World Green Building Trends 2016 SmartMarket Report FINAL PDF

SmartMarket Report
Produced in Partnership with
World Green Contributing Partners
Building Trends
2016
Developing Markets Accelerate
Global Green Growth
Design and Construction Intelligence
SmartMarket Report
Dodge Data & Analytics World Green Building

Trends 2016: Developing
Chief Executive Officer Markets Accelerate
Michael Petrullo Global Green Growth
SmartMarket Report About Dodge Data &
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SmartMarket Report
Introduction
F
or green building to accelerate also reveal that expansion will continue in
WORLD GREEN BUILDING TRENDS 2016: DEVELOPING MARKETS ACCELERATE GLOBAL GREEN GROWTH
globally, building industry developed countries like the US, Germany

professionals require the latest and the UK. Across all regions, many
data and trends to inform their respondents forecasted that more than
decisions. We are adding to the body 60% of their projects will be green by 2018.
of knowledge with The World Green Since economic forces are the
Building Trends 2016 Study. Focused on most important drivers for many of
global green building growth, the report the countries surveyed in this report, it Stephen A. Jones
features the results of more than 1,000 is crucial to demonstrate the positive Senior Director
survey participants from 69 countries and financial and business impacts of building Industry Insights Research
includes 13 country-specific profiles, as green. The study found that green
compared to nine in 2013. buildings offer significant operational
The World Green Building Trends 2016 cost savings compared with traditional
SmartMarket Report, presented by Dodge buildings. To this effect, respondents
Data & Analytics and United Technologies expect a 14% savings in operational
Corporation, provides new world green costs over five-year savings for new green
building trends data to support green buildings and 13% savings in operational
building development. By expanding costs over five years for green retrofit
the scope of the World Green Building and renovation projects. Building owners
Trends SmartMarket Report, published also report that green buildings
in 2013, this study demonstrates that whether new or renovatedcommand
green building continues to influence a 7% increase in asset value over
John Mandyck
construction in both developed and traditional buildings. Chief Sustainability Officer
developing economies. Overall, the survey data indicates United Technologies
A key takeaway from the study is that that the global commitment to green Corporation
global green building continues to double building is transforming the built
every three years. Emerging economies environment. Special thanks to Saint-
like Brazil, India, Saudi Arabia and South Gobain and the U.S. Green Building
Africa will be engines of green growth in Council (USGBC ) and to all of the
the next three years, with development organizations who participated in this
varying from twofold to sixfold over recent survey, encouraged survey
current green building levels. The results participation and financially supported it.
Stephen A. Jones focuses of active leadership in many John Mandyck serves as Green Council in New York
on how emerging economic industry initiatives, including Chief Sustainability Officer City. He is a member of the
practice and technology trends the BuildingSMART Alliance, for United Technologies Corporate Council at the
are transforming the global and the TC Chan Center for Corporation. A global leader Harvard University Center
design and construction Building Simulation and Energy in the aerospace, food for Health and the Global
industry. In addition to Studies. Steve has also been a refrigeration and commercial Environment. He was appointed
hundreds of speaking judge for several BIM Awards. building industries, United by the U.S. Secretary of Energy
engagements around the Before joining Dodge Data Technologies provides high- to co-chair the Department
world and numerous articles & Analytics, Steve was Vice technology systems and
of Energys Appliance
in industry publications, he President of Primavera Systems services that set the standard
Standards and Rulemaking
authors many of Dodge Data (now part of Oracle), the global for performance, reliability
Federal Advisory Committee.
& Analytics SmartMarket leader in project management and energy efficiency, with
John is the co-author of the
Reports on key industry trends, software. Prior to that, Steve well-known global brands
which are read by millions spent 19 years in creative such as Pratt & Whitney, UTC book Food Foolish, which
worldwide and frequently cited and management roles with Aerospace Systems, Carrier explores the hidden connection
as authoritative references. top architectural firms, most and Otis. between food waste, hunger
Steve holds an MBA from recently as a Principal and John chairs the Corporate and climate change.
the Wharton School of the Board of Directors member with Advisory Board of the World He blogs on sustainability
University of Pennsylvania, and Burt Hill, one of thelargest A/E Green Building Council, and issues at SustainabilityView.
a BA from The Johns Hopkins firms in the US (now merged serves as chairman of the com and can be found on
University. He has a track record with Stantec). Board of Directors for the Urban Twitter @JohnMandyck.
Dodge Data & Analytics 1www.construction.com SmartMarket Report

SmartMarket Report
Introduction
The results in this report are drawn from survey respondents from the following 69 countries, with statistically
significant results on the highlighted 13 countries. See page 64 for the full methodology and country-specific
results on pages 2449.
Afghanistan Finland Jordan Saudi Arabia
Albania France Lebanon Serbia
Algeria Germany Malaysia
Singapore
Argentina Ghana Mexico
Australia Gibraltar Morocco South Africa
Bahrain Greece Netherlands Spain
Bolivia Guatamala New Zealand Sri Lanka
Brazil Guernsey Nigeria Sweden
Bulgaria Hungary Norway
Thailand
Canada Iceland Palestine
Cayman Islands India Panama Trinidad and Tobago
China (Hong Kong) Indonesia Peru Turkey
China (Mainland) Iran Philippines Uganda
Colombia Iraq Poland United Arab Emirates
Costa Rica Ireland Portugal
United Kingdom
Czech Republic Italy Qatar
Ecuador Jamaica Romania United States
Egypt Japan Russia Venezuela
SmartMarket Report Dodge Data & Analytics 2 www.construction.com

SmartMarket Report
TABLE OF
CONTENTS
5 Executive Summary
5 Executive Summary
7 Summary: Country Findings
8 Data
8 Introduction
9 Green Building Market Activity

9 Level of Green Building Activity
11 Sectors for Future Green Activity
13 SIDEBAR Sustainable and Smart Megacities
14 Influences on the Green Building Markets

14 Triggers to Increased Levels of Green Building
16 Social Reasons for Building Green
17 Environmental Reasons for Building Green
18 Challenges to Increasing Green Building Activity
20 Green Building Rating Systems
21 SIDEBAR Designing for Resilience in a Changing World
24 Country and Regional Profiles

24 South America/Caribbean
28 Europe
32 Middle East/North Africa
35 United States
38 Mexico
40 Singapore
Cover Illustration: Locket Creative. Following Page: Both images courtesy of Perkins & Will
42 China
44 India
46 Australia
48 South Africa
Dodge Data & Analytics 3 www.construction.com SmartMarket Report

Left: Birds eye view of the Qatar Reseach
and Development Complex
Lower Right: Redevelopment of Sisli, a

24-hectare, mixed-income, mixed-land-use
neighborhood in Istanbul
CONTENTS
50 Business Benefits of Green Building

50 Important Business Benefits of Green Building
Metrics Used to Measure Benefits of Green Building
51
Benefits of New Green Building Investments
52
Benefits of Green Retrofit and Renovation Projects
55
58
sidebar Property Investors Prioritizing Green
59 Green Building Products and Services

59 Current and Future Expected Use of Green Building Products and Services
Criteria for Identifying Green Products
60
Sources of Information on Green Building
61
62
sidebar Health and the Growth of Cities
Thought Leader Interviews

Lisa Bate,20122015 Managing Principal, Shanghai/EVP Asia;
57
As of January 1, 2016, Regional Managing Principal, North America, B+H Architects
Terri Wills, CEO, World Green Building Council
63
4 Methodology
6
5 Resources
6
SmartMarket Report Dodge Data & Analytics 4www.construction.com

Executive Summary
Green building is already widely adopted globally, with strong growth

expected in most countries, but most particularly in the developing world.

The findings reveal that green building is a global trend, with nearly universal importance placed on energy
conservation. However, as the previous study from 2012 also demonstrated, the priorities and obstacles need to be
understood on a country-by-country basis to truly succeed as a sustainable business in the global marketplace.
Developing Markets Expect Greatest Top Triggers for Green Building

Green Growth (All Respondents)
The percentage of firms expecting to have more than 60% Dodge Data & Analytics, 2016
of their projects certified green is anticipated to more than 2015 2012 2008
double from 18% currently to 37% by 2018. This is a similar Client Demand
pattern to the growth in activity expected in 2012, although 40%
the greater share of respondents from developing markets 35%
and a shift from a majority to a minority of green building 34%
council member participants yields lower levels of activity Environmental Regulations
than was reported in 2012. 35%
As the chart at bottom demonstrates, the anticipated 23%
growth is largely driven by countries that still have developing 25%
green markets. Mature markets in the US and Europe Market Demand
(including Germany, Poland and the UK) report moderate 30%
levels of growth. In contrast, respondents from Mexico, 33%
Brazil, Colombia, Saudi Arabia, South Africa, China and India 35%
report much more dramatic growth in the percentage of their Right Thing to Do
projects that they expect to certify as green. 25%
26%
Top Triggers for Green Building 42%
While client demand has consistently been an important
trigger in the studies conducted in 2008 and 2012, it takes
a significant leap in 2015 as one of the top triggers driving
future green activity, from 35% in 2012 to 40% in 2015. Clearly, 1_2_GlobalGreenSummary_Batch1_Triggers_#03
recognition by owners of the benefits of green is critical to

sustaining green market growth globally.
Percentage of Respondents Whose Firms Have Done More Than 60% Green Projects
(2015 and Expected 2018)
Dodge Data & Analytics, 2016
2015 2018 61%

52%
44%
39% 38% 38%
36%
31% 31% 32%
29% 27% 27% 29% 28%
24% 23%
21% 19% 20%
18% 17% 17%
6% 8%
5%
US Mexico Brazil Colombia Germany UK Poland Saudi South Australia Singapore China India
Arabia Africa

Executive Summary CONTINUED
Environmental regulations also experienced an uptick Top Obstacles for Green Building (by Country)
in the percentage who selected it as a top trigger, driven Dodge Data & Analytics, 2016
by a high level of response from a few regions, including

India, Singapore and the UK. Number of Percentage of Respondents
Countries in in the Top Countries
However, as the top social and environmental Which This is Who Selected This as a
reasons for building green demonstrate, priorities for One of the Top Top Three Obstacle
Three Obstacles
building green vary widely by region. For example,
Higher 70% 67%
while encouraging sustainable business practices is an 54%
Perceived 11
important reason for building green in most countries, First Costs
it carries little weight in Saudi Arabia, where increasing US Colombia Mexico
worker productivity is a critical factor. Similarly,
energy conservation is nearly universally an important Lack of 48% 45% 41%
Public 8
environmental reason for building green, but in some Awareness
India Colombia Brazil
countries, such as Brazil, Colombia, Saudi Arabia,
Australia and China, protecting natural resources is Lack of 60%
considered a priority by nearly as many respondents. Political 6 41% 39%
Support/
Incentives Colombia Poland Brazil
Obstacles Vary by Country
Higher first costs is one of the top three obstacles in Perception
Green Is for 42% 40% 38%
11 out of the 13 countries featured in the study. It is High-End 5
particularly prominent in the Americas, especially in the Projects Only Australia UK Singapore
US and Colombia.
Lack of public awareness and lack of political support/ 1_4_GlobalGreenSummary_Batch1_MostCommonObstacless_#03
incentives are top obstacles in many developing green
markets, including Brazil, Colombia, India and Poland. In Business Benefits Expected From Green
more established markets like Australia and the UK, the Building Investments
perception that green is for high-end projects is a more (Medians Reported in 2012 and 2015)
prominent obstacle than in less established markets.
New Green Green Retrofit
Benefit
Building Response
Strong Benefits for Building 2012 2015 2012 2015
Green Reported Globally, Based on
Decreased
Increased Measurement of Green Operating Costs 8% 9% 9% 9%
Building Impacts Over One Year
Three quarters (75%) of respondents are tracking metrics
Decreased
on the benefits of their green buildings, a 12 percentage Operating Costs 15% 14% 13% 13%
point jump over those doing so in 2012.The higher degree Over Five Years
of measurement reaffirms the strong benefits noted in 2012,
Increased Building
which are largely equaled or surpassed in the current study. Value for Green
The table at right demonstrates the benefits versus Non-Green 7% 8% 5% 7%
experienced globally. While there are some differences by Projects (According
country, for the most part, the reporting of these benefits is to AEC Firms)
very consistent across the globe. Perhaps the most notable Increased Asset
difference by country is in terms of payback periods for the Value for Green
additional cost of building a new green building, where versus Non-Green 5% 7% 4% 7%
Projects (According
developing countries in the Americas (Mexico, Brazil and to Owners)
Colombia) report short payback periods of five years. For
Payback Time for
many commercial investors, this is a critical threshold that 8 Years 8 Years 7 Years 6 Years
Green Investments
can help spur green development.

Summary: Country Findings
Global Regional Observations
Green building is a global trend, but its implementation varies widely by

country and region, including the pace of growth in green involvement,

triggers and obstacles impacting that growth and even the degree of
benefits noted by companies. Below is a summary of key market factors
by country and region. For a more in-depth analysis, see pages 24-49.
Australia Germany: Business Mexico South Africa

Nearly all of the growth in benefits like improved Among the countries South Africa has the
green implementation in 10-year costs and featured in the study, highest green share
Australia is expected from higher rents, as well Mexico is the leader in currently of any country in
increased involvement as market demand, expected commercial the study, with impressive
of respondents already are drivers for green green activity. However, growth also expected.
doing green. Like other building in Germany. respondents in Mexico This high level of activity
established markets, Poland: Growth in green also are concerned may contribute to the fact
concern about green being building is expected to about the lack of public that one of their biggest
for high-end projects is be more moderate in incentives and the need for challenges is finding
an obstacle here. Interest Poland than in Germany greater public support. sufficient skilled/educated
in the positive impact of or the UK. That growth green professionals.
green buildings on health is dominated by the Middle East/
is also more notable here commercial sector and North Africa United States
than in other countries is also motivated by (MENA) A notably high level of
included in the study. business benefits. Very rapid growth is green growth is expected
UK: High growth in the expected in Saudi Arabia in the US, but the data
China percentage of those and other MENA countries suggest that more
Green involvement is doing more than 60% in those doing more than measurement of green
expected to increase of their projects green 60% of their projects benefits, similar to that
rapidly in China. Like is expected in the UK, green. Business benefits reported by many other
Australia, and relatively with environmental are key drivers of that countries, would help
unique among developing regulations a key trigger growth in Saudi Arabia, strengthen the business
countries, China also has for future growth. while environmental case for green.
a high level of interest regulations are important
in the health impacts of India in the rest of MENA. South America/
green building. Protecting Environmental regulations Caribbean
natural resources and are also an important Singapore Green building is still
improved indoor air quality driver for the growth in The mandate to build an emerging trend in
are important drivers for green building anticipated public projects sustainably this region, largely
green building in China. in India. However, is still driving green driven currently by
respondents express building in Singapore, commercial construction.
Europe concerns about the lack with high growth in green Critical challenges to be
Germany, Poland and the of public awareness building expected in the overcome, reported in
UK, the three countries in and the need for public next three years. However, Brazil, Colombia and the
Europe that are featured incentives for the green market demands and other countries from this
in the study, are very market to continue to lower operating costs are region, are lack of public
different markets, with flourish, similar to many also key drivers of green awareness and public
different expectations of other developing nations. across that market. support for green. n
green growth.

Data: Introduction
Section Hed1
World Green Building Trends Research
I
n 2008, Dodge Data & Analytics (formerly McGraw
WORLD GREEN BUILDING TRENDS 2016: DEVELOPING MARKETS ACCELERATE GLOBAL GREEN GROWTH DATA
Hill Construction) conducted a study of global green Note About the Data
engagement that determined that green building The data and analysis in this report are
was emerging as an important trend in the global based on the opinions of 1,026 total survey
construction marketplace. In 2012, the study was updated respondents. These respondents break out as
follows by type:
to include more countries, and it demonstrated a shift to
market forces driving green building. That study capitalized Architect/Design Firm: 27%
on the green expertise of green building council (GBC) Contractor/Builder: 25%
members, who made up 75% of the respondents. Specialist/Consultant: 22%
The latest study, conducted in 2015 and featured in this Owner/Developer: 13%
report, further expands upon the previous studies in a few Engineering Firm: 13%
key ways. First, it has an even wider response, with 1,026

total respondents from 69 countries, a 27% increase in the A statistically significant sample was
obtained for 13 countries: US, Mexico,
number of respondents from the study in 2012. In addition,
Brazil, Colombia, Germany, Poland, UK,
13 countries now have statistically significant results, an
Saudi Arabia, South Africa, Singapore,
increase from nine in 2012. The expansion of coverage India, China and Australia. For Europe,
significantly broadens the overall insights offered by the South America/Caribbean and the Middle
study, while also revealing how critical it is to examine East, enough responses were received from
each market individually, with its own unique sectors of other countries in the region to also support
growth, triggers, obstacles and environmental priorities. analysis on a regional basis, so the analyses
of Brazil, Colombia, Germany, Poland, UK
Throughout the analysis in this report, these factors are
and Saudi Arabia are included in these larger
examined in detail across all 13 countries with enough
regional sections.
responses to be statistically significant.
Another distinctive feature of the new study is that a For this study, green building was defined as
concerted effort was made to get a statistically significant a construction project that is either certified
response from a variety of countries in the developing under any recognized global green rating
world. New countries featured for the first time include system or built to qualify for certification.
This definition is the same as the one used in
Mexico, Colombia, Poland, Saudi Arabia, China and
the 2012 study.
India. If the dramatic increase expected in green building
involvement by 2017 reported in these countries bears out, For the full methodology, please see page 64.
then these regions are clearly vital to the future of green.
There is also an advantage to revisiting most of the
nine countries included in the original study. For seven of
these countriesUS, Brazil, UK, Germany, South Africa,
Singapore and Australiawe are able for the first time to
look for trends of how green building has changed in these
regions from 2012 to 2015.
The types of respondents who participated in the 2015
study also differ from those in 2012, with a much higher
level of participation from architects and contractors in
2015 than in 2012. And the study no longer relies primarily
on the input of GBC members, with only 33% of the 2015
respondents reporting that they fall in that category,
compared with 75% from 2012. The well-informed
responses and high participation in green from the more
industry-representative participants in 2015 demonstrates
the expansion of green building, which is now a part of
global industry practice.

