Hello everyone, my name is Tony Cope and I m Head of Office at GPT. I want to welcome all of you here today for the kick off of our Tenant

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1 Hello everyone, my name is Tony Cope and I m Head of Office at GPT. I want to welcome all of you here today for the kick off of our Tenant Sustainability Forums for our Sydney properties. 1

2 PROPERTIES & OWNERS MLC Australia Square Citigroup Darling Park 1 Darling Park 2 Darling Park 3 HSBC Centre 179 Elizabeth St Quads 1,2,3,4 I also extend a warm welcome to our co-owners, Dexus, Macquarie, QIC, Brookfield Multiplex and AMP Capital Investors and to our Property Managers Jones Lang LaSalle. All of these parties have cooperated together to bring you today s forum. Sustainability, particularly relating to reducing environmental impact is quickly becoming embedded in business today. The community expects it, many businesses are demanding it, governments want it, and employees are enthusiastic about it. Many people assume that only the latest highest rating Green Star buildings are treading lightly on the planet, in fact gaining improved performance from existing buildings is an equally valid, in some ways more sustainable strategy Today we will discuss how the listed properties perform against the major environmental benchmarks, we ll discuss how the sustainability of your own tenancies might be improved and what assistance there is to help you benchmark and identify sustainability actions. At the end of this presentation I invite you to consider how each of your companies can use the information provided to better inform your management and staff of the success and further actions of sustainable building management I ll now hand you over to Bruce Precious to introduce the environmental effects of office buildings. 2

3 OFFICE BUILDINGS & THE ENVIRONMENT Emissions Energy related greenhouse gases Cooling tower exhaust Noise Resource use Water Energy Materials Indoor Environment Quality Comfort/safety Waste Office buildings have a surprisingly broad range of environmental effects: emissions at the building include; stormwater run off, sewerage, cooling tower exhaust, generator exhaust, air conditioning exhaust, potential refrigerant leakage even noise. The emissions that are most significant are the energy related greenhouse emissions, something that the community is expecting action on. Electricity is the most intense source of greenhouse emissions. Office buildings are intense water consumers. Clean drinking water is a limited and precious resource. Consumption in buildings is driven by use in cooling towers, flushing toilets, in cooling basins and kitchen amenity. The larger buildings in this city can use more than 50 million litres/annum, an average of 16,000 L/working hour! Our aim is to ensure that we play our part in reducing our impact in the highest priority impact areas of energy/greenhouse, water, and waste. But we need to do this without compromise to the utility of the building, without undue reduction in services to occupants so our property managers will carefully manage the indoor environment, ensuring comfort and safety for our occupants. Office buildings aggregate large volumes of waste, at each of the buildings you occupy recycling programs have been in place now for some time, significantly reducing the amount of waste that needs to go to landfill. 3

4 PROGRESS ON WASTE tonnes Waste to landfill Waste recycled Total Waste time This graph is important for a number of reasons, firstly it shows the progress being made across our buildings in increasing the amount of waste recycled. It shows the growth in overall waste generated. Thirdly, it illustrates how progress can be made through the collaboration between owner, tenant and building management. Waste is predominantly generated by tenant activities. Waste removal from cleaning to bulk removal is a service typically provided by the lessor. We look forward to working with you to continue to increase recycling rates and to develop further strategies around reducing overall volumes of waste. 4

5 PROPERTY SUSTAINABILITY ENGAGEMENT Objective: To manage the environmental impact of (insert property name) Building specific Meet regularly Communicate and review performance Shares information Collaborates on improvements Communicates with and engages occupants - Newsletters, web pages, In Link The concept of Property Sustainability Committees has taken particular hold through some of the green leases that are now being used, particularly by government departments. Sustainability committees will have the following attributes: (As per slide) A question you might have in mind is how we can measure and compare performance of office buildings. We re using the National Built Environment Rating System (NABERS) to provide a consistent, auditable, recognised measure of performance. NABERS is a government run rating with a variety of tools that can be used to rate homes, offices, and hotels. Encourage everyone to go to and take a shot at rating your home. 5

6 MEASURING ENVIRONMENTAL IMPACT NABERS Energy NABERS Water NABERS Waste (pilot) NABERS Indoor Environment Quality (pilot) NABERS for office buildings rates these attributes: as an example of how it works for energy requires: The area of the building, the energy bills, the hours of operation, the postcode. A building of 2.5 stars is an average building, 5 stars is excellent performance and means that the greenhouse emissions are almost half that of a 2.5 star building. Under NABERS energy the source of electricity is taken into account. Across our buildings 25% government accredited GreenPower is purchased to reduce emissions. NABERS Water uses a similar pragmatic approach to measuring the water intensity of each building. As the other NABERS tools come into common use we will evaluate their application to each building. NABERS Energy and waste have both been piloted at Citigroup building and the measurement protocols improved as a result of this practical experience. 6

7 BENCHMARKING Whole building Base building Common services Lifts HVAC Lobby Tenancy 135 kgco2 /m2/annum 103 kgco2 /m2/annum 71 kgco2 /m2/annum 199 kgco2 /m2/annum Define the ratings, Whole Base Tenancy 1 star is considered poor performance 3 stars very good 5 stars exceptional, all in half star increments Importantly a 5 star building has less than half the greenhouse emissions of a 2 star building, it isn t just a little difference. Compare it with Australian Government target to reduce Australia s greenhouse emissions by 60% by If we could take a 2.5 star building and bring it to 5 star level that s already a 50% reduction on emissions and it shouldn t take 42 years. So how do the buildings rate? 7

