Water Conservation and the Canadian Real Property Industry ... · Water Conservation and the Canadian Real Property Industry August 2008 1 FOREWORD When global warming and carbon

Water Conservation and

the Canadian Real Property Industry

August 2008

Water Conservation and the Canadian Real Property Industry

August 2008

Disclaimer

The material presented in this publication is believed to be correct as at August 5th, 2008. However, REALpac and the contributors and editors disclaim all and any liability to any person, whether a purchaser of this publication or not, in respect of the accuracy of the material and information provided herein and of the consequences of anything done or omitted to be done by any person in reliance, whether whole or in part, upon the whole or any part of the contents of this publication. Readers are urged to consult their own professional advisors, including accountants, lawyers, investment advisors, engineers, environmentalists or other as appropriate, for further confirmation and further information.

Copyright

All rights reserved. No part of this publication may be recorded, reproduced or transmitted in any form or by any means whether, graphic, digital, electronic or mechanical, including photocopying, scanning, recording in any information storage and retrieval system, without permission in writing from the publisher.

© Copyright Real Property Association of Canada, 2008

This document is published for information and educational purposes only and should not be considered legal advice.

Real Property Association of Canada One University Avenue, Suite 1410 Toronto, ON M5J 2P1 Canada T. 1-416-642-2700 F. 1-416-642-2727 W. www.realpac.ca

Water Conservation and the Canadian Real Property Industry August 2008

i

TABLE OF CONTENTS

FOREWORD ....................................................................................................................................1

ACKNOWLEDGEMENTS ................................................................................................................2

EXECUTIVE SUMMARY..................................................................................................................3

CONTENTS SUMMARY ..................................................................................................................5

INTRODUCTION ..............................................................................................................................7

1 WATER RESOURCES: KEY FACTS .....................................................................................9 1.1 What is the global supply of water? ................................................................................9 1.2 How is water distributed and used globally?...................................................................9 1.3 How much water does Canada use? ........................................................................... 10 1.4 What is the central issue with freshwater resources?.................................................. 12 1.5 How much water do commercial buildings use?.......................................................... 13 1.6 How is water used in a commercial building? .............................................................. 15

1.6.1 Human uses............................................................................................................. 16 1.6.2 Equipment use ......................................................................................................... 17 1.6.3 Leakages ................................................................................................................. 17

2 GLOBAL FRESHWATER ISSUES ...................................................................................... 19 2.1 Key factors affecting global freshwater resources ....................................................... 19

2.1.1 Population growth .................................................................................................... 19 2.1.2 Water pollution ......................................................................................................... 19 2.1.3 Urbanization............................................................................................................. 20 2.1.4 Climate change ........................................................................................................ 20 2.1.5 Intensive withdrawal and consumption .................................................................... 20 2.1.6 Social and economic polarization ............................................................................ 21

2.2 Key issues affecting Canada’s freshwater resources .................................................. 21 2.2.1 The myth of abundant freshwater ............................................................................ 22 2.2.2 Overconsumption of water ....................................................................................... 23 2.2.3 Climate Change ....................................................................................................... 24 2.2.4 Water export pressures............................................................................................ 24 2.2.5 Water quality ............................................................................................................ 25

3 WATER CONSERVATION: BUILDING A BUSINESS CASE............................................. 27 3.1 Reality No. 1 – Increasing water costs......................................................................... 27 3.2 Reality No. 2 – Increasing regulation ........................................................................... 29 3.3 Reality No. 3 – Increasing consumer consciousness .................................................. 29 3.4 Reality No. 4 – Increasing investor consciousness...................................................... 30

4 GLOBAL AND LOCAL INITIATIVES TO PROMOTE WATER CONSERVATION............. 31 4.1 International.................................................................................................................. 31

4.1.1 United Nations ......................................................................................................... 31 4.1.2 World Water Council ................................................................................................ 31 4.1.3 World Wildlife Fund.................................................................................................. 32 4.1.4 International Water Resources Association............................................................. 32 4.1.5 European Union Water Initiative (Supra-National) .................................................. 32

4.2 United States................................................................................................................ 33 4.2.1 CALFED Bay-Delta Program (California) ................................................................ 33


ii

4.2.2 Five Year Conservation Plan – Southern Nevada Water Authority (Nevada) ......... 33 4.3 Australia ....................................................................................................................... 33

4.3.1 Australia Government Department of Environment, Water, Heritage, and the Arts 33 4.3.2 Sydney Water (Sydney) ........................................................................................... 34 4.3.3 New South Wales Department of Energy, Utilities and Sustainability..................... 34