Data: Green Building Market Activity
Level of Green Building Activity
Green building already makes up a significant share of allowing a representative sample of the industry to be
global construction activity, and that share is expected knowledgeable about green building, as the current
to grow across all the countries and regions included study findings demonstrate.
in the study. For the 2015 study, as with the previous A Higher Proportion of Architects/Contractors Versus
World Green Building Trends studies conducted in 2008 Consultants: A higher percentage of architects (27%)
and 2012, a green project was identified as one that is and contractors (25%) and a lower percentage of
either certified or built to qualify for certification under consultants (22%) participated in the 2015 study than
a recognized green standard, such as LEED, BREEAM, in 2012 (which had 21%, 14% and 28%, respectively
Green Star and many other programs. for architect, contractor and consultant participation).
Consultants specializing in green are more likely to be
Share of Green Building Activity involved in a higher percentage of certified projects than
other industry players, due to the nature of their work.
TOTAL GLOBAL RESPONDENTS
More Developing Nations Included: The 2015 study
Green building is nearly one quarter (24%) of the total
was designed to examine green activity in several
share of construction activity among the participants in
developing nations, including Saudi Arabia, Colombia
the 2015 study. This is much lower than the percentage
and China, that were not included in the 2012 study.
(38%) reported in the 2012 study published in the 2013
Many of these countries currently have a lower green
World Green Building Trends SmartMarket Report.
share than that reported in more developed nations like
However, these findings reflect differences in the
the US, Australia and Germany, which are more typical
study population in 2015 versus in 2012, rather than a
of countries included in 2012.
decline in the overall level of green activity. In fact, the
2015 study indicates a strong and growing commitment BY COUNTRY
to green building globally, especially when considering Countries with green activity above the global
the rising share of green engagement by respondents average of 24% include South Africa, Singapore,
expected in just three years (see page 10). The following India, Germany and Mexico. The Singapore findings
are the main differences between the study populations are consistent with a high level of green activity report
in 2015 and 2012: in 2012 and demonstrate the effectiveness of the
More Industry-Representative Participation: In 2012, green building mandate put in place by the Singapore
76% of the respondents were members of national government in 2012.
green building councils (GBCs). This helped the study Countries with lower levels of activity include Saudi
to tap into rising expertise in green at that time. In the Arabia, Colombia, Brazil and China. In many cases, these
2015 study, only 33% of participants are GBC members. are also nations in which the commercial sector is the
By 2015, green has permeated the construction market, major driver for green. However, one surprising finding is
Average 2015 Green Share of Building Project Activity (by Country)

Green Share Non-Green Share
67% 65% 65% 66% 59% 66% 64% 63%

71% 73% 73% 76% 72%
33% 35% 35% 34% 41% 34% 36% 37%

29% 27% 27% 24% 28%
Arabia Africa

3_1_Market_GreenShare_Countries_#02
Green Building Market Activity
Level of Green Building Activity CONTINUED
the relatively low green share of projects (27%) reported Level of Green Building Activity
in the UK. This is inconsistent with the 2012 findings in (According to Global Respondents)
which the UK had the second highest green share of the Dodge Data & Analytics, 2016
countries reported. It will be interesting to see if this is an 1% to 15% Green Projects More Than 60% Green Projects
anomaly in the current study or the beginning of a trend Exploring 31% to 60% Green Projects
away from certifying projects in the UK. (No Green Involvement) 16% to 30% Green Projects
Expected Growth in Levels of Green

Building Activity
37%
TOTAL GLOBAL RESPONDENTS
18%
The global average of those expecting to do more
than 60% of their projects green by 2018 more than
21% 22%
doubles over current levels, from 18% to 37%. This is
26%
roughly consistent with the level of growth anticipated
by the 2012 respondents by 2015, which was nearly 23% 13%
20%
double as well. Thus, the findings demonstrate that the 12% 8%
commitment to green evident in 2012 is still apparent 2015 2018
in the current findings.
BY COUNTRY While developed countries do not report this steep

While nearly all countries that participated in the 2015 acceleration in the level of green involvement, growth
study expect a rigorous growth in green involvement 3_3_Market_Activity_Total_#01
in those doing more than 60% green projects is still
in the next three years, the highest level of growth is expected to be quite rigorous, including in the US,
expected in the developing world. Germany, UK and Poland. The only exception is Australia,
Brazil: 6-fold growth from 6% to 36% which is well below the global average. Given the
China; More than 5-fold growth from 5% to 28% maturity of the green building market in Australia, this
Saudi Arabia: 4-fold growth from 8% to 32% finding is surprising. It is possible, since green in this
More than double the level of green involvement study only applies to certified projects, that as a mature
expected in Mexico, Colombia, South Africa and India green market, green building practices are more widely
adopted in Australia, reducing the need for certification.
Percentage of Respondents Whose Firms Have Done More Than 60% Green Projects
(2015 and Expected for 2018)
2015 2018
61%
52%
44%
39% 38% 38%
36%
31% 31% 32%
29% 27% 27% 29% 28%
24% 23%
21% 19% 20%
18% 17% 17%
6% 8%
5%
Arabia Africa

3_4_Market_Activity_Countries_#01
Green Building Market Activity CONTINUED
Sectors for Future Green Activity
Survey respondents were asked to select all the project On the other hand, Singapore has the highest
sectors in which they plan to build green in the next three percentage globally (48%) of respondents who expect
years. Their responses indicate the most likely sectors for to do a new instutitional project in the next three
green growth in the immediate future by country. years. However, institutional construction ranks third
As the chart on the following page demonstrates, in Singapore, below retrofits and new commercial
there is great variability by country and region in the construction and tied with new high-rise residential.
sectors pursued. Still, a few interesting patterns emerge Other countries with respondents expecting to do
about the sectors driving growth in green, both globally institutional work above the global average include
and by country. Germany (39%), Saudi Arabia (42%) and China (40%).
The countries with the lowest percentage of
Top Sectors for Growth respondents who expect to do new green institutional
projects include Poland (15%), Mexico (25%) and India
NEW COMMERCIAL CONSTRUCTION
(26%). It is notable that these are also the three countries
The top sector for green building growth globally is
with the highest percentage of those who expect to do
commercial construction, with nearly half (46%) of all
new green commercial construction projects.
respondents expecting to do a green commercial project
in the next three years. Commercial construction is also RETROFIT OF EXISTING BUILDINGS
the top sector in eight of the 13 countries included in the While there is a relatively high number of countries where
study, suggesting its widespread popularity and use. over 40% of respondents believe that they will do green
New commercial construction is the top sector for retrofit projects in the next three years, there is also
expected green building in Mexico, Brazil, Colombia, a relatively high number of countries with less than a
Germany, Poland, Saudi Arabia, China and India. quarter expecting to do green work in this sector.
The lowest level of new green commercial construction In the UK (44%), South Africa (46%) and Singapore
is expected in Australia and the UK. (55%), green retrofits of existing buildings rank first
among sectors for green work in the next three years.
For some countries, commercial construction can play
Although not the highest percentage in that country,
a critical role in driving a commitment to green building,
over 40% of respondents in the US (43%), Mexico
providing needed green experience that may eventually
(46%) and Brazil (47%) report the same, suggesting a
encourage green building in other sectors.
particular focus on this sector in the Americas.
NEW INSTITUTIONAL CONSTRUCTION Comparatively few respondents in China (19%), Poland
Despite only ranking first in one country and second (21%) and Saudi Arabia (22%) expect to do green
in two, generally strong expectations about new retrofits, suggesting a focus on greenfield projects in
institutional green projects globally lead this sector to these countries.
rank second in the global average of respondents.
The only country in which institutional construction
is the sector in which the highest percentage expect

to do green projects in the next three years is the US
(46%), likely due to certification requirements for many
public buildings on a federal and state level, and schools
on a municipal level.

Green Building Market Activity
Sectors for Future Green Activity CONTINUED
Trends for Other Building Sectors With a few exceptions, the patterns for high levels of
Understanding patterns and trends that emerge among expected involvement with green communities mirror
other sectors can help product manufacturers and that of high involvement in high-rise residential. For the
service providers create strategies for markets not most part, countries tend to be above, near or below the
directly included in the study. global average for both. The one exception is Colombia,
Most countries with a lot of green activity expected which is above the global average for high-rise residential
in the high-rise residential sector report relatively low but below it for communities.
activity compared with global averages in the low-rise Nearly every country above the global average for
residential sector. The US is notably weak in both commercial interiors is also above the global average for
sectors, as is Poland. new commercial construction. The only exception here is
the US, which is above average for commercial interiors but
slightly below average for new commercial construction.
Sectors With Planned Green Activity Over the Next Three Years (Global Average and by Country)
Global Average Percentage of Respondents by Country
65% 59% 61%

47% 50% 53% 55%
New Commercial 41% 39% 44% 40%
Construction 33% 27%
46%
(e.g., office, retail,
hotel)
Arabia Africa
New Institutional 46% 42% 48%

33% 39% 37% 40%
Construction (e.g., 25% 29% 29% 30% 26%
38% 15%
schools, hospitals,
public buildings)
Arabia Africa
47% 55%
43% 46% 44% 46%
Retrofit of Existing 31% 36% 33%
37% 21% 22% 19% 24%
Buildings
Arabia Africa
New Low-Rise 40% 39%

33% 35% 31% 35%
Residential 27% 23% 26% 24% 24% 24% 22%
(13 floors) 13%
Arabia Africa
New High-Rise 43% 48% 45% 48%

Residential 36%
25% 21% 20% 22% 23% 24%
(4 floors or more) 15% 15%
6%
Arabia Africa
Communities 33% 35% 36%

(mixed-use 21% 25% 23% 28%
16% 16% 18% 20% 18%
development) 12% 12%
Arabia Africa
Commercial 26% 33% 27% 28% 28%

20% 22% 22% 18% 23%
Interiors 9% 13% 15%
6%
Arabia Africa
3_5_Market_Sectors_Countries_#02
Sidebar: Megacities
Sustainable and Smart Megacities
With large-scale urbanization underway in the developing world, government

leaders, city planners and private consultants are pushing hard to meet
demand, including the development of sustainable and smart megacities.
A
2013 IMF World Bank appeal to and the tourists they are space and all of the buildings are
report estimated that trying to draw in, [those people] are built to LEED standards. What they
by 2030, 96% of urban starting to demand solutions that found is that what the residents
growth will occur in have long-term credibility. enjoy are the green spaces, he
developing countries. This trend Rupert Booth, chief economist at says. Its attractiveness is tied
has spurred massive development Faithful+Gould, says sustainability to the quality of life provided
programs, including the creation of is a presumption when planning through sustainability.
new cities and an overhaul of existing these city programsboth in terms
ones. Whether a stated goal or a of quality of life and lifecycle costs. Planning for the Future
natural outcome, sustainability ranks No one wants an unsustainable Paul Doherty, president and CEO
as a key component of these plans. cityall of the investments required of The Digit Group, agrees that
Perhaps no country illustrates would not have a long-term future, sustainability has to be a part of all
this trend better than India. In 2015, he says. Sustainability is a given to city planning. This is what were
Prime Minister Narendra Modis justify long-term investment. supposed to do, he says. This
government advanced plans to shouldnt just be a branding exercise.
develop its 100 Smart Cities. Smart Cities Are He takes a holistic view of city
The program calls for a mix of Sustainable Cities planning that views a city as an
greenfield cities and wide-scale Booth notes that while the creation organism that is responsive so
improvements of existing cities. An of sustainable cities has been a goal that it can be sustainable and thrive.
early example of this strategy is the in city planning for some time, the One concept he is pursuing is the
planned city of Amaravati, which concept has been subsumed incorporation of kinetic sources of
would serve as the capital of the by the burgeoning smart city energy that could be built into roads
state of Andhra Pradesh in southern movement. He says that while and walkways, providing energy
India. Stated goals for this city concepts like Masdar City in Abu through friction or compression.
include extensive availability of open Dhabi are intended as models of Weve found that people walking on
green space and large-scale transit- sustainabilityparticularly through a piezo pad can create 14w per sq ft,
oriented development. use of renewable energy sources he says. That kind of technology can
all smart cities are inherently make a building its own generator.
The Appeal of sustainable. You cant create an Prior suggests that sustainability
Sustainability unsustainable smart city, he adds. efforts at a city level could be much
Jason Prior, chief executive of In fact, while the data gathering more predictable and achievable
buildings and places at AECOM, says side of smart city programs can than at the building level, where
that while urbanization has driven help a city run more efficiently, Booth performance is directly tied to user
high demand for new and improved says the public is more likely to behavior. At the city level, its easier
cities, many planners are competing recognize the green elements to meet your performance targets
against other cities to attract residents of an urban environment. One because youre dealing with some
and commercial investments. example, he notes, is Songdo, big macro moves, he says. If you
Theres a big issue of reputation South Korea. Advanced monitoring design a decent city, where the public
and brand here, he says. They are technology runs throughout the transport is done in the right way, it
realizing that some of the [future 1,500-acre development, but he says really doesnt matter if an individual
residents] they are trying to appeal residents are more likely to notice building fails or succeedsyouve
to, the companies they are trying to that nearly half of the city is green already made a huge difference. n

Data: Influences
on the Green Building Markets
Triggers to Increased Levels of Green Building
Respondents were asked to select up to three of the most Triggers Driving Future Green Building
important triggers from a list of 16 potential options that Activity (by Year)
would increase their firms involvement in green over time, Dodge Data & Analytics, 2016
as they were in the studies conducted in 2012 and 2008. 2015

2012
Changes Over Time 2008
A few key trends emerge globally from the findings of the
last three studies. Client Demands
Client demands is consistently an important driver 40%
for green globally. This demonstrates how critical it is 35%
to create greater public awareness of the benefits of 34%
green and the importance of establishing the business Environmental Regulations

benefits of green building, since these are factors that 35%
drive clients to make investments in green. 23%
Market demands is also important, but has been

25%
steadily declining over the last three studies. Though Market Demands
the shift downward has been slight in between each 30%

33%
study, this third one suggests a trend in reduced
35%
importance globally for this trigger.
The biggest growth since the 2012 study has been Right Thing to Do
among those reporting that environmental regulations 25%

26%
are important triggers for green. However, the sway
42%
these carry vary strongly by market, depending on the
degree of regulation present. Lower Operating Cost
The decline reported in the importance of doing the right 23%
30%
thing as a trigger for green building first evident in 2012
17%
is confirmed in the current data. Generally, this indicates
a more mature market driven by the benefits of green. Healthier Neighborhoods
A similar decline in market transformation as a spur

15%
11%
for greater green involvement, which first emerged
NA
in 2012, is also sustained in the current study. Similar
Market Transformation
to the desire to build green as the right thing to do,
15%
the goal of transforming the market tends to be more
18%
important to early adopters, so it is not surprising to see
35%
its influence fade as green becomes a more common
Internal Corporate Commitment
practice globally.
14%
Branding/public relations and internal corporate
24%
commitment have seen notable drops in response
22%
between 2012 and the current 2015 study. These
Higher Building Values
findings are more surprising. It is likely that they are a
14%
result of a combination of very disparate factors, based
16%
on the individual market. For example, the decline of
13%
the importance in branding/public relations in some
Branding/Public Relations
markets may reflect the fact that green is becoming
13%
standard practice, while in others, the early level of
30%
green adoption may be accompanied by lower public
22%
awareness of green building, which would diminish
branding/public relations impacts.
3_6_Influences_Triggers_Years_#02
Influences on the Green Building Markets
Triggers to Increased Levels of Green Building CONTINUED
Variation by Country (46%), Singapore (58%) and India (52%), but with few
Examining which triggers are most dominant in certain reporting its influence in Mexico (23%), Germany
countries can be critical to creating a business strategy (21%), Poland (18%) and Saudi Arabia (22%).
for investment in that country. Doing the right thing is influential across the
The influence of client demands seen in the Americas and in South Africa, Singapore, China and
global averages is largely driven by US and UK India. However, it carries very little sway in Europe
respondents. Otherwise, it is roughly average with and Australia.
the other triggers, with little influence in India (13%) Lower operating costs have the least variation
or Colombia (19%). across any of the five top triggers globally, with
On the other hand, market demands rank among the between 20% and 29% of respondents selecting
top three triggers for most countries, with the greatest this as a top factor in 10 of the 13 countries included
influence in the UK and China. in the study. While generally recognized as important,
Environmental regulations have the widest range it rarely ranks as the No. 1 driver, suggesting that the
by country of any of the top five factors, with its argument for business benefits needs to include but
influence highly evident in the UK (64%), Australia not be limited to discussion of lower operating costs.
Top Triggers Driving Future Green Building

(By Number of Countries in Which It is One of the Top Three Triggers and by Country)
Number of Countries in Percentage of Respondents by Country Who Selected This

Which This is One of as One of the Three Most Important Triggers
the Top Three Triggers
69%
52%
29% 30% 37% 34%
Client Demands 27% 24% 29% 27% 23%
8 19% 13%
Arabia Africa
47% 43%
28% 31% 27% 33% 29%
Market Demands 7 22% 21% 24% 25% 17%
12%
Arabia Africa
64% 58%
46% 52%
Environmental 30% 37% 31% 36%
6 23% 21% 22% 26%
Regulations 18%
Arabia Africa
40%
Right Thing to Do 5 31% 25% 29% 26% 28% 24%
21% 23%
12% 13% 13% 12%
Arabia Africa
Lower Operating 29% 28%

5 26% 25% 27% 22% 23% 27% 23% 20%
Costs 15% 18%
9%
Arabia Africa
3_7_InfluencesTriggersCountries_#02
Influences on the Green Building Markets CONTINUED
Social Reasons for Building Green
Encouraging sustainable business practices is the Increasing worker productivity is most commonly
most important social reason for building green. selected by respondents in Saudi Arabia (50%),
The percentage who select it among all the global Mexico (44%), South Africa (41%) and Germany (41%).
respondents (58%) as one of their top two reasons is While overall these are very different markets, all of
double that of the next most important factors (29%). It them are influenced more by market factors than by
is also the top reason in nine of the 13 countries included environmental regulations, and increased productivity
in the study, including all the countries in the Americas could be a compelling part of the overall business case
(US, Mexico, Brazil and Colombia), the UK, South Africa, to be made for green building.
Singapore and China. The only country where it carries Supporting the domestic economy is an important
little sway is Saudi Arabia, at just 18%. reason for building green in Australia (46%), Saudi
Three out of the other five social reasons included in Arabia (44%), Singapore (43%) and India (40%), many of
the study were all selected by 29% globally. which have a relatively high percentage of companies
Creating a sense of community is most important to from other countries doing work in their country. It is
respondents from India (51%), China (33%) and Saudi less important than in countries like the US (24%), UK
Arabia (32%). All of these markets are also notable for (22%) and Germany (23%), where many international
their emphasis on new green buildings rather than companies are headquartered.
retrofits (see page 11), and for the development of
sustainable megacities.
Most Important Social Reasons for Building Green (Global Average and by Country)
74% 72%
67% 65% 63% 64%
53% 49% 46%
Encourages 36% 32% 39%
Sustainable 58% 18%
Business Practices
Arabia Africa
51%
Creates a Sense 26% 31% 27% 25% 32% 29% 33%
29% 24% 23% 20% 19% 23%
of Community
Arabia Africa
44% 50%
34% 38% 41% 41%
Increases Worker 25% 28% 27% 32% 29%
29% 23% 23%
Productivity
Arabia Africa
Supports 44% 46% 43% 40%

32% 37% 33%
the Domestic 29% 24% 23% 24% 23% 22%
Economy 17%
Arabia Africa
Is Aesthetically 19% 27% 21%

Pleasing 14% 12% 13% 14% 11% 16% 15% 15%
7% 7% 9%
Arabia Africa

3_8_Influences_Social_#01
Environmental Reasons for Building Green
Reducing energy consumption continues to be the top an important economic factor, including Brazil (47%),
environmental reason for building green, selected as Colombia (51%), Saudi Arabia (42%), South Africa (46%),
one of the top two reasons by 66% of all respondents Australia (50%), China (49%) and India (48%).
and by the highest percentage of respondents from all 13 Reducing water consumption ranks third globally, at
countries included in the study. 31%. Most of the respondents from the Americas, other
In the US, Germany, Poland and Singapore, the than Mexico, are above the global average for this factor,
percentage who select reducing energy consumption and US respondents rank it second only to energy. Also,
is just about double that of the next highest factor, so a over 45% selected this as critical from Saudi Arabia and
focus on energy clearly dominates these markets. South Africa. The percentage of European respondents
However, there is a less than five percentage point are notably low in this category, as are those from
difference between energy consumption and the next China, underscoring the importance of regionality in the
most important factor in Brazil, Saudi Arabia, Australia emphasis placed on water consumption.
and China, so other environmental factors carry a high The top countries motivated to lower greenhouse gas
degree of influence in these markets. emissionsthe UK (32%), Australia (29%) and Singapore
(31%)are also the top countries for considering
Protecting natural resources ranks second globally, at
environmental regulations an important trigger for green.
37%. Many of the countries with the highest percentage
The two countries with the highest percentage for
of respondents selecting this factor are also countries
improve indoor air quality, China (42%) and India (24%)
where extraction and exportation of raw materials is
are also notable for their struggles with air pollution.
Most Important Environmental Reasons for Building Green (Global Average and by Country)
76% 84%
71% 65% 71% 67% 62%
58% 51% 58% 49% 50% 49%
Reduce Energy
Consumption 66%
Arabia Africa
42% 47% 51% 48% 42% 46% 50% 49% 48%

Protect Natural 32% 28%
Resources 37% 24% 21%
Arabia Africa
47% 46% 49%

Reduce Water 39% 35% 31% 31%
31% 27% 21% 25% 18%
Consumption 13% 14%
Arabia Africa
Lower Greenhouse 31% 27% 32% 29% 31%

Gas Emissions 24% 22% 15% 18% 18% 24% 21%
9% 12%
Arabia Africa
42%
Improve Indoor 24%
Air Quality 17% 16% 18% 17% 11% 12% 18% 15% 12% 11% 16%
7%
Arabia Africa

3_9_Influences_Environmental_#01
Challenges to Increasing Green Building Activity
Survey respondents were asked to select up to three Challenges to Increasing Green Building
top challenges to increased building activity from an Activity (by Year)

overall list of 11 options. The findings demonstrate Dodge Data & Analytics, 2016
both an evolving global market when compared with 2015

the findings from 2008 and 2012, and the importance of 2012
understanding the challenges on a regional basis. 2008
Changes Over Time Higher Perceived First Costs

The eight challenges selected by the highest percentage 50%
globally are represented in the chart at right, and 76%
compared with the findings from similar questions in 80%
2008 and 2012.
Lack of Political Support/Incentives
The top challenge is higher perceived first costs, but
30%
the percentage who consider this a top challenge has
shrunk by 26 percentage points since 2012. This drop 36%
may suggest a global trend toward greater experience 38%
with green building techniques and wider availability of Lack of Market Demand
green building products and service providers, which 29%
may be reducing the premium for building green.
29%
The next four challenges are separated by only
30%
two percentage points in 2015, a virtual tie among
them in terms of the percentage that finds them Lack of Public Awareness
important. There is also great consistency between 29%
the 2012 findings and the current findings on each of 29%
these points, suggesting that the influence of the lack 48%
of political support/incentives, lack of market demand,
Perception Green Is for
lack of public awareness and the perception that green High-End Projects Only
is for high-end projects only remain issues that need 28%
to be addressed by the green building community.
29%
However, these factors do vary widely by market
10%
(see opposite page).
As the benefits of green building are more widely Not Able to Prove Business Case Due
to Split Betweeen Capital and Operating Costs
measured (see page 51), the concern about proving the
business case has declined, with a seven percentage 25%
point drop from 32% in 2012 to 25% in 2015 of those 32%
who consider this an important obstacle. This may also 49%
be less of an obstacle as green becomes more common Lack of Trained/Educated
practice in the construction industry, creating less need Green Building Professionals
to justify it on an owner-by-owner basis. 21%
17%
46%
Access to Capital
12%
12%
28%
SmartMarket Report Dodge Data & Analytics 18 3_10_Influences_Challenges_Year_#01

www.construction.com
Influences on the Green Building Markets
Challenges to Increasing Green Building Activity CONTINUED
Variation by Country On the other hand, the perception that green is for
The findings reveal that certain challenges carry greater high-end projects only is more common in developed
weight in some countries. countries. The US, UK, Australia, Singapore and China
While higher perceived first cost is one of the top all have a relatively high percentage selecting this
three challenges in nearly all (11) of the 13 countries option. Each of these are countries with well-established
included in the study, it is selected by over 50% of green markets or with strong regulations encouraging
the respondents only in the US (70%), Mexico (54%), rapid green building adoption. Poland also has a notably
Colombia (67%), Germany (52%), the UK (52%) and high percentage of respondents for this category, but
China (60%). Several of these markets are highly active, it doesnt rank in the top three for obstacles in Poland,
suggesting that cost concerns may come from greater which diminishes its overall influence.
competition for skilled labor and reduced availability of
Understanding these challenges can help companies
needed building products.
build their green businesses more effectively in
Lack of public awareness and lack of political
these countries.
support/incentives are most commonly selected
by a high percentage of respondents from developing
countries. These challenges are particularly noted by
respondents from Mexico, Brazil, Colombia, Poland,
South Africa and India.
Top Challenges to Increasing Green Building Activity

