingles), including
a component for incorporation into a
                                              and minimise environmental impacts.             ‘one off’ clean outs, office relocations etc.
product. (EcoRecycle 2003).
                                              (Melbourne Docklands ESD Guide, 2002).          (Department of Treasury and Finance,
Recycled products – materials that
                                              Sick building syndrome (SbS) – a                Reporting of Office-Based Environmental
have been recovered, processed
                                              range of non-specific health symptoms           Impacts by Government Departments:
and used as a raw material for the
                                              that occur in a high proportion (30% or         Guidance to Financial Reporting Direction
manufacture of a useful new product
                                              more) of occupants of specific buildings        FRD24, July 2003).
through a commercial process.
                                              without clearly identified causes. These        Waste Management Plan (WMP) – the
These products will contain a specified
                                              buildings are generally, but not exclusively,   waste requirements and responsibilities of
percentage of material that would
                                              air-conditioned offices.                        project, it is usually site specific and looks
otherwise have been disposed of as
wastes. (EcoRecycle 2003).                    Sustainable development                         at the minimisation, recycling and reuse of
Recycling – includes paper, commingles        – development that meets the needs of           waste through all onsite processes.
and compostables accepted and                 the present without compromising the            It usually forms part of an EMP.
recycled by your contractors or internally    ability of future generations to meet their
(i.e. through on site worm farms). These      own needs. (Property Council of Australia,      x
figures can be extrapolated from waste        Sustainable Development Guide, 2001).
                                                                                              xeriscape – xeriscaping is derived
assessments. (Department of Treasury                                                          from the Greek word ‘xeros’, meaning
and Finance, Reporting of Office-Based        t                                               ‘dry’ and combined with ‘landscape’,
Environmental Impacts by Government           Toxic – any substance which causes              xeriscape means gardening with less
Departments: Guidance to Financial            harm to living organisms, from very low         than average water. A trademarked term
Reporting Direction FRD24, July 2003).        to extreme toxicity. (Property Council          referring to water-efficient choices in
Relative humidity – the ratio of the          of Australia, Sustainable Development           planting and irrigation design. It refers
amount of water vapour in air to the          Guide, 2001) Toxic substances are               to seven basic principles for conserving
maximum amount of water that the              identified in the Australian National           water and protecting the environment.
same volume of air can hold at the same       Pollutant Inventory.                            These include: (1) planning and design;
temperature, expressed as a percentage.       Triple bottom Line – measures the               (2) use of well-adapted plants; (3) soil
Re-manufactured – means to renew              economic, social and environmental              analysis; (4) practical turf areas; (5) use
or restore a used product into its original   sustainability of a project. A sustainable      of mulches; (6) appropriate maintenance;
form or into a useful new product through     development aims for synergy rather than        and (7) efficient irrigation. (see http://
a commercial process. (EcoRecycle             compromise between these factors.     
2003).                                        Triple net lease – a property lease in          glossary.php).
Renewable – a renewable product can           which the lessee pays rent to the owner,
be grown or naturally replenished or          as well as all taxes, insurance, and            y
cleansed at a rate that exceeds human         maintenance expenses that arise from
depletion of the resource. (Property          the use of the property.                        Z

88                                            ESD OPERATIONS GUIDE for owners, managers and tenants


ABCB:    Australian Building Codes
ABGR:    Australian Building Greenhouse
         Rating. (now NABERS)
AGO:     Australian Greenhouse Office,
         now part of the Australian
         Government’s Department
         of The Environment, Water,
         Heritage and the Arts.
AIRAH:   Australian Institute of
         Refrigeration, Air Conditioning
         and Heating.
BMCS:    Building management control
DECC:    NSW Department of
         Environment and Climate
DEH:     Federal Department of the
         Environment and Heritage,
         now the Department of the
         Environment, Water, Heritage
         and the Arts.
DEW:     Federal Department of the
         Environment and Water
         Resources, now the Department
         of the Environment, Water,
         Heritage and the Arts.
DHW:     Domestic hot water
GBCA:    Green Building Council
         of Australia.
GFA:     Gross floor area
LAN:     Local area network
MSDS:    Material safety data sheets
NABERS: National Australian Built
        Environment Rating System
PCA:     Property Council of Australia
PPM:     Part per million
IEQ:     Indoor environment quality.
IAQ:     Indoor air quality.
WSAA:    Water Services Association
         of Australia




