Green communication
So what are GB product specifiers looking for?
Sep/08/2010 15:20
Additional analysis from the Opening the Door to Green Building Study....
One of the paths to improving the effective communication of green building benefits lies in the creation of priorities for content improvement.
Additionally, 82% of buyers identified Actual Performance Data as a key element to influence the green product buying process. Relative to the selection of professional service firms, 69% of buyers identified Actual Performance Data (relative to green building information) as an influence on their decision. While this type of data has been fairly common in the product market, it is a newer area for service providers to integrate into their marketing strategies. It would seem that performance function is leading form in how service firms must now differentiate themselves in the marketplace.
One of the paths to improving the effective communication of green building benefits lies in the creation of priorities for content improvement.
Additionally, 82% of buyers identified Actual Performance Data as a key element to influence the green product buying process. Relative to the selection of professional service firms, 69% of buyers identified Actual Performance Data (relative to green building information) as an influence on their decision. While this type of data has been fairly common in the product market, it is a newer area for service providers to integrate into their marketing strategies. It would seem that performance function is leading form in how service firms must now differentiate themselves in the marketplace.
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How easy is it to understand the landscape of GB ratings, certs and standards?
Sep/07/2010 10:00
More from the Opening the Door to Green Building Study...
With the news that the FTC will soon be publishing its revised “Green Guides” and trying to understand the effect this will have on the green building product industry, I thought it would be interesting to take a look at the current market understanding.
As any growth market evolves, so to do movements around codifying and standardizing aspects of the market’s services, products and solutions. The green building industry is experiencing a rapid evolution of product standards/certifications, professional accreditations and project certifications and in the building product sector, there seems to be an entire tangential industry creating product certifications (Green Seal, Energy Star, Green Guard, Green Label, etc.) While the LEED system and Energy Star seem to be the most prominent among professional accreditations and project certifications, countless certification programs are emerging by market type, profession service discipline and geographic region green building certification programs.
How understandable are these rating systems? Only 21% of respondents indicate, “the current landscape of green rating systems, standards and certifications is “understandable”. Expounding on the confusion is that two of the leading providers of services within the industry indicate their understanding to be equal to less than the 21% “understandable” score with Architects at 18% and General Contractor/Trades at 21%. While 44% of Facility Managers and 57% of Real Estate Developers/Tenant Leasing/Finance rated the current landscape from “highly confusing” to “rarely understandable”.
While a few of the respondents’ comments described the standards as understandable, many highlighted how the confusion in the market place is slowing green building adoption:
“"Point" systems tend to evolve over time - and with the sub-specialization of the LEED rating system - I believe it's causing more confusion in the marketplace - it would be nice if there was a method of establishing a system that rewarded sustainable solutions without making it a 'point grab’.”
“Current rating systems would be better understood by using platform levels of standards. Smaller levels to obtain for certification will be easier then just one main level at the end of a project.”
“Everyone is trying to "get into the game", and further exasperating the movement is (unnecessary) involvement by state and local governments.”
“Have a hard time just explaining how you rate a home. You start with the goal and then work backwards. If they want to save utility dollars then this is a solid metric. But the increased assessed value of a green home may not be very objective. “
“It is easy to understand, however, there are numerous green rating systems that encompass landscaping, cities, roads, infrastructure, buildings, etc. You cannot know them all!”
“The good news is that the ICC is writing code to accommodate sustainable design. While its truly unfortunate they also use the term ‘green’ I do think that this step is crucial in setting a real sustainable standard that is reasonable, less politically motivated, and one that can be followed with confidence that a rating will be achieved at the end of the process.”
With the news that the FTC will soon be publishing its revised “Green Guides” and trying to understand the effect this will have on the green building product industry, I thought it would be interesting to take a look at the current market understanding.
As any growth market evolves, so to do movements around codifying and standardizing aspects of the market’s services, products and solutions. The green building industry is experiencing a rapid evolution of product standards/certifications, professional accreditations and project certifications and in the building product sector, there seems to be an entire tangential industry creating product certifications (Green Seal, Energy Star, Green Guard, Green Label, etc.) While the LEED system and Energy Star seem to be the most prominent among professional accreditations and project certifications, countless certification programs are emerging by market type, profession service discipline and geographic region green building certification programs.
