Valuation and sustainability : are rating tools enough?

The lack of sufficient financial drivers are preventing significant investment in sustainability because stakeholders have only very limited ability to measure the sustainability of the building or understand the impact upon the value. Valuers are unable to indicate or clarify whether sustainability is affecting market value as there is an absence of detailed market evidence, sales data and lease transactions of sustainable building. Leaving both Valuers and other stakeholders uncertain of the value implication as there is no reliable evidence as to whether sustainable buildings are feasible (Lutzkendorf and Lorenz, 2005). One of the key barriers is the confusion evident in the industry particularly the measurement of sustainability in commercial property. Although a range of environmental rating tools exist for buildings globally in commercial property, the synergy between these tools and identification of the relationship between the measurement and market value is inherently blurred due to the unique nature of the compilation of points attributed in the rating tools for sustainability or energy certificates in commercial property. The paper examines the challenges that face the Valuation profession in assessing the impact of sustainability on market value.

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.

Multiple criteria sustainability modelling

This paper describes the research supported by a recent AIQS research grant to develop a computer-based tool for sustainability modeling using multiple criteria. The model enables a sustainability index with an accept/reject threshold of one that has the potential to completely replace traditional net present value methods. Minimum performance benchmarks are prescribed and must be observed - often by trading off performance across the full criteria set. Sustainability is shown to be capable of objective (numeric) analysis for new projects, existing facilities, or indeed any product or asset. A combination of investor-centred and community-centred motivations can also be explored in the model. Known as SINDEX, the tool has industry-wide application, both locally and abroad, and represents a paradigm shift in project evaluation techniques. Furthermore, its multi-discipline considerations underscore the importance of a team approach to sustainability modeling and the need for people to work more closely together when dealing with complex problems

Measuring regional sustainability: lessons to be learned

Developing tools for measuring progress toward sustainability has proven a challenging task. Indicators offer an excellent means to explore the success or otherwise of management strategies. They also allow reporting social, economic and environmental aspects of sustainability. To ensure that the tools developed are effective in measuring the progress toward sustainable futures, an evaluation of the methods and the indicators used must be undertaken so that with progress there is learning and with the new knowledge methods can be redesigned to better advance sustainability. This paper discusses a study carried out in the south west region of Victoria, Australia, using indicators as the basis for developing a tool to measure progress toward sustainability. By evaluating the methods and indicators used in the study this paper provides an insight into the challenges encountered and the lessons learned. Issues explored include selecting indicators, collating data, integrating social, economic and environmental aspects of sustainability and using an adaptive approach.

Multiple criteria sustainability modelling: case study on school buildings

This paper describes development of a computer-based tool for sustainability modelling using multiple criteria, and preliminary conclusions from doctoral research being undertaken into the relationship between key sustainability indicators. The model used in both cases produces a sustainability index with an accept/reject threshold of one that has the potential to completely replace traditional net present value methods. Minimum performance benchmarks are prescribed and must be observed - often by trading off performance across the full criteria set. Sustainability is shown to be capable of objective (numeric)· analysis for new projects, existing facilities, or indeed any product or asset. A combination of investor-centred and community-centred motivations can also be explored in the model. Known as SINDEX, the tool has industry-wide application, both locally and abroad, and represents a paradigm shift in project evaluation techniques. Furthermore, its multi-discipline considerations underscore the importance of a team approach to sustainability modelling and the need for people to work more closely together when dealing with complex problems. The results of twenty case studies of actual high schools constructed and operated in New South Wales (Australia) are also presented and the relationships between the key sustainability indicators are explored and interpreted.

The overt behaviour scale (OBS): a tool for measuring challenging behaviours following ABI in community settings

OBJECTIVES: The Overt Behaviour Scale (OBS) was designed as a comprehensive measure of common challenging behaviours observed after acquired brain injury (ABI) in community settings. The OBS comprises 34 items in nine categories that measure aggression, inappropriate sexual behaviour, perseveration, wandering, inappropriate social behaviour and lack of initiation. The aim of the current study was to determine the reliability, validity and responsiveness of the OBS. METHOD: Two adult community-based samples of people with ABI were recruited. Sample 1 (n= 30) were concurrently evaluated on the OBS by two raters and again 1 week later to test stability. Other validating scales were also administered. Sample 2 (n= 28) were clients of the ABI Behaviour Consultancy who were treated for challenging behaviours and were administered the OBS before treatment commenced and then again 4 months later. RESULTS: Inter-rater reliability and stability coefficients for the OBS total score was strong (0.97 and 0.77, respectively). Initial evidence of convergent and divergent validity was shown by the differential pattern of correlations with other measures. Moderate-to-strong coefficients (range 0.37-0.66) were observed between the OBS and other measures that had behavioural content (i.e. Mayo-Portland Adaptability Inventory, Current Behaviour Scale, Neurobehavioural Rating Scale-Revised). Divergent validity was shown by the lack of correlation between the OBS and the sub-scales of these tools that do not measure challenging behaviour. Finally, responsiveness was demonstrated with a significant decrease in OBS scores in the expected direction over the 4-month period. This improvement was confirmed by corroborating evidence from key informants. CONCLUSION: The OBS shows promise as a reliable, valid and responsive measure that can be used for the systematic assessment of challenging behaviours in community settings.

