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It pays to be green – & now there’s research to prove it

By Leighann Morris

According to new research, environmentally sustainable buildings carry not only energy efficient, but financial benefits. Research showed that sustainable buildings performed financially better than their less sustainable counterparts.

The research, The Financial Rewards of Sustainability: A Global Performance Study of Real Estate Investment Trusts, used information from the Global Real Estate Sustainability Benchmark (GRESB) survey, which included data from 56,000 buildings with an aggregated value of $2.1 trillion.

The study revealed a strong correlation between how sustainable a building is and how well it performs financially. Higher sustainability led to higher financial performance, with both returns on assets and equity performing better than those of buildings with lower GRESB scores.

The figures also revealed a connection between real estate portfolio indicators of sustainability and performance on the stock market, as well as operational performance and decreased risk exposure and volatility associated with sustainable buildings.

The report concludes by saying that with the median green performance score of real estate companies coming in at 58 out of 100, there is untapped potential for buildings to improve their financial performance and improve sustainability.

“This study complements thought leadership and direct industry engagements that prove time and time again that what’s good for the environment is good for business, and that sustainable buildings offer higher returns for real estate investors,” says Jose Maria Figueres, chair of the board for Carbon War Room, the non-profit organisation that commissioned the report.

Source: Intelligent Building Today, June 25, 2015
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