4.4 Canada......................................................................................................................... 35 4.4.1 Canada Water Act.................................................................................................... 35 4.4.2 Canadian National Action Plan to Encourage Water Use Efficiency....................... 35 4.4.3 Federal Water Policy................................................................................................ 35 4.4.4 City of Toronto Water Efficiency Plan (Toronto, Ontario) ........................................ 36

5 WATER CONSERVATION: WATER EVALUTION SYSTEMS ........................................... 37 5.1 Water evaluation systems: Tools to assess water use ................................................ 37 5.2 Types of water evaluation systems.............................................................................. 37

5.2.1 Water rating systems ............................................................................................... 37 5.2.2 Water benchmarks................................................................................................... 37 5.2.3 Water audits............................................................................................................. 38 5.2.4 Water efficiency guidelines ...................................................................................... 38 5.2.5 Building performance rating systems....................................................................... 39

6 WATER CONSERVATION: BEST PRACTICE EXAMPLES .............................................. 42 6.1 Brookfield Place ........................................................................................................... 42 6.2 Colliers International..................................................................................................... 42 6.3 GPT Group and Jones Lang LaSalle Asset Management Services ............................ 43 6.4 Investa Property Group ................................................................................................ 43 6.5 Lachlan REIT Ltd.......................................................................................................... 44 6.6 Stockland Property Group............................................................................................ 44 6.7 Tridel ............................................................................................................................ 44

7 DEVELOPING A WATER CONSERVATION STRATEGY.................................................. 45 7.1 Step 1: Commitment and responsibility........................................................................ 45 7.2 Step 2: Information and analysis.................................................................................. 45 7.3 Step 3: Performance Evaluation .................................................................................. 45 7.4 Step 4: Management.................................................................................................... 46 7.5 Step 5: Implementation ................................................................................................ 46 Step 6: Evaluation and review................................................................................................... 47

CONCLUSIONS ............................................................................................................................ 48

LIST OF ABBREVIATIONS .......................................................................................................... 50

REFERENCES .............................................................................................................................. 51

APPENDICES ............................................................................................................................... 55 APPENDIX A: Global Water Evaluation Strategies for Commercial Buildings ......................... 55

A.1 Water Rating Systems, Water Audits, Benchmarking Tools, and Best Practice Guidelines ............................................................................................................................. 55 A.2 Building Rating Systems................................................................................................. 58


iii

LIST OF BOXES, CHARTS, FIGURES, IMAGES AND TABLES

BOXES Box 1: Canadian Commercial Buildings: Water Use Facts ............................................................................14 Box 2: Climate Change in Canada.................................................................................................................24 Box 3: Water Quality Crises in Canada..........................................................................................................25 Box 4: Boil Water Advisories, Provinces and Territories, 2008 ......................................................................26 Box 5: REALpac National Standard Green Lease for Single-Building Office Projects ...................................46 CHARTS Chart 1: Commercial Building Water End Use ...............................................................................................16 FIGURES Figure 1: Water Source by Type ......................................................................................................................9 Figure 2: Water Use by Sector.......................................................................................................................10 Figure 3: Canadian Water Use by Sector.......................................................................................................11 Figure 4: Canadian Municipal Water Use by Sector ......................................................................................11 Figure 5: Commercial Water Use Percentage (Largest Canadian Cities) ......................................................13 Figure 6: Water Use by Province/Territory, by Commercial-Industrial Sector ................................................14 Figure 7: Commercial Sector Daily Water Use by Year .................................................................................15 Figure 8: OECD Per Capita Water Use, 2008................................................................................................23 Figure 9: Average Percentage Water Price Increase, 2002-2007..................................................................28 Figure 10: Total Average Commercial Water Prices for 35m3, by Province and Territory..............................28

IMAGES

Image 1: Water Stress in China .....................................................................................................................12 Image 2: Low Flow Automatic Sensor Tap.....................................................................................................17 Image 3: Waterless Urinal..............................................................................................................................17 Image 4: Xeriscaped Garden .........................................................................................................................17 Image 5: Water Stress ...................................................................................................................................19 Image 6: Abandoned Boat in the Aral Sea.....................................................................................................20 Image 7: Brookfield Place .............................................................................................................................42 TABLES Table 1: Commercial Buildings: Common Source of Water Loss...................................................................18 Table 2: List of Water Evaluation Systems.....................................................................................................40 Table 3: NABERS Office Water 5 Star Rating System...................................................................................55 Table 4: NABERS Office Water 5 Star Rating System...................................................................................56


1

FOREWORD When global warming and carbon taxes capture the news day in and day out, it’s easy to forget that other resources, not just CO2, are under pressure. Water is one of them. We have many misconceptions in Canada about our water supply. We are inordinately heavy water users. We have tainted much of the water that is easily useable. We do not do a good job of managing water as a country, and there is much potable water that is wasted in commercial buildings. The contrast between Canada and Australia, when I visited there last spring, is stark. This research report, undertaken by Master of Science in Planning candidate Anthio Yuen under the supervision of Carolyn Lane, our Vice President of Research and Communications, and myself, is an excellent resource for all REALpac members and others, to focus on water management and water conservation, both from a business case and a risk management perspective. S. Michael Brooks, Chief Executive Officer


2

ACKNOWLEDGEMENTS The enclosed research was substantially conducted by Mr. Anthio Yuen, a Master of Science in Planning candidate from the University of Toronto, during the summer of 2008, under the supervision and guidance of Carolyn Lane, Vice President, Research & Communications and Michael Brooks, Chief Executive Officer of REALpac.

