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Business Drivers for Green Buildings & Infra. Dr. Seppo Junnila Helsinki University of Technology P.O.Box 9800, FI-02015 TKK, Finland email: Content. Background Environmental sciences Economic theories Business indicators What green buildings & infra has to offer

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Business drivers for green buildings infra

Business Drivers for Green Buildings & Infra

Dr. Seppo Junnila

Helsinki University of Technology

P.O.Box 9800, FI-02015 TKK, Finland



  • Background

    • Environmental sciences

    • Economic theories

    • Business indicators

    • What green buildings & infra has to offer

  • How to Boost Emergent Demand?

    • Information and marketing

    • New production philosophy

    • User involvement

    • Business concepts and value chains

Science about green buildings infra
Science about Green Buildings&Infra

  • Services sector creates 70% of the value added in the world and is the fastest growing sector (World Bank 2006)

  • Services is responsible for 40% of total industrial GHG emissions in the United States (Suh, ES&T, 2006)

  • The office building (with infra) contributes roughly 30-55% to environmental impacts in services companies (Junnila, Int J LCA, 2006)

  • Buildings account for 40% of world’s materials and energy flows (U.S. DOE 2002, UNEP 1999, Worldwatch 1995 )

Economics about green buildings infra
Economics about Green Buildings&Infra

  • Building efficiency is economically the best short-term strategy for California to reduce climate change (Hanemann et al. 2005)

Carbon market in eu
Carbon market in EU

  • In Europe, the size of carbon market is 20 000 – 50 000 million € (EU Emissions Trading Scheme)

  • Suggestions both in UK that the building owners should be included (The Guardian, 6-Dec-06)

    • Many of the UK's big businesses - including supermarkets, banks, universities, hotel chains, hospitals and government departments - would be forced to sign up to a carbon-trading scheme under proposals being drafted by ministers Gordon Brown…

    • …cover all organisations with annual electricity bills of more than £250,000, or with electricity consumption above 3,000 megawatts - The Guardian, 6-Dec-06 -

Business about going green
Business about Going Green

  • Wall Street Journal, 23-Jan-07

    • In the US, a growing number of companies are pushing for a mandatory emissions limit, or "cap."

Market value of green companies
Market Value of Green Companies

Operational performance of green companies
Operational Performance of Green Companies

  • Guenster et al. 2005

    • “The least eco-efficient firms show significant operational underperformance

    • Eco-efficiency improves Return on Assets, more than 10 percent of the average ROA”

    • “The survey results, as well as other available literature, corroborate the view that ISO 14001 accreditation confers economic benefits”

Green buildings infra can offer
Green BUILDINGS & INFRA can offer

  • Buildings & Infra is a platform for businesses

  • The best environmental improvement potential

  • Good cost benefit ration

  • Existing solutions

  • Short reaction time

What s stopping the companies
What’s stopping the companies?

  • Business concepts and models

    • The value chains and customers, fallacy of volume

    • The Long Tail economy - NO blockbusters

    • Products vs. Services – if you talk the talk be prepared to walk the walk

    • User involvement - Remontti Reiska vs Jaana Pelkonen

    • Leap into unknown for many organizations

  • Operational philosophy in construction industries

    • Adversial relations

    • Sub-optimizing, sub-contracting

    • Defensive approach

  • Understanding and communication

    • Biased toward smokestacks

    • The common mind set

      • Transformation of economies from manufacturing to services is a solution to the environmental problem


There seems to be a good business opportunity for Green Buildings and Infra

Scientific evidence

Economic theories

Business success

However, the competitive edge is narrowing...

Technology innovations are needed but also

Business concepts and models

Operational philosophy

Understanding and communication

Sustainable Communities is all about

Maximum value by Minimum waste