(By Number of Countries in Which It is One of the Top Three Challenges and by Country)
Number of Countries in Percentage of Respondents by Country Who Selected This

Which This is One of as One of the Three Most Important Challenges
the Top Three Challenges
70% 67%
54% 52% 52% 60%
31% 38% 34% 35% 35%
Higher Perceived 30%
11 20%
First Costs
Arabia Africa
41% 45% 48%

38% 35% 33% 37% 34%
Lack of Public 19% 19% 24%
8 15%
Awareness 6%
Arabia Africa
60%
38% 39% 41% 34% 35%
Lack of Political 22% 18% 25% 27% 21% 23%
6 15%
Support/Incentives
Arabia Africa
Perception Green 40% 42% 38%

32% 30% 32% 26% 32%
Is for High-End 5 21% 21% 16%
8% 11%
Projects Only
Arabia Africa
3_11_Influences_Challenges_Countries_#02
Green Building Rating Systems
Survey respondents report using 19 different Benefits of Using a Green Building Rating System
green building rating systems, including nine that (According to Global Respondents by Year)
they mentioned in addition to the list of 10 included
in the study. In general, rating system use was reported 2015 2012
by 78% of the respondents. Given the fact that only
one third of the respondents are members of a Green Provides Ability to Create
Better-Performing Buildings
Building Council, this demonstrates the widespread
61%
use of certification systems across the building
69%
industry globally.
There is some variation by country in the use of rating Provides Marketing and
systems. Rating system use is low in Colombia (50%), Competitive Advantage
Germany (64%), Saudi Arabia (47%) and South Africa 49%
(60%), compared with the global average. 67%
Creates Opportunity to Learn More
Benefits of Using Green Building About Specific Green Building Elements
Rating Systems 42%
Being able to create better-performing buildings 43%
is the top benefit reported in the 2015 study, the
same ranking it enjoyed in 2012. Despite a slight decline Encourages Use of
an Integrated Design Team
in the percentage who selected it, it is actually now
41%
selected by considerably more respondents than any
41%
other benefit included in the study.
The second most important benefit, marketing Provides a Common Language
and competitive advantage, retained its ranking from in the Industry
2012 but declined precipitously in the percentage who 38%
selected it, from 67% to 49%. This corresponds with a 40%
drop in those who find that branding/public relations is an Offers Government or Local
important trigger for green (see page 14), and it may be Financial Incentives/Rebates
influenced by wider adoption of green building, making it 30%
less of a differentiating factor for companies. 20%
One notable result is that the benefit of improving
industry practices and processes is important to a higher
Reasons for Not Using a Green Building Rating
percentage than financial incentives. Encouraging use
System (According to Global Respondents by Year)
of an integrated design team and the ability to provide 3_12_Influences_RatingSysBenefits_#02
a common language to the industry are selected by
41% and 38%, respectively, but government incentives/ 2015 2012
rebates are only selected by 30%.
Too Costly/Time Intensive
53%
Reasons Not to Use a Rating System
The barriers to use of a rating system are roughly 61%
consistent with those in the 2012 study. Over half report Not Tailored to Regional
that use of a rating system is too costly or time intensive, Climate and Cultural
Implications
suggesting the need for better tools and simpler
25%
approaches. Only a relatively small percentage, though,
24%
are still concerned about rating systems being sufficiently
tailored to regional concerns or being able to understand Difficult to Understand Requirements/
the requirements, a change from the findings in 2008, Documentation Processes
when these were considered bigger challenges. 22%
15%

Sidebar: Resilience
Designing for Resilience in a Changing World
Resilienceis the capacity to adapt to changing conditions, and to maintain or

regain functionality and vitality in the face of stress or disturbance, according

to the Resilient Design Institute. An increasingly important parameter in
development around the world, resilient design requires identification of
the hazards a project will face and provision for the capacity to adapt.
Grid Fails? No Sweat of higher altitudes to turn turbines

If utilities are disrupted, the sun can set in the tip of the tower. These
overheat a building fast, rendering combined renewables will make
it all but useless, especially in a hot the Pertamina campus the largest
and humid climate like Jakartas. net zero energy project in the world:
The Pertamina Energy Tower, a 523- more than 10 times the size of whats
meter supertall tower scheduled for been achieved to date.
completion in 2020, which will form Although the threat of an attack
the centerpiece of the Indonesian on Pertaminas energy plant is small,
energy companys consolidated new the energy system is configured
headquarters, is the first supertall for redundancy, with two incoming
tower in the world for which energy services supplying independent
is the primary design driver. With substations, so that energy for the
a variety of overlapping energy campus can be sourced from either
strategies, the Pertamina Tower is of two locations.
intended to keep its cool, without Energy disruptions are not the
interruption, indefinitely. only hazard the Pertamina campus
To produce more energy than is designed to withstand: typhoons
it uses, the tower first reduces energy regularly flood the city. To mitigate,
demand for cooling and lighting with the entire campus is raised seven
a building form defined by the path meters above the hundred-year
of the sun. To shade the solar- flood line, like a big ship; and, to
efficient form, the design team prevent site run-off from flooding
modelled 675 shade-fin profiles in downhill neighbors, the project is
30,000 scenarios. A bit of overkill, also designed to achieve net-zero
says Luke Leung, director of water. All rainwater falling on the
Sustainable Engineering at SOM, site, as well as all water used in
architects for the project, but we the building, is recycled in cooling
had the computing capacity, so we towers, irrigation or toilets; absorbed
used it to select the most efficient through retention and infiltration;
passive strategy. or returned to the aquifer through a
With insolation minimized and recharging well.
daylighting maximized, the project The Pertamina Energy Tower uses
will meet its energy needs primarily multiple renewable energies to keep its A Desert Campus That
using deep-well geothermal cool indefinitely. Knows its Place
energy, tapping heat nearly two In recent generations, Qatars
miles beneath the earths surface generate energy from the sun, using wealth from oil and natural gas has
to generate combined cooling, heat shade canopies of photovoltaics facilitated the replacement of almost
and power for the entire Pertamina along campus paths, and from the all of the city of Dohas climate-
Image: SOM
campus. In addition, the project will wind, using the higher wind speeds responsive, vernacular architecture

Sidebar: Resilience CONTINUED
and what works for them, says

Cassie Branum, a senior urban

designer with Perkins+Will.
Shading strategies for achieving
the campus performance standards
include building placement for
maximum shading effect; free-
form concrete shade structures
for large open spaces; trees as key
design elements, often interplanted
with shrubs so that the crenellated
planting heights more effectively
filter particles from the desert
winds; and small concrete
canopies to shelter the campuss
bike-share terminal.
Beyond shade, cooling strategies
use recycled water from air
conditioning condensate to create
cooling walls, benches and shade
structures complete with motion-
sensor-activated fans and cooling
mists. Effective uses of water include
onsite stormwater management,
with street paver patterns cleverly
designed for varying degrees of
perviousness; and water features, a
traditional cooling strategy in desert
architecture, updated with motion
sensors to provide cooling and
refreshment only when people are
The Qatar Research and Development Complex exemplifies a shift from reliance on present to appreciate it.
depletable resources to a knowledge-based society.
With all our projects around
the world, were trying to create
with sprawling, Western-style, car- for Neighborhood Development smart projects where each element
dependent developments that didnt at the gold level, draws on passive supports multiple objectives, says
work where they came from. But the climate-mitigation strategies from Branum. Were continually asking
Qatar National Vision 2030 charts a vernacular Arabic architecture ourselves, how can we make a
new course, one that aims to shift and supplements them with some resilient environment that belongs to
Qatari society from its dependency contemporary twists. To achieve this place in the world?
on depletable resources. an active, connective campus, the
Exemplifying the countrys new plan deploys shading and cooling Redeveloping for
direction is the Qatar Research and strategies to make public outdoor Resilience
Development Complex. spaces comfortable for pedestrians A city of rolling hills, Istanbuls
The master plan for the year-round. rainwater infrastructure is
Image: Perkins+Will
40.3-hectare campus, which is Were encouraging our clients to so inadequate that downhill
seeking certification under LEED build from their roots, their climate, neighborhoods routinely flood two

Sidebar: Resilience CONTINUED
or three feet in a cloudburst. above from movement in the ground and replaced over hundreds of
The citys population, now below; and the use of street planters years. It supports walking and
approaching 16 million, is expected and green-space networks as green transit use. It allows plug-and-play
to double by 2050. And, having infrastructure to prevent stormwater development and redevelopment
been rocked by earthquakes in from flooding districts downhill. of individual parcels as needed,
1999 and 2012, the city is overdue But, says David Green, a principal which in turn allows greater ranges
for a 500-year mega-quake. at Perkins+Will, technical solutions of affordability and use. It fosters a
In the face of these stresses, are emphatically not enough. finer grain of development, within
Istanbul has embarked on a Resiliency must have an adaptable which low- and mid-rise buildings
large-scale program of urban framework within which cities can can achieve the same densities as
regeneration in which entire accommodate change, he says. more widely-spaced towers, but
at-risk districts are slated for That means a strong, connected, without the need for superstructure
demolition and redevelopment. small-block street network. for lateral resistance. Perhaps
Perkins+Wills master plan for the By contrast with the large-grain, most significantly, a small-block
redevelopment of Sisli, a 24-hectare inwardly focused schemes with street network facilitates a range of
mixed-income, mixed-land-use privately owned infrastructure which increments for change whether
neighborhood that typifies the are common proposals for Istanbuls in response to earthquakes,
challenges Istanbul faces, proposes redevelopment, the Sisli master economics, population growth, or
a model for resilience using two plans small-block street network factors as yet unforeseen. n
complementary paradigms. enables multiple complementary
One paradigm consists of technical strategies for adaptability. It
solutions: the use of underground defines a continuous public domain
parking levels as base isolators, for within which infrastructure can
example, which decouple buildings be placed, accessed, maintained
Image: Perkins+Will
In redeveloping an at-risk neighborhood in Istanbul, technological solutions complement an adaptable framework for change.

Data: South America/Caribbean
Green Building Activity and Trends
in Brazil, Colombia and 11 Other Nations in South America/Caribbean
The findings reveal that green building is still an emerging trend in South
America and the Caribbean, but expectations about more green building across
the region are high. Individual markets within the region have unique triggers
and obstacles, but commercial construction is a critical sector for green here.
Dramatic Increase in Average Green Share of between 2015 (18%) and 2018 (38%),
Green Expected in South Building Project Activity and the percentage doing between
America/Caribbean (For Firms in Brazil, Colombia 31% and 60% of their projects green
The findings from South America and 11 Other Countries in South is expected to double as well (from
and the Caribbean suggest that this America/Caribbean) 11% to 24%). This is in contrast
region is still an emerging market Dodge Data & Analytics, 2016 to the respondents from Brazil,
when it comes to green building. Green Share Non-Green Share where most of the green growth
The share of green building reported is expected at the highest level of
by respondents in Brazil, Colombia involvement. This suggests that
and the other 11 countries that the Colombian market may be at an
participated in the study averages 71%
earlier stage of green involvement
73% 74%
29% or less, but the share of many than the market in Brazil.
developed markets, including the Other 11 Countries: Growth is
US, Australia, Germany and Poland, also evident in the other countries
averages above 30%. 29% 27% 26% from this region, with those who
However, the expectations of expect to do more than 30% of their
the level of green building in Brazil Colombia Respondents projects green nearly doubling
Respondents Respondents From 11 Other
three years demonstrate a strong Countries from 28% in 2015 to 52% in 2018.
commitment to green in this region. However, the findings are not as
Levels of Green Building
The percentage of respondents universally strong in the other 11
Activity for Respondents in
who expect more than 60% of countries as they are in Brazil and
Brazil (20152018 Expected)
their projects to be green grows 2_03_SAmerica_GreenShare_#02
Colombia. The percentage who
dramatically throughout the region. report that they do not expect
Brazil: In addition to having the 1% to 15% More Than 60% to do any green projects also
Green Projects Green Projects
highest share of current green Exploring 31% to 60% increases from 7% in 2015 to 17%
building in the region, Brazil is (No Green Green Projects in 2018. This suggests a divided
Involvement) 16% to 30%
also expecting the most dramatic market, with strong commitment
Green Projects
growth in green in the next to green among some respondents
three years. The percentage of countered by a loss of interest in
respondents who expect to do doing green projects for others.
more than 60% of their projects 6% 36%
SECTORS WITH
green is six times higher than those
EXPECTED GROWTH
currently at that level of green 31% Across the region, a high percentage
involvement, from 6% to 36%.
21% of respondents expect to do green
Colombia: The growth in green
projects in two sectors in particular.
in Colombia occurs in those with
New Commercial Construction
both moderate and high levels of
green activity. The percentage of 18% 37% 32% (e.g., office, retail, hotel): New
9% commercial construction is driving
respondents from Colombia who 8% 2% green in this region, with the
do more than 60% of their projects
2015 2018 highest percentage of respondents
green is expected to double
SmartMarket Report
1_19_Global_Country_Batch1_
Dodge Data & Analytics 24 www.construction.com
Activity_Brazil_#01
Data: South America/Caribbean CONTINUED
in Brazil (47%), Colombia (59%) emphasis on retrofits distinguishes American/Caribbean countries.

and the other 11 countries (48%) this region from other developing This may provide opportunity for
reporting that they plan to do green markets like China, India and Saudi further growth in green building in
projects in this sector in the next Arabia, where the focus appears to this region, but government support
three years. The percentage in be on new green construction. rather than market forces may be
Colombia also exceeds the global needed to help drive green activity in
Other notable trends for green
average of 46%. It is comparable this sector.
building by sector vary by country.
to the percentage expecting to do
New green low-rise residential
commercial construction in China
projects are quite popular
Influence Factors
(55%), India (61%), Mexico (65%)
among those from the other 11
for Future Green
and Singapore (53%). For Colombia,
countries, with the second highest
Building Activity
like many other emerging markets,
percentage (44%) expecting to TRIGGERS
commercial construction is an
do a green low-rise residential The key triggers for future green
important driver of green building.
project in the next three years building vary among the countries
Retrofits of Existing Buildings: In
(second only to new commercial in the region.
Brazil, the percentage who expect
construction). The percentage Brazil: Environmental regulations
to do green retrofits of existing
who anticipate doing this work are the top driver for green building
buildings (47%) is equal to those
in Brazil (35%) also exceeds the activity in Brazil. This is in marked
who expect to do new green
global average (27%), but this contrast to the findings from 2012,
commercial buildings. Retrofits are
sector will see less activity in when market demand was selected
also selected by the third highest
Colombia (26%). as a top trigger by over half of the
percentage in Colombia (31%) and
New green high-rise residential respondents, double the amount
the other 11 countries (37%). This
projects are also anticipated for any other trigger. In the current
by respondents in Brazil (43%) study it has dropped to just 12%
Levels of Green Building and Colombia (36%) more who consider it important, with
Activity for Respondents in than globally (25%), but this is other triggers driving the market.
Colombia (20152018 Expected) a particularly weak sector in Other important triggers driving the
Dodge Data & Analytics, 2016 the other 11 countries in this market in Brazil include:
1% to 15% More Than 60% region (19%). Client demands, at 29%, ties
Green Projects Green Projects Brazil is a strong market for for second in Brazil in the current
Exploring 31% to 60% green communities (mixed- findings, a marked increase
(No Green Green Projects
Involvement) use developments), with 33% in terms of its overall ranking
16% to 30%
Green Projects expecting to do a green project compared to 2012. However, the
in this sector. This puts Brazil percentage who find it important
considerably above the global has only increased slightly, from
average (21%) and on par with 26% in 2012. In addition, the 29%
Singapore (35%) and China (36%). in the current study is considerably
38% below the global average of 40%.
When compared with other global
Higher ROI is a particularly
markets, green building has yet
18% important trigger in Brazil, also
to take hold in new institutional
25% selected by 29%. This percentage
11% 24% construction in South America
not only exceeds the Colombian
and the Caribbean. While new
(3%) or other regional (15%)
11% institutional construction is ranked
22% 24% 19% percentages, but it also tops
8% second globally, it does not rank
the global average of 11%.
in the top three sectors in Brazil,
2015 2018 Only Mexico has a comparable
Colombia or the other 11 South
Activity_Colombia_#01
response to this trigger, with 25% findings suggest that green is Top Triggers Driving Future
regarding it as important. still an emerging trend across the Green Building Activity in
Doing the right thing is the third region because they are triggers Brazil, Colombia and 11
trigger that tied for second in that push firms into compliance Other Nations in South
Brazil. The percentage who select rather than compel them to adopt America/Caribbean
it in Brazil, however, is roughly green to improve their bottom Dodge Data & Analytics, 2016
on par with that in Colombia and line. As green building becomes Brazil Respondents
the global average, and notably more common and the benefits Colombia Respondents
below the average for the other emerge more clearly, it is likely Respondents From 11 Other South American/
11 countries from South America/ other market and financial forces Caribbean Countries
Caribbean that participated in will gain influence. Client Demands
the study. Challenges There are two challenges 29%
Brazil falls behind Colombia that are considered important by 19%
and the other 11 countries in a high percentage of respondents 30%
that region in terms of the across the region. Market Demands
importance of market factors like Lack of Public Awareness: 45% 12%
market demands and internal of respondents in Colombia, and 22%
corporate commitments, 41% in Brazil and the other 11 33%
suggesting that a consistent call countries find this to be one of the Internal Corporate Commitment
for green based on business top three barriers to green building 8%
benefits is not as evident in Brazil in their country. This is on par with 33%
as it is in the rest of the region. responses from Saudi Arabia, India, 15%
Colombia: In Colombia, the top China, Poland and Mexico, which Higher ROI
three triggers for future green suggests that this is a common 29%
building are internal corporate issue for markets where green is 3%
commitments (selected by 33%), still emerging. 15%
market transformation (31%) Lack of Political Support or Right Thing to Do
and environmental regulation Incentives: This obstacle is most 29%
(31%). The emphasis placed on notable in Colombia, selected by 26%
internal corporate commitments 60%. Brazil, while significantly 41%
corresponds with the high level lower at 39%, still exceeds the Market Transformation
of commercial green building global average of 30% for this 20%
activity expected in Colombia, obstacle. The responses from the 31%
and it indicates the importance remaining 11 countries from this 22%
of corporate commitments for region are equivalent to Colombia, Lower Operating Costs
driving green in that country. with 59% finding this to be among 27%
Taken together, these three top the top three obstacles. Globally, 22%
triggers suggest that the market is no other countries exceed 50% 22%
simultaneously driven by the push of respondents who regard this Environmental Regulations
of regulations and the pull of the as a top obstacle, suggesting its 37%
ability to transform the construction particular importance in this region. 31%
market and corporate demands. 19%
Two obstacles are more important
Other 11 Countries: The triggers
in Brazil or Colombia than they
considered most important
are regionally.
regionally include doing the right
thing (41%), market demands (33%) 2_05_SAmerica_Triggers (2)_#02
and client demands (30%). These

Higher first costs is selected An increase in worker productivity Business Benefits of

as a top obstacle by 67% of the due to green building is the other Green Building
respondents in Colombia. While major factor of importance in Brazil Brazil is more conservative about
this is the top obstacle globally (34%) and Colombia (38%), no doubt the expected decreases in operating
and one that is selected by the due in part to the market focus on costs over one year but far more
highest percentage in many commercial buildings and existing optimistic about expected 5-year
countries included in the survey, building retrofits. decreases than the other countries
only in the US (70%) and China in South America and the Caribbean.
ENVIRONMENTAL REASONS
(60%) is the percentage who select However, payback periods for green
Reducing energy consumption
it so dominant compared with investments in both Brazil and
is the top environmental reason
other obstacles. Colombia are quite short, which
for building green in Brazil (51%),
Lack of trained/educated green could be an important driver for
Colombia (58%) and the other
building professionals is a top green building in the future. n
countries from that region (72%).
obstacle in Brazil, selected by 35%.
This finding corresponds to the
This is much higher than the 22%
global priorities around energy
in Colombia who regard this as
reflected in the overall study findings.
a top obstacle, and Colombia is
More notable is the importance
essentially on par with the global
of protecting natural resources to
average of 21%. Across the region,
respondents in both Brazil (47%)
only 15% of the respondents from
and Colombia (51%), roughly similar
the other 11 countries consider this a
in percentage to those who select
problem. Brazil has seen high levels
energy. Also notable is the concern
of construction activity in the last
about water consumption in Brazil,
few years, including a relatively high
selected by 47%.
percentage of green projects, and
this may be creating a shortage of
skilled workers for green projects.
Social and Expected Business Benefits of Green Buildings in South

Environmental Reasons America/Caribbean (Including Brazil, Colombia and the Average of
for Building Green 11 Other Countries)
SOCIAL REASONS New Green Building Green Retrofit
There is general agreement for the Respondents Respondents
most part across the countries from Brazil Colombia from 11 Other Brazil Colombia from 11 Other
South America and the Caribbean Countries Countries
that participated in the survey on the Decreased
social reasons for building green. Operating 12% 6% 12% 12%
8% 12%
The top factor for all is to encourage Costs Over
sustainable business practices, One Year
selected by 53% of the respondents Decreased
in Brazil, 65% in Colombia and Operating 12% 13% 13% 12%
20% 9%
Costs Over
61% in the other countries. These
Five Years
percentages place Brazil slightly
Payback Time
below the global average of 58% and
for Green 8 4 4 8
Colombia and other regions slightly 4 5
Investments
above it. (Years)

Data: Europe
in Germany, Poland, the United Kingdom and 18 Other European Nations
Green building in Europe is widely considered a mature green market.

