The business case for sustainable adaptation of existing buildings in Australia

By Dr Alan March, Senior Lecturer, University of Melbourne, Sara Wilkinson, Senior Lecturer in Property and Real Estate at Deakin University

Given the increased importance of action to mitigate global warming and climate change, and the acknowledgement of the significant contribution made by buildings, there is a move to adapt existing stock (Stern 2006, Garnaut 2008). Buildings contribute around half of all greenhouse gas emissions suggesting the potential for substantial reductions (UNEP 2006, Ngowi 2000).

Whilst residential buildings contribute around 25%, offices contribute 12% of all greenhouse gas emissions in Australia.  Adaptation is inherently sustainable as the process involves use of existing embodied energy, less material use (resource consumption), less transport energy, less energy consumption and less pollution during construction (Johnstone 1995, Bullen 2007). 

Adapting and upgrading the performance of existing buildings is the most critical aspect of improving sustainability of the built environment and the ‘challenge of achieving sustainable development in the 21st century will be won or lost in the worlds urban areas’ (Newton & Bai 2008:4).

There is significant building adaptation expenditure in developed nations, with more work being undertaken on adaptation than new-build in the United Kingdom (Ball 2002, Egbu 1997).  The amount of work to existing Australian buildings is around 20% of all construction work and with $267 billion of new commercial property is to be constructed before 2018, the environmental performance gap between new and old stock looks set to grow; increasing the need for adaptation (Romain 2008).

The amount of annual expenditure on building adaptation in Australia demonstrates the importance of adaptation to business, not only in the past but increasingly so into the future. This presentation at the Sustainability Business Conference in May 2012 addresses the questions; (a) what is the business case for building adaptations to existing stock in urban environments and, (b) what is the relationship between adaptability and vitality and how can this enhance economic activity in urban environments?

Dr Alan March, Sara Wilkinson

Taking Care of Business: Sustainable Transformation Conference
Radisson Resort, Gold Coast, May 2012

 

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