Why is it crucial to sustain Singapore business?

Singapore's National Library is one of those stunning modern buildings, filled with light that lifts the spirit.

But the architects considered a lot more than aesthetics when they created the design. It's a prime example of a sustainable building.

Sky terraces and roof gardens lower the ambient temperature. The plaza between the two towers encourages gentle breezes to help cool the building (cutting air conditioning bills) and lets daylight flood into offices and reading rooms (reducing the need for electric lighting). The building has even been oriented away from the sun to curb solar warming. If the sun is too strong, automatic blinds deploy to shield the inhabitants against glare. At night, motion sensors turn off lights when there is no-one in a room.

The National Library is a prominent reminder of the Singapore government's exemplary attention to the green side of sustainability. But sometimes Singapore's businesses – especially landlords and small- and medium-sized firms – are slower to realise and reap the benefits of thinking and acting in the same way.

In its broadest sense, sustainability has been built into the culture of Singapore since it gained independence in 1965. The new-born country was isolated politically and economically from its resource-rich neighbours. It had few natural resources of its own, other than a harbour and its geographical position astride one of the world's busiest shipping routes. To survive, Singapore had to sustain itself.

That meant developing and attracting new hi-tech industries and educating workers to be able to work in them. Slums were cleared and brand new flats replaced them. Public transport was extended into every corner of the island to give cheap and reliable alternatives to the private car. Millions of new trees softened the concrete edges of fresh development.

The need for self-sufficiency drove Singapore's economic development. And it has also stimulated environmental ingenuity.

For example, the island is short of fresh water. So the government built new reservoirs. A barrage across the Singapore River means that even the Marina Bay area – site of towering office buildings and a world-class integrated resort -- stores fresh water. Simple government measures showed enormous foresight: schools were built with parallel plumbing systems so toilets could be flushed with rain water once technology allowed it. Rail lines are built long before areas are developed for housing or offices, so commuters and inhabitants can take public transport to their new premises even on day one.

Restructuring of the electricity industry introduced new tariffs that made solar generation of power during peak periods make financial sense. The government encouraged and partnered business to develop technology to purify waste water so it could be used again. As a result, many of Singapore's environmental technology companies are world leaders.

Nevertheless, too many landlords still do not see the value of having a more sustainable building. They say it is hard to justify the return on investment. But tenants are becoming more demanding, and all other things being equal, they are going to choose an energy-efficient property over an older alternative.

Sustainability helps to minimise “voids” -- the gaps between rental contracts when no money is coming in.
Of course, it's much easier to build a sustainable building like the National Library from scratch. The Singapore government even rewards private developers with its Green Mark scheme: this gives them permission to expand the floor area of their buildings—mean more rentable or saleable space.

With so many new buildings in the market, existing properties must be upgraded and be more attractive. Sustainability is vital for this.

There are many simple fixes that will shrink a building's carbon footprint and make it more attractive to tenants.
The first question to ask is, how much energy is the building using at the moment? You might be surprised how difficult that can be to find out. The chances are it is consuming too much.

Many buildings still have electricity, gas and water meters that have to be read manually.

But there is a technology based solution: Smart Meter Reading: Water, gas and electricity meters can relay their readings via web-based technology. (ZigBee is one of the most popular systems using wireless technology.)
Then managers can see how much energy is being used—and so they can focus on how much is being wasted, and where and when it is being wasted they are able to set up automatic alerts to highlight high-energy use events. At the same time, consider upgrades to control systems. For example, modern controls may allow staff to turn on air conditioning for one part of the office only if they’re working late or early, instead of having to blast empty rooms with cold air unnecessarily.

Better measurement and more sophisticated controls put building owners and occupiers back in charge.
One of the quickest ways to cut energy consumption and get a swift return on investment is to use up-to-date lighting as replacements for old fashioned lights. Traditional light bulbs are very inefficient. Newer technologies such as light-emitting diodes (LEDs) are increasingly replacing halogen spotlights in shops and hotels as well as offices. In addition to producing more light per watt, they also create much less heat and so will cut the load on air conditioning equipment.

For lighting bigger areas, look at the replacing fluorescent lights with the latest T5 tubes. They are smaller and brighter than traditional fluorescents. They also last longer, which means lower maintenance bills.

Multinationals that site their regional headquarters or factories in Singapore expect buildings to be friendly to the environment, rather than considering green issues as a nice-to-have public relations bonuses. Activist shareholders, such as pension funds, pressure global companies to build sustainability into the way they think and formulate strategy. There's a growing body of research that suggests that companies that take such issues seriously deliver better returns for shareholders.
 

Jonathan Berney, Head of Client Solutions for EC Harris in Asia