However, countries that participated in the survey predict a higher level of

green involvement in the next three years, demonstrating ongoing potential
for growth. The triggers for that growth, though, vary by country.
Shift to High Green Average Green Share of do not do any green projects and
Involvement Varies Building Project Activity (For do not expect to do any in the next
Across Europe Firms in Germany, Poland, the UK three years. This may suggest that,
Across Europe, there is a general and 18 Other European Countries) without different triggers being put
trend toward companies expecting Dodge Data & Analytics, 2016 into play, the UK may have defined
to be very highly engaged in green Green Share Non-Green Share the extent of its green market.
for the next three years. That trend The combined findings of the
is also evident in the three countries other 18 European countries that

with sufficient levels of response to participated in the study show a
support an independent analysis 65% 66% major increase of 27 percentage
73% 72%
Germany, Poland and the UK points in those expecting to do
although to varying amounts. more than 60% green projects
In Germany, strong growth is by 2018, compared with those
expected by 2018 both in the 35% 27% 34% 28% currently highly involved with
percentage of firms doing between green. This jump in those highly
31% and 60% of their projects Germany UK Poland Respondents involved with green is mirrored by
Respondents Respondents Respondents From 18
green, and in the percentage Other a strong 10 percentage point drop
doing more than 60% green. This Countries in those who do not expect to do
suggests that the green market in any green work, from 15% in 2015 to
Germany is still developing at a 5% in 2018. This demonstrates that
steady pace. 2_01_Europe_GreenShare_#02 Europe, despite its advanced green
Germany (20152018 Expected)
In Poland, the growth of green reputation, is still a growing green
involvement is more measured, building market.
with only a 10 percentage point 1% to 15% More Than 60%
Green Projects Green Projects SECTORS WITH
gain expected in the percentage of
Exploring 31% to 60% EXPECTED GROWTH
those doing more than 60% of their (No Green Green Projects
Involvement) An examination of the three
projects green, and limited growth 16% to 30%
Green Projects countries featured in the study
among those doing less green
demonstrates that there is no single
work. The decline in those doing
sector that dominates the European
little to no green, however, is still
green building market.
quite substantial, from 31% to 18%. 31% Germany: In general, Germany
In the UK, the shift to green by 17%
corresponds to global trends in
2018 is most dramatic, with a 22
green building sectors. The highest
percentage point decline in those
percentage (39%) of German
expecting to do few (less than 16%) 33%
45%
respondents expect to do green
green projects and a 14 percentage
projects in the commercial and
point gain in those expecting to
20% institutional sectors in the next
do more than 60% of their projects 23% 10% three years, with the existing
green. However, there is also
7% 4% 10% building retrofit sector coming
a small but persistent group of
2015 2018 in as a close second (36%). The
respondents (9%) who currently
SmartMarket Report & Analytics 28

Dodge Data www.construction.com
Activity_Germany_#01
Data: Europe CONTINUED
remaining sectors also generally by the major institutions and Influence Factors
correspond to global averages government in Poland. for Future Green

in Germany. UK: The top two sectors in Building Activity
Poland: One sector dominates which respondents from the UK
TRIGGERS
the responses from Poland: plan to do green projects in the
The findings make it clear that the
50% select new commercial next three years are retrofits
construction markets in each of
construction as a sector in which of existing buildings (44%) and
the three European countries are
they intend to build green in the new low-rise residential (40%).
influenced by different factors.
next three years. Commercial These percentages both exceed
Germany: No single factor is
interiors, at 27%, is a distant global averages, with the UK
considered influential by a
second, but it is still a bit higher seeing the highest commitment
high percentage of German
than the 20% globally that to greening new low-rise residential
respondents. Instead, the German
expect to do work in this sector, projects of any country included
construction market is pushed
demonstrating the importance of in the study. The other major sector
toward green by a variety of
the commercial market for driving for future green growth in the
different triggers. These findings
future green work in Poland. UK is new institutional buildings,
are consistent with the 2012 study
On the other hand, Poland has the selected by 37%, on par with the
findings as well.
lowest percentage of respondents global average. On the other
Client demand is the most
from any of the countries included hand, the UK is notably lower in
popular trigger, although the
in the study who expect to be respondents who expect to do
percentage who select it (30%)
doing new green institutional green commercial projects, both
are 10 percentage points below
construction. This reveals the need new buildings and interiors.
the global average (40%) and
for greater green engagement
over 20 percentage points below
the average (52%) of the other
Levels of Green Building Levels of Green Building European countries besides
Activity for Respondents in Activity for Respondents in Germany, Poland and the UK that
Poland (20152018 Expected) the UK (20152018 Expected) participated in the study.
Dodge Data & Analytics, 2016 Dodge Data & Analytics, 2016 Market forces are clearly drivers
for green in Germany, even if no
1% to 15% More Than 60% 1% to 15% More Than 60%
Green Projects Green Projects Green Projects Green Projects one factor is in itself encouraging
Exploring 31% to 60% Exploring 31% to 60% green building. Market demands
(No Green Green Projects (No Green Green Projects
Involvement) Involvement) and improved 10-year costs are
16% to 30% 16% to 30%
Green Projects Green Projects selected as important by 21%,
and higher building values
and higher rents are selected
by 18%. Germany is generally
29% consistent with (or in the case of
19% 31% market demands, notably under)
the percentage of other European
21% 17% respondents who are influenced
25% by most of these factors. The
19%
39% 11% exception is the high percentage
22% 17% in Germany (21%) who select
32%
25% 14% 24% 24% improved 10-year costs, which
9% 4% 9% 9% is much higher than respondents
2015 2018 2015 2018 from Poland (9%), the UK (5%),
1_12_Global_Country_Batch1_ Dodge Data & Analytics 29

www.construction.com SmartMarket Report
Activity_Poland_#01 Activity_UK_#01
other European countries (5%) and building, with 64% far exceeding Top Triggers Driving Future
across the globe (9%). the European and global averages Green Building Activity in
Environmental regulations of 35%. Germany, Poland and the UK
is an important trigger equal to The high percentage expecting Dodge Data & Analytics, 2016
market demands and 10-year market demands to be an Germany Respondents

cost improvements in Germany. important trigger in the UK UK Respondents
However, Germany pales in (47%) corresponds to the overall Poland Respondents
comparison to the UK for European market (42%), notably
this factor. exceeding the global average. Client Demands
Poland: The percentage of Polish While the top three triggers for 30%
respondents who find the top the UK in the current study were 69%
triggers influential are even less also important in 2012, each has 24%
varied than those from Germany. gained in importance by several
Market Demands
The top five fall within a six-point percentage points, suggesting the
range, between 27% and 21%. growing influence of these factors. 21%
Again, market forces are the most 47%
CHALLENGES
important drivers, with market 27%
The importance of the top
demands, client demands, lower Environmental Regulations
challenges also varies by country.
operating costs and higher building 21%
Higher First Costs: This is
values being critical drivers. This
consistently perceived as a problem 64%
corresponds with the emphasis
across Europe. It is selected as a 18%
on commercial green building in
top barrier to green by the highest
Poland, where these drivers would 10-Year Costs Are Better
percentage in Germany (52%) and
be particularly influential. 21%
the UK (52%) and by the second
UK: Unlike those from Germany
highest percentage in Poland 5%
and Poland, UK respondents 9%
(38%) and the other European
are clearly driven to green by
respondents (40%). These findings Higher Building Values
three factors: client demands,
are consistent with the percentage 18%
environmental regulations and
globally concerned about this issue. 4%
market demands. Taken together,
Affordability/Green Building Is
these suggest that currently 24%
for High-End Projects: This factor
the market is being pushed into Higher Rents
is selected by the second highest
action by factors like government
percentage of German respondents 18%
regulations and corporate
(30%) and the third highest in the 4%
influence. However, the financial
UK (40%), both of which exceed the 6%
drivers that are influential in the rest
global average of 27%.
of Europe carry less sway here. Lower Operating Costs
Lack of Public Awareness: This
Client demands is popular across 15%
ranks third in Poland (35%), in sharp
Europe (selected by 52% of 23%
contrast to Germany, where it is
those from the other 18 European 27%
only selected by 6%.
countries in the study), but at
Inability to Prove the Business
69%, this factor dominates the Right Thing to Do
Case: The split incentive between 12%
UK market.
capital and operating costs is 13%
The UK is also one of the top
noted as a particular problem
countries globally for considering 21%
in the UK (43%), compared with
environmental regulations an
the rest of Europe (21% in Germany,
important trigger for future green
2_02_Triggers_Europe _#01
3% in Poland and 26% in the reason to build green. It is selected Business Benefits of
other European countries, as the top factor by 71% in Germany, Green Building
which is roughly on par with 71% in Poland, 65% in the UK, Overall, the respondents
the global average). and 78% of the other European from Europe report relatively
respondents, compared with consistent benefits from building
Social and 66% globally. green. Germany is slightly more
Environmental Reasons There are a couple of other conservative than other countries
for Building Green environmental reasons about the potential for decreased
that carry more sway in Europe operating costs over five years. The
SOCIAL REASONS
than globally: UK is also more conservative than
Encouraging sustainable business
Protecting natural resources other European countries about
activity is a top social reason for
is selected by 48% of UK payback periods for green, probably
building green across Europe. It
respondents, notably higher than due to the relatively expensive
is particularly popular in the UK,
the other European respondents construction market in general in the
where it is selected as one of the
and than the global average of 37%. UK. Still, despite these differences,
top reasons by 72% of respondents.
In addition, a high percentage there is clear agreement among the
It also ties for first in Poland, but it
(32%) of UK respondents consider European respondents about the
is considered a top social reason
lower greenhouse gas emissions benefits of building green. n
there by a much lower percentage
as a top environmental reason for
(32%), than those who consider it
building green, compared with the
important in the UK. This factor ranks
second in Germany (36%) to worker
productivity. It ranks first in the other
18 European nations (61%) by a
high percentage.
The importance of other social
reasons vary by country.
Worker productivity is the
top social reason in Germany, Expected Business Benefits of Green Buildings in Europe
selected by 41%. This puts (Including Germany, Poland, the UK and the Average of 18 Other
Germany on par with Saudi Arabia European Countries)
and Mexico, in terms of the value New Green Building Green Retrofit
placed on this factor. Respondents Respondents
Supporting the domestic From 18 Other From 18 Other
Germany Poland UK Germany Poland UK
economy is the other top social European European
reason in Poland, also selected Nations Nations
by 32%, which is roughly on par Decreased
with the global average influenced Operating 8% 8% 7% 8% 7% 9%
8% 8%
by this factor. A high percentage Costs Over
(40%) of the respondents from One Year
the other 18 European nations Decreased
consider this important as well. Operating
9% 14% 14% 14% 11% 14% 13% 13%
Costs Over
ENVIRONMENTAL REASONS Five Years
There is general agreement across Payback Time
all European respondents about for Green 13 8 5 7 10 8
7 8
the importance of reduced energy Investments
(Years)
consumption as an environmental

Data: Middle East/North Africa
in Saudi Arabia and 11 Other Nations in the Middle East/North Africa Region
The rapid growth of green building expected in the next three years in Saudi
Arabia and the Middle East/North Africa (MENA) region is largely in the
commercial and institutional sectors. In Saudi Arabia, business benefits are
key triggers, while the rest of the region is most influenced by regulations.
Green Activity Growing Average Green Share of their projects green nearly doubling
at a Rapid Pace in the Building Project Activity from 22% in 2015 to 40% by 2018.
MENA Region (For Firms in Saudi Arabia and
SECTORS WITH
While the current level of green 11 Other Countries in the Middle
EXPECTED GROWTH
activity in the MENA region is East/North Africa)
In the MENA region, including Saudi
roughly on par with global averages, Dodge Data & Analytics, 2016
Arabia, new commercial and new
anticipated increases in green Green Share Non-Green Share institutional construction are the
involvement in the future suggests
two sectors with the highest level of
that the MENA region will be critical
expected growth. Each are selected
for the growth of green building
by nearly half of the respondents
globally in the next few years. 66%
76% as the sectors in which they plan to
Respondents from 11 MENA
build green in the next three years.
countries have an average green
New Commercial Construction
share of about 34%, which
34% (e.g., office, retail, hotel):
corresponds to levels reported in 24% Commercial construction ranks
the US, Mexico, Germany, Poland
Saudi Arabia Respondents first in the percentage from Saudi
and Australia. Saudi Arabia, on the
Respondents From 11 Other Arabia (44%) and the rest of MENA
other hand, is currently lagging in MENA Countries
(49%) who expect to do green
terms of the level of green building.
projects. This puts this region
The green share of work is currently
Levels of Green Building Activity roughly on par with the global
only 24%, 10 percentage points
for Respondents in Saudi average of 46%.
lower than the regional average. This 2_06_MENA_GreenShare_#03
Arabia (20152018 Expected) New Institutional Construction
is in part because nearly one third
Dodge Data & Analytics, 2016 (e.g., schools, hospitals, public
of respondents from Saudi Arabia
buildings): Nearly as many
(32%) report doing a very small share 1% to 15% More Than 60%
Green Projects Green Projects respondents in both Saudi
(15% or less) of their projects green.
Exploring 31% to 60% Arabia (42%) and the rest of
However, the responses from (No Green Green Projects MENA (44%) expect to do new
Saudi Arabia also clearly indicate a Involvement) 16% to 30%
Green Projects green institutional projects as
commitment to building green in the
new green commercial projects.
future. By 2018, those who expect to
Both are significantly above the
do a very small share of their projects
global average of 38%, making
green drops to 6%, and those who 32%
MENA one of the top regions
expect to do more than 60% of their
8% for new green institutional
projects green correspondingly
construction. Only the US,
grows from 8% in 2015 to 32% 22% 21% Canada, Singapore and China have
in 2018. 32%
similarly high expectations for
The other respondents from
6% this sector. Typically, institutional
the MENA region also report high 25% 26%
13% 15% construction is encouraged by
expectations for green involvement
active government support and
by 2018, with the percentage of those
2015 2018 engagement in green initiatives.
who expect to do more than 60% of

Data: Middle East/North Africa CONTINUED
The only two sectors in which the Top Triggers Driving Future A high percentage of respondents
percentage in MENA expecting Green Building Activity in from Saudi Arabia consider business
to do work is much lower than the Saudi Arabia and 11 Other benefits like lower operating costs
global average is retrofits of existing Nations in the Middle East/ (29%) and better 10-year costs (24%)
buildings and commercial interiors. North Africa important triggers, far more than
This suggests a regional focus on Dodge Data & Analytics, 2016 those from other MENA countries.
new green construction. Saudi Arabia Respondents Respondents from Saudi Arabia
Retrofits of Existing Buildings: also place more emphasis on the

Respondents From 11 Other MENA Countries
22% of respondents from Saudi Global Respondents importance of local competition
Arabia and 15% from the rest (22%) than is common regionally
of MENA expect to do green Market Demands (11%) or globally (9%), which
retrofits, compared with the 37% 33% suggests that respondents feel
global average. 27% some pressure to go green in Saudi
Commercial Interiors: 13% of
30% Arabia to stay competitive despite
respondents from Saudi Arabia and the relatively low green share of
Client Demands
7% from the rest of MENA expect projects currently in that country.
29%
to do green commercial interior One of the top triggers for the
projects, compared with the 20% 38% MENA countries other than
global average. 40% Saudi Arabia is environmental
Lower Operating Costs regulations, selected by 35%.
Influence Factors 29% However, in Saudi Arabia, only 22%
for Future Green 18%
consider this an important trigger.
Building Activity CHALLENGES
23%
TRIGGERS 10-Year Costs Are Better
On the other hand, Saudi Arabia
For respondents in Saudi Arabia and aligns with the rest of MENA about
24%
in the other MENA countries, client the key challenges to increasing the
6%
demand is an important trigger for growth of green building.
future green building. It is ranked 9% Lack of Public Awareness: 33% of
second in Saudi Arabia, selected by Environmental Regulations respondents in Saudi Arabia and
29% and first by the rest of MENA, 22% 40% in the rest of MENA select this
with 38% who consider it important. 35% as one of the top three barriers to
For most of the other important green building. This is on par with
35%
triggers, Saudi Arabia diverges from responses from Brazil, Colombia,
the rest of the MENA region. Business Local Competition India, China, Poland and Mexico,
benefits are bigger drivers for green 22% which suggests that this is a
in Saudi Arabia than in the rest of 11% common issue for markets where
MENA, where more emphasis is 9% green is still emerging.
placed on environmental regulations. Lack of Trained/Educated Green
Internal Corporate Commitments
Saudi Arabia is aligned with Building Professionals: While the
2%
the other MENA countries in global average for this obstacle
18%
the importance placed on client is 21%, it is selected by 29% of
demands as an important trigger 14% respondents from Saudi Arabia
for green building. and 28% from the rest of MENA.
Market demands rank first in respondents. However, for the The rapid acceleration of green
Saudi Arabia as a top trigger for other MENA respondents, it ranks building in these markets probably
2_07_MENA_Triggers_#02
future green building for 33% of third at 27%. contributes to the skilled labor gap.

