Environmental issues still important - but only at a price

Businesses considering their property strategy – including whether to move to new space or to stay and improve existing space – are increasingly aware of the environmental considerations.

Although environmental issues are considered important, actions appear to be prioritised based on implementation costs and expected return on investment. Businesses want their property sustainability policies to help reduce their costs and obtain their business goals. Purely altruistic environmental goals come a long way behind environmentally focused objectives that reduce operating costs.

To this end, we asked businesses to consider the most important environmental criteria when choosing new office space. Unsurprisingly, building performance and energy efficiency received the most votes, closely followed by adaptability of space, use of natural resources such as rainwater and renewable energy, and proximity to or inclusion of green space within the building.

Lower down the list of considerations were respect of building certification such as BREAM, probably because that is a given when moving to newly developed office space.

What, if anything, do you consider to be most important environmental criteria when choosing a new office space? (Select up to 3)

Whether deciding to stay or go, cost awareness comes to the fore when thinking about reducing the environmental impact of the office, with businesses choosing the low-level and least expensive options. These include switching to renewable energy, reducing waste and recycling, purchasing environmentally friendly products, and reducing overall energy consumption.

The reduction of operating costs go hand in hand with companies’ environmental performance and this correlation is one of the driving forces behind the implementation of carbon reduction plans.

Much lower down the list of actions was going to the expense of employing a consultant or professional to advise on environmental issues.

Just over one fifth (21%) of businesses said they would liaise with the landlord to identify how they can work together to reduce their environmental impact, a positive sign of landlords and tenants starting to work together.

What, if anything, are you doing or planning to do to reduce the environmental impact of your office over the next 12-18 months? (Select all that apply)

Perhaps unsurprisingly, businesses cited the cost of implementing changes as the main barrier to reducing the environmental impact of their offices, followed by the cost of technology.

While 29% of businesses lacked internal knowledge to address environmental concerns, over 28% were deterred by the cost of hiring an expert advisor, despite their fuller understanding of the full range of tech, environment, and sustainability issues.

Management and employee resistance also played a part, again presumably based on cost and priorities.

Just over one sixth (17%) of respondents even said reducing the environmental impact of their office was not a priority. It appears full sustainability will only be fully embraced when it aligns with corporate strategy.

What, if anything, are the main barriers to you reducing the environmental impact of your office over the next 12-18 months? (Select up to 3)

This trade-off between sustainability and cost also appears when we asked if businesses would be prepared to pay a higher rent for office space that reduced their impact on the environment. The most popular response (47%) was yes, but only if they got more than an equivalent reduction in their service charge or energy bills. 45% expected an equivalent reduction, and 34% would expect a small reduction. Again, this highlights the important link between operational expenditure and environmental performance.

Less than a third (28%) said they would expect to pay a higher rent for space that would help reduce their environmental impact.

Why, if at all, would you be prepared to pay a higher rent for office space which reduces your organisation's impact on the environment? (Select all that apply)