A record number of corporate real estate professionals from across Asia and around the world have come to Singapore for the 2007 Asia Global Summit, themed "People, Planet, Profit: Corporate Real Estate and Sustainability for the 21st Century." Singapore's 300-plus attendees are an all-time high for the Asia Summit, now in its fifth year.

Dr. Mohamad Maliki Osman, Parliamentary Secretary, Ministry of National Development, welcomed attendees to Singapore and touched on the Summit theme. "As corporate citizens in today's global economy, it is no longer enough to just take care of our bottom lines. We have a responsibility to take care of the environment. It is our responsibility to do this not just for this generation, but for future generations as welwell."

Singapore, he said, provides incentives to encourage 'green' development. "We are encouraging developers to use sustainable methods. Sustainability makes good business sense."

Following Dr. Osman's remarks, Mike Zamora MCR, Chair, CoreNet Global Asia and Senior Manager, AsiaPacific and Japan Regions, Cisco Systems, outlined the Summit's objectives and program highlights to follow over the next two days.

After Zamora's comments, James E. McLean, National Director, Jones Lang LaSalle, (sponsor of General Session I) came forward to introduce the first keynote speaker, Hellmut Schütte.

Schütte, Senior Affiliate Professor of International Management, INSEAD, Singapore, began his presentation with a litany of "bad news" contemporary headlines: natural disasters, wars, terrorism, the threat of pandemic flu, and more.

"The world is full of bad news," he said.

But from a purely economic point of view, he noted, growth is the fastest since the 1960s. The world economy is doing very well, and Asia is doing even better. "China remains the locomotive," he said. "And there can be no doubt that India is looking forward to a period of high growth. We see revitalization in Japan in manufacturing, in services, in real estate. Japan is awake again, and that's good news."

The question is, how long can that kind of growth in Asia continue?

"If you look at the three main drivers of economic growth - labor force inputs, investments, and productivity growth - all three can be managed by governments," Schütte said. "I would expect Asia, across the board, to continue to grow at a high rate for years to come."

Indeed, he forecasts that China will account for 15 percent of world Gross Domestic Product (GDP) by the year 2025 and 28 percent by 2050 - up from just 4 percent in 2004.

India's economic output (just 2 percent of world GDP in 2004) is expected to rise to 5 percent of world GDP by 2025 and 17 percent by 2050.

The United States essentially will hold its own. America's current 28 percent of world GDP is expected to drop to 27 percent by 2025 and 26 percent by 2050.

Forecast to generate a much smaller slice of the global economic pie several decades from now are Japan, the EU and the rest of the world.

But it's crucial, Schütte urged, that Asia's robust economic growth be accompanied by development. Growth alone can bring widespread dislocation, inequality within and between countries, environmental degradation and a range of other problems.

After a networking break (sponsored by RMZ Corp.), three concurrent education programs were offered, including "Green China: Momentum and Transformation in Progress."

Moderator Tony Wong MCR, Vice President, JPMorgan Chase & Co., introduced the session with a question. "Why does the environment matter? The vast majority of scientists agree that global warming is real. If warming continues, we can expect catastrophic consequences."

Buildings matter, of course, because they consume huge amounts of energy. China alone, Wong pointed out, contributes about 12 percent of the world's carbon emissions today. That figure is expected to more than treble by 2050 to about 40 percent.

Building certification programs help promote the cause of environmental stewardship and sustainable development, he added.

Kenneth Langer, President of consulting firm EMSI, listed some of the benefits of 'green' buildings:
  • High performing
  • Resource efficient
  • Fewer environmental impacts
  • Higher comfort and health
  • Increased worker productivity
  • Aesthetically pleasing

Langer noted that the U.S. Green Building Council's LEED® system - just one of several 'green' building certification systems in use around the globe - is the one that's received the most international attention. LEED-certified facilities in China include Dow Chemical's R&D center and GE's corporate campus (both in Shanghai) and Otis Elevator in Tianjin.

LEED® (Leadership in Energy and Environmental Design) provides a common set of metrics for assessing building performance. LEED certification is available today for existing buildings (not just new construction), plus commercial interiors, homes and even neighborhood developments. Beyond basic certification are successively more demanding levels: Silver, Gold and - at the top - Platinum.

Achieving LEED certification brings obvious environmental benefits. But there are significant economic advantages - reduced energy costs, for example - as well as more intangible benefits (e.g., being branded and recognized as a leader in sustainability).