Any errors in the attached report are the responsibility of REALpac alone.


3

EXECUTIVE SUMMARY Water scarcity is a matter that has serious social, economic and environmental consequences and is becoming an issue for Canada’s real property industry. The general misconception for some time has been that Canadians enjoy an overabundance of water, due to plentiful and vast freshwater sources, and water scarcity exists only in developing countries and climatically dry areas. However, this reality is not true for many Canadian cities, and freshwater sources are depleting at unprecedented rates due to a myriad of factors, including overconsumption, water pollution, and global climate change. According to the Organization for Economic Co-operation and Development (OECD), Canadians consume an inordinate amount of water, being the second highest per capita water users among 29 member nations (OECD, 2008). This figure is in stark contrast to other OECD nations, such as Sweden and Denmark, who have among the lowest water consumption rates among OECD members (OECD, 2008). Furthermore, based on research conducted by the Canadian Medical Association, over 1766 boil water advisories were issued across Canada in the first seven months of 2008 due to water shortages and water quality issues (Canadian Medical Association Journal, 2008). While these two trends alone are staggering, climate change is another factor expected to exacerbate these issues in Canada, due to unprecedented drought and evaporation events that further decrease national freshwater supplies. These emerging trends suggest that the Canadian real property industry should manage and conserve water more aggressively. As a sector alone, commercial buildings consume 3 billion litres per day in Canada – a rate higher than other developed nations such as Australia and the United Kingdom. Poor water use, caused by wasteful water habits by occupants, as well as through water inefficient building infrastructure such as taps, fixtures and heating, cooling and air conditioning (HVAC) systems, results in high rates of water consumption in Canadian commercial buildings. One major area of water inefficiency is found in cooling towers used to regulate interior air. On average, cooling towers use between 25 to 50 percent of a building’s total water supply in Canada, and in retail shopping centres, this figure can be as high as 60 percent (Corr et al., 2008). Furthermore, water costs are increasing in direct and indirect ways, and various stakeholders involved in real property are growing more aware of the risks of overconsumption of water (Global Environment Management Initiative, 2007). Accordingly, as the global demand for freshwater increases, businesses that understand the changing business environment in respect to water will be better prepared for market place advantages, minimized risk and financial success (Global Environment Management Initiative, 2007). Drawing from international case studies, academic research and government bodies, this report provides several resources that can help the Canadian real property industry take calculated steps towards water conservation. Ultimately, the Canadian real property industry needs to be


4

managing finite water resources more aggressively and while it cannot abate the water crisis alone, it can play an integral part in water conservation in Canada.


5

CONTENTS SUMMARY Section 1 explores key trends in water resources, including a look into how water is used specifically in Canadian commercial buildings. This section highlights that:

• 1.4 Billion cubic kilometers of water is found on earth. However, only 0.5 percent is usable by humans.

• High-income nations use water much differently than low-income nations. High-income nations use more water for domestic and commercial uses. Low-income nations primarily use water for agriculture purposes.

• Several areas globally face chronic water shortages, due to increased demand, unsustainable water habits, pollution and climate change.

• In Canada, the commercial sector uses 17 percent of the water supply in municipalities. • Commercial buildings in Canada use 3 billion litres of water per day, and over 1.3 trillion

litres of water a year. Section 2 explores global fresh water issues, including how population growth, water pollution, urbanization, climate change and intensive water use contribute to the global water crisis. This section highlights that:

• Due to population growth, 40 percent of the world’s population will live in water scarce regions by 2025.

• Over 1 billion people lack access to safe freshwater, and over 3.4 million people die annually from water related afflictions.

• Climate change is expected to decrease freshwater sources through surface evaporation, glacial melt, and extreme drought.

• High-income nations predominantly use more water compared to low income nations and have better access to freshwater resources.

• Contrary to popular belief, Canadians do not have an over abundance of accessible freshwater, and are however consuming it at unsustainable rates.

• Canada is prone to water quality issues, with 1766 boil water advisories issued from 2007-2008.

