Building efficiency

Sustainability and corporate social responsibility have become hot topics in recent years, spreading into a wide range of sectors. While Poland still has some way to go, especially in terms of improving awareness among tenants, the issue of energy efficiency is slowly gaining in both significance and momentum According to Cushman & Wakefield's (C&W) recent Landlord & Tenant Survey, more than half of all landlords and a third of tenants across Europe believe they own or occupy space that is environmentally friendly. Building regulations are increasingly strict and modern office buildings are considered to be among the most environmentally friendly developments. Tenants are often confused, however, by the variety of definitions of "environmental efficiency," leaving them to wonder exactly how green their buildings are. "Corporate social responsibility may be at the top of the agenda in the debate on globalization and sustainable development, but it has yet to trickle down to have a greater influence on leasing and purchasing decisions [in Europe]. However, it will happen - it is just a matter of time. As our survey shows, the will and the incentives are there," said Michael Creamer, C&W's head of client solutions for EMEA and Asia Pacific, commenting on the results of the study. Sustainability is likely to gain importance in the property sector with the introduction of energy performance certificates (EPCs), which are also expected to impact significantly on choices made by potential tenants. EPCs are already in force in some countries and will be operational throughout the entire European Union by 2009, however, awareness among landlords and tenants is not what could be expected. According to the report, "despite all the media attention on green issues, awareness of the EU directive is actually relatively limited." East versus West The situation appears to be worse in CEE countries, according to the report, where only 31 percent of surveyed companies claimed to be aware of the directive, compared with 73 percent of UK companies. In addition, the use of energy by businesses in Poland is approximately three times higher than in other countries of the European Union, with buildings accounting for 40 percent of carbon emissions. These figures are unlikely to fall any time soon. According to the European Atomic Forum (Foratom), energy consumption in the country is likely to grow by 80-93 percent by 2025. This suggests that Poland has many reasons for concern in terms of meeting energy use and carbon-emission targets. "Poland has a slightly higher level of awareness of sustainability in terms of energy performance certificates than the Czech Republic, for example, but [awareness in] all CEE countries was below the average of Western European countries," Elaine Rossall, associate and head of business space consultancy at C&W, told Lokale Immobilia. The Polish case However, this is not to say that nothing is happening in Poland. The issue of energy efficiency rates high on governmental agendas and is gaining importance for corporations as well. "Poland's strategic aims are not different from those of the rest of Europe," said Tadeusz Skoczkowski, president of the Polish National Energy Conservation Agency (KAPE), at a recent conference on energy efficiency whose official patron was the Ministry of Economy. At the same conference, representatives of the Ministry reaffirmed their commitment to reducing energy consumption in Poland and stated they wanted all governmental buildings to be properly insulated and offer examples of energy efficient solutions. Poland-based advocates of environmental issues are positive about the way things are going and believe that awareness of energy-efficiency issues is increasing in Poland. "There is more and more talk about sustainability, with an increasing amount of information being published not only in trade publications but also in the general media. Therefore companies pay more attention to energy-efficient measures and sustainability [as] caring for the environment will soon not only be a matter of will or prestige, but also a legal requirement," said Joanna Węgrzycka, a Clean Business Programme specialist at the Polish Environmental Partnership Foundation. Barriers and incentives Willingness to apply environmentally efficient measures may, however, be tempered by the costs involved in the implementation of such solutions. Moreover, there is a common perception that such schemes are more expensive than traditional ones. This could be especially significant if companies face steep initial costs and returns on an investment appear especially distant. "Costs are at the center of any decision. If a company will see a return on [an energy efficient] solution in 10 to 20 years, it is unlikely to implement it. But even if the return will appear sooner it doesn't mean companies will adopt a solution straight away. This [reluctance] may be connected with the decision making system in the company," said Węgrzycka. The Cushman & Wakefield report showed that just under half of European landlords and tenants were prepared to pay a premium to purchase or lease an environmentally efficient building. However, as there are few truly energy-efficient buildings, this appears to be limited to perception rather than practice. For now, it seems - both in Poland and across the region - that obstacles remain but some small progress is being made and, moreover, there is a will to make progress among the relevant parties. "In the future, buildings with cost-effective energy efficiency are likely to attract a higher value because of their greater appeal. However, for the moment, there is little evidence of this, given the small number of truly green buildings," said Creamer. Anna Kapica-Harward