16 Photo: Tinaz Karbhari October 14, 2016 / The National Business Review Special Report From facing page Eco Business Most large companies are already on a path which, at least slowly and incrementally, improves their environmental (and sometimes social) performances. Also encouraging is instances of “green” appear to be outpacing conventional segments in almost every industry. But are companies truly stepping up efforts to address the full range of sustainability impacts, or is it just a few leaders? Babbage ‘quietly chips away’ as it awaits green build tipping point Nick Grant When people consider “green” in a commercial sense they think of green buildings. However, green buildings remain a niche in the construction industry for several reasons: the fact there are so many buildings going up at the moment; New Zealand’s abundant renewable energy sources mitigating against any real sense of needing to do anything differently; and the perception it’s going to cost more. Babbage Consultants senior architect and sustainability manager Michelle Johansson says sometimes sustainable buildings do cost more but she concedes it is “because people aren’t used to doing them and the systems used don’t cater to them. So you end up with a cobbled together hit and miss approach where nobody knows where they stand. “But if you have good systems – as the industry has now in terms of everyday building – that will iron out those issues.” Taking an approach that involves integrated design and early contractor involvement (or ECI) will reduce the cost of a sus- tainable building. “What it basically boils down is everybody in the team getting together really early on and using all their knowledge around the table to come up with some really effective solutions that may not have happened by following the standard linear process,” Ms Johansson says. “It’s got to the point where I wouldn’t do any job, green or otherwise, without that process – it’s just so good. You end up without any or very few costly surprises down the track.” There is also increasing data about the savings a sustainable building can realise over time, she points out, now that some of some Green Star structures have been standing for almost a decade. Although it won’t motivate developers who are in and out of a project as quickly as possible, the benefits the owner of a green building can enjoy include lower operating costs, enhanced marketability and longer term tenants. Occupiers, meanwhile, tend to report happier employees who take fewer sick days, ultimately leading to much less churn. INTEGRATED WITH ENVIRONMENT: Babbage’s work on Remarkables Primary School won the firm many awards Tipping point to come “Eventually the market will demand more green buildings,” Ms Johansson says. “There will be a tipping point, whether it’s a cost-driven incentive or something else – solar energy might take off once coal runs out, for example.” In the meantime, “Babbage is the same as other big practices that talk about sustainability – unless we get the right client in the door, it’s not always achievable to do sustainable office projects,” she says. “It’s a slow ship to turnaround. The trick is to have the building blocks and systems in place to make sustainable projects less onerous and easier to achieve – and to clean up our own house first – so if and when those jobs do come along we’re ready for them. “In the interim, you quietly chip away.” In some ways that suits Ms Johansson. “I’m more about incremental change, rather than disruption. Disruption has its place but it can be overbearing and often temporary,” she says. “My ultimate goal is for people to do green buildings accidently and for us not to have to have a conversation about the benefits because they’re happening as the norm.” Multi-disciplinary Babbage Consultants began in 1936 as a small engineering firm. It was founded by Alistair Babbage, the great grandson of Charles Babbage, the polymath veyors, and bio researchers who work on protecting endangered native flora and fauna. “Our great depth of disciplines, and the technical knowledge that comes with it, is one of our major strengths,” says Ms Johansson. That depth includes being “easily able to handle any job LEADING BY EXAMPLE: As a carbon zero certified company, Babbage’s own offices are increasingly ‘green’ inventor of the difference engine, widely considered the world’s first computer. Eighty years on, the multidisciplinary practice boasts about 180 staff and has offices in Auckland, Hamilton, Taupo, Christchurch and Melbourne. In addition to engineers with structural, civil, geo-technical, environmental, mechanical, electrical and hydraulic expertise, the firm now also has architects, land and building sur- The National Business Review / October 14, 2016 that involves ‘deep green’ work in-house.” Core capability and principle Ms Johansson has professional accreditation with Green Star (a tool that rates the sustainability of commercial buildings), while an engineer colleague is accredited with Nabers (a system for rating office buildings’ energy Continued on P21 sustainability business, it’s all in one,” he says. “Because we’ve had some pretty unique ideas and feedback, the biggest challenge is developing new ideas into a reality.” Blenheim-based Yealands is also audited annually to review its greenhouse gas emissions and the company says unavoidable emissions, such as the production of glass bottles and freight to market, are subject to it. The company purchases carbon credits to offset what it emits. DB sets lofty goal Meanwhile, DB Breweries says in its second annual sustainability report it has reduced water consumption by 14.4% since 2005, and decreased greenhouse gas emissions by 41% since 2008. DB has the ambitious goal of becoming New Zealand’s most sustainable alcohol producer, no easy feat for a beer and cider producer. In the report, DB says water fills 95% of its finished beer products, which is why it has focused on reducing water consumption per litre of beer or cider from 3.5 litres to 3.47 litres from 2014 to 2015. DB is aiming to have its Waitemata Brewery function on 100% renewable energy by 2020. SPECIAL REPORT: ECO BUSINESS 21 A great modern examples of putting byproducts to good use is DB Export Brewtroleum, a fuel made from a byproduct of beer unveiled in July last year. The company produces roughly 572,000 litres of yeast slurry (the byproduct) each year, and disposes of roughly 150,000 litres. DB used the excess slurry to create fuelgrade ethanol by fermenting the biomass, a process similar to the beer brewing process. The ethanol is then added to petrol to create a biofuel. “The end-result is DB Export Brewtroleum, a high performance 98-octane fuel made with 10% sustainable bio-ethanol, which emits up to 8% less carbon dioxide than other high performance fuels – as well as being a renewable biofuel that is more sustainable,” DB spokesman Simon Smith says. A batch of 300,000 litres was produced, enough for six weeks at 60 Gull stations. Mr Smith says DB doesn’t have any plans to produce more Brewtroleum at the moment because it hasn’t produced enough yeast slurry. But DB has advised a Mexican-based business, which is also in the Heineken family, about how to produce Brewtroleum. Mr Smith is coy on whether the company will go ahead with its own version of Brewtroleum. [email protected] Babbage ‘quietly chips away’ From P16 efficiency). Babbage staff are working on a 5 Green Star project (five denotes “New Zealand excellence,” while a four equates to best practice and a six is considered “world leadership”). But even during those periods when the company isn’t undertaking sustainability focused projects for a client, it’s doing such work internally. As Ms Johansson notes, the way in which it is embedded at the core of Babbage’s practice is emphatically signalled by the way in which “sustainability” is the first word in the company’s mission statement (the others, in case you’re wondering, are “team work, innovation, professionalism, respect”). “We’ve got carbon zero certification as a New Zea- land-wide company, and were the first architecture firm to do so,” she says. “That involves reducing energy use and carbon emissions. It’s really gone to the heart of the business, because we have to monitor everything.” Essentially it’s “like a audited.” The company has “got a list of things we’re following up on in the office – from the feasibility of a complete refit of the LED lights down to having planter boxes outside.” Although Ms Johansson readily acknowledges the contribution of the latter to the reduction of emissions is minor, “we want to have a visual symbol of what we’re doing to illustrate the less obvious things, like reduced power bills.” Cost perceptions SUSTAINABLY SPEAKING: Michelle Johannson microcosm of what New Zealand signed up for with the Paris Agreement,” she says. “Babbage has to reduce carbon emissions by a certain percentage by a certain time – and we get Despite Babbage having a great deal of sustainability expertise under one roof – something it seeks to leverage via an informal forum in which staff “investigate ways to combine each other’s knowledge of different disciplines” – that capability isn’t constantly being utilised by clients. 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