Data: Middle East/North Africa CONTINUED
Social and this respect. The rest of MENA is also Singapore do more than 30% of their
Environmental Reasons considerably below the 66% global respondents also select this factor.
for Building Green average for this factor.
SOCIAL REASONS Not surprisingly, water Business Benefits of
Saudi Arabia has the highest conservation is nearly equal to Green Building
percentage (50%) of any country that energy conservation among the Saudi Arabia and the other MENA
participated in the study who select respondents from Saudi Arabia, countries are notably consistent
increased worker productivity as with 46% considering it a top factor. in the level of business benefits
a critical reason for building green. Protecting natural resources is a reported from green building, both
This aligns with the strong influence close third at 42%. for new and renovation projects.
of business benefits as triggers for Interestingly, only 15% of They are also roughly on par
future green building. It suggests that respondents from Saudi Arabia with global medians for estimated
more data on how green buildings consider improved indoor air quality decreased operating costs and
impact the health and well-being of important. While this is roughly on payback periods for new buildings.
their occupants could help increase par with the global average of 17%, However, the estimated decrease in
green investments in this country. the strong emphasis on improved operating costs is notably less for
Another social reason for building productivity as a social reason to renovation projects than the global
green in Saudi Arabia is the ability build green suggests that more medians, with global respondents
to support the domestic economy, attention to this environmental factor reporting a 9% estimated decrease
selected by 44%. This may tie into the is needed. in costs over one year and 13%
concerns about local competition, While the rankings are the same estimated decrease in costs over
because that competition could among the MENA respondents as five years. Despite these apparently
be coming from companies based among those from Saudi Arabia reduced benefits, though, the
outside of Saudi Arabia. Certainly, it for the importance of water payback period is much closer to
exceeds the global average for this conservation and protecting the global median of six years,
factor, which is just 29%. natural resources, the percentages suggesting that these benefits are
Respondents from the other are notably lower (36% and 33%, still sufficient to drive the market. n
MENA countries align more closely respectively). This is because more
to global averages than Saudi Arabia than 30% also consider lowering
for most of the social reasons, with greenhouse gas emissions to be an
the highest percentage selecting important environmental reason for
its ability to encourage sustainable building green. Only in the UK and
business practices (60%).
Expected Business Benefits of Green Buildings in the Middle
ENVIRONMENTAL REASONS
East/North Africa (Including Saudi Arabia and the Average of 11
Like respondents from the other
Other Countries)
countries in the study, the highest
percentage of those from Saudi New Green Building Green Retrofit
Arabia (49%) and the other MENA Respondents Respondents
countries (52%) consider the Saudi Arabia From 11 Other Saudi Arabia From 11 Other
reduction of energy consumption Countries Countries
one of the top environmental Decreased Operating
8% 8% 7% 5%
reasons for building green. However, Costs Over One Year
Saudi Arabia has one of the lowest Decreased Operating
16% 14% 11% 10%
percentages of respondents (49%) Costs Over Five Years
who consider this a top reason, Payback Time for Green
7 9 5 5
comparable only to China (49%) in Investments (Years)

Data: United States
in the United States
The current study predicts a major shift in the percentage of those

doing a majority of their projects (more than 60%) green in the US. It also
suggests that more measurement of the benefits of building green could
help address key obstacles facing the US green construction market.
Strong Shift to Green Average 2015 Green Share SECTORS WITH

Still Evident in the US of Building Project Activity EXPECTED GROWTH
US commitment to green building (For Firms in the United States) The institutional, commercial and
has been evident since Dodge Data Dodge Data & Analytics, 2016 existing buildings sectors will
& Analytics first began studying the drive green growth in the US in the
Green Share
adoption of green building in the Non-Green Share
next three years, with over 40% of
US market in 2006, and this study respondents reporting that they
demonstrates that there is still a expect to be doing green projects in
strong expectation of growth for these sectors in the next three years.
green building in the US market. 33% This is consistent with the 2012 study,
Nearly half (44%) of the respondents in which these three categories were
67%
to the study report that they are also the major drivers in the industry.
doing more than 30% of their projects New Institutional Buildings (e.g.,
green, and 58% report that they schools, hospitals): At 46%, this
will be building green at that level is notably higher than the global
by 2018. average of 38%, suggesting a
On the surface, this may appear particularly strong market for green
to be a decline from the 2012 study. 1_04_Global_Country_Batch1_
Levels of Green Building institutional projects in the US.
After all, the green share of work for GreenShare_US_#02
Activity for US Respondents Education in particular has been
the respondents to the 2012 study (20152018 Expected) an important sector for green in
was a considerably higher 48%. Dodge Data & Analytics, 2016 the US, as have public buildings,
However, it is critical to bear in mind 1% to 15% More Than 60% according to previous US research
that 82% of the US respondents in Green Projects Green Projects on sustainability conducted by
2012 were members of a national Exploring 31% to 60% Dodge Data & Analytics.
green building council, compared Involvement) 16% to 30%
Retrofits of Existing Buildings:
with 53% in the current study, which Green Projects The US is also notably higher in
provides a better portrait of the this category than most other
industry as a whole. countries included in the study,
Given the more representative with 43% reporting that they will
participation in the survey, it is be doing green retrofits in the
particularly notable that the highest next three years, compared with
level of growth in the US by 2018 39% the global average of 37%. Retrofits
24%
is expected among those who are a particular focus in North
will do more than 60% of their America in general, with a similar
projects green, which shoots up 28% 20% 19% percentage in Mexico and Canada
by 15 percentage points, from 24% 17% reporting an expectation that they
currently to 39% by 2018. will be doing green retrofits in the
13% 15% 10% 15%
next three years.
2015 2018
Activity_US_#01
Data: United States CONTINUED
New Commercial Buildings (e.g., Top Triggers Driving Future However, it is surprising to see
office, retail, hotel): With 41% of Green Building Activity in environmental regulations emerge
respondents expecting to work on the United States as a top trigger in the current
green commercial buildings in the Dodge Data & Analytics, 2016 study, when previously in 2012, it
next three years, the US is roughly US was only selected by 15% of US
on par with the global average Global Respondents respondents. Since the majority of
of 46%. environmental regulatory activity
Client Demands for buildings in the US has shifted
One sector in which the US is
52% from the federal to the state and local
notably lower than the global
40% levels, this increase may be due to
average is green high-rise residential
the more representative sample of
construction. Only 15% of US Right Thing to Do
respondents. The push of regulations
respondents expect to do green 31%
is more important among those
building in this sector, compared 25% who are not otherwise committed
with 25% of global respondents.
Environmental Regulations to green.
However, it is possible that this may
be due to concerns about the overall 30% CHALLENGES
demand for high-rise residential 35% More than any other country
buildings declining in the next few Market Demands included in the survey, respondents
years, whether the projects are green 28% in the US are concerned about higher
or not, because that market has first costs, with 70% regarding this
30%
seen aggressive growth in the US in as one of the top three barriers to the
the last couple of years and may be Lower Operating Costs growth of green, compared with 50%
becoming saturated. 26% of global respondents.
23% The US has seen a relatively strong
Influence Factors recovery in many construction
for Future Green sectors from the global recession
Building Activity that started in 2008, and recently
concerns about rising costs for
TRIGGERS 1_21_Global_Country_Batch1_ skilled labor and building materials
By far, the most important factor Triggers_US_#01 have emerged. It is likely that these
driving US respondents to build
concerns are driving greater cost
green is client demands. This
concerns about building green.
demonstrates relatively wide
The other challenges that seem to
recognition of the need to build
influence the US market more than
green in the US, and it speaks to the
other global markets include:
maturity of the market.
Lack of Market Demand
The remaining four of the top
US 39%
five factors helping to drive green
Global 29%
in the US market are separated
Inability to Prove Business Case
by only five percentage points,
Because of Split Between Capital
suggesting that they are all of
and Operating Costs
relatively equal importance. Financial
US 34%
factors like market demands and
Global 25%
lower operating costs continue
to be selected by a relatively high
percentage, similar to the 30% who
selected both categories in 2012.

Data: United States CONTINUED
Alternatively, challenges that carry Business Benefits

less weight in the US than globally US respondents lag behind their

include concerns about public peers globally in tracking business
awareness, lack of trained green benefits, with 43% reporting that
building professionals and lack they do not use metrics to track
of green products or solutions building performance, compared
available in their markets. In general, with 25% who report not tracking
the lower rate of concern about these metrics globally. This may explain
factors indicates the relative maturity why making the business case is
of the US market. one of the biggest challenges in the
US, and it may also hamper market
Social and demand for green.
Environmental Reasons Given that finding, it is not
for Building Green surprising that US respondents are
By far, the most important much more likely to report that they
social reason for building green do not know the impact of green
identified by US respondents is buildings on operating costs:
that it encourages sustainable One-Year Operating Costs: 21%
business practice, selected as the of US respondents do not know,

most important reason by 74% of compared with 13% globally.
respondents in the US. This is at least Five-Year Operating Costs:
50 percentage points higher than 23% do not know, compared

any other reason, and 16 percentage with 15% globally.
points higher than the global average
Among those that do indicate a
for this factor.
figure, the US respondents are more
Reducing energy consumption
optimistic than the global medians
is equally dominant among the
about operating cost reductions
environmental reasons for building
for new buildings and retrofits.
green in the US, with 76% identifying
(See pages 52 and 55 for the global
it as the most important reason to
medians, which range from one to
build green. However, it is notable
nine percentage points below the
that 39% of US respondents also
US averages.) n
select reducing water consumption
as the top environmental factor,
notably higher than the global
average of 31%, and particularly
higher than respondents in Europe
(including Germany, Poland and the
UK), China and Australia. The high
Expected Business Benefits of Green Building in the
priority placed on reducing water
United States
consumption may be influenced
by a couple of different factors, New Green Building Green Retrofit
from drought-prone regions in 2012 2015 2012 2015
the western US to the influence of Decreased Operating Costs Over One Year 11% 11% 11% 12%
LEED and other green certification
Decreased Operating Costs Over Five Years 28% 21% 14% 14%
systems placing greater priority on
Payback Time for Green Investments (Years) 7 8 4 7
water consumption.

Data: Mexico
Green Building Activity and Trends in Mexico
Mexico is leading globally in terms of expected green activity in the commercial

sector. Therefore, it is not surprising that financial benefits are the key drivers
for green in Mexico. However, like many developing countries, the need for
greater public awareness and political support are key obstacles to green.
High Level of Green Average 2015 Green Share Retrofits of Existing Buildings:
Involvement Expected of Building Project Activity 46% of respondents from Mexico
in Mexico (For Firms in Mexico) expect to do green retrofits of
Within the next three years, nearly Dodge Data & Analytics, 2016 existing buildings in the next three
half (44%) of the respondents in years. This is consistent with the
Green Share
Mexico expect to be heavily involved Non-Green Share
focus on retrofits in North America
with green building, with more than in general, with the US and Canada
60% of their projects anticipated to be reporting comparable expectations
green. This is more than double the for green activity in this sector.
percentage of Mexican respondents 35% All of the North American
(21%) who currently are at that level percentages exceed the 37% of
65%
of green involvement, and it exceeds global respondents expecting to
the level of green involvement do green retrofits.
reported by respondents from Commercial Interiors: 33% of
other countries in North and South respondents from Mexico expect

America. The expectation of this to do green commercial interiors,
growth in green involvement reveals Levels of Green Building compared with just 20% globally.
a strong commitment to green 1_05_Global_Country_Batch1_
Activity for Respondents in As with new commercial buildings,
building among firms in Mexico. GreenShare_Mexico_#02
Mexico (20152018 Expected) this is the highest percentage from
These findings suggest that Mexico Dodge Data & Analytics, 2016 any country included in the study,
offers a particularly strong market for 1% to 15% More Than 60% and significantly exceeds the 20%
green product and service providers. Green Projects Green Projects global average.
Exploring 31% to 60%
SECTORS WITH (No Green Green Projects These findings suggest that building
EXPECTED GROWTH Involvement) 16% to 30% product manufacturers and service
Green Projects
Mexico leads the other nations providers specializing in green
included in the study in the commercial products should
percentage of respondents consider Mexico to be an important
who expect to build new green growth market.
commercial projects in the next three 44%
21%
years. In addition, retrofits of existing Influence Factors
buildings and commercial interiors for Future Green
are also key sectors for growth in 23% Building Activity
green building in Mexico. 19%
TRIGGERS
New Commercial Buildings
21% No single trigger is critical in the
(e.g., office, retail, hotel): 65% of 27% 25%
7% Mexican green building market, with
respondents from Mexico say 8% 5% only a six-point spread across the
they will be doing new green
2015 2018 top five triggers driving the market.
commercial buildings in the next
However, four out of five of those
three years, compared with the 46%
triggers involve business or financial
who expect to do this work globally.
factors, including market demands,
Activity_Mexico_#01.eps

Data: Mexico CONTINUED
client demands, lower operating Top Triggers Driving Future 44% of Mexican respondents select
cost and higher ROI, suggesting Green Building Activity increasing worker productivity
that Mexico is driving toward green in Mexico as the top social reason, much
commercial work because of the Dodge Data & Analytics, 2016 higher than the 29% globally, and
positive impact of green on the Mexico second only to Saudi Arabia in the
bottom line of businesses that Global Respondents percentage who consider this the
make that investment. top reason.
Generally, these top triggers Market Demands
As with most countries, reducing
correspond with global averages, 31%
energy consumption is the top
although there is a lower percentage 30%
environmental reason for building
of Mexican respondents for client Client Demands green in Mexico, selected by 58%.
demand and a higher percentage
27% However, that is slightly under the
who consider higher ROI important in
40% global average of 66% for this factor.
Mexico than the percentages globally.
Other important environmental
Right Thing to Do
CHALLENGES reasons for building green in
Similar to the other North American 25% Mexico include:
countries, the top barrier to further 25% Protecting Natural Resources:
green growth in Mexico is higher Lower Operating Costs 42% (compared with 37% globally)
first costs, selected by 54%. 25% Lowering Greenhouse Gas
However, Mexico is closer to the Emissions: 31% (compared with

23%
global average of 50% who consider 24% globally)
this an important challenge than the Higher ROI
respondents from the US (70%) or 25% Business Benefits of
Canada (76%). 11% Green Building
Unlike the more developed Consistent with their focus on the
markets in the US or Canada, though, Social and financial benefits of green, 92%
the respondents from Mexico also Environmental Reasons of the respondents from Mexico
have a high percentage reporting for Building Green report using at least one measure
concerns about lack of public 1_22_Global_Country_Batch1_
The emphasis on the commercial to track the performance of their
awareness (38% compared with 28% Triggers_Mexico_#01
market in Mexico is also influencing green buildings.
globally) and lack of political support the top two social reasons for For new buildings, the respondents
or incentives (38% compared with building green in that country. from Mexico report a bigger decrease
30% globally). This puts Mexico 67% of Mexican respondents in operating costs for one year and a
more in line with Brazil, Colombia, consider encouraging sustainable relatively low payback time for their
South Africa, India and Poland, all business practices the most new green buildings, compared with
developing countries that need more important social reason for their global peers. n
green awareness to help support building green, compared with
growth in their markets. However, 58% globally.
Mexicos emphasis on commercial
markets places it in a strong position
for continued growth. Expected Business Benefits of Green Building in Mexico
New Green Building Green Retrofit
Decreased Operating Costs Over One Year 12% 12%
Decreased Operating Costs Over Five Years 8% 8%
Payback Time for Green Investments (Years) 5 4

Data: Singapore
Green Building Activity and Trends in Singapore

Singapore is still in the midst of a robust increase in the level of
green activity, with a high percentage of respondents reporting an

expectation to build green projects in every building sector measured
in the survey. While the mandate passed in 2012 is the clear driver,
business benefits are emerging that encourage wider adoption.
Robust and Growing Average 2015 Green Share SECTORS WITH

Levels of Green of Building Project Activity EXPECTED GROWTH
Involvement in (For Firms in Singapore) Singapore is poised to be a leader
Singapore Dodge Data & Analytics, 2016 globally in four sectors for green
Nearly all respondents (97%) building in the next three years.
Green Share
in Singapore have engaged in at Retrofits of Existing Buildings:
Non-Green Share
least some green building, the Singapore has the highest
highest level of green building percentage of respondents (55%)
involvement of all the countries among the countries included in the
included in the survey. study who state that they will do
36%
In addition, the growth in the green retrofits of existing buildings
level of green activity in Singapore 64% in the next three years.
by 2018 is expected to be robust. New Commercial Construction
The highest level of growth in this (e.g., office, retail, hotel): 53%
country is expected among those of respondents from Singapore
doing more than 60% of their expect to do new green commercial
projects green, with a 15 percentage Levels of Green Building construction projects in the next
point gain from 23% currently to 38% Activity for Respondents
1_01_Global_Country_Batch1_ three years, above the global
by 2018. This is a higher percentage GreenShare_Singapore_#02
in Singapore average of 46%. However,
than that from any country included (20152018 Expected) developing regions like Mexico,
in the survey, other than South Africa Dodge Data & Analytics, 2016 India and Colombia do exceed
and India. Clearly Singapore is an Singapore in the percentage of
1% to 15% More Than 60%
important, growing market for Green Projects Green Projects respondents expecting to do green
green product manufacturers and Exploring 31% to 60% work in this sector.
service providers. Involvement)
New Institutional Construction
16% to 30%
These findings are strong Green Projects (e.g., schools, hospitals, public
compared with the other global buildings): 48% of respondents
findings in this study, but they do from Singapore expect to do new
appear on the surface to be a step green institutional construction,
back from the 2012 findings, where 38% compared with 38% globally. Again,
23%
64% of respondents reported doing this is the highest percentage of
more than 60% of their projects respondents from any country
green. However, 2012 was also the 14% included in the study.
15%
year in which Singapore launched New High-Rise Residential:
a major government mandate for Singapore also leads globally in

green. Three years of experience 40% this category with 48%, tied only
35%
with living under the mandate 20% with India.
9%
have tempered the responses as 3% 3%
In fact, Singapore exceeds global
knowledge about green building has 2015 2018 averages for all other categories,
grown in Singapore.
SmartMarket Report Dodge Data & Analytics
Activity_Singapore_#01 40
Data: Singapore CONTINUED
including low-rise residential, Top Triggers Driving Future practices. It was selected by 64%
commercial interiors and Green Building Activity of Singapore respondents, putting

communities. There is a far in Singapore Singapore roughly on par with the
more broad-based commitment Dodge Data & Analytics, 2016 UK, the US, Mexico and Colombia in
to green evident in Singapore than Singapore terms of this driver.
in other global markets. Global Respondents While reducing energy use is
the most important environmental
Influence Factors Environmental Regulations reason for building green in most
for Future Green 58% countries, it is more dominant in
Building Activity 35% Singapore than in other countries.
84% of respondents selected this
TRIGGERS Lower Operating Costs
as the most important reason,
Given the influence of the 2012 28% with next highest factors, reducing
green mandate in Singapore, it is 23% water consumption and lowering
not surprising that environmental
Market Demands greenhouse gas emissions, each a
regulations are the top trigger by
25% distant second at 31%.
far, selected by 58%. This places
Singapore with a small group of 30%
countries, including the UK and India,
Business Benefits
Client Demands Nearly all (95%) of the respondents
where regulations are clearly the
23% in Singapore use some metrics to
driving force for adoption.
40% actively track building performance.
However, more market-based
Right Thing to Do This finding is not surprising, given
triggers, such as lower operating
the fact that tracking metrics on the
costs and market demands, are 23%
benefits of green is included in the
also very influential in Singapore 25%
government mandate.
and roughly equivalent with
Tracking these metrics has led to a
global averages.
higher first costs, lack of public refinement since the 2012 survey in
CHALLENGES awareness or lack of political the estimates for five-year operating
The biggest challenge faced by support/incentives are obstacles to cost savings for new green buildings.
the burgeoning green market in green building, compared with their
Triggers_Singapore_#01 Respondents from Singapore are
Singapore is the lack of trained green global counterparts. now slightly more conservative
building professionals, selected by about the longer-term reductions.
43% as a top obstacle, at least nine Social and However, overall, these respondents
percentage points above any other Environmental Reasons still report robust savings and can
country in the study. for Building Green clearly make the business case for
The second most important The most important social reason for green building. n
challenge, and the only other building green in Singapore is that
challenge selected by a notably it encourages sustainable business
higher percentage of respondents
from Singapore than other countries,
Expected Business Benefits of Green Building in Singapore
is the concern about affordability
and perception that green is for New Green Building Green Retrofit
high-end projects only, selected 2012 2015 2012 2015
by 38%. Decreased Operating Costs Over One Year 9% 10% 9% 9%
A much lower percentage of
respondents from Singapore, on
the other hand, are concerned that Payback Time for Green Investments (Years) 7 8 6 7

Data: China
Green Building Activity and Trends in China
Robust growth is expected in the level of green activity in China.

