Global businesses could collectively save up to $1.5tn through efficient use of office space, finds Philips

Tuesday 26th September 2017

 

Businesses around the world could realise savings of up to $1.5 trillion in reduced rental costs alone if their office buildings were refurbished to the most efficient standards of today, according to new analysis from Philips Lighting, a member of WorldGBC’s Corporate Advisory Board.

The findings, released by Philips Lighting during World Green Building Week, show the impact that could be made on rents across the world’s offices if business owners replicated the efficient usage of space achieved in a leading green building.

For example, Deloitte accomplished a 50 per cent reduction in the space required per employee in The Edge building in Amsterdam compared to its previous premises, through effective use of smart technology. This was achieved whilst improving employee well-being.

Philips Lighting is calling for a doubling of the renovation rate of offices in developed countries to reach 3 per cent per year, which it says will be a key factor in reducing emissions and offsetting increased global demand for energy from population growth and urbanisation.

Philips Lighting says the potential rent reduction from optimising offices is just a small proportion of the total financial benefit to businesses, which also include lower utility bills and significant gains in the productivity of employees, the largest cost to most businesses. 

Harry Verhaar, Head of Global Public & Government Affairs at Philips Lighting, said: “Renovating buildings to make them more energy efficient can have a huge beneficial impact on the environment, and when they are renovated properly to encompass smart technology, the additional financial impact for businesses can also be vast.”

Terri Willis, CEO of World Green Building Council, said: “Achieving our net zero goals is entirely possible but in order to do so we really need to step up the rate of renovation. Companies looking to do a major refurbishment should be prepared to layer in energy-efficiency retrofits and implement new technologies.”

Click here to read the full press release from Philips Lighting.

For more information on World Green Building Week click here.

 

Businesses around the world could realise savings of up to $1.5 trillion in reduced rental costs alone if their office buildings were refurbished to the most efficient standards of today, according to new analysis from Philips Lighting, a member of WorldGBC’s Corporate Advisory Board.

The findings, released by Philips Lighting during World Green Building Week, show the impact that could be made on rents across the world’s offices if business owners replicated the efficient usage of space achieved in a leading green building.

For example, Deloitte accomplished a 50 per cent reduction in the space required per employee in The Edge building in Amsterdam compared to its previous premises, through effective use of smart technology. This was achieved whilst improving employee well-being.

Philips Lighting is calling for a doubling of the renovation rate of offices in developed countries to reach 3 per cent per year, which it says will be a key factor in reducing emissions and offsetting increased global demand for energy from population growth and urbanisation.

Philips Lighting says the potential rent reduction from optimising offices is just a small proportion of the total financial benefit to businesses, which also include lower utility bills and significant gains in the productivity of employees, the largest cost to most businesses. 

Harry Verhaar, Head of Global Public & Government Affairs at Philips Lighting, said: “Renovating buildings to make them more energy efficient can have a huge beneficial impact on the environment, and when they are renovated properly to encompass smart technology, the additional financial impact for businesses can also be vast.”

Terri Willis, CEO of World Green Building Council, said: “Achieving our net zero goals is entirely possible but in order to do so we really need to step up the rate of renovation. Companies looking to do a major refurbishment should be prepared to layer in energy-efficiency retrofits and implement new technologies.”

Click here to read the full press release from Philips Lighting.

For more information on World Green Building Week click here.