Is the valuer the barrier to identifying the value of sustainability?

Purpose - Broad-scale investment in sustainability is limited due to the lack of evidence of the relationship between sustainability and the property’s market value. Although evidence is amassing and being analyzed through advanced modeling, this evidence is not being reflected in the valuation process. Valuers have a pivotal role in financial markets, in the reporting of asset values. Consequently, they are the current barrier in large-scale investment in sustainability, due to their lack of reporting or consideration of sustainability in the valuation process.

Design/methodology/approach - This research investigates, in the Australian context, whether valuers’ are incorporating sustainability as a consideration in the valuation process and their depth of reporting on it. Further, the research investigates whether valuers’ have the knowledge and skills to accurately report on sustainability in the valuation process. This research used an online survey to gather responses from valuers around Australia, using a combination of structured and semi-structured questions.

Findings - This paper has identified that valuers are identifying a value relationship between sustainability and market value, and clearly emphasizing that they are not the barrier to this relationship from a lack of inclusion in valuation practice. However, what this research has identified is that although valuers are acknowledging sustainability in their practice, they maybe inhibiting further investment in sustainability due to inaccurate or misjudged assessments of sustainability in valuations.

Practical implications - The research highlights the implications for the broader market and the valuation profession, as a result of the valuers’ current lack of knowledge, skills and ability to incorporate or consider sustainability in the valuation process. The potential for inaccurate knowledge regarding sustainability being incorporated in the valuation process is very high, and could potentially have litigious issues in the future.

Originality/value - The research has highlighted that although valuers are beginning to consider sustainability at some level in the valuation process, their current knowledge of sustainability and its implications to long term viability is limited and in some cases grossly inaccurate. Consequently, this research has identified there is an imperative requirement for investigation into appropriate, accurate knowledge development in the field of sustainability for the valuation profession.

Identifying attributes contributing to environmental sustainability of public-private partnership infrastructure projects

Due to increasing demands for new infrastructure and an aim to reduce initial public investment, Australian government agencies are increasingly using public-private partnerships (PPPs) as a form of delivery for infrastructure projects. Environmentally, there is growing pressure for the building industry in general to become more sustainable. Moreover, as the built environment continues to grow each year, the performance of buildings as a whole will need to continually improve purely for national energy consumption to remain stable. Based on a systematic and extensive review on relevant literature, this paper has identified the key attributes that will influence the environmental sustainability of infrastructure completed through a PPP. The key attributes are grouped into five groups defined by whom or what has the majority of control over the attribute. Meanwhile, the key attributes are explored and their influence on environmental sustainability justified. This paper was able to not only identify significant factors involved in creating environmental sustainability in infrastructure PPPs, but also trends of the key attributes. It has been found that (1) the longevity of the contract in a PPP project allows greater innovation into environmental sustainability than traditional methods of procurement, (2) innovation is a requirement for the improving upon environmental performance in the built environment, (3) improvements to environmental sustainability relies upon a positive relationship between economic and environmental benefits, and (4) the key attributes for PPP projects are decided upon relatively early in the contract. Due to space limit, detailed discussion on each of the identified attributes is not provided in this paper. Nonetheless, further research direction is discussed.

Evaluation of housing developments for sustainability using a multi-criteria approach

New housing developments in Australia, particularly on Greenfield sites on the edge of existing urban centres, need to be sustainable in environmental and social terms if long term problems are to be avoided. Sustainability is multi-dimensional and existing analyses have been found to be inadequate in assessing housing developments holistically. This paper describes research which has used five criteria (energy use, resource use, neighbourhood character, neighbourhood connectivity and diversity), representing 31 indicators, to assess three housing precincts of a regional city in southern Australia. The method has been found to produce useful assessments of sustainability. The method has the potential to inform future housing developments and to be used to improve existing suburbs.

Critical pre-implementation elements in engendering change for sustainability in SMEs : insights from SME sustainability leaders

Despite the increased awareness surrounding sustainability issues and growing pressure on businesses to adopt sustainable business practices, there is little understanding of management processes and practices necessary for SMEs to implement environmental sustainable (ES) practices. Through qualitative in-depth interviews, this paper draws on the experiences and perspectives from twelve SME sustainability leaders to present answers to the 'what' and 'why' of critical pre-implementation elements in engendering change for sustainability within the SME context. The research questions examined in this study are: In the views of SME sustainability leaders: what pre-implementation elements are important in setting the foundations of ES success in SMEs; what are the most important elements in the decision to introduce and encourage improved ES practices; and how do SME sustainability leaders plan for ES change in their firms. We also examine how the pre-implementation elements identified in this study, fit with the steps of one of the most well-known sustainability change management frameworks by Dunphy et al (2003). The results show that elements playing a role in setting the foundations for ES success in participating firms include: the SME leader challenging the status quo, gathering of initial information; clarifying the internal know-how about ES, identifying who the ES leader(s) is, and what the associated roles are; creating a theme of environmental sustainability in the firm (what sustainability means to the firm); and the personal mindset of leaders regarding ES. In addition, it was evident from the interview data that apart from providing valuable data regarding what must change and why, the drivers and benefits of ES provide a strong rationale and motivation to the rest of the organisation why sustainability is important to the organisation. Furthermore, it is evident from the interview data that the most used strategic approach to planning by SME sustainability leaders, is a deliberate approach even though the emergent approach to planning has also featured in some SMEs. Furthermore, the CEOs are the main players in the strategic process, with the majority involving staff in planning for ES. The results also indicate that in matching the pre-implementation elements to Dunphy et al‘s (2003) sustainability change management steps, the execution of two of their steps may need adjustment to be fully applicable to SMEs. Several practical implications for other SMEs are outlined. In conclusion, the framework outlined in this paper provides an example of a critically reflective approach to a specific phase of the environmental sustainability puzzle in SMEs.

An empirical study of the world price of sustainability

The core goal of this study is to empirically investigate whether there is a “world price” of corporate sustainability. This is assessed in the context of standard asset pricing models—in particular, by asking whether a risk premium attaches to a sustainability factor after controlling for the Fama–French factors. Both time-series and cross-sectional tests are formulated and applied. The results show that (1) global Fama–French factors have strong power to explain global equity returns and (2) sustainability investments have no significant impact on global equity returns. The absence of a significant relationship between sustainability and returns implies that large institutional investors are free to implement sustainability mandates without fear of breaching their fiduciary duties from realising negative returns due to incorporating a sustainability investment process.

Increasing the level of sustainability via off-site production : a study of the residential construction sector in China

Even though the use of off-site production in the construction process for residential buildings is seen as a viable means of increasing the level of sustainability with respects to its significant economic, environmental and social contributions, there have been very few studies to-date into off-site construction within the context of developing countries where the places have crucial demands for accommodations. Accordingly this research involves the rapidly growing developing nation, China, as a representative developing country with the objective to investigate the current status of off-site practices in the urban residential construction sector. This paper also examines the factors affecting demand for and potential barriers against a wider uptake of off-site technologies in China. The findings provide a rare insight into off-site construction in China’s housing industry and this information will be transferable to other developing countries. This study also contributes to a broader understanding about the off-site construction in developing from an international perspective.

The emergent sea of nature and religion : a study of faith-based responses to issues of environmental sustainability

The research highlighted that the majority of adherents to faith groups in Australia showed a high level of concern to environmental issues; however, there is a need to provide wide-ranging community engagement programs. Further education is required considering there was uncertainty about some environmental issues, in particular climate change.