Sustainability and within use office building adaptations : a comparison of Dutch and Australian practices

Local Authorities worldwide are encouraging adaptation as a means of reducing building related urban energy consumption and greenhouse gas emissions. The City of Melbourne is promoting the retrofit of 1,200 CBD properties before 2020 with sustainability measures as part of their policy to become a carbon neutral city. Australian cities date from 1837 to the present day whereas some European cities have been inhabited for over two millennia. The concepts of adaptation and evolution of buildings and suburbs is well developed in Europe, though the scale of some of the post war developments has created different forms of building perhaps less adaptable or suited to change. The need to adapt buildings and to reduce environmental footprints becomes more pressing over time as global concentrations of carbon dioxide increase. Is it possible for Europeans to learn from Australian practices and vice averse? Through examination of office building adaptation in Melbourne and Amsterdam, it is possible to learn where similarities and differences exist and where new practices can be shared.

This paper addressed the questions; What are the key attributes influencing adaptations in Melbourne and Amsterdam office buildings, and what are the similarities and differences? Using the Melbourne CBD and Amsterdam as a case study, the research analysed 7393 commercial building adaptations in Melbourne and 98 office buildings in Amsterdam where adaptations were completed. The outcomes of this research show where similarities and differences exist and are relevant to all urban areas where adaptation of existing office buildings can mitigate the impacts of climate change and enhance the city for another generation of citizens and users.

Sustainability - the crucial challenge for the valuation profession

Valuation has a pivotal role in increasing the level of sustainability in the built environment. To date, sustainability has received limited attention in valuation practice, and as a result the relationship between sustainability and market value has not been clearly defined. As a consequence, the commercial investment community are hesitant to invest in sustainability beyond best practice management techniques. Valuers’ lack of acknowledgement of sustainability in valuation practice and its changing role in property investment in the built environment, has had a potentially detrimental impact by limiting investment in sustainability in commercial property. Consequently, this lack of acknowledgment and incorporation of sustainability in practice has the potential to cause chaos within the market in the future. It was found that valuers, per se, are inexperienced and have limited knowledge of sustainability in commercial property. Due to differences between generations of valuers, this paper examines whether ‘younger’ valuers’1 knowledge of sustainability, as a concept, measurement and any possible relationship with market value is more extensive than senior valuers. Or whether senior valuers experiences in the market are more sensitive to the change sustainability is having in the commercial property market. A key issue for the profession concerning sustainability and its effect on the market is the limited channels for knowledge development. The implications of this research are the need for increased curriculum in university education, so knowledge dissemination across the profession can be achieved. The development of knowledge of sustainability and its relationship in commercial property will progress the incorporation of sustainability in valuation practice. As a consequence, this will increase the investment in sustainability in the commercial property market.

Environmental sustainability change management in SMEs : learning from sustainability champions

This study identifies the change management processes involved in undertaking environmental sustainability (ES) initiatives within Small and Medium Size Enterprises (SMEs) and relate these to the main attributes of learning organisations. Using case study techniques, the study draws from the change management experiences of a sample of 12 ES champions in different industries. The findings suggest that the ES champions experience four distinct change management stages in undertaking ES initiatives; namely the design, internalise, implement and evaluate stages. Each stage is also found to relate strongly with a number of key characteristics of learning organisations. Overall, the findings suggest that SMEs with strong learning organisation attributes are more likely to be successful in implementing and managing ES change initiatives. The implications of the findings are also discussed.

Incorporating sustainability into community-based healthcare practice

There is now irrefutable evidence that climate change and increasing environmental degradation negatively affect population health. Healthcare plays an important role in addressing these emerging environmental challenges, considering its core aim is to protect and promote health. Preliminary research in Victoria, Australia, suggests that healthcare practitioners are endeavouring to factor in environmental concerns into their practice. Health promotion, an integral part of the healthcare system, is considered an area of practice that can support action on sustainability. Based on five qualitative case studies and key stakeholder interviews, this article explores key barriers and facilitators to incorporating sustainability into community-based healthcare practice. The findings demonstrate that despite multiple barriers, including funding and lack of policy direction, health promotion principles and practices can enable action on sustainability.

