Developing a green business and to save the World

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and to save the World 拓展綠色業務攜手保護地球 Ir Conrad WONG, BBS,

1 HKQAA Symposium 2015 Strategic Management of Megatrends to Achieve Sustained Success Developing a green business and to save the World 拓展綠色業務攜手保護地球 Ir Conrad WONG, BBS, JP Chairman, Hong Kong Green Building Council 29 May 2015

2 Intense Competition Blood Bath 2 Few Competition New Market

3 Green Ocean Strategy Capture the Green Market 3

on an internationally divisive issue of the 21st century.

4 Global Mission The climate change deal, under which both sides (China & U.S.) committed to cutting greenhouse emissions, is very significant because it breaks new ground on an internationally divisive issue of the 21st century. (14 November 2014 on SCMP) Global Trend - Establish absolute target - Actual performance - Government incentives as key driver - Neighbourhood scale 4

5 Opportunities: Green to Gold Part One: Preparing for a New World 1. Eco-Advantage 2. Natural Drivers of the Green Wave 3. Who s Behind the Green Wave? Part Two: Strategies for Building Eco-Advantage 4. Managing the Downside 5. Building the Upside Part Three: What WaveRiders Do 6. The Eco-Advantage Mindset 7. Eco-Tracking 8. Redesigning Your World 9. Inspiring an Eco-Advantage Culture Part Four: Putting it all together 10. Why Environmental Initiatives Fail 11. Taking Action 12. Eco-Advantage Strategy By Daniel C. Esty & Andrew S. Winston (2006) 5

6 Turning Carbon into Diamond Sustainability is not only our responsibility but has huge business opportunity. Green should save money in a life cycle prospective. Green is not only a cost but profit. Doing Green means Doing Well. China Emissions Exchange in Shenzhen already in operation 6

7 Why Building is so important for Hong Kong? Worldwide Building accounts for 40% GHG, but in HK, it accounts for Total Electricity Consumption 90% According to the trend, by 2030 it will take 3 Earths to sustain our lifestyle! HK GHG Emission per person: 5.9 tons CO 2 e Equals the use of 2.6 planet resources Irresponsible! Not Sustainable! Other Energy 7% Transportation 16% Industrial Process 2% Waste 12% Buildings 63% Account for GHG Emission 60% 7

8 From the World Green Building Council, the World view on Green Building is changing: Green Building should be redefined as tool for saving the planet and improve well being for people. 8

9 HKGBC New Vision To help save the planet and improve the wellbeing of the people of Hong Kong by transforming the city into a greener built environment.

HKGBC New Mission To lead market transformation by advocating green policies to the Government; introducing green building practices to all

10 HKGBC New Mission To lead market transformation by advocating green policies to the Government; introducing green building practices to all stakeholders; setting design, construction and management standards for the building profession; and promoting green living to the people of Hong Kong.

Green Policy Advocacy HK 30/30 Roadmap Target 30% Absolute reduction (10364 GWh) in Electricity Consumption in Buildings by 2030 (2005 baseline: 34548 GWh) 52% intensity

11 Green Policy Advocacy HK 30/30 Roadmap Target 30% Absolute reduction (10364 GWh) in Electricity Consumption in Buildings by 2030 (2005 baseline: GWh) 52% intensity reduction (24185 GWh) as compared to the projected electricity consumption in 2030 Reduction of the absolute electricity consumption of buildings by 30 % by 2030 from 2005 level. 11

12 Green Practices for Professional Green Building assessment [BEAM Plus] BEAM Plus A voluntary green building assessment scheme developed locally suitable for compact high-rise cityscape in the sub-tropical areas. Development in Brief BEAM scheme was established in 1996, since then a number of updates were released. In 2010, BEAM Plus v1.1 was released in 2011 and the current version is v1.2. In Dec 2013, funding was granted to BEAM Society Limited to start the major revision of BEAM Plus Existing Buildings (EB). The BEAM Plus New Buildings (NB) working groups have been formed in early Sept 2014 to review the current assessment scheme HK-BEAM BEAM 4/04 & BEAM 5/04 BEAM Plus NB & EB V1.1 BEAM Plus NB & EB v1.2 BEAM Plus Interiors v1.0 12

13 BEAM Plus Assessment Tools SA: Location and design of buildings, site management; MA: Selection and efficient use of materials, waste disposal and recycling; EU: Carbon emissions and energy use, energy efficiency, passive design; WU: Water quality, conservation and effluent discharges; IEQ: Indoor air quality and ventilation, safety and hygiene, thermal comfort. IA: Bonus credits, innovative design solution 13 Innovations Site Aspects Water Use Indoor Environmenta l Quality Energy Use Materials Use

BEAM Plus Interiors BEAM Plus Interiors looks at Green Building Attributes (GBA),

Environmental Quality (IEQ) and Innovation (IV).

