Sustainability

Six Sigma for Sustainability

Sunday, November 6th, 2011

Tom McCartyPosted by:
Tom McCarty
Strategic Consulting

As Dan Probst wrote earlier, our new book Six Sigma for Sustainability shows executives how they can apply work-process improvement strategies to jump-start their sustainability programs.

Many companies are engaged in sustainability at the tactical level, but embedding these concepts into the corporate culture requires holistic approach that brings together all the players within the firm into a collaborative management model.

When all the right people are engaged, Six Sigma becomes the vehicle for leaders to identify the “transfer function,”  the critical few activities that, done well, will meet or exceed the expectations of customers and other key stakeholders. Deploying those strategies in alignment with all the business units and support functions that contribute to a sustainability program creates a “house of quality” that leads to breakthrough success.

I’ve seen Six Sigma used to enhance many types of business processes, but none are better suited than sustainability to Six Sigma’s DMAIC model – Define, Measure, Analyze, Improve Control. Sustainability is a recent concept for virtual every company, yet it is a differentiator and key driver of long-term success when it is woven into the corporate fabric. Six Sigma provides the tools to help you get there.

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Corporate Transformation Via Sustainability

Sunday, November 6th, 2011

Posted by:
Dan Probst
Energy and Sustainability Services

I led Jones Lang LaSalle’s  energy services businesses in the Americas long before we expanded our menu to include a broad  scope of sustainability services.  So, like many in our business,  I used to think of energy efficiency as the best way to add value to the corporate bottom line.

Reducing energy use and the associated carbon emissions is still a key part of any corporate sustainability program, but I now see even greater potential value in areas that  touch employees more directly, such as health, well-being and job satisfaction, all of which affect productivity. It may be hard to measure the effect on an individual or company, but the correlation between sustainable companies and successful companies is too strong to ignore.

Becoming a sustainable company is more than just recycling and reducing energy, though.  To achieve breakthrough performance, companies must create a collaborative process that involves key internal stakeholders from HR and IT to business units, as well as suppliers and customers.

How to create and implement such a process is a subject big enough to fill a book. That’s why my colleagues Tom McCarty, Michael Jordan and I co-authored Six Sigma for Sustainability, published this year by McGraw-Hill.  Tom is one of the world’s leading authorities on Six Sigma, having published several books on the subject previously. I offer the sustainability viewpoint, and Michael—both a Six Sigma Black Belt and a LEED AP as well as one of our top consultants on CRE strategy—provides a unique dual perspective.

I’m obviously biased, but I believe there is no greater way for CRE directors to contribute to positive corporate transformation today that through an integrated energy and sustainability program such as we outline in Six Sigma for Sustainability.

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Green Branding, Not Greenwashing

Sunday, November 6th, 2011

Posted by:
Peter Belisle
Energy and Sustainability Services

Since I am speaking at CoreNet Global SNAP session on corporate branding through sustainability, I want to make the distinction between branding, which relies on a real commitment to sustainability, and greenwashing, which attempts to put a green face on business-as-usual practices.

Business people first heard the terms “sustainability” and “greenwashing” almost simultaneously, because some companies used the trend to falsely promote their products as green, or to make carbon-reduction promises they couldn’t keep. By the time companies recognized the deeper benefits of sustainability, many of their customers had become hardened to skin-deep green claims.

Recent studies indicate that customers and investors are able to differentiate between companies that truly embrace sustainability and those that merely pretend. That’s where the branding opportunity comes in.

Branding uses consistent perceptual cues to create positive associates of a company. The built environment offers many opportunities to reinforce a corporate image. Solar power installations, green roofs and natural vegetative landscaping provide visual reminders to people visiting or passing by a property. It’s also important to engage employees, the group in the best position to confirm or reject a company’s green image.

Check out my session to see how companies leading the sustainability charge are using real estate strategies to reinforce positive images.

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Session Report: The Practical Aspects of LEED Certification – From New Building Design to Office Fit Out

Sunday, March 27th, 2011

Posted by:
Nick Clifford
Associate Director, Corporate Consulting, Asia Pacific

This educational site tour involved developments and offices on course to achieve LEED Platinum status, including Jones Lang LaSalle’s new office in Swire’s Three Pacific Place and Hysan’s new development in Causeway Bay, Hysan Place.

David Cain, Head of Project & Development Services at Jones Lang LaSalle, said that additional cost of developing its green office should achieve payback within two to three years. Isaac Taam, Building Sustainability Consultant at Arup, showed us through the secret rooms of Hysan Place in true “James Bond” fashion.

What did these projects focus on to aim for LEED Certification? Click here to read my full session report and find out more.

Nick

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Greening Your Portfolio: Turning Conflicting Objectives Into Mutual Gain

Tuesday, August 3rd, 2010

Posted by:
Michael Greene
Director, Tenant Representation
Corporate Solutions

It was clear from today’s presentation the industry’s approach to sustainability has turned from one of potentially conflicting interests to a collaboration between investors, occupiers and managers of buildings.

It was very interesting to note that not only are financials presented to Fund Managers and their investors when considering acquisitions, but the green performance of buildings as well. The commitment to green is such that APPF have disposed of buildings they don’t believe they can get to their target of an average of 4.5 stars NABERS rating across their portfolio. They have another target of having 38% of their portfolio achieving five or six Green Star ratings by June 2011.

In the Q&A session the speakers compared the sophistication of Australia in terms of its green building ratings tools to some other markets in Asia Pacific that are lagging. But I don’t think it will take too long for investors in those markets to catch up – as US McGraw Hill study pointed to sustainability initiatives improving a building’s ROI by 6.6%, its valuation by 7.5% and its occupancy and rent ratio by 3.5% and 3.0% respectively. The value proposition is not only improved sustainability credentials and positive brand impact, but cost savings and an uplift in capital value.

For occupiers, again the value proposition of a green workplace is not only an alignment with the bank’s CSR strategy and a talent attraction and retention tool, but also improved building performance and efficiencies. ANZ’s commitment to being green now extends to their suppliers who must present their green credentials if they want to work for the Bank. Interestingly ANZ professed themselves as being a ‘fast follower’ in the sustainability space, wanting to find the sweet spot between the commercial realities and environmental outcomes.

I have seen the integration of the design, construction and operation of a building positively impact the sustainability outcomes. Of course this is easiest to achieve in new developments and secondary assets present added complexities. But we now have more measurement tools at our disposal to get an accurate read on an occupier’s carbon footprint, in both secondary and prime-grade real estate.

Michael

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