Office building renovation could generate USD 1.5 trillion in efficiency savings

Businesses around the world could reduce office costs by up to $1.5 trillion through state-of-the-art refurbishment and retrofitting.

A report released by Philips Lighting at the World Green Building Week show the impact that could be made on rents across the world’s offices if business owners replicated the efficient usage of space achieved in a leading green building.

The report signals that the potential rent reduction from optimising offices is just a small proportion of the total financial benefit to businesses, which also include lower utility bills and significant gains in the productivity of employees, the largest cost to most businesses. It is calling for a doubling of the renovation rate of offices in developed countries to reach 3% per year, which it says will be a key factor in reducing emissions and offsetting increased global demand for energy from population growth and urbanisation.

Deloitte, for example, has accomplished a 50% reduction in the space required per employee in The Edge building in Amsterdam compared to its previous premises, through effective use of smart technology. This was achieved whilst improving employee well-being.

“Achieving our net zero goals is entirely possible but in order to do so we really need to step up the rate of renovation,” commented Terri Willis, CEO of World Green Building Council. “Companies looking to do a major refurbishment should be prepared to layer in energy-efficiency retrofits and implement new technologies.”

“Renovating buildings to make them more energy efficient can have a huge beneficial impact on the environment, added Harry Verhaar, Head of Global Public & Government Affairs at Philips Lighting. And when they are renovated properly to encompass smart technology, the additional financial impact for businesses can also be vast.”

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September 26, 2017
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