Page number 102
About WorldGBC Statement This assessment assumes a base scenario where health and wellbeing broadly follows existing regulation and policies on health and social value in the built environment. An unhealthy world scenario is where health and wellbeing action is significantly less than this. A healthy world scenario is where action is greater than this. Global health and wellbeing focus will mean ESG performance, reputation and public perception grow in importance for all asset classes. This extends to public buildings due to political pressure 102 | BEYOND THE BUSINESS CASE Foreword Introduction The outcome of Low, Medium or High for each statement represents the analysis of the business case in this situation, as it relates to the below themes Occupant Benefits Extent to which the built environment affects building occupant productivity health, wellbeing, and social value. Costs Extent to which health, wellbeing and social value trends affects building costs including supply chain, construction and operation costs. Risk mitigation Extent to which health, wellbeing and social value trends affects risks for building investors, developers, owners or occupiers. Asset Values Extent to which health, wellbeing and social value trends affects the value of buildings. Investors and Reputation Extent to which health, wellbeing and social value trends will affect building investment decisions. Finance Availability of finance for healthy buildings and assets that enhance social value. Wider role of business Beyond finance, how does the wider role of business support the business case for healthy buildings
Page number 103
Drivers of the Business Case The Business Case Strengthening the Case: Social Value The Social Value Case Future-Proofing The Value Proposition Unhealthy World Scenario Healthy World Scenario Global decline in health and wellbeing, plus inequalities and injustice between regions, means buildings with health, wellbeing and social vaue credentials are beneficial and enhance productivity. Medium-High Higher ventilation generates up to $7,500 per person per year in employee productivity (4) Global improvement in health and social value between regions, smart building technologies, plus individual health monitoring reduces building impact on occupant health. Healthy buildings are desirable. Medium -High Reduced demand for healthy building design such as ventilation and landscaping reduces operation costs. Less regulation on health and wellbeing in the supply chain or during construction ccould increase both costs and project risk due to ill health and other factors. Medium Increased demand for buildings with health and wellbeing credentials drives down the cost of green buildings. Technological advances lower cost of use. Health-driven regulation in construction reduces risks and lowers project costs. Medium -High Global health issues impact significantly on society. Buildings built to enhance health and social value are less common, and therefore premium assets. Furthermore, global inequality and injustice is a risk to the building supply chain potentially heightening building cost. Medium-High Lower consideration of health and wellbeing building credentials in valuation as regulation does not drive intensive retrofit. Premium office / residential market where building health and wellbeing certifications continues in spite of regulation may achieve high rental premiums or sell more quickly. Medium Wellness in real estate projected to reach $198 billion in 2022 (3) A shift in global management of health and wellbing will reduce the building impact on occupant and supply chain health and social value. Expectation for healthy buildings creates risk for non-compliant owners. Medium -High Expectation that healthy building demand will 92% increase by by 2024 (2) Healthy buildings have a higher asset value as “less green” buildings are regarded as risk of stranded asset, with either assets with either significant retrofit required to meet stronger regulation and/ or tenants not will to occupy unhealthy spaces that present social value risk. High ESG investment considerations contine to grow in all regions, but at a slower pace. Less political pressure for public buildings to consider health and wellbeing results in lower health- focused procurement requirements. Low 89.5% plan to enhance their company’s health and wellbeing strategy in 2022 (1) Global health and wellbeing focus will mean ESG performance, reputation and public perception grow in importance for all asset classes. This extends to public buildings due to political pressure. High Global finance will be available for all types of buildings, backed by weaker regulation. Health and social value focused finance will continue to grow for premium markets, but this is not the case worldwide. Low-Medium Finance becomes more available both for building retrofit and to incentivise the development of green buildings that support social value. Owners benefit from lower insurance premiums for buildings which have health and wellbeing credentials. Medium -High Business may continue to focus just on financial metrics. However, stakeholder pressure for business to take a leading role for health and wellbeing and the wider community impact in place of government action could rise. Low-Medium 52 By 2030, million people will die due to chronic diseases caused by poor lifestyle.(5) Building policies consider health and wellbeing. Business becomes a significant health and wellbeing driver globally, including the wider community impact, responding to stakeholder expectations. This extends to public building sector in response to voter pressure. Medium -High A WORLD GREEN BUILDING COUNCIL REPORT | 103