Catchment to regional scale indicators of sustainability

Ecologically sustainable development requires an integrated approach to environmental integrity, social equity and economic performance. Development of sustainability strategies and empowerment of communities to achieve sustainability will only be effective if progress is monitored. This project provides an opportunity to work within a regional partnership to develop indicators for measuring progress toward sustainability in the south west region of Victoria, Australia. As sustainability is contextual, local organizations have been involved in the identification of key regional values (social, environmental, economic and institutional) and in selecting indicators that can be used to assess to what extent these values are being protected, depleted or enhanced. These indicators are to be used as the basis for exploring relationships between biophysical and socio-economic indicators, to determine what can be deduced from these relationships about sustainability and whether these relationships hold at different spatial scales (catchment, regional and sub-catchment). A rigorous and systematic analysis of indicators and the relationships between them will assist in developing a tool to facilitate decision making for regional sustainability.

Security analysis and modelling framework for critical infrastructure systems

The provision and delivery of many of the services that modern society enjoys are the result of ubiquitous critical infrastructure systems that permeate across many sectors of the Australian community. Moreover, the integration of technological enhancements and networking interconnections between critical infrastructure systems has heightened system interdependence, availability and resilience, including the efficient delivery of services to consumers within Australia's industrialised society. This research delivers a system security analysis and system modelling framework tool based on an associated conceptual methodology as the basis for assessing security and conceptually modelling a critical infrastructure system incident. The intent to identify potential system security issues and gain operational insights that will contribute to improving system resilience, contingency planning development applicable to disaster recovery and ameliorating incident management responses for Australian critical infrastructure system incidents.

The Chihuahua sustainability practice: lots of shivering but no real action. Practical sustainability acceptance is low in German and New Zealand firms

Purpose – This paper aims to describe the extent to which corporate organizations in Germany and in New Zealand have included sustainability practices as part of their strategic planning process.

Design/methodology/approach – Current literature is reviewed to make a case for sustainability to be a driver behind corporate decision making and long-term performance. The results of surveys of several hundred firms in both Germany and New Zealand, countries with a publicly stated commitment to sustainability, are reviewed to compare the adoption rates of sustainability practices.

Findings – There is a significant difference between what firms do and what their managers think is important. Managers largely consider sustainability practices an important factor for their future careers, while firms to a large extent do not include sustainability as part of their strategic or operational planning process.

Research limitations/implications – The International Sustainability Acceptance Measurement (ISAM) collects data in several countries through local-language versions of the same online survey tool (www.worldreply.com). The findings in this report are specific only to New Zealand and Germany.

Practical implications – The paper points academics, corporate executives and sustainability fanatics to an alarming inconsistency between what is publicly reported as commitment to sustainability and what is practically achieved.

Originality/value – This paper adds value to the discussion of how sustainability practices have migrated into the operation of firms.

The business case for incorporating sustainability in office buildings : the adaptive reuse of existing buildings

The effect of climate change and global warming has received increased attention in society with constant reminders about the importance of energy efficiency and sustainability in buildings. Whilst the focus is often placed on smaller items such as plastic bags, air conditioners and motor vehicles, the emphasis has recently shifted to structures in the built environment. Office buildings have been identified as contributing significantly to global warming during their building lifecycle with a substantial contribution to CO2 omissions. In response, building designs and construction techniques have evolved over time to improve energy efficiency and reduce CO2 omissions. Whilst property valuers, managers and analysts must remain up-to-date regarding changes, relatively little research has been conducted about whether and how increased sustainability, such as signified in a Green Star rating affects a property’s highest and best value and long-term lifecycle. This study investigates the degree to which sustainability is understood in the property marketplace, especially in relation to property values with the emphasis placed on a cost- benefit analysis from both an owner’s and tenant’s perspective. Whilst it may be argued that incorporating sustainability into a new office building is cost prohibitive on a financial cost-benefit analysis, often various minor steps can be taken to upgrade the sustainability of an existing building. This project examines recent trends in capital expenditure to increase the sustainability of offices and where Green Star ratings have been applied to establish whether any corresponding increase in value is evident. In order to develop a researchframework, a thorough literature review will be conducted of recent Australian and overseas studies. This will enable links between sustainability and office buildings to be highlighted, and vitally how they affect a property’s value in both the short and long-term.