"I would maintain that a building can be Gold certified at absolutely no incremental cost if the correct design is used," Langer ventured. And the long-term benefits are staggering: One example he presented showed a US$50 to $70 per square foot net-present-value benefit over a 20-year period.

Ricardo Pineda, Director of Worldwide Manufacturing Engineering, Plantronics, Inc., discussed how his company achieved LEED certification for an office and manufacturing operation in Suzhou, China. The three-story office building achieved the Silver rating, while the 13,800-square-meter factory netted an even higher designation (Gold).

Carpet maker InterfaceFLOR, as described by Rob Coombs, President & CEO, Asia-Pacific, has numerous sustainability initiatives: carbon-neutral products, end-of-life product stewardship, biomimicry (e.g., learning from nature) and sustainable built environments.

The company recently achieved LEED Gold for its new showroom in Shanghai. Reasons for building the sustainable way include, among others:
  • Higher productivity
  • It's a place customers want to visit
  • Reduced operating costs
  • Enhanced market profile

The environmentally friendly construction even incorporated recycled timber - decades-old wood rescued from older buildings in the city that were being torn down.

"Our staff love it," Coombs said. "They feel proud."

The session closed with a brief profile of yet another 'green' building in China: the 150,000-square-meter Prosper Center in Beijing. "It's the first commercial project in the country to achieve LEED," Langer reported. The developer's investment in sustainable features has a payback period of just 1.1 years.

"They'll save US$1 million in operating costs each and every year," he said. "If you want to attract the very best companies and fill up your building fast, LEED is a great way to do it."

Frank Rexach, Vice President and General Manager, Asia Pacific, Middle East and Latin America for Haworth, introduced General Session II.

Moderating the session was CoreNet Global CEO Prentice Knight III.
Speakers included:
  • Mike Napier, Head of Real Estate, Shell International
  • Kenneth Langer, President, EMSI
  • William F. (Bill) Concannon, Vice Chairman, CB Richard Ellis
  • Randall H. (Randy) Knox III, Director, Global Facilities Services, Adobe Systems, Inc.

Knight set the context by defining some key terms: 'green' and 'green' building, sustainability, corporate social responsibility (CSR), the triple bottom line and LEED. He then turned to the panelists, who discussed their companies' activities in the sustainability arena.

Adobe Systems recently achieved LEED's highest rating, Platinum, for its three-building headquarters in San Jose, Calif. "We got it in the Existing Building category," Knox said. "It's a confirmation of our commitment to the environment."

The effort began during California's energy crisis in 2001, when then-Gov. Gray Davis asked the state's biggest companies to slash energy use. Adobe has spent about $1.4 million on 64 sustainability-boosting projects during the past five years at its nearly 1 million-square-foot headquarters.

"But we now have a $1.2 million annual energy savings," Knox reported. The average payback on the projects: a mere 9.5 months. Facilities management partner Cushman & Wakefield played a key role, Knox added.

According to Napier, Shell has always had a strong commitment to the environment (e.g., the "planet" component of People, Planet and Profit). "You can't be in the oil and gas business without being concerned about the environment," he explained.

"Managing carbon emissions is a huge focus in Europe," he said. "Shell has a target that, by 2010, we will have 15 percent less carbon emissions vs. 1990. And that's despite our business almost doubling since then."

Shell, he said, is a neighbor in the 140-plus countries in which it does business. "It's not like you have to choose between people and profit," he urged. "In reality, one supports the other."

Concannon represented the real estate services industry's role in the sustainability imperative. "It's on the agenda of every meeting we have with corporate real estate departments and executives," he reported. "There's a lot of interest in LEED certification."

Sustainability, he said, is not a North American issue, or a European issue, or an Asian issue: "This is a global issue."

Langer agreed, noting that some 3,000 LEED projects have been certified to date or are in the pipeline. And they're certainly not all in the United States. "Brazil, Mexico, China and India are all using LEED," he said.

The day's education program concluded with three site tours:
  • One-north, Singapore: The Techno-preneurial Community For Innovation & Experimentation (sponsored by NAI Global)
  • Leisure City: The Future of Singapore and Sentosa (sponsored by Colliers International)
  • Experience the Waterfront @ Marina Bay: A Tour of Singapore's Past, Present and Future (sponsored by CB Richard Ellis)