Section 3 builds a business case for water conservation, highlighting that water conservation has become an imperative for risk minimization, profit generation, market place advantage and social and environmental responsibility. This section highlights that:

• Water costs are increasing for businesses in both direct and indirect ways. • Stricter water regulations are emerging, affecting the way the real property industry

operates. • Consumers are increasingly aware of water issues and are looking for businesses to

become more resource and energy efficient. • Investors are increasingly aware of water issues and are looking to invest in businesses

that display financial, social and environmental responsibility.


6

Section 4 provides insight into global and local policy initiatives that surround water resources and water conservation. Several non-governmental groups, public institutions, environmental organizations and water authorities have been proactive in promoting water conservation, developing programs and policy platforms at the international, national, provincial and city level. At the international level, the United Nations, the World Water Council, the World Wildlife Fund, and the International Water Resources Association have been at the forefront of global water issues. Australia, which has set precedents for innovative water conservation strategies among developed nations, has several organizations promoting water conservation, including Sydney Water, the New South Wales Department of Energy, Utilities and Sustainability and the Australian Department of Environment, Water, Heritage and the Arts. In Canada, the Canada Water Act, the Federal Water Policy and the Canadian National Action Plan direct water related policies for the country. Section 5 introduces several tools and methods that the real property industry can use to conserve water in buildings. Formally called Water Evaluation Systems (WES), these strategies are different types of tools used to track and rate a building’s water performance and water efficiency. WESs help to discover areas for improvement in a commercial building, and allow a property owner or manager to create specific changes and develop water efficient strategies. Several different types of WESs exist globally, each with their own individual tools and methods for evaluation. Section 5 explores five main types of WESs: water rating systems, water benchmarks, water audits, water efficiency guidelines and building performance rating systems. Section 6 explores best practice examples for water conservation in the real property industry. Drawing from international and local examples, this section highlights businesses that are leaders in water conservation, including asset management groups, real estate investment trusts, real estate development groups and property managers. Overall, these companies have taken a triple bottom line approach to their operations, ensuring that fiduciary responsibility is in line with both social and environmental sustainability. Section 7 is a water conservation guideline that can be used by a property manager or owner to develop water conservation goals, water efficiency arrangements and resource management plans for a single property or property portfolio. This section also proposes a six-step guideline that property owners and managers may use, adapted from Australian and North American best practice guidelines. This section highlights the following six steps:

• Step 1: Commitment and responsibility from owners, managers and occupants • Step 2: Information and analysis of water trends, water use and water bills • Step 3: Performance Evaluation of water trends using different evaluation systems • Step 4: Management of water use, including the development of conservation strategies

and plans • Step 5: Implementation of management plans, and conservation strategies • Step 6: Evaluation and review of plans and strategies


7

INTRODUCTION

Water is the single most important resource on earth, underpinning both human existence and the natural environment. It is found in all parts the world, from the smallest puddle to the largest ocean. It is contained in all living organisms, from the simplest bacteria to the most complex of animals. Water therefore, is a crucial element driving people, habitats, economies and the planet.

Humans, however, have done little to preserve this precious liquid, and since the turn of the 21st century, have begun to harm and diminish waters natural abundance. Water is shrinking in both quantity and quality at an unsustainable rate (United Nations World Water Assessment Programme, 2003). Intense water use, overconsumption, water pollution and climate change are key contributors to this water crisis, which is otherwise known as “water stress” (World Business Council for Sustainable Development, 2006).

“Water stress” is a broad term used to encapsulate the decreasing amount of freshwater available on earth, as well as the growing unbalance and inequitable access to water by humans (World Business Council for Sustainable Development, 2006). Caused primarily by anthropogenic1 factors, water stress is evident in all areas of the world, even in areas with relative freshwater abundance. The effects of water stress are staggering and nations that experience it are in a dangerous position to succumb to water-related poverty, disease and social conflict.

Countries around the world are experiencing the effects of water stress, diminishing the ability for some areas to meet the basic needs for their populations. Furthermore, the growing divide between water rich countries such as Canada and water poor countries such as Ethiopia and India is escalating, with population growth, economic activity and rapid urbanization compounding the problem (World Business Council for Sustainable Development, 2006).

This report begins with an overview of the global supply of water, followed by an introduction into how commercial buildings use and contribute to global water stress. The report will highlight recent trends affecting global freshwater resources, followed by a look into Canada’s water resource issues. After exploring water conservation policy initiatives around the world, this report focuses on the real property industry in Canada, and sets out a framework for water conservation in Canadian commercial buildings. Several companies have taken a proactive approach towards water conservation, showing that there is a business case for water efficiency, with long-term financial benefits, improved consumer confidence and marketplace advantage. Ultimately, this

1 Anthropogenic factors refers to those activities that are caused or produced by humans.

“The Earth is kind of like an apple that’s green in some parts, but it has brown spots where it’s drying up. We have to have this image in our minds. We have to live differently. We have to stop assuming technology is going to solve everything because it isn’t. We have to protect our public water systems. This, to me, is an emergency that equals climate change any day.”

