Business Productivity from Better Indoor Environment Quality. Dr Vyt Garnys

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1 Business Productivity from Better Indoor Environment Quality Dr Vyt Garnys

2 About Us Comprehensive scientific consulting and laboratory services since 1987 Leading provider of multidiscipline and technical risk management solutions We continue to set service benchmarks in property & the built environment, occupational health and safety, environmental consulting, product & process and strategic commercial risk management for both the public and private sector

3 OVERVIEW Business Costs Costs Rent, Energy, Maintenance, Labour, Impact Energy, IEQ Measurement IEQ, Occupants Cases Australia, India Developments WGBC,UNEP, GBCA, NABERS

4 Familiar Complaints?

5 Integrated Sustainability

6 Colliers Office Tenant - Survey 2012

7 OVERVIEW Costs Business Costs - Rent, Energy, Maintenance, Labour

8 Annual Labour Costs in India Office Manager: Rs 400K (142K 1025K) General Operations Manager: RS1250K( K) Administrative Officer: 300K ( K) Computer Operator: 150K ( K) Executive Assistant: 300K ( K) HR Generalist: 250K ( K) HR Manager: RS600K ( K) IT Industry: RS 750K ( K) Assume average Green Office Salaries RS 500K/ year

9 UNEP. Towards a Green Economy (2011) Rapid growth of construction in developing countries A more proactive engagement between occupier and building ( CETEC calls it Facility Ecology) Average Electricity Cost US$/kWh, $30 (OECD), $12(USA), $8 (India) Property NPV20yr USA, US$/m 2 : Energy $62, Productivity and Health $400 - $600, Total $530 - $725. ie Energy = 10% of Property NPV in USA

10 Energy Consumption in Indian Commercial Buildings Conventional Case: 170 kwh/m 2 /year Low Energy Strategy: 110 kwh/m 2 /year Transport Corp, Gurgaon

11 Commercial Building Energy Performance Index India kwh/m 2 /year , mean 300 For 5m 2 /person and Rs 5/kWh= Rs7.50K mean/ person Europe/N.America/Australia Less than 150

12 Annual Rental Costs in India 85% of Occupiers consider productivity to be critical * 55% of occupiers focus on productivity * Indian Office Rental Averages (Rs/m 2 /year): New Delhi130K Mumbai 100K Gurgaon 70K Chennai, Bengaluru, Kolkata, Pune, Hyderabad 45K 65K National office average Rs/m 2 /year: 50K Accommodation per person 5m 2 Office rental Cost (Rs/person/Year) 250K

13 OVERVIEW Business Costs Impact - Energy, IEQ

14 Comparison of Salaries to Energy Costs Cost Nationally Occupancy Cost/m 2 /yr Salaries Rs 500,000/p/yr 5m2/p/yr Rs 100,000 Oncosts Rs 1,000,000 5m2 Rs 200,000 Electricity Rs 5/kWh 300kWh/m2/yr Rs 1,500 Rent Rs 15,000/m2/yr Rs 15,000 IEQ Productivity + 5% Salary 2.5% Oncosts Rs 10,000 Energy Savings 10% Electricity Rs 150 Ratio of Benefits Energy/ Labour RS150/20, %

15 Why the focus on IEQ? Productivity Gains Predicted range in % improved performance - based on a literature review of more than 200 productivity research papers. Extracted from blog published by Workplace Unlimited and presented at Workplace Trends (UK, October 2013) by Dr Nigel Oseland

16 OVERVIEW Business Costs Measurement - IEQ, Occupants

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18 Indoor Air Quality Particulate Matter Airborne Microbials Carbon Monoxide Carbon Dioxide (Ventilation Effectiveness) Thermal Comfort Ambient Temperature Relative Humidity Air Movement Acoustic Comfort dba (tenant noise isolated) Plant inspection Visual inspection and measurements as required

19 Indoor Air Quality Includes (but not limited to): volatile organic compounds (VOCs), formaldehyde, particulate matter (dust), airborne microbials, carbon monoxide Contributions include material selection, finishes and paints, ventilation effectiveness, outside air, plant and equipment (HVAC), etc. Measured using handheld scientific equipment and adsorption tubes (measured over a period of time and analysed using GC-MS and other laboratory techniques)

20 Thermal Comfort Includes temperature, relative humidity, air velocity Parameters measured using logging equipment (BMS may be utilised for future studies) Measured at typical seating height

21 Lighting and Acoustic Comfort Lighting includes horizontal lux, vertical lux and lighting uniformity (measures of task illuminance) Acoustic comfort was assessed by measuring ambient sound levels (dba) and incorporated both mechanical influences and tenant/behaviour influences Both measured using handheld instrumentation (NATA calibrated) and measured in both the morning and afternoon

22 Occupant Satisfaction Measured using the Centre for the Built Environment (CBE) at the University California Berkeley USA Compatible with the NABERS Validation Protocol Provides internationally benchmarked data

23 OVERVIEW Business Costs Cases - Australia, India

24 Typical Projects IEQ

25 Post Occupancy Evaluation (POE) IEQ assessment using NABERS protocol Ongoing collaboration with change/design/hr/ sustainability team Occupancy Satisfaction Survey using international benchmarked survey NABERS IE rating Generally conducted 6 months following occupation (to avoid relocation disturbance effect)

26 Occupant Satisfaction Pre and Post Remediation

27 Occupant Satisfaction Comparisons

28 Acoustics

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31 Four Sydney Buildings Four Buildings -1,604 occupants, 34,521 m 2 Gain from IEQ Productivity, $59m 2 Total annual energy gains, $18m 2

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33 A Focus on the Indoor Environment: Indoor Environment Quality (IEQ) Assessment of Batesford Community Hub

34 OVERVIEW Business Costs Developments WGBC, UNEP, GBCA, NABERS

35 World focus on wellbeing and productivity for greater retention, satisfaction and output Knowledge Economies

36 IEQ is a Key Focus Internationally

37 NABERS Indoor Environment National Australian Built Environment Rating System Validation Protocol for Offices used as guide for projected hypothetical rating (whole building) 4 Star Whole Building Rating (projected) Potential Improvements Thermal Comfort Air Quality Acoustic Comfort Lighting Quality Office Layout 30% 30% 20% 10% 10%

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39 IEQ is now the Elephant in the Room

40 Business Productivity from Better Indoor Environment Quality Dr Vyt Garnys