Making the transition to a sustainable, climate-resilient urban environment in Asia-Pacific will take the efforts of everyone in the property value chain, according to speakers at a recent event hosted by Cundall and GRESB.
The invitation-only Data, Dollars and Design fireside discussion was moderated by Cundall Associate Director, Oliver Grimaldi, and featured Benjamin Towell, Executive Director, OCBC; Peng Er Foo, VP, Group Sustainability, CapitaLand Investments (CLI); Trey Archer, Business Development Director, GRESB; and, Matt Carlisle, Associate Director, Cundall.
The topic was chosen to reflect the main challenges and opportunities the property sector faces, bringing diverse viewpoints on topics including what we mean when we talk about “value” in the sector. How do we use data to identify value, and what data matters most in supporting stewardship decisions and the sustainability agenda? How do we anchor our thinking in an Asia-centric perspective, and do global rating tools help or hinder stakeholders in making appropriate decisions in Asia? And where does design play a role in delivering better outcomes that can ensure the dollars invested in projects or assets deliver long-term value for occupants, owners and the wider society?
Peng Er Foo showcased how CapitaLand Investment incorporated social value thinking into its business decisions. Way back when Junction 8 (a Singapore mall with an office tower) was granted permission to expand retail space by demolishing the office tower, CLI suggested instead, to retain the office tower and partner with National Council of Social Services (NCSS) by offering rent-free office space to volunteer welfare organisations (VWOs) in Singapore.
The big message here is that social value involves delivering and stewarding built assets in a way that answers community needs. That may be a library or a dance studio, or in an example cited by Towell, it may be as abstract as a water pumping station that like those of the Victorian era is a piece of beautiful architecture that celebrates the engineering expertise contained within, adding to the aesthetic quality of the urban fabric. Such approaches allow for future, unimagined applications once the original use has become obsolete, providing lasting value and allowing the built environment to adapt without the need for large scale demolitions of inflexible ‘economical’ single-purpose designs.
Green finance – a term that’s being heard a lot lately – was also discussed.
“Green finance is essentially finance, but labelled green,” Benjamin Towell said in jest.
However, he pointed out that it is the use of proceeds that makes finance ‘green’. This is what is important, as we need to direct capital to more green - and in Asia ‘transition’ - projects that move the needle when it comes to climate action.
In terms of ‘transition’ he highlighted specific financial structuring, such as Sustainability-Linked Loans, where the pricing is structured to a clear set of sustainability KPIs. Here financial organisations are looking for applicants to have clear KPIs that are both material and additional to business as usual.
In a twist on the standard panel format, attendees were also invited to join the panel and respond to the discussion questions. Erik G. L'Heureux from National University of Singapore; Yvonne Soh from Singapore Green Building Council, Sarah Winbur from global property investor APG, and Sarah Tan from asset management and logistics specialist firm LOGOS all contributed to the frank and constructive conversation.
The participant attendees raised some valuable additional challenges and opportunities, including the role of environmental product declarations, the disconnect between design goals and contractor delivery approaches, and the importance of having sound benchmarking frameworks to measure asset performance indicators against.
Sarah Tan observed that embodied carbon is one of the most significant challenges for architects.
“It feels a little out of our control right now,” she said. “We need better information from manufacturers.”
There was consensus around the need for everyone to be speaking a common language and exchanging information and ideas.
"We need to be having these honest and thoughtful conversations if we are to resolve the barriers being thrown up to slow down progress towards sustainability,” Matt Carlisle said.
“Peng Er made a very strong point that climate change is already happening in Singapore and across all of Asia. She shared the example of Clarke Quay, Singapore, where its latest asset enhancement included ETFE (ethylene tetrafluoroethylene) canopies replacement to reduce heat gain and the new omni-directional fans designed to lower the environmental temperature by approximately 2°C.
"Climate change brings with it immediate health and safety concerns that we must use design, retrofit and behaviour change to address.
“Benjamin also brought home the importance of reframing what we mean by value. It is not merely the price on something. He said, ‘we need to stop treating buildings like fast fashion’ and this really hit home for everyone in the room.”
This is only the beginning of the dialogue. The discussion was intended to launch an opportunity for participants and other stakeholders to collaborate further on developing advocacy and engagement materials to progress a whole-of-value-chain Asia-centric pathway for transitioning to a net zero, climate-resilient urban environment.
To find out more, contact Matt Carlisle, our sustainability lead in Asia.
