Feb. 28, 2010
A recent survey by National Real Estate Investor shows that green building in commercial real estate is growing significantly. Over 88% of developers and 86% of corporate executive stated that green design is as or more important than it was before the current economic slump. According to the US Green Business Council, LEED certified projects in terms of number of projects and total square feet rose over 90% in 2008 compared to 2007, despite the onset of a serious recession.

The reason for this increase despite the need to invest extra funds up front during a recession is purely economic. A green building is a major driver for buyers and for tenants. It is recognized that “green” buildings will result in significant savings in energy usage for the prolonged life of the building. A 2009 McKinsey study stated that cumulatively energy efficiency upgrades to buildings on a national level will return more than double the upfront cost by 2020. Buyers and tenants also recognize that healthier surroundings contribute to greater productivity and fewer sick days.
While green is the way to go for these and other reasons, it is also important for a company to properly communicate green achievements. A recent study published by Maddock Douglas called “Map Change 2010” takes a recent survey by Climate Counts of several hundred companies in diverse industries using a rating system based on 22 criteria and compared them to a poll by Angus Reid Public Opinion of perceived environmental achievements. The report showed a number of companies had environmental images that were very different from what they had achieved. For example, the shipping company DHL had an actual achievement rating of 68, but a perception rating of only 16. And a number of companies had positive perception that was much greater than achievement. For example, the Hyatt Hotel chain had a perception rating of 72, but an achievement rating of 12. Wendy’s food chain had a perception rating of 64 and an achievement rating of 2.

What explains these discrepancies (besides the fact that Wendy’s offers a salad bar)? Of course, opinion polls and other yardsticks for green achievements may be flawed given the complexity of what is truly green. But also a key is the message the companies are putting out. Given the recent backlash in the U.S. media questioning the validity (by some) and the cost of addressing climate change during a recession, it is critical that the message getting across to the public be less the gains for the planet, but how green will improve the actual product (i.e., those building benefits listed above). I’m no communications expert, but perhaps DHL should get the message across that their green initiative results in reduced energy use, which gets packages to people quicker (just a suggestion). Like many things, one’s green program has to be presented as a value-adding proposition. How has being green affected the reliability of the company? You should use your green program to show increased vitality, passion, and efficiency of your company.