- Maude Barlow (Towie, 2008)


8

report will help the Canadian real property industry develop strategies and methods for water conservation, through the exploration of global best practice examples and management tools for water efficiency.


9

1 WATER RESOURCES: KEY FACTS

1.1 What is the global supply of water?

An estimated 1.4 billion cubic kilometres of water is found on earth, covering more than seventy percent of the world’s surface (World Business Council for Sustainable Development, 2006). Despite this abundance of water globally, one prevailing misconception is the percentage of freshwater2 available for human use. As presented in Figure 1, less than 3 percent of the global water supply is freshwater. The other 97 percent is sea and ocean water unusable for human consumption. Of the 3 percent that is freshwater, 2.5 percent is found as frozen glaciers, with the remaining 0.5 percent accessible by humans in the form of underground aquifers3, rainfall, lakes and rivers (World Business Council for Sustainable Development, 2006).

Figure 1: Water Source by Type

97.0%

2.5%

0.5%

OceanGlaciersFreshwater

Figure 1: Water Source by Type

1.2 How is water distributed and used globally?

Water is not equally distributed across the world. Sixty percent of the global freshwater supply is found naturally in nine countries, those being Brazil, Russia, China, Canada, Indonesia, the United States (US), India, Colombia, and the Democratic Republic of Congo (World Business Council for Sustainable Development, 2006). The remaining 40 percent is dispersed in small amounts across the world (World Business Council for Sustainable Development, 2006). In terms of water use, agriculture accounts for 69 percent of all use (Environment Canada, 2008b). Industrial, commercial and institutional (ICI) use accounts for 23 percent of global water use and the remaining 8 percent is consumed by households (Environment Canada, 2008b). As seen in Figure 2, these averages differ across regions, with high-income nations such as Canada and the US dedicating a larger percentage of their use to the ICI sectors compared to low income nations

2 Freshwater, or potable water, is water that is of sufficient quality to be consumed for human use. 3 An aquifer is an underground layer of permeable rock that contains freshwater. Freshwater that is found in aquifers is also known as groundwater and is usually extracted by wells or pumping stations.

Source: World Business Council for Sustainable Development, 2006


10

including, for example, Malawi, Ethiopia and Chad (Environment Canada, 2008b). This suggests that the demand for water in the commercial sector is much higher in developed nations, due to increased demand for service-based economies (retail, trade, banking, finance, administration, information and culture) that occupy primarily commercial buildings. Furthermore, because low income nations do not have advanced economies in the form of service, information and cultural industries, water use is still heavily used for subsistence farming.

Figure 2: Water Use by Sector (Percentage)

0%

20%

40%

60%

80%

100%

World High Income Nations Low Income Nations

AgriculturalICI Domestic

Figure 2: Water Use by Sector

1.3 How much water does Canada use?

Annually, 50.8 billion cubic metres of freshwater is used in Canada (Environment Canada, 2008b). As seen in Figure 3, municipalities use 10 percent of this total, with the mining, agriculture, and manufacturing sectors using 4 percent, 8 percent and 19 percent respectively (Environment Canada, 2008b). Power generation accounts for almost 60 percent of all water use in Canada. Power generation is an intense user of water, requiring 140 litres of water in fossil fuel plants and 205 litres in nuclear power plants to produce one kilowatt hour of electricity (Brandes and Ferguson, 2003). Because power generation produces large amounts of heat, freshwater is used to cool and dissipate the excess heat energy not used for electrical production. Despite the fact that freshwater is returned to its source untainted, the water is at an unnaturally high temperature and damages water based ecosystems and habitats through “thermal pollution4” (Brandes and Ferguson, 2003). Accordingly, we consider that a ‘use’ of freshwater.

4 Thermal pollution is the degradation of water quality for ecosystems and aquatic species by any process that changes natural water temperature.

Source: World Business Council for Sustainable Development, 2006


11

Figure 3: Canadian Water Use by Sector

10%

4%

8%

19%59%

MunicipalMiningagriculturemanufacturingPower Generation

Figure 3: Canadian Water Use by Sector

As seen in Figure 4, residential water use accounts for 59 percent of water use in Canadian municipalities. Industrial and agricultural use accounts for 14 percent, with commercial use consuming 17 percent of the municipal water supply. In major Canadian cities, commercial use is as high as 20 percent. The remaining 13 percent is found in the form of leakages5 and unaccounted sources of water use (Environment Canada, 2008b).

