Sustainability and the future of green development Changing the Way Michael Nates Senior General Manager – SSHE Design & Development May 08

Overview Confirming understanding of sustainability Taking a Whole Life Perspective Joining up the stakeholders and supply chain Where is the cost in going green? Cycles and systems and arguments Creating a strategic direction for the group Getting it right

Sustainability Partners Communities $ AED ¥ € £ Financial Markets Cities and Nature

Whole Life and Costs?

Whole Life Cost and Value of Batteries Cost of 4 Pack (£) Battery life (Hrs) No. packs for 1000 hrs of power Purchase Price (£) Recharging Unit (£) Energy to recharge (£) Disposal Cost (£) Total Costs (£) Zinc Chloride 1.50 6 167 250.50 - 14.20 264.20 Alkaline 2.50 15 67 167.50 - 5.70 173.20 NiMH 6.50 7 1 10.00 1.43 0.04 17.97 http://www.admin.cam.ac.uk/offices/environment/guidance/purchase.html#fig1

Lifecycle Cost of a Building Source: Turner & Townsend

Influencing sustainability and the supply chain

Development Management Construction Management Facilities Management Lifecycle of Influence and Cost Sustainability performance and Management Influence Development Management High Feasibility Needs Analysis Master planning and Options Appraisal Design & Specification Construction Management Facilities Management Medium Environmental impacts and financial costs Contracts, Negotiate Terms / Offering Construction & Commissioning Low Disposal Operation Time

Where is the cost in going green Issue Extra Over Costs Site layout Building orientation Fabric and Form Avoidance options Passive alternatives Renewables and re-use MEP and comfort BMS Fit out and interiors Construction Commissioning Occupation None - Some None Some, but why Some Significant Some, but optional Should be none Almost none So assuming quality project team and excluding renewables and MEP: 0-5% e/o

Cycles in development

Vicious Cycle of Blame Source: RICS

Virtuous Cycle of Support Source: RICS

Strategic direction to deliver sustainability

Interaction with our sustainability partners and supply chain Communities $ AED ¥ € £ Financial Markets Contracts and Contractors Suppliers Consultants Cities and Nature

Benefits of Getting Right Minimum whole life cost with maximum whole life value Joined up supply chain moving in step Added value spread throughout chain Improved project certainty and easier compliance Natural competitive advantage

Way forward Continue and accelerate: Building understanding and competence Integrating sustainability in our core business processes Working with our partners & stakeholders Delivering The Vision