How understandable are these rating systems? Only 21% of respondents indicate, “the current landscape of green rating systems, standards and certifications is “understandable”. Expounding on the confusion is that two of the leading providers of services within the industry indicate their understanding to be equal to less than the 21% “understandable” score with Architects at 18% and General Contractor/Trades at 21%. While 44% of Facility Managers and 57% of Real Estate Developers/Tenant Leasing/Finance rated the current landscape from “highly confusing” to “rarely understandable”.
While a few of the respondents’ comments described the standards as understandable, many highlighted how the confusion in the market place is slowing green building adoption:
“"Point" systems tend to evolve over time - and with the sub-specialization of the LEED rating system - I believe it's causing more confusion in the marketplace - it would be nice if there was a method of establishing a system that rewarded sustainable solutions without making it a 'point grab’.”
“Current rating systems would be better understood by using platform levels of standards. Smaller levels to obtain for certification will be easier then just one main level at the end of a project.”
“Everyone is trying to "get into the game", and further exasperating the movement is (unnecessary) involvement by state and local governments.”
“Have a hard time just explaining how you rate a home. You start with the goal and then work backwards. If they want to save utility dollars then this is a solid metric. But the increased assessed value of a green home may not be very objective. “
“It is easy to understand, however, there are numerous green rating systems that encompass landscaping, cities, roads, infrastructure, buildings, etc. You cannot know them all!”
“The good news is that the ICC is writing code to accommodate sustainable design. While its truly unfortunate they also use the term ‘green’ I do think that this step is crucial in setting a real sustainable standard that is reasonable, less politically motivated, and one that can be followed with confidence that a rating will be achieved at the end of the process.”
Top Five Green Building Market Shape Shifters
Sep/03/2010 08:34
With GreenBuild 2010 on the horizon, which is always accompanied by a flurry of reporting, research and projections for the green building market, I have been thinking about what factors will most influence the green building marketplace over the next 12 months. As in any situation analysis, one must accept to a degree certain definitions of the current market place, with that in mind I am treating the state of the overall economy and its effect on the construction industry as a constant at least for the near future.
So within the current reality of the sustainable building design, construction and operations what are the five most impactful stories to watch?
1. Legislation: CalGreen
The California Building Standards Commission adopted the nation’s first mandatory statewide green building code that January 12, 2010. CALGreen will take effect in California on January 1, 2011 along with the other 11 published parts of the 2010 version of Title 24, the California Building Standards Code. It will be important to watch both the market reaction to the new code and to see how other states look to follow suit or remain at status quo.
2. Financing:: PACE
The excitement and hope for residential energy efficiency programs across the country seemed to all take a collective body blow this summer. The announcement in July by Freddie Mac and Fannie Mae that PACE financing would not be underwritten by their organizations halted a great deal of momentum in the residential marketplace. Earlier this week, the two mortgage giants also indicated that they will not purchase mortgages secured by properties subject to PACE obligations that provide for first lien priority.
With numerous lawsuits having been filed against Freddie and Fannie’s position and Congress potentially weighing in with legislation, the final chapters on the PACE program have not been written yet. Will another creative form of financing evolve to take the place of the PACE program?
3. Standards: FTC Green Guides
While probably more of a personal issue of mine, I do believe that the upcoming release of the revised “Green Guides” by the FTC will have both near and long term ramifications on the green building product market. I anticipate that the new guidelines will support more clarity within the product labeling and certifications arena.
4. Performance: USGBC Performance Initiative
A year ago, touched off by some national media attention, the LEED certification process came under scrutiny for certified buildings not performing up to the “standards”. The USGBC has moved to address this issue with its Building Performance Partnership Initiative. The success of this initiative could bring a whole new level of market acceptance to green building techniques and certainly a foster more accessible actual performance data which I believe the market is definitely hungry to receive. The BPP Initiative was recently expanded, the USGBC has opened the program to all current whole-building LEED-Certified commercial and residential projects.