Figure 4: Canadian Municipal Water Use by Sector

5 Leakage is referring to the water that is wasted or lost because of inefficient water use.

Source: Environment Canada. (2008). Water Use Surveys and Studies, 2008.

Figure 4: Canadian Municipal Water Use by Sector

0

10

20

30

40

50

60

Residential Commercial Industrial/Agriculture Leakages

Sector

Per

cent

age

Source: Environment Canada. (2008). Water Use Surveys and Studies, 2008


12

1.4 What is the central issue with freshwater resources? Water is an essential resource for human development. Not only is water fundamental for food and agricultural production, it is crucial for basic sanitation and hygiene. Water serves a principal input for health and overall quality of life, and is vital for social and economic survival. Water, therefore, is a precious commodity that requires careful management and consideration. On a global scale, however, freshwater resources are declining in availability as the intensity of human water use increases (Global Environment Management Initiative, 2007). Water is over-consumed, wasted and inefficiently used at record rates (World Business Council for Sustainable Development, 2006). According to the Global Environment Management Initiative (2007), “supplies of freshwater are stretched to meet the demands of populations, increasing industrial development and agricultural production, and ecosystem and wildlife protection.” (Global Environment Management Initiative, 2007). This has created several new realities that challenge global freshwater security6:

• Although most of the world is not running out of freshwater, a number of regions face chronic shortages;

• In the future, water shortages are likely to spread due to increasing demands, unsustainable withdrawal rates, difficulty in finding new supplies, pollution and source water contamination, and changing climatic and precipitation patterns; and

• Water shortages affect regional security by causing human health problems and population displacement, increasing conflicts between competing users, and damaging ecosystem health.

The severity of water stress varies across different regions. Some areas face periodic water shortages, decreased agricultural production and ecological destruction, making water shortages a temporary reality. In other areas however, water stress occurs to the fullest degree prohibiting basic human survival. Image 1

6 Source: Global Environment Management Initiative, 2007

Image 1: Water Stress in China (Source: http://home.howstuffworks.com/gray-water.htm/printable

Image 1


13

1.5 How much water do commercial buildings use?

Commercial buildings in Canada consume significant amounts of water - 3 billion litres per day and over 1.3 trillion litres per year7 (Sustainable Development Technology Canada, 2007). Seventeen percent of Canadian municipalities’ water supplies are used by the commercial sector, with some of the largest urban areas using 20 percent as of 2004 (Environment Canada, 2008a). The percentages used by seven major Canadian cities are seen in Figure 5. Figure 6 on the following page represents a larger scale of water use and reveals that across all provinces and territories, the ICI sector uses between 15 to 45 percent of all municipal water.

Figure 5: Commercial Water Use Percentage (Largest Canadian Cities)

7 Data Derived From Source: SDTC. (November, 2007). Commercial Buildings – Eco-Efficiency. Volume 1.

Figure 5: Commercial Water Use Percentage (Largest Canadian Cities)

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Montreal Toronto Ottawa Calgary Winnipeg Edmonton Vancouver

City

Per

cent

age

2004

Source: Environment Canada (2007) Municipal Water Use Statistics, 2004.


14

Figure 6: Water Use by Province/Territory, by Commercial-Industrial Sector

On a more granular level, according to 2007 data derived from Sustainable Development Technology Canada (SDTC), there are over 400,000 commercial buildings in Canada, totaling 680 million square metres of commercial floor space (Sustainable Development Technology Canada, 2007). On average, each commercial building8 in Canada uses 5.56 litres per metre squared (L/m2) of water per day, and over 2033 L/m2 of water per year (Sustainable Development Technology Canada, 2007).

In the Canadian commercial sector, water use is increasing in volume at an average rate of 23 million litres of water per year (Sustainable Development Technology Canada, 2007). As seen in Figure 7, from 1983 to 2007 the commercial sector increased daily water use rates from 2.31 billion litres/day, to over 3 billion litres/day9.

Box 1:Canadian Commercial Buildings: Water Use Facts

8 Commercial buildings, according to SDTC, is the range of commercial and institutional buildings that include retail, information and culture, private office, administration, education, and accommodation uses. For the purposes of this report, they are referred to solely as “commercial buildings” or the “commercial sector”. 9 Data for Figure 7 is derived and adapted from source: SDTC. (November, 2007). Commercial Buildings – Eco-Efficiency. Volume 1.

Figure 6: Water Use by Province/Territory, by Commercial-Industrial Sector

05

101520253035404550

Newfoundland &

Lab...N

ova Scotia

Quebec

British Columbia

Saskatchewan

NW

T

Yukon

Ontario

Alberta

Manitoba

New Brunswick

PEI

Province/Territory

Per

cent

age

20012004

Box 1: Canadian Commercial Buildings: Water Use Facts 2007 sector water use: - 3.06 billion litres/ day - 1.3 trillion litres/ year 2007 building water use: - 5.56 L/m2 a day - 2033 L/m2 a year

Source: Environment Canada. (2001). Municipal Water Use Statistics, 2001; Environment Canada. (2007) Municipal Water Use Statistics, 2004.