From design for ecologically sustainability to facilities management through building intelligence and knowledge management

Ecological sustainability basically concerns environmental protection and social benefits. An ecologically sustainable development is based upon reduced energy usage, increased efficiency, and upheld social responsibility; and it should be properly evaluated by financial, environmental and social aspects. Council House 2 (CH2) is claimed to change the way of Australia approaches in ecologically sustainable design and construction. This is the ‘Six-Star design and built’ green star facility assessed by the Green Building Council of Australia (GBCA), and the 10-story city council building was completed and opened in 2006, totally A$11.3 million was invested for the sustainability features. CH2 protects the environment, when it compares with the old council house, and is expected to reduce electricity consumption by 85%; reduce gas consumption by 87%; produce only 13% of the emissions; and reduce water mains supply by 72%. In this paper, the author examines its design reports and the researches paper, in the form of knowledge base, to case-study how the sustainability, effectiveness and efficiency of CH2 work. By leveraging the existing CH2 sustainability knowledge, design and building professions can learn and imitate it in further ‘green’ design without ‘re-inventing the wheel’; facilities executives can also use the existing knowledge to identify steps to boost up the facilities’ operating efficiency.

Migrancy, modernity and cultural sustainability

Australian Home Beautiful’s October 1960 Edition was devoted to the modernisation of the Victorian and Edwardian-era houses of Australian cities’ inner suburbs. One of the articles inside was entitled ‘Terrace Houses are Common Problem’, in which the magazine’s architectural consultant Leonard A. Bullen suggested; “With houses of this type, the multiplicity of embellishments that appear in almost every possible place is irritating to eyes that have become accustomed to the cleaner and less ornamented lines of modern houses” and “The first necessity is to get rid of the superfluous decoration and emphasise horizontal features.” (Bullen 1960, 31). The post-World War Two period was a time when Australia’s traditional imagining of itself was confronted by both popular modernity and a diversity of new migrant cultures and ways of thinking. In a contemporary environment that theoretically celebrates diversity and creates audiences for increasingly multiplying expressions of culture and history, perhaps it is time that 1950s and ‘60s alterations to old houses were re-imagined as intrinsic elements in Australia’s cultural landscape. This supposition will be discussed in relation to the United Nations’ 2002 Kanazawa Resolutions’ definition of the relationship between culture and sustainability as ‘dialogical coexistence’ (Nadarajah and Yamamoto 2007).

Sustainability leading to building intelligence - knowledge sharing and transfer

A sustainable building regards energy use and greenhouse gas emissions as major components, and its sustainability is within a larger context of benefits about productivity, efficiency, health and safety, and serviceability. An intelligent building requires a quality building automation system design which increases productivity, reduces operational costs and protects the people using the facilities. Council House 2 (CH2) is claimed to change the way Australia approaches ecologically sustainable design and construction. Its building intelligence can be evaluated by energy and water efficiency and quality of indoor environments that elevate productivity and lower operational costs. This paper uses triangulation techniques, based upon the "Building Intelligence Quotient" by the Continental Automated Buildings Association (CABA) and "Green Star Rating" by the Green Building Council of Australia (GBCA), to cross-verify CH2’s sustainability and intelligence. The author examines 18 design reports and 10 research papers to case-study the effectiveness and efficiency of CH2 and concludes that it is not just another sustainable construction but an intelligent building per se. By leveraging the existing knowledge base of green rating, building professions can measure the intelligence without "reinventing the wheel".

Institutional environment, managerial attitudes and environmental sustainability orientation of small firms

This study examines the direct impact of three dimensions of the institutional environment on managerial attitudes toward the natural environment and the direct influence of the latter on the environmental sustainability orientation (ESO) of small firms. We contend that when the institutional environment is perceived by owner–managers as supportive of sound natural environment management practices, they are more likely to develop a positive attitude toward natural environment issues and concerns. Such owner–manager attitudes are likely to lead to a positive and proactive orientation of their firms toward environmental sustainability. The study uses survey data from 166 small manufacturing firms located in three Philippine cities. First, the study develops and tests the measurement models to examine the validity of the constructs representing the firm’s institutional environment, managerial attitudes toward the natural environment and the ESO of firms. Second, the study develops and tests the structural models examining the institutional environment–managerial attitudes–ESO linkages. Multi-sample invariance structural model analysis shows the mediating role of managerial attitudes in the institutional environment–ESO nexus. The findings show that ESO is a construct comprising three dimensions: knowledge of environmental issues, sustainable practices and commitment toward environmental sustainability. The cognitive, regulatory and normative elements of the institutional environment are strongly linked to positive managerial attitudes toward environmental sustainability, which in turn, positively influences the firm’s overall ESO. Managerial attitudes play a mediating role in the institutional environment–ESO linkages. The managerial, practical, research and policy implications of the research findings are discussed.

Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines

Purpose - This study challenges the conventional view that resources determine the extent of environmental sustainability orientation (ESO) of small firms in a developing Southeast Asian country context. First, this study attempts to develop a measurement model of ESO of small firms in the manufacturing sector in the Philippines. Second, the study explores the impact of the financial resources on the ESO of firms.

Design/methodology/approach - The study uses survey data from 166 small manufacturing firms in three Philippine cities. Multiple regression modelling is used to estimate the relationships between firm resources and ESO.

Findings - The results indicate that ESO is a multi-dimensional construct with three facets: awareness of, actions for, and appreciation of environmental sustainability. The empirical evidence does not support the conventional firm resources – ESO proposition.

Research limitations/implications - A proactive ESO is not necessarily beyond the reach of resource-constrained small firms. The generalisability of the findings however is limited to small manufacturing firms in the Philippines.

Practical implications - This study informs owner-managers of small firms that a proactive ESO does not largely depend on financial resources. Government policies and programs to encourage small firms to become sustainable should not only focus on financial forms of assistance.

Originality/value -  To date, this is the only Philippine-based study and one of the scarce small firm-focused studies that examine the proposition that small firms are unable to pursue a proactive ESO due to resource-constraints.

The value of sustainability in real estate : a review from a valuation perspective

Purpose – The purpose of this paper is to synthesise the plethora of research that has been conducted into the relationship between sustainability and market value in real estate, by critically analysing the research and the applicability of sustainability and value research in valuation practice.

Design/methodology/approach – The research on the relationship between sustainability and market value in real estate is examined from the perspective of its usefulness to the valuation profession in providing guidance, information and evidence to be used in valuation practice.

Findings – Existing research conducted into the relationship between sustainability and market value has not provided the valuation profession with evidence which would allow the incorporation of normative theories on the value of sustainability in valuation practice. This review highlights the lack of evidence, and the applicability of current research into sustainability and value to the valuation profession in providing guidance and information in valuing real estate incorporating sustainability.

Practical implications – This paper highlights the limited applicability of research to date in regard to the relationship between sustainability and market value for the valuation profession. The lack of historical evidence, data or information on the quantifiable effects on market value of this new trend (sustainability), leaves the valuation profession uncertain as to the relationship between sustainability and market value. There is a probable risk of valuers interpreting strategic research incorrectly, and making inappropriate adjustments or comparisons because of their lack of knowledge and limited sustainability assessment skills. Although there is an evolving body of knowledge, there is a need for extensive analysis of unbiased, evidence-based research in individual and broader markets to provide guidance, evidence and knowledge of the implications of sustainability in the valuation of real estate.

Originality/value – The examination of research investigating the relationship between sustainability and value from a valuation perspective provides an alternative insight into the applicability of current research in valuation practice. The increasing profile and role of sustainability in the real estate sector needs to be addressed in valuation practice; however, the variety of research to date needs to be interpreted by valuers in the correct context. This paper brings to light the applicability of sustainability and value research for the broader valuation profession, and the potential implications of misuse or misunderstanding of that research.

Fiscal stringency and fiscal sustainability : panel evidence from the American state and local governments

Most state (and local) governments in the U.S. operate under formal fiscal rules which limit their ability to run budget deficits and resort to debt financing. A priori, one would expect to find evidence in favor of an intertemporally balanced budget, or fiscal sustainability, for these states, especially those characterized by a relatively high degree of fiscal stringency. We test this hypothesis for a panel of 47 state–local government units (1961–2006) using four budget balance definitions and several subsamples defined based on regional classifications, or presence of certain balanced budget requirements (BBRs). Our results, obtained from panel estimation techniques that allow for general forms of serial and cross-sectional dependence, suggest that a sufficient condition for “strong” sustainability is consistently satisfied for the full sample and all subsamples in relation to balances that include special funds and/or federal grants. However, we find evidence consistent with the “weak” version of sustainability for the full sample and some regional subsamples (particularly Far West dominated by California) in at least one of the two balances that exclude these items. Finally, the BBRs seem to matter only in relation to the sustainability of the more narrowly defined balances. We discuss the implications of these findings for the role of fiscal rules and federal grant policies.