This paper examines Lend Lease Australia's approach to green building and sustainability in the commercial real estate sector. It traces the company's history from its founding in 1951 through its financial difficulties in the early 2000s, which prompted a strategic review leading to The Bond project — a landmark green building initiative. The paper discusses key concepts including Life Cycle Analysis (LCA), extended producer responsibility, healthy building design criteria, and the regulatory environment governing sustainable development in Australia. It also considers the challenges of sustaining a genuine long-term commitment to green building and Lend Lease's evolving role as an industry leader in promoting sustainable cities across Australia.
In an increasingly carbon-conscious world, there has been significant emphasis on the creation of new green buildings and infrastructure. However, with 98 per cent of Australia's existing office buildings constructed without sustainability considerations, people are beginning to recognize the importance of improving the existing built environment rather than expending large amounts of energy constructing entirely new buildings (Taylor, 2009). A sustainable building with a high degree of durability can help decrease the amount of materials that end up in landfills and reduce the use of resources within the community when disasters occur. As one source notes, "The ordinances often provide mandatory requirements for increased resistance to natural disasters with the goal of reducing the number of destroyed buildings while protecting property and saving lives" (Document Helps Implement Green Building Codes, 2009).
Green buildings are a relatively new phenomenon in Australia. In 1992, several significant problems were identified, including shortages of water, transportation congestion, and increasing energy demand. The early focus of green buildings in Australia was concentrated mainly in the residential sector. It took more than a decade for the concepts of sustainable cities and green buildings to become a central focus of government policy (Hubbard, Rice, and Beamish, 2008).
There has also been a growing emphasis on Life Cycle Analysis (LCA), which requires manufacturers to understand the entire life cycle of their products in order to undertake effective product stewardship or extended producer responsibility (EPR) programs. Through LCA, it is hoped that businesses will identify the most effective improvements they can make to minimize environmental impact and utilize resources efficiently. It is projected that by the year 2050, 85% of Australia's total carbon emission budget will be needed to combat landfills that are emitting very high levels of methane gas (Neales, 2007).
Lend Lease, a leading real estate services business, was founded in 1951 in Australia. Its key operating behaviors revolve around the improvement, construction, and management of real estate properties in both the public and private sectors. The founders of Lend Lease appear to have had an authentic aspiration to make valuable and profitable contributions to society through their everyday business activities. The company is devoted to meeting the social, cultural, and environmental demands required to create complete and sustainable communities (Hubbard, Rice, and Beamish, 2008).
In 2000 and 2001, Lend Lease went through a difficult period during which it was losing money. It was at this time that the company initiated a review process that led to The Bond project.
The Bond was designed to enhance communication between occupants and the broader community. Lend Lease made a commitment to engage the community during the development and construction phases while making the decision-making process as transparent as possible. The intention of The Bond was to create an ecologically sustainable structure alongside a socially sustainable environment for both occupants and the wider community. It was designed to serve as a prototype example of a healthy building (Hubbard, Rice, and Beamish, 2008).
Some conventional building design, construction, and maintenance practices create conditions capable of causing illness in healthy individuals or exacerbating illness in already sensitized individuals (Small, 2009). There are several factors that contribute to the overall health of a building, including cleanliness, thermal comfort, ventilation and air quality, lighting, noise levels, connection to the outdoors, and furniture (Hubbard, Rice, and Beamish, 2008).
The Bond received considerable recognition for its design, earning 34 awards along with extensive media coverage, making the return on investment far greater than any prior expectations. A key outcome of The Bond project was the repositioning of Lend Lease as an industry leader promoting the development of green buildings across Australia. The office building sector in Australia has its own unique characteristics. Most office buildings are not owned by their occupants. The majority operate under a net lease system, in which the tenant pays the costs of running the building; under this arrangement, reductions in operating costs benefit only the tenants. The gross lease system, by contrast, includes running costs within the rent, giving all parties a shared interest in keeping costs down (Hubbard, Rice, and Beamish, 2008).
"Government regulation and sustainability as cultural norm"
"Debate over durability of Lend Lease's green commitment"
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