This market is differentiated by its drive to build green for benefits

beyond energy use reduction, including protecting natural resources
and improving indoor air quality. A focus on healthy communities
also differentiates the Chinese green building market.
Rapid Level of Growth Average 2015 Green Share New High-Rise Residential (4
in Green Involvement of Building Project Activity floors and above): 45% report that
Expected in China (For Firms in China) they will do new green high-rise
China still has an emerging green Dodge Data & Analytics, 2016 residential buildings, far exceeding
building market. One third (33%) of Green Share the global average of 25% and
respondents from China report that Non-Green Share putting China on par with other
they are doing less than 16% of their developing green markets like
projects green currently, and very Singapore, India and Brazil.
few (5%) are doing the majority of Communities (mixed-use
their work (more than 60% of their 28% development combining

projects) green. residential and commercial
72%
Within three years, though, buildings): At 36%, China has the
respondents from China expect to be highest percentage of respondents
more highly engaged in green. Very globally who expect to be working
few (5%) expect to still be doing less on communities. This finding is
than 15% of their projects green, and not surprising given Chinas focus
those who believe that they will be Levels of Green Building on developing sustainable mega-
doing a majority of their work green 1_06_Global_Country_Batch1_
Activity for Respondents in cities. Only respondents from
increases more than fivefold to 28%. GreenShare_China_#02
China (2015 and Expected 2018) Singapore and Brazil, two other
Dodge Data & Analytics, 2016 urbanizing areas with significant
SECTORS WITH
1% to 15% More Than 60% opportunities for greenfield
EXPECTED GROWTH
Green Projects Green Projects development, report a similar
China significantly exceeds global Exploring 31% to 60% interest in green communities.
averages for respondents who plan (No Green Green Projects
Involvement) 16% to 30%
to do green projects in three sectors. A notably lower percentage of
Green Projects
New Commercial Buildings Chinese respondents (19%) expect
(e.g., office, retail, hotel): 55% of to do green retrofits of existing
respondents from China expect buildings in the next three years than
to build new green commercial 28% the global average (37%).
buildings, compared with the 5%
46% who expect to do this work Influence Factors
globally. Other countries with a 35% for Future Green
similarly high percentage of those 39% Building Activity
expecting to do commercial
TRIGGERS
green building include Mexico, 25% Market demands are the most
Singapore, India and Colombia, 27% 5%
18% widely recognized trigger for future
underscoring the role of 8% 10%
green activity in China. However, in
commercial construction as an
2015 2018 addition to the pull of the market, the
important driver of green building
push of environmental regulations is
in some developing countries.
also critical in China.
Activity_China_#01
Data: China CONTINUED
The biggest difference between Top Triggers Driving Future Unlike many countries included in the
the top triggers globally and those Green Building Activity survey, several environmental reasons
in China is the importance of in China for building green are selected by
healthier neighborhoods in China, Dodge Data & Analytics, 2016 over 40% of respondents as among
with twice the percentage (30%) of China the most important, rather than just
Chinese respondents who consider Global Respondents reducing energy consumption:
it important compared with global Reduce Energy Consumption: 49%
respondents (15%). Market Demands (compared with 66% globally)

43% Protect Natural Resources: 49%
CHALLENGES
30% (compared with 37% globally)
The challenge considered important
Improve Indoor Air Quality: 42%
by the highest percentage of Chinese Environmental Regulations
(compared with 17% globally)
respondents (60%) is higher first 36%
costs for building green. This is a 35% The concern with indoor air quality,
higher percentage than the global combined with the focus on healthier
Client Demands
average of 50%. It is a surprising neighborhoods, reveals that health
finding given the relatively 34% and well-being is a key priority for
low payback period for green 40% green building in China, more than
investments for projects in China Healthier Neighborhoods in many other countries included in
(see below). 30% this study.
Other major challenges in China
15%
include lack of public awareness Business Benefits of
and concerns about affordability, Right Thing to Do Green Building
but the percentage of respondents 28% All respondents from China
from China for each of these top 25% report using metrics to track the
challenges largely correspond to performance of their green buildings.
global averages. However, the results they report are
One concern that ranks much reasons for building green exceed very conservative compared with
higher in China than it does globally the global averages. the global medians, especially the
is the level of corruption in the 1_25_Global_Country_Batch1_
One third (33%) of Chinese reduction in operating costs over
industry and/or government. Triggers_China_#01
respondents consider the ability one year for both new buildings and
21% reported this concern in China, to create a sense of community retrofits, which at 4% is less than half
compared with a global average a top reason for building green, of the 9% global median. However,
of 13%. compared with 29% globally. low construction costs in China result
One third (33%) also select the in shorter payback periods than
Social and support of the domestic economy, the global median, which can help
Environmental Reasons compared with 29% globally. encourage green investment. n
for Building Green
The top social reason for building
green in China is to encourage
sustainable business practices,
selected by 49%. However, China still Expected Business Benefits of Green Building in China
falls below the global average of 58%
for this factor.
On the other hand, the percentage Decreased Operating Costs Over One Year 4% 4%
of respondents in China who select Decreased Operating Costs Over Five Years 9% 9%
the next two most important social Payback Time for Green Investments (Years) 6 5

Data: India
Green Building Activity and Trends in India

Environmental regulations have helped the green building market
in India to flourish, especially in the private sector. However, India

faces challenges typical of developing countries, including the lack
of public awareness about green and concerns about corruption, and
respondents from India see the need for more public incentives.
Strong Green Market Average 2015 Green Share This high level of activity is only
Currently With an of Building Project Activity exceeded by Mexico, although a
Even Higher Level of (For Firms in India) high degree of green commercial
Engagement Expected Dodge Data & Analytics, 2016 activity is evident in many other
in India Green Share developing countries, including
In India, green building already Non-Green Share Colombia and China.
accounts for 37% of the total work of New High-Rise Residential (4 floors
the survey respondents, a notably and above): 48% of respondents

higher share than in the UK, China from India expect to work on green
or Saudi Arabia. However, by 2018, high-rise residential projects in the
37%
that share is expected to be 57%, 63% next three years, compared with
the second highest among all of the 25% globally. Again, high levels of
countries included in the survey. activity in this sector are also evident
The high green share is the in several other developing countries,
result of an anticipated shift in including Brazil, China and Singapore.
activity toward a very high level of
A much lower percentage of
engagement with green. While 20%
1_07_Global_Country_Batch1_ respondents from India believe
of respondents from India currently
GreenShare_India_#02 they will be doing new green
report that more than 60% of their
India (2015 and Expected 2018) institutional construction (26%) or
projects are green, over half (52%)
Dodge Data & Analytics, 2016 existing building retrofits (24%) than
of all Indian respondents expect to
1% to 15% More Than 60% the global averages (38% and 37%,
be that engaged with green building
Green Projects Green Projects respectively). This, combined with
by 2018. This increase makes India a
Exploring 31% to 60% the importance of environmental
particularly strong market for green (No Green Green Projects
Involvement) regulations in India (see below),
building products and services. 16% to 30%
Green Projects suggests that green building in India
SECTORS WITH is largely driven by the private sector.
EXPECTED GROWTH
India significantly exceeds global Influence Factors
averages for anticipated activity 20% for Future Green
52%
in two sectors: new commercial Building Activity
buildings and new high-rise
29% TRIGGERS
residential buildings.
Environmental regulation is
New Commercial Buildings
considered one of the top triggers
(e.g., office, retail, hotel): 61% 24%
for new green building by the
of respondents from India say
31% highest percentage (52%) of Indian
they will be doing new green 16%
5% 14% respondents. This puts India on par
commercial buildings in the next 4% 5%
with other countries like Singapore
three years, compared with 46% 2015 2018 and the UK, and greatly exceeds the
who expect to do this work globally.
Activity_India_#01
Data: India CONTINUED
There are no other triggers Top Triggers Driving Future Like those from many other
selected by more than 30% of Green Building Activity countries, respondents from India
Indian respondents as important. in India most frequently consider reducing
However, 28% do consider healthier Dodge Data & Analytics, 2016 energy consumption to be an
neighborhoods an important trigger, India important environmental reason to
nearly double the global average Global Respondents build green, selected by 62%. The
of 15% and second only to China at only other environmental factor
30%. This reinforces the importance Environmental Regulations selected by more than one third of
of the residential market for driving 52% the respondents is the protection of
growth in green building in India. 35% natural resources (48%, much higher
than the global average of 37%).
CHALLENGES Healthier Neighborhoods
Like many other developing 28%
countries, lack of public awareness
Business Benefits of
15% Green Building
and concerns about corruption
Right Thing to Do Most of the respondents from India
are considered to be among the
24% (91%) use metrics to track building
top barriers preventing growth
25% performance. For new buildings,
of the green market in India, by
they report results that are slightly
48% and 41%, respectively. The Employee Recruitment
higher but overall consistent with
challenge of higher first costs is 22% global medians on operational
also noted by 35%, but an equal
5% savings over one year and five years.
percentage consider lack of political
Lower Operating Costs However, the quick payback period
support or incentives a serious
suggests that their construction
obstacle to green. Combined with 20%
costs are generally lower than most
the importance of environmental 23%
of the other countries in the study.
regulations among the triggers, this
They also report bigger operating
suggests that the market is seeking Two other social reasons were
cost decreases for retrofits than
more incentives as a balance to the selected by 40% or more of the
are reported globally, which may
regulatory green requirements. respondents from India:
1_26_Global_Country_Batch1_ eventually encourage more growth
46% see encouraging sustainable
Triggers_India_#01 in that market in India. n
Social and business practices as an important
Environmental Reasons reason to build green, although this
for Building Green percentage is lower than the global
India is unique among the countries average (58%).
that participated in the survey in the 40% believe that supporting the
high percentage (51%) who consider domestic economy is an important

creating a sense of community social reason to build green, and in
among the most important social this case, this is much higher than
reasons for building green. This is 22 the global average (29%).
percentage points higher than the
global average, and 18 percentage
points or more than the levels of Expected Business Benefits of Green Building in India
responses from all other countries
included in the study. This finding
corresponds with the focus on the Decreased Operating Costs Over One Year 10% 11%
residential sector for green growth Decreased Operating Costs Over Five Years 15% 16%
in India. Payback Time for Green Investments (Years) 4 5

Data: Australia
Green Building Activity and Trends in Australia

Australia is a relatively mature green building market, with stable growth
and a clear commitment to green building. An increased focus on health and

concern about the perception that green building is for high-end projects only
are the key factors that differentiate Australia from other global markets.
Stable Green Market Average 2015 Green Share participation in the study by
With a Moderate Shift to of Building Project Activity Australia Green Building Council
More Green Activity (For Firms in Australia) members suggests widespread
in Australia Dodge Data & Analytics, 2016 use of green building certification
The findings of the current study Green Share throughout Australia.
demonstrate a stable and mature Non-Green Share SECTORS WITH
green market in Australia, with
EXPECTED GROWTH
a moderate shift to higher levels
The top sector for expected green
of green involvement by the
growth in Australia is new low-rise
respondents expected in the next 34% residential construction, followed
three years.
66% by retrofits of existing buildings and
By 2018, nearly half (48%) of the
institutional construction.
respondents expect that more than
New Low-Rise Residential (1-3
30% of their projects will be green, an
floors): This is the only category in
increase of 14 percentage points over
which the percentage of Australian
those currently engaged with green
respondents (39%) exceeds
at that level. The majority of that
1_03_Global_Country_Batch1_ global responses (27%). A similar
growth comes in those who expect to Levels of Green Building
GreenShare_Australia_#02 high percentage is reported in
do 31% to 60% of their projects green. Activity for Respondents
the UK and Singapore. These
However, it is notable that 10% in Australia (2015 and
three countries also have higher
of Australian respondents do not Expected 2018)
percentage than average reporting
expect to do any green work by Dodge Data & Analytics, 2016
that environmental regulations
2018, the same percentage as those
1% to 15% More Than 60% are important drivers for green,
not doing any green work currently. Green Projects Green Projects
suggesting the importance of
Therefore, the entire shift comes Exploring 31% to 60%
(No Green Green Projects those regulations to push low-rise
from those already doing green Involvement) 16% to 30% residential green construction.
who expect to increase their level of Green Projects Retrofits of Existing Buildings: 33%
green involvement. This suggests a
of Australian respondents believe
relatively mature and stable market,
that they will work on a green
where those who are likely to do
retrofit in the next three years. This
green projects have already engaged
29% is roughly comparable to the global
in at least some green work.
average of 37%.
Another indication of the stability 27%
Institutional Construction
and maturity of the Australian green 19% (e.g., schools, hospitals, public
building market is the relatively 7%
buildings): 30% of respondents
high green share indicated. While
23%
from Australia believe they will
only 15% of the respondents in the 33% 10% 32% engage in institutional green
current study are members of a
10% 10% building, slightly lower than the
green building council, the share of
38% global average.
green work is still 34%. The high level 2015 2018
of use of certification despite the low
SmartMarket Report Dodge Data & Analytics
Activity_Australia_#01.eps46
Data: Australia CONTINUED
Influence Factors Top Triggers Driving Future Social and

for Future Green Green Building Activity Environmental Reasons

Building Activity in Australia for Building Green
Dodge Data & Analytics, 2016 There are two top social reasons for
TRIGGERS
Australia building green in Australia.
Environmental regulations and
Supporting the domestic economy
healthier neighborhoods are the Global Respondents
is a top social reason according to
top triggers for green building Environmental Regulations 46% of respondents, the highest
in Australia.
46% of any country covered in the
Environmental regulations are
35% survey and far more than the global
considered a top trigger by 46%.
average of 29%.
This is in sharp contrast to the 2012 Healthier Neighborhoods
39% find that encouraging
findings, in which environmental 30%
sustainable business practices
regulations were only selected 15% is a top social reason for building
by 12%. The high level of green
Client Demands green. While this is the second most
activity in Australia by the survey
27% important factor, it lags behind the
respondents suggests the
40% global average of 58%.
effectiveness of environmental
regulations in Australia, although Higher Building Values Reducing energy consumption and
the limited growth in the future 27% protecting natural resources are
suggests that regulations are each cited as the top environmental
14%
limited in the degree of green reasons for building green by 50%.
activity they can drive. Market Demands While energy consumption is typically
Healthier neighborhoods are 24% a top environmental factor, it is rare
considered a top trigger by 30%, 30% for another factor to be considered
double the global average who equally important by respondents,
consider this important. In 2012, emphasizing the importance of
only 11% of Australian respondents protecting natural resources for
considered this important, Australian respondents.
suggesting an increased focus of 1_23_Global_Country_Batch1_
However, a much lower percentage
the impact of buildings on health in Triggers_Australia_#02
of Australian respondents (30%) Business Benefits
this country. consider higher first costs important Australians report strong benefits
than globally (50%). The lower level driving green. They are roughly
CHALLENGES
of concern about cost may be due consistent with the global medians,
The top challenge for green building
to the long history of green building although they are more optimistic
growth in Australia is the perception
in Australia, which contributes to about one-year operational cost
that green building is not affordable,
the availability of skilled labor and savings in new buildings and five-
and is for high-end projects only.
creates a competitive market for year operational cost savings in
Australia has the highest percentage
green products and services. retrofits than the global medians. n
(42%) concerned about this issue
globally. This finding is consistent
Expected Business Benefits of Green Building in Australia
with the 2012 study, where roughly
the same percentage (44%) report New Green Building Green Retrofit
this as a top obstacle. 2012 2015 2012 2015
Concerns about access to
Decreased Operating Costs Over One Year 8% 11% 8% 7%
capital also rank higher in Australia
than they do elsewhere, with 24%
selecting this as a top obstacle. Payback Time for Green Investments (Years) 9 8 7 9

Data: South Africa
Green Building Activity and Trends in South Africa

South Africa is emerging as a leader in green building, but one of its
main challenges is finding enough skilled green professionals. Reducing

water consumption is a priority, and the importance of achieving healthy
communities is also a key driver distinguishing this market.
South Africa Average 2015 Green Share of New Commercial Buildings

Demonstrates a Building Project Activity (e.g., office, retail, hotel): 40%
Major Commitment (For Firms in South Africa) of South African respondents
to Building Green Dodge Data & Analytics, 2016 report expecting to do new green
Green building is already well Green Share commercial buildings. While this is
established in the South African Non-Green Share the second biggest growth area for
market, with survey respondents South Africa, that is actually slightly
indicating that 41% of their work below the global average of 46%.
is currently green. However, New Low-Rise Residential (13
respondents believe the green stories): 31% of the South African

41%
activity so far is just laying the 59% respondents expect to do new
groundwork for an overall shift in the green low-rise residential projects,
market, with nearly two thirds (61%) roughly on par with the global
reporting that they expect over 60% average of 27%.
of their projects to be green by 2018.
If this degree of commitment to Influence Factors
green building holds, South Africa for Future Green
will be a leader in the global green Building Activity
Activity for Respondents
GreenShare_South Africa_#02
market in the next three years.
From South Africa (2015 and TRIGGERS
SECTORS WITH Expected 2018) Consistent with the 2012 findings,
EXPECTED GROWTH Dodge Data & Analytics, 2016
the right thing to do is the top trigger
South Africa is one of the few 1% to 15% More Than 60% driving future green activity in South
countries included in the study Green Projects Green Projects Africa, selected by 40%. This is much
where the highest percentage of Exploring 31% to 60% higher than the global average.
respondents expect to be doing Involvement) 16% to 30% Another trigger that is consistent
green retrofits of existing buildings Green Projects with the 2012 findings is healthier
in the next three years. Commercial neighborhoods, which again is
building and low-rise residential higher than the global average for
projects are also expected to be that factor. This puts South Africa
relatively strong sectors for green in 27% roughly on par with Australia, China
South Africa. 61% and India in terms of the emphasis
Retrofits of Existing Buildings: on health as a key factor, and may be
46% of South African respondents associated with the relatively high
expect to build green in this sector 31% level of green low-rise residential
in the next three years, notably projects activity expected in the next
more than the 37% global average, 13% three years.
12%
and roughly on par with the activity 21% 3%
9% 13%
expected in the US, Mexico, the UK, 10%
Singapore and Brazil. 2015 2018
Activity_South Africa_#01
Data: South Africa CONTINUED
On the other hand, client demands Top Triggers Driving Future well-being is important in the South
and market demands are both Green Building Activity in African green building community.
much more important triggers in South Africa South Africa is consistent with
the current study than they were Dodge Data & Analytics, 2016 the global consensus on the
in the past, suggesting increased South Africa importance of reducing energy
understanding in the South African Global Respondents consumption as an environmental
construction market of the value of reason for building green. In contrast,
green buildings. Right Thing to Do a much higher percentage (49%) of
40% South Africans consider reducing
CHALLENGES
25% water consumption important than
Despite wider recognition of the
respondents in China and India,
value of green in the market, the Client Demands
and countries in North America and
highest percentage of South African 37%
Europe, whose percentages range
respondents (37%) consider the 40% from 13% to under 30%. Finally,
lack of public awareness to be a
Market Demands like many other developing
top barrier limiting the growth of
29% economies in the survey such as
green building.
30% China, India, Saudi Arabia, Brazil
Three additional challenges
and Colombia, South Africa also
were selected by 34% of South Environmental Regulations considers protecting natural
African respondents: 26% resources important, with 46%
Higher First Costs: The percentage
35% regarding this as a key environmental
who select this as an obstacle in
Healthier Neighborhoods reason to build green.
South Africa are considerably less
than the global average of 50%. 26%
Lack of Trained Green Building
Business Benefits
15%
Most of the respondents in South
Professionals: The percentage
Africa (87%) use metrics to measure
exceeds the global average of 21%.
However, increasing worker the performance of their green
Other burgeoning green markets
productivity was named by 41%
1_27_Global_Country_Batch1_ buildings. While more modulated
like Singapore, India and Brazil
of South African
Triggers_South respondents as
Africa_#01 compared to the 2012 findings,
share this concern.
an important social reason for South Africans still see operational
Lack of Political Support and
building green, which is notably cost savings on new buildings to a
Incentives: The percentage
higher than all other countries much greater degree than those in
is roughly on par with the
included in the study except Mexico other countries included in the study.
global average.
(44%), Germany (41%) and Saudi However, their payback period for
Arabia (50%). This, combined their green investments of eight
Social and with the emphasis on healthier years is the same as the global
Environmental Reasons neighborhoods as a trigger for green, median, possibly suggesting higher
for Building Green suggests a focus on health and premiums to build green. n
The highest percentage (63%)
of South African respondents
by far consider encouraging Expected Business Benefits of Green Building in South Africa
sustainable business practices
to be an important social reason
2012 2015 2012 2015
for building green, but this is
relatively consistent with many Decreased Operating Costs Over One Year 7% 18% 12% 9%
other countries in the survey. Decreased Operating Costs Over Five Years 33% 19% 37% 29%
Payback Time for Green Investments (Years) 7 8 5 6

Data: Business Benefits
of Green Building
Important Business Benefits of Green Building
Survey participants were asked to select the most Most Important Benefits of Green Building
important benefits of green building in their market (Countries With the Highest and Lowest
from a list of 10 possible options, with no limit in terms Percentage of Respondents and the
of the number of benefits they could select. The chart Global Average)
at right shows the countries with the highest and lowest Dodge Data & Analytics, 2016
percentage of respondents who selected that benefit, Top Two Global Lowest Two
along with the global averages. Overall, the findings Countries Average Countries
reveal patterns in terms of the benefits valued most by Saudi
Lower Operating US Colombia China
developing countries, compared with those valued in Arabia
more well-established green markets. Costs (e.g., energy
costs, total 81% 79% 69% 38% 29%
By far, the most widely reported benefit globally lifecycle costs)
is lower operating costs. This corresponds to the
China Brazil Australia Germany
findings in the 2012 study. However, as the country data Documentation and
demonstrates, there are significant variations by market Certification Providing 51% 49% 31% 21% 18%
Quality Assurance
in terms of the importance of this benefit. A particularly
high percentage consider it important in the Americas, Brazil Singapore UK Germany
Education of
including in the US (81%), Colombia (79%), Mexico (73%) Occupants About 51% 45% 31% 19% 9%
and Brazil (65%). Respondents from China (38%) and Sustainability
Saudi Arabia (29%), on the other hand, consider other Mexico China US UK
benefits more important, including future proofing assets Higher Value at 50% 47% 30% 20% 20%
(66% and 38%, respectively) and a higher value at point Point of Sale
of sale (47% and 31%), both of which may have stronger China UK Colombia US
financial implications than operating costs. Future Proofing
Assets 66% 39% 26% 17% 13%
Globally, 30% to 31% of respondents consider three
additional benefits important in their markets: South Africa/ Brazil/
Documentation and Certification Providing Flexibility of
Singapore/ India Poland US
China
Quality Assurance Design Built Into
Green Buildings 40% 39% 25% 21% 15%
Education of Occupants About Sustainability
Higher Value at Point of Sale

Mexico India Australia Germany
Increased
Interestingly, the four countries in which a high Productivity for 38% 37% 22% 12% 9%
percentage of respondents consistently selected Tenants
each of these benefits (Brazil, China, Mexico and South Africa/ UK/
Germany Poland US Singapore
Singapore) are all still actively developing a green Higher Rental 36% 29% 17% 14% 13%
Rates
market, though in the case of Singapore, mandates
are driving the market quickly. In contrast, the three China Singapore Colombia Australia/
UK
countries where these benefits are least frequently Higher Occupancy
Rates 36% 28% 16% 12% 9%
selected (the UK, Germany and the US) are developed
markets with a long history of green building. Clearly,
each of these is more critical in a market in which green is Productivity is also a key issue for some developing
still being established. countries, carrying particular weight in Mexico (38%)
Flexibility of design built into green is considered and India (37%), but with little emphasis in Australia
4_01_Global_Benefits_Countries_#02
more important in developoing markets and less (12%), Germany (9%) or the UK (13%). Mexico and India
important in Europe and North America. It is the only are also the two countries with the highest percentage
category with five countries with roughly the same of respondents expecting to do commercial green
percentage of respondents at the upper end (39% to 40%), projects in the next three years, which perhaps
and all of those countries are developing markets in Asia, influences the importance of productivity as a green
Africa and South America. benefit in these markets.