8 MLC CENTRE 8

9 AUSTRALIA SQUARE TOWER & PLAZA TOWER PLAZA 9

10 HSBC CENTRE 10

11 DARLING PARK 1 & 2 Darling Park 1 refurbishment is designed to deliver higher performance with a lower carbon footprint as new chillers and the building management system should provide much improved energy control 11

12 DARLING PARK 3 Recently recognised by the Australian Institute for Refrigeration Airconditioning and Heating is a leading example of high performance buildings. Darling Park 3 is the first office tower > 20,000 sqm with a conventional air conditioning system to achieve 5 stars even before considering Green Power. Taking Green Power into account Darling Park 3 has reduced greenhouse emissions by 70% compared to an average 2.5 star building. 12

13 CITIGROUP CENTRE Citigroup centre is a large and complex building, but again, the strategies that have been put in place over the past few years are delivering real results, 13

14 HI PERFORMANCE TRENDS Citigroup Centre - 2 Park St Citigroup Centre - 2 Park St Electricity Consumption Electricity Consumption 11,400,000 11,400,000 11,200,000 11,200,000 11,000,000 11,000,000 Annual kwh Annual kwh 10,800,000 10,800,000 10,600,000 10,600,000 10,400,000 10,400, ,200,000 10,200,000 10,000,000 10,000,000 9,800,000 9,800, Month Month The building has never run efficiently as it currently runs, electricity consumption down by more than 10% per annum thanks to: Putting in place an energy management and reporting system Installing sub meters so that energy use in each system of the building can be analysed Improved control of energy systems so that they only run when required Installing variable speed drives so that pumps and fans only work as hard as they need to 14

15 179 ELIZABETH STREET Great improvements with a new BMS 15

16 QUAD BUSINESS PARK QUAD 1 QUAD 2 QUAD 3 QUAD 4 Target 5 Star Target 5 Star 16

17 workplace 6 Workplace 6 has just been commissioned in Pyrmont, it is NSW s first 6 Star Green Star office building. Green Star rates the attributes of the building design, it rewards designs that incorporate low environmental impact features. These features include: High efficiency building envelope, using high efficiency glass and strategic shading to reduce summer thermal loads Chilled beam ceilings that cut fan energy loads Cogeneration system to generate low emissions electricity and free cooling Blackwater sewer mining system, reclaiming water from the adjacent sewer, using this to flush toilets and to irrigate adjacent parklands The innovation employed at workplace 6 will help to guide the approaches we take to further reduce environmental impact of existing buildings. 17

18 HIGH PERFORMANCE IMPROVEMENTS MAT MAT Electricity Electricity kwh kwh Oct-06 Oct-06 Dec-06 Dec-06 Feb-07 Feb-07 Apr-07 Apr-07 Jun-07 Jun-07 Aug-07 Aug-07 Month Month Oct-07 Oct-07 Dec-07 Dec-07 Feb-08 Feb-08 Apr-08 Apr-08 Jun-08 Jun-08 Aug-08 Aug-08 All of those ratings are for the 2007 calendar year, during this year we ve seen improvement in each of the major utility consumption areas pointing to even better ratings this year. 18

19 HIGH PERFORMANCE IMPROVEMENTS MAT MAT Water Water KL KL Oct-06 Oct-06 Dec-06 Dec-06 Feb-07 Feb-07 Apr-07 Apr-07 Jun-07 Jun-07 Aug-07 Aug-07 Oct-07 Oct-07 Dec-07 Dec-07 Month Month Feb-08 Feb-08 Apr-08 Apr-08 Jun-08 Jun-08 Aug-08 Aug-08 All of those ratings are for the 2007 calendar year, during this year we ve seen improvement in each of the major utility consumption areas pointing to even better ratings this year. 19

20 ELECTRICITY USE - COMMERCIAL BUILDINGS ¼ of Australia s electricity use The most greenhouse intensive fuel In 2000 generated 35 million Tones CO 2 Cost approx $4 Billion In 2010 estimate 62 million Tones CO 2 Tenants account for ~50% of the sector electricity. 48% 52% Tenants Base Building 20

21 TYPICAL TENANT ELECTRICITY BREAKDOWN Lighting predominate load Supplementary A/C can be an issue Improvements in office equipment Other equipment includes boiling water units, kitchen equipment. 2% 67% 31% Other Equipment Lighting Office Equipment 21

22 TYPICAL TENANT OPPORTUNITIES Lighting Control systems Switches A/C Control Manual on / auto off Set points (especially computer rooms) Equipment EnergyStar enabled Printer low power modes enabled General Timer switches on boiling water units Education 22

23 BENCHMARKING PERFORMANCE - NABERS (ABGR) What s Required? Office Nett Lettable Area Occupancy (in hours per week) Location (postcode) Energy use 12 months 23

24 PRACTICAL STEPS CITYSWITCH & RECYCLING Join CitySwitch make a NABERS Energy commitment Desirée Sheehan CitySwitch Program Manager City of Sydney T M dsheehan@cityofsydney.nsw.gov.au Previously 3CBDs Greenhouse Initiative Recycling Base building recycling 24

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