15

Figure 7: Commercial Sector Daily Water Use by Year

1.6 How is water used in a commercial building?

Commercial buildings are supplied with treated freshwater through the municipal water supply system. Water that is treated and distributed through the supply system enters the building through a series of pipes and pumps. As seen in Chart 1 on the following page, water in a building is typically divided into two main sections – Human use, which is defined as domestic consumption by occupants and Equipment Use, which is defined as the water used for various in-building machinery and infrastructure (Sustainable Development Technology Canada, 2007). The amount and use of water in a commercial building varies across Canada, and is dependent on a variety of factors including climate, building age, equipment and occupancy levels.

Figure 7: Commercial Sector Daily Water Use by Year

0

0.5

1

1.5

2

2.5

3

3.5

1983 1986 1989 1992 1995 1998 2001 2004 2007

Year

Bill

ions

of

Lit

res

Source: Data adapted from - SDTC. (November, 2007). Commercial Buildings – Eco-Efficiency. Volume 1.


16

Chart 1: Commercial Building Water End Use

1.6.1 Human uses

1.1.1.1 Domestic use

Human water use is water directly used by occupants either for consumption or for sanitation. As seen in Chart 1, domestic use refers to water used in sanitary fixtures including toilets, urinals, faucets and basin taps (Corr et al., 2008). Furthermore, “Appliances” refers to in-office amenities such as dishwashers, refrigerators and water coolers. Many commercial buildings have kitchens or staff areas that use such appliances.

Domestic water use, according to SDTC, represents between 20 to 40 percent of water use in a commercial building (Sustainable Development Technology Canada, 2007). The most relevant factors determining this percentage are the age of the fixtures and appliances and the water use habits of the building’s occupants. However, few commercial buildings in Canada use water efficient technologies in their buildings, including low flush and waterless urinals, low flow taps, and closed loop HVAC systems (See Table 1 for more information regarding these water efficient technologies). Older buildings that are not renovated or retrofitted with new fixtures tend to have higher rates of domestic water use due to inefficient or leaking fixtures. Furthermore, poor water use habits by occupants dramatically increases domestic water use (Sydney Water, 2007).

1.1.1.2 Maintenance

Maintenance refers to the water that is used for cleaning, sanitation and landscaping purposes. Cleaning and sanitation typically use less than 5 percent a building’s water supply, whereas

Treated Municipal Water

Building

Equipment Use Human Use

Domestic Use Maintenance

Heating Cooling

Sanitary Fixtures

Appliances

Cleaning

Sanitation

Landscaping

Heating, Ventilation & Air Conditioning

(HVAC)

Chart 1: Commercial Building Water End Use (Adapted from source: SDTC. (November, 2007). Commercial Buildings – Eco-Efficiency. Volume 1.)


17

landscaping, including plant watering, irrigation and gardening, can use over 30 percent of the total supply (Metro Vancouver, 2008b). Water use percentages for landscaping are generally higher for properties having large amounts of grass or foliage. Some properties use xeriscaping, which is a landscape technique that uses local, drought resistant plants that are more water conservative compared to conventional foliage.

1.6.2 Equipment use

1.1.1.3 Heating and cooling

Most commercial buildings are equipped with a cooling tower functioning as part of the HVAC System (Corr et al., 2008). The primary function of a cooling tower is to use water to regulate heat and air temperature within a building. While the size and capacity of cooling towers varies among buildings, it is estimated that 25 to 50 percent of total water use in commercial buildings is dedicated to cooling towers (Corr et al., 2008). In some retail buildings, such as shopping centres, this figure becomes as high as 60 percent (Corr et al., 2008).

Cooling towers use cold freshwater to cool air before it is compressed and released into a building. The majority of cooling towers function in an open loop system, where cold freshwater flows through the system before being expulsed as wastewater (The Office of Energy Efficiency of Natural Resources Canada , 2002). The unfortunate reality of this process is that the repulsed freshwater can be re-used, but rarely is, and could be recycled back into other areas of a building. Closed loop cooling towers are available, and can dramatically improve water efficiency, as closed loop systems continuously re-use water to cool compressed air.