5. Corporate Attitudes towards Sustainability/CSR
It has been encouraging to watch the growing momentum for overall corporate sustainability programs and some of the related certification programs that have been introducing more accessible tools and entry points in the market place. As a significant component of corporate sustainability, the green building market should continue to benefit from overall organizational strategies and programs. I would think that in the coming year, we will see even more collaboration between CSR and Green Building standards, associations and consultants. Tim Mohin at GreenBiz.com this week made a great case for CSR in response to the Wall Street Journal recently critical article.
So within the current reality of the sustainable building design, construction and operations what are the five most impactful stories to watch?
1. Legislation: CalGreen
The California Building Standards Commission adopted the nation’s first mandatory statewide green building code that January 12, 2010. CALGreen will take effect in California on January 1, 2011 along with the other 11 published parts of the 2010 version of Title 24, the California Building Standards Code. It will be important to watch both the market reaction to the new code and to see how other states look to follow suit or remain at status quo.
2. Financing:: PACE
The excitement and hope for residential energy efficiency programs across the country seemed to all take a collective body blow this summer. The announcement in July by Freddie Mac and Fannie Mae that PACE financing would not be underwritten by their organizations halted a great deal of momentum in the residential marketplace. Earlier this week, the two mortgage giants also indicated that they will not purchase mortgages secured by properties subject to PACE obligations that provide for first lien priority.
With numerous lawsuits having been filed against Freddie and Fannie’s position and Congress potentially weighing in with legislation, the final chapters on the PACE program have not been written yet. Will another creative form of financing evolve to take the place of the PACE program?
3. Standards: FTC Green Guides
While probably more of a personal issue of mine, I do believe that the upcoming release of the revised “Green Guides” by the FTC will have both near and long term ramifications on the green building product market. I anticipate that the new guidelines will support more clarity within the product labeling and certifications arena.
4. Performance: USGBC Performance Initiative
A year ago, touched off by some national media attention, the LEED certification process came under scrutiny for certified buildings not performing up to the “standards”. The USGBC has moved to address this issue with its Building Performance Partnership Initiative. The success of this initiative could bring a whole new level of market acceptance to green building techniques and certainly a foster more accessible actual performance data which I believe the market is definitely hungry to receive. The BPP Initiative was recently expanded, the USGBC has opened the program to all current whole-building LEED-Certified commercial and residential projects.
5. Corporate Attitudes towards Sustainability/CSR
It has been encouraging to watch the growing momentum for overall corporate sustainability programs and some of the related certification programs that have been introducing more accessible tools and entry points in the market place. As a significant component of corporate sustainability, the green building market should continue to benefit from overall organizational strategies and programs. I would think that in the coming year, we will see even more collaboration between CSR and Green Building standards, associations and consultants. Tim Mohin at GreenBiz.com this week made a great case for CSR in response to the Wall Street Journal recently critical article.
What is motivating Green Building?
Sep/01/2010 06:49
In the results from the Opening the Door to Green Building Communications Study, a joint survey conducted by the Northeast Ohio Chapter of the USGBC and Sustainable Rhythm, respondents overwhelmingly indicate reducing overhead, energy efficiency and ROI as the primary motivators for pursuit of green building practices, and many echoed the sentiment directly:
“In my industry, payback, ROI, and guarantees of energy reduction/costs are bottom-line motivations for constructing/retrofitting buildings.”
“The green building sector needs to stop the selling job of "social responsibility" /GHG reduction/brand development and focus more on $$$ and energy efficiency and cost reductions”
“Some of my clients think 'green' and 'sustainable' are bad words, but they are fine with 'energy efficient'.”
In other words, “conscientiousness” is not – at least not yet – a primary motivator for the pursuit of green building practices. As the research above indicates, the perception of going green is not as significant as the business case for implementing green practices.
But knowing what motivates a buy is not enough: knowing how to communicate in a manner that will motivate that buy is critical, and language is important. According to the building owner/developer category of the study, “Energy Efficient” is the most effective term to communicate the green-building value proposition for buyers with 67% rating it between “effective” to “highly effective” while the word “green” garnered only a 24% rating.
