Will,

Thank you for your question.

Global warming is an issue that has been getting lots of press and media coverage over the last couple years and rightly so. It is critical that we all play our part in reducing our carbon emissions and I say hats off to you for your efforts in promoting the cause. As urgent as many of us feel the climate change issue is, many businesses are slow to make operational changes toward a more environmentally friendly agenda. This is because businesses aim to maximize profitability while minimizing their costs. Once you can make the case that a sustainable approach to energy use will guarantee greater profitability you should have no problem seeing a shift in attitudes and policy.

Here are three points to help you make the case that energy efficiency isn't about Global Warming:

1. Energy use represents approximately 30% of operating costs for commercial buildings in North America. Implementing simple, energy efficient measures such as performing regular maintenance on heating, cooling and ventilation systems, installing LED or solid state lighting with integrated motion sensor controls, and choosing energy star rated appliances and office equipment can reduce consumption by as much as 30%. This translates to lower operating costs of $25,000 per year for every 50,000 square feet of office space.

2. Energy costs continue to rise year over year at approximately 8%, thus buildings become more expensive to operate each year. Prospective tenants and buyers are keenly aware of this fact. The real estate market has shown that buildings that offer lower energy costs consistently command higher rents and higher occupancy rates compared to conventional buildings. LEED certified and Energy Star rated buildings command a 6% premium in rents and a 31-35% premium in sale price.

3. Insurance, finance costs and taxes represent an equally expensive stake in a building's recurring costs - approximately 30%. These costs are tied to the risk profile of the asset (building). Buildings with higher utility costs, lower rents and fluctuating tenancy rates are forced to pay more in interest and insurance, reflecting their higher risk in line with underwriting guidelines. Buildings that are energy efficient enjoy lower operating costs, higher rents and stable occupancy rates, enjoying a lower risk profile and consequent savings in interest and insurance. Many municipalities also offer tax rebates and other incentives for lower energy demand buildings.

Turning the focus away from the politicized Global Warming debate to the facts about cost savings and the cold hard cash to be gained from implementing energy efficient strategies is a sure way to win over the decision makers you want to influence. Just remember, when it comes to business there's one universal principle that get things moving: "Show me the money!"

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• Calculating the Return on Investment for Green Initiatives



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