Building Attributes Obtain up to 5 credits if the building holds a valid BEAM certificate

of credits shown above are the de facto weighting.

14 BEAM Plus Interiors BEAM Plus Interiors looks at Green Building Attributes (GBA), Management (MAN), Materials Aspects (MA), Energy Use (EU), Water Use (WU), Indoor Environmental Quality (IEQ) and Innovation (IV). GBA 8 MAN 10 MA 26 EU 26 WU 6 IEQ 24 IV 10 (Bonus) Launched in Aug 2013 GBA 1 - Green Building Attributes Obtain up to 5 credits if the building holds a valid BEAM certificate or other internationally recognised green building label. N.B. The no. of credits shown above are the de facto weighting. GBA 2 - Long-term Leases 2 credits where the lease contract period between the landlord and the tenant is at least 4 years. 3 credits where the lease contract period between the landlord and the tenant is at least 6 years. 14

BEAM Plus Neighbourhood BEAM Plus Neighbourhood will look at Community Aspects (CA), Site Aspects (SA), Materials Aspects (MA), Energy Use (EU), Water Use (WU), Environmental Quality (EQ),

15 BEAM Plus Neighbourhood BEAM Plus Neighbourhood will look at Community Aspects (CA), Site Aspects (SA), Materials Aspects (MA), Energy Use (EU), Water Use (WU), Environmental Quality (EQ), Innovations and Additions (IA). CA (22%) WU (5%) SA (29%) EQ (21%) MA (5%) IA EU (18%) Community Aspects (CA) covers community and social sustainability elements: - Community engagement and Sustainable lifestyle - Diversity of housing types - Cultural heritage - Place making - Preservation of Cultural assets, CSR policy for developers, socio-economic study, barrier-free access Development of the BEAM Plus Neighbourhood Q1-Q Pilot Testing Q Tentative Roll-out date 15

Energy performance rating will then be advised.

16 Building Energy Performance Recognition Scheme (Office Occupants) The tool will analyze the electricity consumption of the applicant and compare with similar office type. Energy performance rating will then be advised. (Platinum/ Gold/ Silver/ Bronze/ Green/ No Rating) Web Based Platform Website Ratings of Certification and Label 16

17 Building Energy Performance Recognition Scheme A series of HKGBC Building Energy Performance Recognition Scheme is currently under development Development of the Energy Benchmarking 2013 Office Occupants Office 2015 Retail Building Mandatory Energy labelling for all buildings (Proposed by HKGBC) Launched in Nov 2013 Sub-metering is essential in providing more accurate data Shall be tied with BEAM Plus Mandatory Energy Use Intensity (EUI) requirements to improve overall electricity consumption of buildings Possible incentives for target achieved performers Mandatory benchmarking & reporting, and performance verification 17

CIC Carbon Labelling Scheme Understand the

developments and thereby formulate carbon

Show you care about carbon footprint and

18 CIC Carbon Labelling Scheme Understand the carbon footprint of your products / developments and thereby formulate carbon reduction strategies i.e. to cut down carbon and $$. Show you care about carbon footprint and demonstrate your CSR. Gain a marketing advantage. Link to the BEAM Plus We need to take in account for the embedded carbon as well. 18

for a Greener Building Product A labelling system is required for market differentiation 19

19 Green Building Product Labelling Scheme Building Professionals want to specify Green Building Product in their contract to Promote Green General Public may be willing to pay at higher price for a Greener Building Product A labelling system is required for market differentiation 19 Ratings Platinum >90 Gold Silver Bronze Green Benchmarked Scores for each product

In two to three years time Series of Rating Tools for Building Sectors 2015 2nd half CIC Carbon Labelling

Whole building - Retail Green Building Product Labelling Scheme 2015 Q3 2016 Q2 Energy Benchmarking Tools BEAM

