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The Rapid Rise of Green Building


Nobody can deny that the sustainable building movement’s rise has been meteoric. In a 2012 Turner Construction survey of 718 U.S. real estate owners, developers and tenants, 90% were committed to environmentally sustainable practices. More than half were “extremely” or “very” committed to green principles. And a 2013 McGraw-Hill Construction global report found that 51% of architects, engineers, contractors, consultants and building owners surveyed in 62 countries say it’s likely that more than 60% of their work will be “green” by 2015.

Last year, there were more than 13,500 commercial buildings certified to meet the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) standards in the U.S. Another 30,000 applied, and LEED has spread to 139 countries. Green building is maturing, especially in American cities, which are developing innovative regulations to drive positive outcomes.

Even without new laws, forward-looking companies find options — such as the use of energy services companies, green leasing and affordable approaches to solar and other renewables. They’re motivated by more than “eco correctness” — adding sustainable features reduces operating costs (and often increases a building’s value and the rent levels it can command), though payback periods can be long.

Some strategists go beyond more modest standards to the “net zero” building that generates as much energy as it uses. Cities are developing their own audit and energy management procedures, often using software unavailable 10 years ago. Clearly, green building has gone from a feel-good exercise to an impending baseline for all construction. This special report was produced in coordination with Wharton’s Initiative for Global Environmental Leadership (IGEL).


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