An index of regional sustainability : a GIS-based multiple criteria analysis decision support system for progressing sustainability

GIS (Geographical Information Systems) based decision support tools will be useful in helping guide regions to sustainability. These tools need to be simple but effective at identifying, for regional managers, areas most in need of initiatives to progress sustainability. Multiple criteria analysis (MCA) has been used as a decision support tool for a wide number of applications, as it provides a systematic framework for evaluating various options. It has the potential to be used as a tool for sustainability assessment, because it can bring together the sustainability criteria from all pillars, social, economic and environmental, to give an integrated assessment of sustainability. Furthermore, the use of GIS and MCA together is an emerging addition to conducting sustainability assessments. This paper further develops a sustainability assessment framework developed for the Glenelg Hopkins Catchment Management Authority region of Victoria, Australia by providing a GIS-based decision support system for regional agencies. This tool uses multiple criteria analysis in a GIS framework to assess the sustainability of sub-catchments in the Glenelg Hopkins Catchment. The multiple criteria analysis based on economic, social and environmental indicators developed in previous stages of this project was used as the basis to build a model in ArcGIS1. The GIS-based multiple criteria analysis, called An Index of Regional Sustainability Spatial Decision Support System (AIRS SDSS),
produced maps showing sub-catchment sustainability, and environmental, social and economic condition. As a result, this tool is able to highlight those sub-catchments most in need of assistance with achieving sustainability. It will also be a valuable tool for evaluation and monitoring of strategies for sustainability. This paper shows the usefulness of GIS-based multiple criteria analysis to enhance the monitoring and evaluation of sustainability at the regional to sub-catchment scale.

Appraising critical infrastructure systems with visualisation

This paper explores the use of system modelling as an approach for appraising critical infrastructure systems. It reports on focus group findings with relation to the system modelling aspects of a critical infrastructure security analysis and modelling framework. Specifically, this discussion focuses on the interpretations of a focus group in terms of the likely benefits or otherwise of system visualisation. With the group focusing on its perceived value as an educational tool in terms of providing an abstract visualisation representation of a critical infrastructure system incident.

Determinants of efficient risk allocation in privately financed public infrastructure projects in Australia

Risk allocation in privately financed public infrastructure projects, which are mainly referred to as public-private partnership (PPP) projects, is a challenging job due to the nature of incomplete contracting. An investigation into the mechanism that guides the formation of efficient risk allocation strategies is thus desirable. Drawing on the transaction cost economics and resource-based view of organizational capability, this paper has identified five main features of the transactions associated with risk allocation in PPP projects. They include partners’ risk management routine, partners’ risk management mechanism, partners’ cooperation history, risk management environmental uncertainty, and partners’ risk management commitment. For achieving cost efficiency, different risk allocation strategies may suit different conditions of the features. Accordingly, a theoretical framework and five hypotheses were proposed for testing. Data collected in an industrywide survey were analyzed using multiple linear regression technique. It was found that generally, the identified features are determinants in the decision-making process of efficient risk allocation. Therefore, the proposed theoretical framework provides both government and private agencies with not only a logical and holistic understanding of but also a support tool for decision making on risk allocation strategy in PPP projects. Study limitations and future research directions are also set out.

They talk the talk, but do they walk the walk? sustainability acceptance is low in German and New Zealand firms

Through the International Sustainability Acceptance Measurement (ISAM), we intend to better understand the level of acceptance of sustainability as a practical management tool in business around the world (www.worldreply.com). It was observed by others that sustainability concepts often stay on a rather general level where it is hard to identify specific indicators and the potential for future development.i In an effort to contrast the level of sustainability in the ISAM countries, the participating universities analyze their respective country data and then co-operate to benchmark and compare this information around the globe. This makes the ISAM work one of the few world-spanning efforts to look at the practical implementation of sustainability.

International comparison of sustainable rating tools

This paper undertakes an international comparison of global sustainability tools and examines their characteristics and differences. Most importantly, it focuses on which tools from different countries can be directly compared with each other (i.e., is a five-star building with one rating system directly comparable with a four-star rating of another rating system?). The results are designed to provide some clarification of the assessment tools for sustainable buildings, which in turn will assist investors, developers, tenants, and government bodies in making
informed decisions about green buildings. In addition, it is envisaged that removing some of the uncertainty associated with sustainable buildings will increase transparency for stakeholders and facilitate their acceptance.