ABS (2006) Australian Bureau of               EPA (2007) Indoor Air Facts No. 4            Ribbons, S, Warwick, M and Knight,
Statistics, Water account, Australia,         (revised) Sick building syndrome, 20 April   G. (1995). Section 94 contributions or
2004-05, cat. no. 4610.0, ABS,                2007,,         on-site detention: Council’s dilemma.
Canberra, 2006.                               Accessed 8/5/2007.                           In Preprints of papers: the second
                                                                                           international symposium on urban
AIRAH (2004) AIR-DA26-2004: Indoor            Fisk, WJ, and AH Rosenfeld, (1997)
                                                                                           stormwater management 1995:
Air Quality, p. 65.                           ‘Estimates of improved productivity and
                                                                                           Integrated management of urban
                                              health from better indoor environments’,
Australian Government (1992) National                                                      environments, p. 27.
                                              Indoor Air, vol. 7 (3), 1997, pp. 158–172.
Strategy for Ecologically Sustainable
                                                                                           Sustainability Victoria’s document of full
Development, Canberra, Introduction.          GBCA (2008) Dollars and Sense of Green
                                                                                           costs accounting for waste management
                                              Buildings 2006 and 2008: Building the
BCO (2006) BCO guide to environmental                                                      projects –
                                              Business Case for Green Commercial
management, British Council of Offices,                                                    au/resources/documents/Waste_Wise_
                                              Buildings in Australia. Available at www.
London, 2006.                                                                              Industry_Advisor_Toolkit_-_Full_Cost_
                                                                                           Accounting1.doc, accessed 27/5/2007.
Berry, T, N Edgerton, G Milne, M Jha,
                                              Gerges NZ, (2001) Aquifer storage
and S White, (2004) Feasibility study for a                                                Urriola H (1999) ‘Roof gardens: an
                                              and recovery: type and selection of
policy on water in government operations,                                                  environmental asset’, in JA Wood (ed.),
                                              aquifer, Primary Industry and Resources,
ISF, Sydney, July 2004                                                                     Water sensitive design and stormwater
                                                                                           re-use: seminar proceedings. Stormwater
Chanan V, S White, M Jha, and C Howe
                                              GRI (2006) Global Reporting Initiative,      Industry Association: Sydney, 31 March
(2003) ‘Sustainable water management
                                              Sustainability reporting guidelines v2       1999, p.1.
in commercial office buildings’, paper
presented at Innovations in Water:                                                         Wargocki, P, DP Wyon, YK Baik, 

Ozwater Convention and Exhibition,                                                         G Clausen, and PO Fanger (1997) 

Perth, 6–10 April, 2003.                                                                   ‘Perceived air quality, sick building 

                                              pdf, Accessed 9/5/2007, pp. 28–9.
                                                                                           syndrome (SBS) symptoms and 

Commonwealth of Australia (1997)
                                              IPCC (2007) Summary for Policy               productivity in an office with two different 

Climate Change – Australia’s Second
                                              Makers, IPCC Fourth Assessment               pollution loads’, Indoor Air, 1999, p 9, 

National Report under the United Nations
                                              Report, Working Group www.ipcc.              165–179.

Framework Convention on Climate
                                              ch/SPM040507.pdf Accessed 7/5/2007.
Change.                                                                                    Printed resources
                                              pp. 18–19
                                                                                           The Tenant Energy Management
DECC (2009) Sustainable Property Guide,
                                              OECD (2003), Environmentally                 Handbook is a step-by-step guide to
the NSW Department of Environment
                                              Sustainable Buildings: Challenges and        assist commercial tenants and building
and Climate Change, Sydney.
                                              Policies. A report by the OECD, OECD,        managers in using energy more efficiency.
                                              2003.                                        Hard copy available from offices of the
                                                                                           Property Council of Australia.
                                              Patrick K, (2004) IEQ: coming to a
DEH (2001) Department of the
                                              building near you Property Australia,        Energy Guidelines published by Property
Environment and Heritage, Australia
                                              Property Council of Australia, Sydney,       Council of Australia in 2001. Covers
State of the Environment report, DEH,
                                              2004, p. 8                                   setting energy targets and operation,
                                                                                           maintenance issues.
                                              PCA (2001) Property Council of Australia,
Edwards, B, Ed. (2003) Green buildings
                                              Energy Guidelines, (Electricity tariff 9     Sustainable Property Guide to be
pay. London: Spon Press.
                                              cents/kWh).                                  published in 2009 by the NSW
EMET Consultants and Solarch Group                                                         Department of Conservation and Climate
                                              PEC (2004) Portland Energy Conservation
(1999), ‘Baseline Study of Greenhouse                                                      Change gives an excellent approach to
                                              Inc., Benefits Guide™ A design
Gas Emissions from the Commercial                                                          improving sustainability in the operating
                                              professional’s guide to high performance
Building Sector’. Report for AGO. May                                                      phase.
                                              office building benefits, www.
                                              pdf, p.19. Accessed 27/05/2007.              reports/2006/sustainability/case_studies/

90                                            ESD OPERATIONS GUIDE for owners, managers and tenants

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