20 In two to three years time Series of Rating Tools for Building Sectors nd half CIC Carbon Labelling Scheme BEAM Plus Interiors BEAM Plus Neighbourhood Phase 1 Phase Q Q1 Whole building - Office Whole building - Retail Green Building Product Labelling Scheme 2015 Q Q2 Energy Benchmarking Tools BEAM Plus Existing Buildings to reflect actual performance BEAM Plus New Buildings with social aspect included 2015 Q

21 Create new market for business opportunities HKGBC is creating a Green Ocean for the Industry 21 etc

Holiday Inn Express Hong Kong SoHo Opened in September 2012 Gross

rooms: 274 nos kwh/m2/year 500 400 300 200 100 437.5 401 58.

5% Energy consumption reduced: 2,070,381kWh Energy Bill Saved: HKD3.

22 Holiday Inn Express Hong Kong SoHo Opened in September 2012 Gross Floor Area: 9,163 m 2 Number of floors: 36 storey Number of guest rooms: 274 nos kwh/m2/year % 181 Hong Kong US Yau Lee Hotel Energy Saving : 58.5% Energy consumption reduced: 2,070,381kWh Energy Bill Saved: HKD3.33M / year Additional Cost: HKD13.26M Pay Back Period: 4 years 0 Hong Kong US Yau Lee Hotel

Building Solutions Research, design and build

Optimization Engineering Solutions Energy

optimization process is carried out on the

constructional and building services engineering

Solutions Cooling Tower 冷卻塔節能 15-30% Energy

Coil Unit 智能風機盤管 Oil Free Variable Speed

Saving 節能 10-30% Energy Saving Active Water

Saving Nanoflex Lighting Solution 高效節能燈具

綜合性屋宇設備管理系統 Energy Optimization Solution for HVAC

23 Building Services Capability REC Green Technologies / REC Green Energy Solutions Green Building Solutions Research, design and build energy saving products and green products Energy Optimization Engineering Solutions Energy consumption can be significantly reduced if optimization process is carried out on the building systems in regard of the architectural, constructional and building services engineering aspects Energy Saving Equipments Energy Saving Solutions Cooling Tower 冷卻塔節能 15-30% Energy Saving 節能 40-80% Energy Saving Intelligent Fan Coil Unit 智能風機盤管 Oil Free Variable Speed Centrifugal Chiller 無油變頻離心式冷水機組節能 15-30% Energy Saving 節能 10-30% Energy Saving Active Water Balancing Solution 全面流量平衡調控方案節能 15-35% Energy Saving Nanoflex Lighting Solution 高效節能燈具 Integrated Building Management System (ibms) 綜合性屋宇設備管理系統 Energy Optimization Solution for HVAC System 能源優化方案 ( 中央空調系統 ) 節能 15-30% Energy Saving PowerBox Online Energy Management System 在線能源管理系統 Commercial and Industrial Metering Solutions 商業及工業儀表方案

Energy Optimisation Solution ( EOS ) EOS enables the building owner to

consumption performance of HVAC System according to building loads,

speed equipments + Additional sensors + DDC Additional sensors Energy

optimization of HVAC system Chilled water pump with variable speed drive

24 Energy Optimisation Solution ( EOS ) EOS enables the building owner to enhance its building MEP system and maximise the overall energy consumption performance of HVAC System according to building loads, profiles and external weather conditions EOS Configuration : Variable speed equipments + Additional sensors + DDC Additional sensors Energy Optimization Solution ( EOS TM ) Software & DDC to implement an energy optimization of HVAC system Chilled water pump with variable speed drive PowerBox TM On-line Energy Management & Monitoring Solution It saves 27% of the air-conditioning energy 24

25 Starfon TM Environmental Friendly Building Materials Patented Green Building Materials Production Line (Starfon TM ) Recycled Glasses Recycled Paper Fiberglass Cement Non-toxic Chemicals Marble Metal Wood

26 Saving the World does mean make money 26

27 Green Ocean for all of us! It s up to you to swim in that ocean & save the World. 27

Zero energy highrise. Dream Comes True? Zero Carbon Building Conference 2015

Zero energy highrise. Dream Comes True? Zero Carbon Building Conference 2015 Zero Carbon Building Conference 2015 Zero energy highrise building Dream Comes True? Ir Conrad WONG, BBS, JP Chairman, Hong Kong Green Building Council 15 October 2015 1 An interview by RTHK: My Dream,