With 16 of the world's 20 most polluted cities located in China (World Bank 2006), the importance of environmentalism needs to be one of the top concerns for developers and investors in this market, highlighted Jones Lang LaSalle in its recently launched and first White Paper on Sustainable Development in China.
The White Paper notes the strong economic expansion cycle in China has resulted in both commercial and residential buildings being constructed at a considerable pace. Awareness of sustainable development and operations in Greater China has, however, lagged behind that of the West. Discussion and implementation of sustainable buildings practices has been gaining momentum in recent years due to the impending threat that continued unsustainable development poses. There are encouraging signs that the Chinese government has begun to increase its efforts to improve building standards and promote energy efficiency. "Implementing sustainable building practices in the real estate sector can and will make a significant contribution to the environment. The process is a partnership through proper planning and consultation between parties including owners, occupiers and builders. Greater benefits can be obtained when sustainable measures mutually reinforce one another." comments Anthony Couse, Managing Director of Jones Lang LaSalle Shanghai.
"China has reached a critical point in its development, and although government has made good progress with enforcement effective at the district level, more needs to be done to significantly impact China's growing environmental issues," noted Justin Kean, author of the White Paper and Associate Director of Occupier Research at Jones Lang LaSalle.
In the paper, Jones Lang LaSalle outlines the process of implementing sustainable development. Although there is a growing base of knowledge of sustainability and environmentalism in Greater China, education of both the owners and occupiers is the first and key factor to ensure they successfully implement green strategies. Central to any education and internal communications programs include: energy conservation, water conservation, waste management and improving indoor air quality.
Due to the high level of electricity and water consumption within commercial buildings, property management practices play an important role within existing developments. The process of making commercial buildings more sustainable is akin to embarking on a journey. There is no quick fix method, and the process of improvement must be done in partnership with all stake holders. In its White Paper, Jones Lang LaSalle highlights several no cost, low cost and moderate cost improvement techniques that can be implemented with positive effects to enhance a building's performance.
"We know that sustainable buildings use design techniques, materials and technologies that minimize a building's impact on the environment in their design, construction and operational systems, while adequately servicing and supporting the activities within," noted Mr Kean. "In the long term, operating costs for sustainable buildings are cheaper and make for a better workplace. Operating costs can be saved by implementing effective sustainable methods mainly in energy savings, water savings, waste reduction savings, valuation improvements and retrofitting," emphasized Eric Lee, head of property management for North Asia at Jones Lang LaSalle.
"We notice that the shift towards sustainability is gaining momentum in Greater China. Whether it is adopted through a genuine concern for the planet, government enforcement or because of positive financial impacts, the basic message is that environmentalism and sustainable building are becoming an important part of doing business in this part of the world," noted Mr Kean.
In addition, although China lags behind the implementation of sustainable techniques, many of the technologies and practices necessary to make significant impact and savings has been developed in the West. China therefore has the opportunity to leap-frog ahead in its progress, as it has in so many other areas of technology and the economy.