Business Benefits of Green Building CONTINUED
Metrics Used to Measure Benefits of Green Building
Three quarters (75%) of the total study participants Metrics Used to Measure the Business
report using metrics to track green building Benefits of Green Buildings

performance. This is a 12 percentage point gain over (2012 and 2015)
those who reported using metrics in 2012. The findings Dodge Data & Analytics, 2016
on the business benefits of green reported in this study 2015

are thus informed by the metrics that are actively tracked 2012
by respondents, in addition to their expectations about
the benefits of building green. Lower Operating Costs
(e.g., energy costs, total lifecycle costs)
However, there is notable variability in the use of
metrics by country. The US (57%) and UK (61%) have the 57%
lowest percentage using metrics to measure the impact 52%
of green buildings. On the other hand, many markets that Documentation and Certification
are expecting the most dramatic growth in green over the Providing Quality Assurance
next three years (see page 10) are also those that have the 33%
highest levels of measurements, including Mexico (92%), 28%
Brazil (96%) and Saudi Arabia (87%).
Higher Value at Point of Sale
Market maturity, however, is not a gauge for the
23%
likelihood of measurement. Respondents in Australia
(87%) and Germany (87%) report a high level of 13%
measurement, similar to those in the developing markets Higher Occupancy Rates
cited above. 18%
Not surprisingly, respondents from firms with a
10%
higher level of green involvement also report doing more
measurements. 81% of those at a high level of green Increased Productivity
for Tenants
involvement (more than 60% of their projects green)
17%
report using metrics, compared with 53% of those doing
15% or less of their projects green. 8%
As the chart at right reveals, operating costs are the Higher Rental Rates
most frequently tracked metric. It also demonstrates a 15%
directional increase between 2012 and 2015 in the use of 11%
most of the metrics, with significant increases in 2015 for
metrics tracking higher values at point of sale and higher
occupancy rates.
4_03_Global_Benefits_MetricsUsed_#02
Percentage of Respondents Using Metrics to Track Building Performance
(Global Average and by Country)

96% 100%
92% 95% 91%
87% 88% 87% 87%
74%
61% 65%
57%
Use Metrics
to Track
75%
Building
Performance
Arabia Africa
4_02_Global_Benefits_UsingMetrics_#02
Benefits of New Green Building Investments
As the findings on the top triggers for green building Expected Operating Cost Decreases for New
demonstrate, information about the business benefits Green Building Efforts Over 12 Months and
resulting from green building investments is essential to Five Years (2012 and 2015)
encourage more green building activity in every global Dodge Data & Analytics, 2016
market. (See pages 14 and 15 for more information.) More Than 15%
The benefits measured in the current study 11% 15%
operating cost decreases compared with traditional 6%10%
buildings, average payback periods for green 5% or Less
investments and increased asset value compared with None
traditional buildingsfrequently matched or exceeded
those reported in the 2012 study. This finding reinforces Over the Next 12 Months Over the Next 5 Years
the compelling business case for green and demonstrates
the validity of the findings in both studies. It is also 23% 22%
particularly notable since only 33% of the 2015 study 49% 43%
participants are green building council (GBC) members, 16% 19%
compared with 75% of study participants in 2012. This
demonstrates that a more industry-representative group 24% 18%
27% 17%
of participants still expects the same level of benefits
from green as those who are committed enough to green 19%
32% 19%
building to join a GBC. 26%
5% 6% 2% 16% 4%
One factor that may contribute to the level of 13%
knowledge about the benefits of green demonstrated by
the 2015 study participants is that three quarters (75%) of 2012 2015 2012 2015
them are tracking metrics on these benefits (see page 51), Median: 8% Median: 9% Median: 15% Median: 14%
which also reinforces the validity of the findings.
Lower Operating Costs

As the chart at right makes clear, the findings for
operating costs in new green buildings in the current
4_04_Global_Benefits_New_Operating_#02
study are largely consistent with those reported in the
previous study.
The 2015 respondents report slightly lower
operating costs during the first 12 months after

the building is complete. The median decrease in
operating costs in 2015 is 9%, versus 8% in 2012. In
general, there is a slightly more even distribution
across the various levels reported in 2015 than in 2012,
with a slight reduction in those reporting decreases
of 5% or less, which mostly shifts to those reporting
increases between 5% and 15%.
The overall pattern is similar between 2012 and 2015
for operating cost reductions over the next five years

in new green buildings compared with traditional
buildings. The slight difference in the median drop
in operating costs from 15% in 2012 to 14% in 2015 is
largely due to a six percentage point drop in those who
report that the savings are more than 15%.

Business Benefits of Green Building
Benefits of New Green Building Investments CONTINUED
VARIATION BY LOCATION Payback Period for Additional Cost of a

By and large, the countries that report the biggest New Green Building
one-year reductions in operating costs in green (According to All Global Respondents)
buildings differ from those reporting the largest five-year Dodge Data & Analytics, 2016
reductions. One exception is the US, which reports large

15 years
reductions across both the time frames.
610 years
Countries that exceed the global average (22%) of those
More Than 10 Years
reporting operating cost reductions greater than 15% in
the first 12 months include the US (32%), Mexico (33%), 2012 2015
Colombia (33%), Australia (37%) and Singapore (27%).
Countries that exceed the global average (43%) of
those reporting operating cost reductions greater than 26% 26%

30%
15% over the first five years include the US (53%), Brazil 33%
(52%), South Africa (52%) and Saudi Arabia (50%).
VARIATION BY LEVEL OF
GREEN INVOLVEMENT 44% 41%
Firms with a high level of green involvement (more than
60% of their projects green) are more likely to find that
new green buildings have larger decreases in operating Median: 8 Years Median: 8 Years
costs for the first 12 months and for the first five years,
than those doing little or no green building (less than 15%
of their projects green).
44% of those highly involved in green report that new 4_05_Global_Beneftis_New_Payback_#02
green buildings lower operating costs in the first year
by more than 15%, compared with 15% of those doing
little or no green building.
40% of those highly involved in green report that new
green buildings lower operating costs in five years by

more than 15%, compared with 23% of those doing
little or no green building.
Average Payback on New Green

Building Investments
73% of respondents find that new green building projects
cost more than non-green building projects. That
additional cost has a median value of 8%.
Given the high percentage of respondents still
experiencing a green building premium, the payback
period for the investment in green is critical. Payback
period is particularly essential for certain commercial
markets such as office, multi-residential housing or
hotels, in which properties regularly change ownership.
The median payback period in the current 2015
study is eight years, the same as it was in 2012. As the
chart at right reveals, the distribution of responses is
also similar between the two studies, with a third of
respondents in the current study reporting paybacks of
five years or fewer.

Benefits of New Green Building Investments CONTINUED
Expected Increase in Asset Value for a New

Higher Asset Value
Green Building (According to Owners)

OWNERS Dodge Data & Analytics, 2016
Owners were asked about the degree to which the asset More Than 10%
value of new green buildings is higher than that of new 6% 10%
non-green buildings. The findings from owners are the 3% 5%
most striking difference from the 2012 findings, with the Less Than 3%
owners reporting a median 7% asset value increase in None
the 2015 study, compared with 5% from 2012.
This finding gains particular importance because of 16%
the median payback window of eight years also reported 24%
in the study. Commercial buildings often change owners
in five-year intervals or less. Since the investment in 31%
33%
green may not be paid off in operating cost savings in that
short window, owners are still encouraged to build green
in order to achieve a higher asset value when putting their 31%
24%
buildings on the market.
There is also a notable trend for owners with a higher 18% 4% 15% 4%
level of green involvement to report higher asset value
for their green buildings. Owners with 15% or fewer of
2012 2015
their building projects green report a median increase in
asset value of 4%, but those doing more than 30% green Median: 5% Median: 7%
projects report a median increase of 8%.
ARCHITECTS AND CONTRACTORS
4_06_Global_Benefits_AssetV_Owners_#02
Architects and contractors were asked to estimate
Expected Increase in Building Value
the percentage by which being green increases a
for a New Green Building
new buildings value. In the current study, as in 2012,
(According to AEC Respondents)
they believe the increase is even higher than that
reported by the owners. While the median increase in
value they estimated only grew by one percentage point More Than 10%
between 2012 and 2015, it is notable that those who 6% 10%
felt the increase was more than 10% grew dramatically Less Than 5%
between studies, from 19% to 27%. This expectation Retains Value Better
of increased value may help them convince owners None
unfamiliar with the benefits of green building to make
the necessary investments. 19%
27%
21%
23%
30%
22%
23% 22%
6%
7%
2012 2015
Median: 7% Median: 8%

Benefits of Green Retrofit and Renovation Projects
About half (48%) of respondents report that they have Expected Operating Cost Decreases From
done a green retrofit/renovation project in the last Green Retrofits or Renovations

three years, and more than one third of respondents (2012 and 2015)
(37%) report that they expect to do a green retrofit/ Dodge Data & Analytics, 2016
renovation project in the next three years. Retrofit/ More Than 15%
renovation activity is unevenly distributed globally, with 11% 15%
few respondents in Poland, Saudi Arabia, China and India 6%10%
expecting to engage in retrofit work in the next three 5% or Less
years (see pages 11 and 12 for more information). Data None
that makes a compelling business case for green retrofits,
therefore, is essential to help the existing building stock Over the Next 12 Months Over the Next 5 Years
globally improve its performance.
24% 21%
34%
Operating Cost Decreases 42%
Respondents were asked to what degree operating costs 17% 19%
declined due to green retrofit/renovation projects over
28%
two time periods: the first 12 months after the project was 27% 28% 20%
completed and the next five years.
As the chart at right indicates, the current studys 23% 21%
reported declines over the next 12 months closely mirror 30% 30%
those from the 2012 study, with both yielding a median 2% 2% 14% 1% 15% 2%
of 9% in operating cost decreases. The fact that the
operating costs decreased more for retrofit/renovation 2012 2015 2012 2015
projects than for new construction is consistent with Median: 9% Median: 9% Median: 13% Median: 13%
the findings from other studies about green building
conducted by Dodge Data & Analytics. It also speaks
to a generally higher level of building performance on
Payback Period for Cost of a
energy and other green factors expected currently in new
Green Retrofit/Renovation Project
buildings than was common decades ago. 4_08_Global_Benefits_Retrofit_OpCost_#02
(According to Global Respondents)
While the median expected cost decreases for one
year are higher for retrofits/renovation than for new
buildings, they are slightly lower when considering 15 years
the next five years. This may be due to expectations 610 years
that retrofits/renovations may not always be able to More Than 10 Years
achieve the same level of high performance as a building 2012 2015
designed and built to be green from the start. However,
the gap between the two is slightly less in 2015 than it was
in 2012, possibly suggesting that the potential for high- 15% 16%
performance retrofits is more widely recognized.
In addition, while the median value turns out to be 43% 46%
the same, there are differences in the distribution of
respondents across the different levels of cost decreases 42% 38%
expected in five years. Between 2012 and 2015, there was
a drop of eight percentage points between those who
believe that green retrofits save more than 15%. This drop
is offset in part by an eight percentage point increase in Median: 7 Years Median: 6 Years
those who report an 11% to 15% operational savings.
4_09_Global_Beneftis_Retroft_Payback_#02
Benefits of Green Retrofit and Renovation Projects CONTINUED
VARIATION BY LEVEL OF Expected Increase in Asset Value From a

GREEN INVOLVEMENT Green Retrofit or Renovation Project

As with the new green buildings, respondents with a (According to Owners)
high level of green involvement (more than 60% of their Dodge Data & Analytics, 2016
projects green) also report much greater cost reductions More Than 10%
than those doing little green work (between 1% and 14% 6% 10%
green projects). 3% 5%
Only 7% of those doing little green work find that green Less Than 3%
retrofits yield savings of more than 15% during the first None
12 months, compared with 35% of those with a high
level of green involvement. 14% 21%
20% of those doing little green work report savings of
more than 15% in the next five years compared with 24%
32% of those with a high level of green involvement. 33%
These differences may be influenced by multiple factors. 24%
For example, those with more experience with green
building may simply have more knowledge about the 33%
benefits. It is also possible that more green experience 31%
may help create higher-performing buildings, which 7% 6%
would therefore yield stronger savings. 7%
2012 2015
Average Payback on Green Retrofit/ Median: 4% Median: 7%
Renovation Investments
The median payback period for a green retrofit/
renovation reported by respondents is six years. While Expected Increase in Building Value From a
this is a slight improvement over the 2012 findings, in 4_10_Global_Benefits_Retr_AV_Owner_#01
Green Retrofit or Renovation Project
general, the findings are quite similar. (According to AEC Respondents)
There is no significant difference in terms of predicted Dodge Data & Analytics, 2016
payback period between respondents with a high level of More Than 10%
green involvement and those with less. This is surprising, 6% 10%
given the much higher operating cost improvements Less Than 5%
reported by those doing more green building projects. Retains Value Better
It may suggest that they are also investing more in their No Difference
green retrofit projects, with improved performance on
other factors than energy as the result.
28% 22%
Higher Asset Values

Similar to the findings on new green buildings, the most 22% 32%
dramatic difference from the 2012 findings is the increase
in asset value reported by owners, which leapt up from
a 4% median in 2012 to a 7% median in 2015. Again, this 30%
30%
is particularly important in building sectors where the
average length of ownership of buildings is less than the 4%
18% 2% 12%
six-year payback period indicated.
Unlike with new buildings, however, the estimates of 2012 2015
new building value increases reported by architects and
contractors are more in line with those reported by owners, Median: 5% Median: 7%
especially in 2015, where the median value is the same.
4_11_Global_Benefits_Retrof_AV_AEC_#01
Interview:Thought Leader
Lisa Bate: 20122015 Managing Principal, Shanghai/
EVP Asia; As of January 1, 2016, Regional Managing
Principal, North America, B+H Architects
Lisa has project experience across Canada, China, the US, the
Caribbean and India. She is a Board Member of the World Green
Building Council (WGBC) and a Fellow of the Royal Architectural

Institute of Canada, as well as a member of the Shanghai
Management Committee, Mainland China Urban Land Institute (ULI).
How does sustainability the most green spec possible ... What can drive the growth of
influence your approach to For occupants, its an amazing sustainability globally?
building an international practice staff retention, engagement and BATE: I think [green] is on
across several continents? attraction tool. But you have to be everyones agenda globally.
BATE: The way that I look at it, careful because you are disclosing Governments, global
and the way B+H looks at it, is what is going on, so there is a lot of organizations ... are doing
sustainability is just good design. transparency that is happening too. great research. The World
So what I really like right now Green Building Council brings
You have worked extensively is that in some things, the East is everybody together, and it is a
in Canada and China. What starting to lead the West because common platform to make sure
priorities do you see from your there are requirements in China everybodys talking and that tools
clients in these markets? to make broad moves and to get are developed and disseminated
BATE: It has always [previously] things really moving. to countries. But we have to
been about the cost of operating figure out how to assist and help
and the capital cost of the building What are the biggest emerging economies.
[in both countries]... Now if we look challenges facing the wider
at today, China is still very focused adoption of sustainable What has influenced your
on energy, but the tides are starting building practices? perspective on sustainability?
to turn. Health, materials, indoor air BATE: I think it is actually time BATE: My family did a fair amount
quality monitoring [are becoming ... how rapidly we can make this of travel [because] my father
more important]. A year ago 90% of change. There has got to be was a physician and assisted
Chinese staff would have switched collaboration at a global scale. internationally, so I was exposed
jobs for higher pay alone, but 56% of Air and water dont respect to lots of levels of living standards.
Chinese staff [now] view office health borders ... When the airpocalypse Food and clean water scarcity is
as a reason for switching jobs. happened in China, December real. Human health is paramount,
Thats staggering. 2013, if you looked at the skyline and the cost of environmental
So lets look at Canada. In most of Paris, the air shifted there. There degradation is in every country.
offices today, twenty to sixty percent is just so much more of a global We are only as good as what is
of office inhabitants have some effort that has to happen because being done in the underdeveloped
symptoms of sick building syndrome. there are no boundaries for our and emerging market countries. [As
What I am finding interesting is largest carbon sinks, which are manufacturing shifts from China to
the technology and innovation the oceans and air ... NIMBYism other countries], now the problem
that is given birth in China, often in has to stop. is hitting Indonesia, Cambodia,
collaboration with Westerners ... who In countries like China, with a Vietnam...These countries want to
are focused on sustainability and Communist government, often emerge and have a good quality
developing green global databases they can make tremendous of life. So how do we break the
that are free to suppliers. Suppliers change [happen] very quickly. In vicious cycle [of pollution and
can feed their information into democratic societies, we have to be carbon emission]? It is not just
the database, and it is third-party able to make rapid change and for about building. It is trying to stop
verified. And then it goes out to all people to realize that this is a top the cycle of the next emerging
the designers. So you can create priority for health and well-being. economy getting drawn into this. n
Dodge Data & Analytics 57www.construction.com SmartMarket Report

Sidebar: Real Estate
Property Investors Prioritizing Green
Worldwide, an increasing number of institutional real estate investors are

getting serious about their buildings sustainability performance. While

it is widely recognized that green buildings are good for the environment,
many of the investors are finding that it is good for their portfolios too.
I
n 2015, 707 property companies Key trends from the data include: In 90% of studies, strong
from around the world, Sustainability goals and sustainability standards lowered
representing over 61,000 transparency with regard to the cost of capital.
properties, with an asset value environmental, social and In 88% of studies, strong ESG
of US$2.3 trillion, reported on the governance (ESG) practices are practices correlated with superior
sustainability of their operations now well established among operational performance.
as part of the Global Real Estate property companies and funds, In 80% of studies, strong
Sustainability Benchmark (GRESB). with 93% of survey participants sustainability practices
incorporating sustainability into correlated with superior stock
Benchmarking their business objectives. price performance.
GRESB, which has become standard The real estate sector is
practice for the worlds leading increasingly considering the Room for Improvement
real estate investment and asset effects of climate change, with But theres still plenty of room at the
management companies, is a 54% of participants having policies top. Out of a possible score of 100,
framework that identifies industry in place to address climate risks. this years GRESB global average sits
best practices on a global scale and Recognition of issues affecting the at 56. An adage in the industry says
then provides annual participants health, safety and well-being of that its easy to participate in GRESB,
with the chance to measure their occupants, the community and the but its hard to do well.
performance against the benchmarks supply chain is also on the rise. Winter sums up the main
and against their peers. challenge to improvement as a mix
By stimulating a race to the top Better Together of organizational inertia combined
and providing actionable intelligence While all this is undoubtedly with a dose of fear getting started.It
on global industry best practices, good for green building practices, takes upfront work to create
GRESB creates a virtuous cycle independent studies are establishing management systems, pursue data
among decision-makers concentrated that it is also good for the investors. A capture methods and implement the
at the highest levels of the real estate June 2015 study from the University organizational policies that underlie
industry, says Dan Winter, head of of Cambridge, for example, found a quality GRESB submission, he
North America for GRESB. that real estate investment trusts says.Companies with their eyes on
Since the launch of GRESB in 2009, with higher GRESB scores tend to the ball, however, who commit to
the average global sustainability show higher returns on equity, higher tracking the energy, water and waste
score has been climbing steadily returns on assets and stronger risk- data within their asset holdings, who
from the Green Starters category to adjusted stock performance. have engaged with rating systems like
its entry for the first time in 2015 in These findings tally with the LEED over the years, and who exhibit
the Green Stars category, albeit with results of an extensive literature strong internal governance practices
significant regional variations. survey from the Smith School of tend to do very well, and more easily
Oceania is well out in front. Expense and Environment at the differentiate from their peers.
Europe, Asia and North America University of Oxford, published in With links between sustainability
cluster around the average. March 2015, which identified an and financial performance
Africa and South America are impressive set of correlations: increasingly understood, more
currently following the rest. companies are likely to be making
the effort. n

Data: Green Building
Products and Services
Current and Future Expected Use

of Green Building Products and Services
Study participants were asked to identify the green Current and Expected Use of Green Building
product categories that they currently use on their Product Categories

projects, and then were asked which project categories (Current Use in 2015 and Expected Use in 2020)
they were expected to use by 2020. Nearly all (91%) of Dodge Data & Analytics, 2016
respondents reported using at least one type of green 2015

product on their projects, but no category of green 2020
product is used by more than 54% of respondents.
As a whole, the findings generally correspond to the Electrical
level of green building activity findings (see pages 9 and 54%
10), demonstrating that green is already widely adopted 63%
across the construction industry, but at moderate levels
Thermal and Moisture Protection
overall. They suggest the opportunity for much wider
53%
implementation of green in the future, and reveal that
the industrys expectations are that it will become more 62%
green in the near future. Building Automation Systems
There are also no product categories that dominate 46%
the list, with the majority of the categories included in the 59%
survey within 10 percentage points of each other.
An overall global focus on energy conservation (see Finishes
page 17) is evident in the popularity of electrical 45%
products, which can yield a high degree of energy 51%
savings for relatively small investment. This may be Waste Management
why there is little variation in the level of use reported
44%
by country, with nine of the 13 countries in the study
56%
within 10 percentage points of the global average.
However, mechanical systems, such as heating and Mechanical
air conditioning systems that are critical to energy 44%
savings, see much lower use, possibly due to the 53%
investment required and the fact that they are less
Flooring
likely than lighting to be included in renovation/retrofit
projects. Certainly, there are wide disparities among 42%
the countries participating in the study in their use of 48%
green mechanical systems. Top countries include the Furnishings
UK (72%) and the US (67%), while there is very little 28%
market penetration in China (13%), Saudi Arabia (20%)
36%
or Colombia (21%).
Growing interest in how green buildings impact
the health of their occupants may be evident in
the relatively strong performance of thermal and
5_01_Products_Use_#01_#01
moisture protection (53%). Use of these products is
particularly strong in the US (63%), Mexico (67%), the
UK (67%) and Australia (58%), and low levels of use are top country for use of these products, while Australia
reported in Saudi Arabia (20%). (21%) sees relatively low use.
The growing interest in smart cities may be driving the Waste management is also expected to see strong
expected growth in the use of building automation growth globally by 2020, with a 12 percentage
systems, which sees a 13 percentage point jump point gain. Like electrical products, use is relatively
between those currently using them in 2015 and those consistent across different countries, with the highest
expecting to use them in 2020. Singapore (68%) is the use in Singapore (58%).

