Ms Maria Atkinson, Global Head of Sustainability, Lend Lease,

Ladies and Gentlemen,

Good morning.

Introduction

1      It is my pleasure to be here this morning, at the 2nd Breakfast Talk for CEOs organised by BCA.

2      Over the last two days, the BCA International Panel of Experts for Sustainability of the Built Environment has reviewed Singapore's approach to greening our built environment. These world-renowned experts and leaders in the green building movement have provided BCA with invaluable feedback and recommendations to fine-tune our measures to shape a sustainable built environment. I would like to thank the members of the panel for their contribution to this important effort.

Our Sustainable Development Strategy

3      The Inter-Ministerial Committee on Sustainable Development or IMCSD has envisioned for Singapore to be a lively yet liveable global city, with plentiful economic opportunities, supporting vibrant lifestyles within a high quality living environment. This can only be achieved by putting in place policies and measures today, which will contribute to Singapore's sustainable development for the future.

4     The IMCSD is actively looking at how we can create an even more sustainable and environmentally friendly built environment, as Singapore continues to grow and develop. Together with households, buildings account for about 50% of our total end-use electricity consumption, making them one of the key consumers of energy and generators of waste in Singapore. Undoubtedly, green buildings are integral to our sustainable development strategy for the future. To go green, we have to take a holistic approach in the way we design, construct and operate buildings.

Business Case and the Value of Green Buildings

5      However, in Singapore and many cities worldwide the perceived cost of green buildings is still a major hurdle to its wider adoption. In reality, green buildings need not be expensive. The on-going detailed business case study of Green Mark projects by BCA shows that the cost premiums of a green building may be recovered through energy savings within 2 to 8 years. This is way within the lifespan of a building. For example, one of the earliest Green Mark Platinum projects, the National Library Building, has achieved about 36% of energy savings compared to a code-compliant building, reaping around $1 million in savings per year. Its payback period for the additional cost of green features is about 8 years. With an increasing number of green buildings and greater industry competency in designing, building and maintaining green buildings, the cost premiums of green buildings will fall further.

6     The business case for green buildings actually goes beyond just the payback of initial capital costs from the expected operating energy savings. There is increasing evidence worldwide that green buildings command higher rents and asset values, and enhances the productivity of its occupants compared to similar non-green buildings. The Berkeley Program on Housing and Urban Policy at the University of California, Berkeley, has found credible data that green buildings can command significant rent premiums in the commercial real estate market in the United States. The Green Building Council of Australia drew similar conclusions in their ground-breaking report, "Valuing Green" released earlier this year. I look forward to hear from our distinguished speaker, Ms Maria Atkinson, her valuable insights on the true value of green buildings, based on her company's many projects around the world.

Strategic 3P Alliance for Green Buildings

7     In Singapore, we have laid the foundations in the development of a sustainable built environment since the launch of BCA's 1st Green Building Masterplan in 2006. BCA is now formulating the 2nd Green Building Masterplan to step up our efforts. A holistic plan is being mapped out, detailing several new initiatives to accelerate the green building movement in Singapore.

8     Given that existing buildings form the bulk of the building stock in Singapore, greening our existing buildings forms a key focus of the 2nd Masterplan. As such, BCA is currently refining the Green Mark assessment criteria for existing buildings to include a performance-based approach, to help owners and operators of existing buildings maximise the operational and energy efficiency, whilst minimising the environmental impact of their buildings.

9     To drive our green building movement, we also need a strong 3P alliance between the government, the industry and the public. In this respect, I must say that we have made good progress. Industry and consumers are now familiar with green buildings and its benefits. Within the next few months, the IMCSD and BCA will be holding a series of focus group discussions with the industry to seek feedback on the proposed initiatives under the 2nd Green Building Masterplan. I sincerely urge you to give BCA your full support to this industry engagement.

10     At the same time, I am also pleased to hear that more industry stakeholders are takeing proactive steps to spread the green building movement in Singapore. In July, Colliers International conducted a joint seminar with BCA, on the topic, "Understanding the Value and Sustainability of Green Buildings". The first comprehensive real estate green guide called the r.e. Design was also launched. I applaud Colliers International's initiative to work closely with BCA to raise consumers' and developers' awareness of the value of green real estate.

11     Forming the third pillar of our 3P alliance, the People sector, or the consumers, also has an important role to play. Their demand for environmentally friendly buildings will encourage developers and designers to deliver higher green building standards to meet expectations. BCA has been reaching out to educate the public on the benefits of green buildings through various channels, such as its Green Mark Web Portal and the print media. We are encouraged that public awareness is on the rise. This is evident from the good response to HDB's first eco-precinct, Treelodge@Punggol, where more than 90 percent of the units has been taken up. These homes include environmentally friendly features such as solar energy systems as well as water and energy conservation features. I am heartened to see that more people, especially homebuyers, are now aware of the significance of green building features and the benefits they bring.

12     To further engage the People sector, members of the public were invited to offer their views on sustainable development to the IMCSD via the Sustainable Singapore website. I am heartened to hear that the response was overwhelming. Suggestions from many passionate members of the public flowed in within a short period of time. It is evident that many people are aware of the importance of sustainable development. It demonstrates also their wish to contribute to a cleaner, greener and more resource-efficient Singapore.

13     With a fully committed People sector forming the third prong of our 3P alliance, we are well-placed to forge ahead with our drive towards delivering a sustainable built environment in Singapore.

Conclusion

14     I am confident to say that the industry, and indeed Singapore as a whole, has made extraordinary progress over the past three years in our pursuit for a sustainable built environment. With consumers, the industry and the government working together towards the same vision, we are firmly on track to be a leading eco-city of Asia.

15     Today's Breakfast Talk provides an excellent opportunity to engage the leading minds of the industry and work together towards this goal. I wish all of you a fruitful talk.

Thank you.

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