“In my industry, payback, ROI, and guarantees of energy reduction/costs are bottom-line motivations for constructing/retrofitting buildings.”
“The green building sector needs to stop the selling job of "social responsibility" /GHG reduction/brand development and focus more on $$$ and energy efficiency and cost reductions”
“Some of my clients think 'green' and 'sustainable' are bad words, but they are fine with 'energy efficient'.”
In other words, “conscientiousness” is not – at least not yet – a primary motivator for the pursuit of green building practices. As the research above indicates, the perception of going green is not as significant as the business case for implementing green practices.
But knowing what motivates a buy is not enough: knowing how to communicate in a manner that will motivate that buy is critical, and language is important. According to the building owner/developer category of the study, “Energy Efficient” is the most effective term to communicate the green-building value proposition for buyers with 67% rating it between “effective” to “highly effective” while the word “green” garnered only a 24% rating.
Its not the color..Its the bottom line
Aug/31/2010 07:47
Walking the exhibit floor at a green building conference, a colleague mentioned that a red or blue booth would really stand out in the sea of green that swam before our eyes. Now so prevalent in all of the exhibitors’ booths, product packaging and service firm collateral, green in all its shades looks to be “the new black.” Wading through the associated claims, certifications and sustainability verbiage that now populate the built-environment marketplace, he added, has become another dizzying challenge.
And this is from one “insider” to another – people “in the biz” trying to differentiate the meanings and messages of “green” within a familiar conference-hall landscape. If it is this difficult for insiders, how challenging must it be for our clients??
According to the JWT Anxiety Index Report, The Recession and Its Impact on the Environment, “Some of the language we use to talk about being green is not clear to consumers or even defined at all. Other terms such as “going green” are clearer, making consumers think of a product or marketing, but with a tinge of cynicism.”
Whether you wrap the message in green, blue, orange or red – and perhaps we could use a little more of the color spectrum back in the picture -- the most important current question is how can we impact our client’s bottom line, and then how do we stand out above and beyond the areas of Planet, Prosperity and People. Listening to your market – what it needs now and what will impact it later -- is the first priority.
And this is from one “insider” to another – people “in the biz” trying to differentiate the meanings and messages of “green” within a familiar conference-hall landscape. If it is this difficult for insiders, how challenging must it be for our clients??
According to the JWT Anxiety Index Report, The Recession and Its Impact on the Environment, “Some of the language we use to talk about being green is not clear to consumers or even defined at all. Other terms such as “going green” are clearer, making consumers think of a product or marketing, but with a tinge of cynicism.”
Whether you wrap the message in green, blue, orange or red – and perhaps we could use a little more of the color spectrum back in the picture -- the most important current question is how can we impact our client’s bottom line, and then how do we stand out above and beyond the areas of Planet, Prosperity and People. Listening to your market – what it needs now and what will impact it later -- is the first priority.
Truth or Consequences: Green Building Products
Aug/29/2010 09:01
Often when discussing green building I encounter a crinkled nose, furrowed brow and roll of the eyes when I mention green building products. I must admit that I completely understand specifiers and owners’ frustration.
Though the industry has done better recently. One still needs a machete to cut through the “green marketing weed-like” overgrowth regarding green building product claims and certification types. What does this overgrowth hide? The market’s demand for actual performance data and return on investment information for sustainable construction and building systems product types.
Hopefully the upcoming release of the FTC’s updated Green Guides, which the development of included a focus area specifically on green building and textiles will spur a version of Truth or Consequences for the building industry. See Environmental Leader’s coverage here
Though the industry has done better recently. One still needs a machete to cut through the “green marketing weed-like” overgrowth regarding green building product claims and certification types. What does this overgrowth hide? The market’s demand for actual performance data and return on investment information for sustainable construction and building systems product types.
Hopefully the upcoming release of the FTC’s updated Green Guides, which the development of included a focus area specifically on green building and textiles will spur a version of Truth or Consequences for the building industry. See Environmental Leader’s coverage here