Green Building Products and Services CONTINUED
Criteria for Identifying Green Products
Study participants were asked to select the top criteria Criteria Used to Evaluate If a Product Is
that they use to identify the green products that they have Green (According to All Respondents in 2008,
specified or installed.The same question, with largely the 2012 and 2015)
same options, was asked in the 2008 and 2012 studies. Dodge Data & Analytics, 2016
Being highly energy efficient was selected by 70% 2015

of respondents in the current study, making it the 2012
top criterion, as it was in 2008 and 2012. However, the 2008
percentage selecting this as a top criterion have steadily
declined since 2008. While energy efficiency is still of Highly Energy Efficient
high importance globally, other factors are also being 70%
recognized as critical. 74%
There is only an eight percentage point spread 79%
between the next four criteria, suggesting that most
Made of Recycled Content/Materials
respondents look at multiple factors when determining
51%
which products are green.
Products made of recycled content/materials have 49%
been consistently considered important by about half 61%
of the respondents since 2012, although they were Lifecycle Data
selected by 61% in 2008. This is a particularly important 47%
criterion in Colombia, where it was selected by 71%.
46%
The importance of lifecycle data has also remained
57%
consistent since 2012, after dropping from the 2008
percentage. The US (53%), UK (56%), Singapore (57%) Nontoxic
and Colombia (53%) respondents most frequently use 44%
this criterion. 49%
As with energy efficiency, consideration of whether 55%
building materials are nontoxic has remained important
Durability
but steadily declined since 2008. Respondents from
43%
Brazil (60%), Colombia (61%) and China (70%) most
frequently consider whether products are nontoxic. 72%
The leap to 72% for durability in 2012 has subsided in 47%
the current study to 43%, which is relatively consistent Industry Performance Data
with the percentage in 2008. It is selected in South 37%
Africa (67%) as the top criterion for identifying green
54%
products and also carries weight in Mexico (56%).
45%
This is the first year in which environmental product EPD (Environmental
declarations (EPDs) (37%) were included, and they are Product Declaration)
already selected by a much higher percentage than third- 37%
party certifications (11%). Unlike a third-party label like NA
Green Seal, an EPD provides a transparent declaration
NA
of impact, not a guarantee of good environmental
performance. Singapore (60%) and Brazil (57%) lead the Certified by a Third Party
rest of the countries included in the survey on the use of 11%
EPDs. Lowest use is reported in the US (27%), Germany 36%
(23%) and the UK (25%), perhaps due to established 34%
practices for determining which products are green. In
contrast, no country had more than 17% of respondents
selecting third-party certifications.
5_02_Products_Identify_#01

Green Building Products and Services CONTINUED
Sources of Information on Green Building
Study participants were asked to select the sources of Most Relied Upon Sources of Information on
information about green building trends that they rely Green Building (According to All Respondents)
on most. This question was also asked in the 2008 and Dodge Data & Analytics, 2016
2012 studies, and a few key trends emerge in terms of 2015

the responses. 2012
Internet: While still the most relied upon source of
2008
information on green building by a large margin, in fact
the percentage of respondents who report that they Internet
rely on the Internet (60%) has declined since 2012 (77%). 60%
Countries with the highest percentage who rely on the 77%
internet include Colombia (74%), Poland (77%), South 78%
Africa (80%) and China (85%). The percentage in each of Conferences
these countries is about double of those at the opposite 44%
end of the spectrum, including Singapore (38%) and 60%
Australia (33%). NA
Conferences and Industry Associations: Each of
Industry Associations
these were selected by 44% of the respondents 44%
globally. They demonstrate the ongoing importance of 58%
organizations that directly promote green building to 54%
inspire and inform the industry. Industry associations
Directly From Product Manufacturers
are particularly critical in Singapore (60%) and China
39%
(62%), and are least relied upon in Saudi Arabia (24%)
35%
and Colombia (22%). The majority of the responses
32%
from most countries for conferences fall within a 10
Industry Peers
percentage point range of the global average. The
37%
exceptions include Singapore (58%) and Colombia
35%
(57%) on the high end, and Germany (27%), the UK
(31%), Australia (21%) and China (26%) on the low end. 37%
Directly From Product Manufacturers: Selected by Magazines
39% in 2015, the influence of product manufacturer 35%
information is growing, one of the few sources of 44%
information where this occurs. Countries that rely 55%
most on direct information from manufacturers include Government Resources
South Africa (60%), Australia (55%), Mexico (54%) and 30%
the UK (53%). 32%
Industry Peers: Consistently, over one third of
27%
respondents (37% in 2015) have relied on their peers for Trade Shows
information of respondents since 2008. Using industry 27%
peers as influencers is particularly important in China 20%
(57%), Singapore (45%) and the US (46%), which are all
NA
well above the global average.
Nonprofit Organizations
Magazines: Magazines have experienced a decline in
25%
their influence since 2008 on a global basis, and even
29%
experienced a nine percentage point drop between 2012
NA
and 2015. The markets where they still carry the most
influence are the US (43%), UK (45%) and South Africa
(46%), but few indicate that they are influential in Brazil
(18%), Germany (18%) or Saudi Arabia (20%).
5_03_Products_Information_#01

Sidebar: Health
Health and the Growth of Cities
Human health is intricately tied to our built environments. Key aspectsphysical

activity, injury, access to healthy food, air and water quality, climate change
effects, mental health, strength of social fabric and equity of access to livelihood,
education and resourcesall rise and fall with the form and functioning of
urban neighborhoods, now home to a majority of the worlds population.
G
lobally, the urban Health at the University of Washington, urban growth is occurring, such as
population is increasing suggests three categories. Lagos, Jakarta, Mumbai and myriad
by about 70 million per The first category comprises smaller cities. Here, population
year, with most growth cities in which sustainability is an growth often overwhelms the
occurring in low- and middle-income established priority, and health citys capacity to provide basic
cities in Africa and Asia, followed factors play an explicit role. infrastructure, and poorer residents
by Latin America. For design and Curitiba, Brazil, and, more recently, suffer mightily. In Mumbai, for
building projects in these cities, Bogota, Colombia, provide well- example, informal settlements
health is often the strongest driver known examples. Exemplifying accommodate more than half of
for change. this categorys shared focus on the citys 11 million residents on
sustainability and health is Bogotas 8% of its area with no municipal
The Health Effect innovative public transportation services. Exemplifying a health-
When we stand in front of network: the citys 300-kilometer driven project in this category is
a community, and present five bike path network and separated, Mumbais Slum Sanitation Program,
strategies to boost their income, high-capacityrapid transit bus in which two- and three-story
or put their place on the map, says system have together reduced fuel community-maintained toilet blocks
Sheba Ross, a senior urban planner consumption and greenhouse gas provide sanitary facilities to reduce
and architect with HKS, who has emissions, improved air quality disease transmission; more than
worked with communities in Asia, and traffic safety, increased the that, many of these buildings also
the Middle East, Africa and North accessibility of the citys jobs and serve as community centers where
America, we get maybe 50% to 60% services, promoted physical activity, people can take a class or hold
of their interest. But when we say, and provided a model emulated by a meeting.
Here are five strategies to improve other highly congested cities.
your childrens health and the health The second category comprises Act Locally
of your community, we get their new eco-cities being cut from Within these general categories,
rapt attention. whole cloth in Asia and the Middle the health opportunities of any
The strength of health as a East, and whose sustainability building project will be unique,
driver of environmental change aspirations often incorporate health and a variety of frameworks for
can be expected to increase even priorities by corollary. Tianjin identifying and maximizing them
further as a health, well-being and Eco-City provides an example of are now available. These range
productivity campaign, now in the walking paths, green spaces, from informal yet effective
development at the World Green renewable energies and relatively community consultations to
Building Council, builds momentum. clean air that characterize these new formal and comprehensive health
cities. Prone to controversy, delay impact assessments.
Getting a Handle on and outright cancellation, however, Its important to find out
Urban Health cities in this well-intentioned what health factors are significant
To get a handle on the role of health category affect only a small portion in each community, and to make
in planning and building in low- of the worlds urban population. our design relevant to the health
and middle-income cities, Howard The third category comprises data, says Ross. And to do that
Frumkin, dean of the School of Public the cities where most of the worlds every chance we have. n

Interview: Thought Leader
Terri Wills
CEO, World Green Building Council
Before becoming CEO of the World Green Building Council,
Terri Wills was the Director of Global Initiatives with the C40
Cities Climate Leadership Group, the London City Director

for the Clinton Climate Initiative, and worked for the British
Broadcasting Corporation as a Head of Strategy.
What are the biggest global WILLS: Green building is playing businesses and civil society.
challenges for green building? a critical role in the development Buildings Day at the COP21 in Paris in
WILLS: We face great hurdles when of many emerging economies, December launched a Global Alliance
it comes to renovating the existing particularly as their populations grow for Buildings and Construction: 18
[building] stock. In London, UK ... and create a pressing need for a countries and over 60 organizations
80% of buildings we have now will more sustainable built environment. representing thousands of
still exist in 2050, and the building India, for example, already has businesses will work together to
stock must be renovated to become the worlds second biggest green meet country emissions reduction
green. This is why WorldGBCs building footprint ... And thats just targets through green building.
European Regional Network has todaytwo thirds of the buildings And third, the increasing
launched the Build Upon Projectthe that will exist in India in 2030 are yet awareness of the link between green
worlds largest program of strategies to be built, so there is an enormous building and health and well-being
for deep retrofit, with 13 GBCs and opportunity to get buildings is leading to an increased demand
WorldGBC receiving 2.35m of right from the start and prevent for green building by owners and
support from the European Unions greenhouse gas emissions being occupiers. Our Better Places for
Horizon 2020 program to address this locked in for future generations. People project is a great example
major retrofit challenge. Socioeconomic development of how companies are looking for
in these countries is a top priority ways to better measure the health
As some countries begin ... Green Building Councils in the and well-being benefits of their own
to emerge from the global WorldGBC Americas, Middle East green buildings, and use this data to
recession, what do you think that North Africa, Africa and Asia-Pacific continuously improve the benefits of
will mean for green building? Regional Networks are focused their building to people.
WILLS: As economies strengthen on sustainable affordable housing,
around the world, we will see a great for example, which can bring not What is necessary for the future
shift toward buildings that benefit only environmental benefits, but of green building?
not only the environment, but also healthier homes, more jobs and WILLS: What is needed for that
peoplethe greatest asset of the happier communities. future is the same as what is needed
worlds most advanced companies. todayleadership from companies,
Workers from the Millenial What gives you the greateast countries, cities to adopt ambitious
generation are demanding [that] their optimism about the future of the goals and plans ... We have seen
employers provide green buildings green building movement? with the COP21 that even before
because of the value they place on WILLS: Three key developments the countries signed on the dotted
environmental responsibility, [and] indicate a turning point in green line, major companies like Saint-
because they are also happier and building. The first is the Paris Gobain, Philips, Lend Lease, City
healthier places to work. I believe Agreement. The implementation of Developments Limited and so
well see green building as an this treaty, signed by 195 nations, will many more put forward ambitious
essential benefit to employees as only be possible with green building commitments to decarbonize. The
companies compete for top talent. becoming business-as-usual. market signals sent by companies
Second, and related, is that we are like these will unleash a green
What influence does green have seeing an unprecedented level of building innovation the likes of which
in developing countries? collaboration between governments, have never been seen before. n

Methodology:
World Green Building Trends Research
The 2015 World Green Building WGBC also invited Green Building Types of Firms
Trends study was conducted to members to forward the survey Dodge Data & Analytics, 2016
achieve the following objectives: to practitioners in the field within

2015 2012
1) Identify triggers and obstacles their country.
relating to the adoption of green Several other associations (AIA, Architect/Design Firm
building; 2) Measure past, current ACE, BIM Hub, CIOB, FIDIC, RICS 27%
and future levels of activity in green and USGBC) sent the survey link 19%
building; 3) Identify important to members. Contractor/Builder
construction sectors for growth 25%
in green building; 4) Measure the Study Participants 13%
impact of green building practices All respondents were required to be
Specialist/Consultant
on business operations; 5) Profile the employed construction professionals
use of green building products and/ and to have non-building projects 22%
or methods; and 6) Uncover trends account for no more than 50% of their 24%
in the industry through comparison offices revenue. Owner/Developer
with relevant findings from the 1,026 architects, engineers, 13%
2008 and 2012 Global Trends in contractors, owners and specialists/
16%
Green Building Studies. consultants responded to the survey.
Engineering Firm
The study was conducted between For the distribution of respondents
May and August 2015. It was fielded by type in the 2015 study, and how it 13%
using panel providers, email blasts is different from the 2012 study, see 11%
and association broadcast to the chart at right. Other
members or by forwarding the link to Respondents were located in 69 NA
the other groups: countries. A full list of the countries 18%
The World Green Building Council can be found on page 2. Sufficient
(WGBC) sent email invitations responses were provided for
to members of Green Building statistically significant analysis to be
organizations worldwide. The conducted in 13 countries: Australia, in the report. These include: 1) 2008
Brazil, China, Colombia, Germany, 2015 Comparison (703 respondents
India, Poland, Mexico, Saudi Arabia, in 2008, 803 in 2012 and 1,026 in
Location of Respondents
Singapore, South Africa, UK and 2015), 2) Current Green Involvement:
Dodge Data & Analytics, 2016 6_2_Meth_TypeofFirm_#01
US. In addition, sufficient responses Exploring, 1-15% (Low), 16-30%
North America Middle East/North Africa were drawn from other countries in (Moderate), 31-60% (High) and Over
Europe Sub-Saharan Africa Europe, the Middle East and South 60% (Very High); 3) Organization
Asia Australia/New Zealand America/Caribbean to conduct Type: Owner/Developer, Architect/
South/Central America/Caribbean regional analyses as well. Design Firm, Engineering Firm,
The distribution of total responses Contractors/Builders, and
4% by region is presented at left. Specialists/Consultants.
4%
Benchmark of Accuracy Definition of
10%
The total sample size benchmarks Green Building
at a high degree of accuracy: 95% Green building was defined in
33%
confidence interval with a margin of the study as a construction project
13%
error of +/-3.0%. that is either certified under any
Findings showing a significant recognized global green rating
16% 20% difference at a 95% confidence system or built to qualify
interval for several variables are cited for certification. n

SmartMarket Report
Resources
Organizations, websites and publications to help you get smarter
about green building trends occurring around the world.
ACKNOWLEDGEMENTS:
The authors wish to thank our premier sponsor United Technologies for
their vision and commitment that made this report possible. We would
also like to thank Saint-Gobain, US Green Building Council (USGBC) and
the Regenerative Network for all of their support for this effort.
Main Website : construction.com
Dodge : construction.com/dodge We thank our research partners for helping to distribute the survey,
Research & Analytics : including the American Institute of Architects (AIA), Architects Council
construction.com/dodge/ of Europe (ACE EU), Autodesk, the BIM Hub, Chartered Institute of
dodge-market-research.asp Buildings (CIOB), International Federation of Consulting Engineers
Sweets : sweets.com (FIDIC) and the Royal Institution of Chartered Surveyors (RICS). In
SmartMarket Reports : particular, we appreciate the participation of the World Green Building
analyticsstore.construction.com Council and all oftheir affiliate national green building councils that
actively promoted the survey to their members.
United Technologies Saint-Gobain USGBC Regen Network

utc.com www.saint-gobain.com usgbc.org regen-net.com
Research Partners Other Resources:

The American Institute of Architects : aia.org ASHRAE : ashrae.org
Architects Council of Europe (ACE EU) : ace-cae.eu Building Owners and Managers Association
Autodesk : autodesk.com/bim International (BOMA) : boma.org
the BIM Hub : https://thebimhub.com/sustainability/ Climate Action Network International :
https://thebimhub.com/ climatenetwork.org
sustainability-and-energy-efficiency/ C40 Cities : c40.org
Chartered Institute of Buildings (CIOB) : ciob.org Consortium for Energy Efficiency : cee1.org
International
Produced with Federation of Consulting
support from ENERGY STAR : energystar.gov
Engineers (FIDIC) : fidic.org Green Building Initiative : thegbi.org
Royal Institution of Chartered Surveyors (RICS) : rics.org International Code Council : iccsafe.org
World Green Building Council : worldgbc.org International Facility Management Association : ifma.org
Organization for Economic Co-operation and
Development (OECD) : oecd.org/greengrowth/
United Nations Environment Programme
Sustainable Buildings and Climate Initiative
(UNEP-SBCI) : unep.org/sbci
United Nations Framework Convention on Climate
Change (UNFCC) : unfccc.int/2860.php
UN-Habitat : unhabitat.org/
World Business Council for Sustainable
Development : wbcsd.org/home.aspx
Design and Construction Intelligence
SmartMarket Report
Dodge Data & Analytics SmartMarket Reports
Get smart about the latest industry trends.

For more information on these reports and others, visit
analyticsstore.construction.com
Research Partners
ARCHITECTS COUNCIL OF EUROPE

CONSEIL DES ARCHITECTES DEUROPE

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SmartMarket Report

Produced in Partnership with

World Green Contributing Partners

Dodge Data & Analytics World Green Building

McGraw Hill Construction is now We have a new email address.

globally, building industry developed countries like the US, Germany

Dodge Data & Analytics 1www.construction.com SmartMarket Report

SmartMarket Report Dodge Data & Analytics 2 www.construction.com

9 Green Building Market Activity

14 Influences on the Green Building Markets

24 Country and Regional Profiles

Dodge Data & Analytics 3 www.construction.com SmartMarket Report

Lower Right: Redevelopment of Sisli, a

50 Business Benefits of Green Building

59 Green Building Products and Services

Thought Leader Interviews

SmartMarket Report Dodge Data & Analytics 4www.construction.com

Green building is already widely adopted globally, with strong growth

expected in most countries, but most particularly in the developing world.

Developing Markets Expect Greatest Top Triggers for Green Building

recognition by owners of the benefits of green is critical to

2015 2018 61%

Dodge Data & Analytics 5 www.construction.com SmartMarket Report

by a high level of response from a few regions, including

SmartMarket Report Dodge Data & Analytics 6 www.construction.com

Green building is a global trend, but its implementation varies widely by

country and region, including the pace of growth in green involvement,

Australia Germany: Business Mexico South Africa

Dodge Data & Analytics 7 www.construction.com SmartMarket Report

key ways. First, it has an even wider response, with 1,026

SmartMarket Report Dodge Data & Analytics 8 www.construction.com

Average 2015 Green Share of Building Project Activity (by Country)

Green Share Non-Green Share

67% 65% 65% 66% 59% 66% 64% 63%

33% 35% 35% 34% 41% 34% 36% 37%

Dodge Data & Analytics 9 www.construction.com SmartMarket Report

Expected Growth in Levels of Green

BY COUNTRY While developed countries do not report this steep

SmartMarket Report Dodge Data & Analytics 10 www.construction.com

Sectors for Future Green Activity

is the sector in which the highest percentage expect

Dodge Data & Analytics 11 www.construction.com SmartMarket Report

Global Average Percentage of Respondents by Country

65% 59% 61%

New Institutional 46% 42% 48%

New Low-Rise 40% 39%

New High-Rise 43% 48% 45% 48%

Communities 33% 35% 36%

Commercial 26% 33% 27% 28% 28%

SmartMarket Report Dodge Data & Analytics 12 www.construction.com

Sustainable and Smart Megacities

With large-scale urbanization underway in the developing world, government

Dodge Data & Analytics 13 www.construction.com SmartMarket Report

Triggers to Increased Levels of Green Building

as they were in the studies conducted in 2012 and 2008. 2015

for green globally. This demonstrates how critical it is 35%

to create greater public awareness of the benefits of 34%

green and the importance of establishing the business Environmental Regulations

drive clients to make investments in green. 23%

Market demands is also important, but has been

the shift downward has been slight in between each 30%

among those reporting that environmental regulations 25%

A similar decline in market transformation as a spur

Dodge Data & Analytics 1www.construction.com SmartMarket Report