Green Building Day 2018 – Shaping the Future State
I was lucky enough to attend two events with the Green Building Council of Australia (GBCA), at the end of May.
The annual Green Building Day 2018 – Shaping the Future State was an interesting event, which focused on key trends – both financial and mega global – that have the potential to affect our cities and our way of life.
The second event was the Green Star Future Focus Workshop, which was held throughout Australia – Sydney, Melbourne, Perth, Brisbane and the Northern Territory – and was a roadshow of sorts to bring together industry sustainability professions to provide input into reshaping the Green Star rating tools.
This month’s blog is jam-packed with information from both these events, including a summary of key market trends that are shaping our future as well as the proposed changes to the Green Star rating tools. Understanding the big picture will help you better serve your clients and grow your business.
Green Building Day - Shaping the Future State
The first presentation to kick start the day was given by Justin Smirk, senior economist, Westpac. Justin offered the following economic insights:
- 2018 has experienced a solid start with strong global economic growth
- Global trade is at a very high level, which is feeding optimism
- Growth in China is slowing, tighter lending restrictions
- India has experienced a long run of growth but it can’t replicate China, as they don’t have the resources
Domestic economy
- Australia has experienced 28 years of growth – we’re in the midst of an economic party
- business services is a new growth driver
- consumption is slightly faster than income
- job growth is good, with huge growth in health, education and construction
- wages are languishing – it’s a low income environment with low savings and no buffer like during the mining boom
- more woman are in the labour force and this is an upward trend
- male jobs are not keeping up, unemployment for males is on the rise and this effects a mix of sectors (white collar, manufacturing and construction)
- RBA wants to see higher wages
- mining is in recovery
Housing
- property prices in Sydney have experienced a modest price correction
- house prices have grown quicker than wages due to ease of obtaining credit but growth cannot be sustained
- credit is getting tighter – US rates are going up
- RBA hasn’t increased rates but credit is more expensive
- banks will become more competitive as to how they acquire funds so we may see some major differences in how they lend and different interest rates – currently the banks’ interest rates are all fairly similar
- lower Aussie dollar will keep interest rates low
- affordability is still stretched
Please note, as a ‘disclaimer’ I was busy scribbling down these points so all facts are my interpretation of Justin’s presentation, and he too had a rather lengthy disclaimer.
Justin completed the presentation by summarising…It’s not going to be a boring year!
Weak income growth is set to contain consumption. House prices are set to fall and the cash rate is currently on hold and may continue so into 2019. Political uncertainty will weigh on business. The US has powered ahead in the age of Trump but we must prepare for uncertain events like higher interest rates, a stronger US dollar, and a weaker AUD TWI. China is expected to tightening credit further, which will slow commodities with prices falling and the share markets are also vulnerable to US bonds.
We had Dr Stefan Hajkowicz, senior principal scientist, Strategy and Foresight at CSIRO, give an exceptional presentation on global mega trends. Here is a snapshot of what’s ahead.
- More from less – there’s a shift towards creating greater efficiency from less resource consumption, for example above ground mining of metals and minerals, and resource recycling through E-waste
- Planetary push back – battery storage technology is key to how we will obtain energy in the future
- The Silk Highway – Asia’s economic growth involves billions of people being lifted out of poverty
- Forever Young – we’re facing an aging population and problems with healthcare funding
- Digital Immersion – with artificial Intelligence there will be a whole digital reinvention of our economy
- Porous Boundaries – platform economics and blockchain technology will have significant impact on how business is done
- Great expectations – human experience has to have a high experiential’ factor
- Antibiotic resistant bacteria could make climate change a moot point in terms of a threat to humanity
Other important information and musings
- Climate Change so far 2016 was the warmest year on record and fifteen of the sixteen warmest years on record have now occurred since 2001
https://climate.nasa.gov/climate_resources/139/graphic-global-warming-from-1880-to-2017/
- Plants make a plausible difference to heat stress – for example, in a heat wave, areas that have greenery and planting cope better
- Sustainable business – success depends on anticipating future market demands rather than focusing solely on current market demands – think long term
- Reducing the cost to do Green Star – GBCA is working towards reducing the cost of Green Star certification
So what are the key takeaways?
- Sustainability means building strategy for change and documenting an action plan
- To be a sustainability leader you need to look at your risks and strategy – what are the big issues, what is material to your business, what is important to your stakeholders, and what are the present opportunities?
- Gen Y employees want to be involved with a company that has a sense of purpose – young people are all about the why
- The GBCA’s Carbon Positive Roadmap will be released on 29 June 18 – keep your eye out for it and think products with low embodied energy, this is the future for product manufacturer
- Human rights are in focus with the Modern Slavery Act so businesses need to address the human and labour rights of vulnerable workers within their supply chain
In light of these future trends and market requirements, the main areas of focus for product manufacturers are modern slavery and carbon. If you want to meet market expectations, start conducting sustainable supply chain due diligence to ensure there is no modern slavery in your supply. Also consider the embodied carbon in your products.
Green Star Future Focus Workshop
The second GBCA event was the Green Star Future Focus, which was a half day workshop with professionals from a variety of industries and sectors, including government, academia, construction, engineering, ESD consultants, design, product manufacturers and, of course, the Green Star team.
The GBCA hosted this event and was asking participants to help define:
- What is world leadership in the built environment for human rights issues, resilience, transport, planning, livability, ecology and biodiversity, and health and wellbeing?
- What is best practice? And how do we make sure we don’t leave the mid-tier sector behind?
- How will mandating ongoing operational ratings work?
- How can we change certification to make it cheaper and more streamlined?
- And what lessons should we learn from previous updates?
The GBCA’s vision is to create healthy, resilient and positive places for people and the natural environment. Their purpose is to lead sustainable transformation of Australia’s built environment.
The GBCA’s ongoing commitment to sustainability includes:
- Meeting Paris Agreement obligations
- Redefining world leadership
- Promoting best practice
- Addressing social sustainability
- Driving change in the supply chain
- Bringing back nature to our built environment
- Guaranteeing minimum outcomes
- Driving operational experience
- Promoting holistic thinking
The GBCA would like industry feedback. They are keen to learn and to know what’s important to you and your industry, so please make contact with them.
Also, keep an eye out for GBCA’s Positive Carbon Roadmap for the Built Environment – due to be released late June.
If you would like assistance with creating a sustainability strategy that meets your clients’ future needs or if you need help with supply chain due diligence, please get in touch.