1.6.3 Leakages

Leakages are defined as excess water that is either lost or wasted because of inefficient, cracked, broken or damaged infrastructure, including taps, cisterns and pipes (Corr et al., 2008). Leakages will vary according to the age of the building and how it is properly maintained. Some buildings have leakages as low as one percent and some as high as thirty percent. For instance, an older, poorly managed building loses up to 26 percent of its water supply to leakages. (Department of the Environment and Heritage, 2005). Image 2 Image 3 Image 4

Image 2: Low Flow Automatic Sensor Tap (Source: http:// www.thedailygreen.com) Image 3: Waterless Urinal (Source: http://www.gizmag.com/go/7273/) Image 4: Xeriscaped Garden (Source: http://www.daviddarling.info/encyclopedia/X/AE_xeriscaping.html)

Image 2 Image 3 Image 4


18

Table 1: Commercial Buildings: Common Source of Water Loss

10 Xeriscaping is landscaping that uses local, drought resistant plants that conserve water and energy and are less costly to maintain.

Use Area Causes of Water Loss Solutions and Technical Measures HVAC systems

Water leaks from cooling tower • Water leaks from valves or hydraulic systems • Water loss from excessive drift (liquid condensation),

splash (water physically blown off from wind or tower movement) and bleed (system expulsion of water)

Poorly designed HVAC systems • Excessive water use in open loop cooling towers • Use of building cavities to transport air instead of sealed

ductwork adding to heat loads • Poorly located vents create hot and cold spots

Poorly operated HVAC systems • Excessive operation of fans and coolers • Temperatures set too high/low • Dust in air filters and cooling coils reducing efficiency

Excessive building heat and cold loads • Wasted heat from inefficient lighting • Wasted heat from inefficient insulation • Wasted cool air from inefficient air circulation

• Closed loop cooling towers • Regular cleaning and

maintenance of HVAC System • Using automatic bleed lockout

system • REALpac Green Office Lease (Go

to http://www.realpac.ca > Standards > “Green” Office Lease)

• Water efficient HVAC Systems • Retrofit of insulation and windows

Amenities and sanitary fixtures

Poorly maintained amenities and fixtures • Toilet leaks from cisterns • Urinal leaks from broken sensors, broken valves • Leaking taps from broken sensors, broken valves

Poorly Designed amenities and fixtures • Inefficient fixtures • Inefficient appliances

Poorly operated amenities and fixtures • Poor occupant habits (over use, waste, ignorance) • No water conservation strategy for occupants

• Regular maintenance of fixtures and amenities

• Low flush and dual flush toilets • Low flow taps • Low flow showerheads • Waterless urinals • Automatic sensors • Energy efficient appliances • REALpac Green Office Lease

Hot water heating

Excessive hot water heating • Higher than needed hot water temperatures • Inefficient use of hot water by occupants

Poorly maintained hot water system • Water loss from leakages in system

• Reduce hot water consumption • Regular maintenance of heaters • Lower hot water temperatures

Water supply systems

Inefficient use of water • No re-use of freshwater, • No re-use of greywater (water from taps and showers) • No re-use of stormwater (water from rainfall) • Excessive water use for irrigation and landscaping

• Greywater and stormwater treatment system for water re-use • Efficient sprinkler systems

water plants and lawns less often • Xeriscaping10

Table 1: Commercial Buildings: Common Sources of Water Loss

Table adapted from sources: Department of Environment and Heritage, 2005; Sydney Water, 2007


19

2 GLOBAL FRESHWATER ISSUES

Freshwater issues are escalating worldwide. Population growth, water pollution, urbanization, climate change and over use affect the finite supply of freshwater resources worldwide. Global water scarcity is an emerging trend with social, economic and political consequences. According to the United Nations (UN) Environment Programme, “the world’s thirst for water is likely to become on of the most pressing issues of the 21st century” (United Nations Environmental Programme, 2002). This section highlights key issues that affect global freshwater resources.

2.1 Key factors affecting global freshwater resources

2.1.1 Population growth

The current world population is 6.6 billion people (World Business Council for Sustainable Development, 2006). Projections reveal that the population will increase to 9.5 billion people by 2050 (World Business Council for Sustainable Development, 2006). This population increase is expected to strain available water resources, and increase the instance of water stress for some populations (United Nations World Water Assessment Programme, 2003). According to the Global Environment Management Initiative, 40 percent of the world will live in water scarce regions by 2025 due to increasing water use and population growth (Global Environment Management Initiative, 2007). Image 5

2.1.2 Water pollution

Water pollution decreases the quantity of freshwater available for human use. Many surface and underground freshwater sources are contaminated with industrial, municipal and agricultural pollution due to runoff and effluent discharge. In China, over 700 million people consume unclean water daily, and several rivers in the country are polluted to a level where no living organism can sustain life in or near its proximity (Barlow, 2007; United Nations World Water Assessment Programme, 2003). Furthermore, several of India’s most prominent rivers, including the Yamuna and Ganges, are polluted beyond a state for human use, leaving several hundred million people without adequate sanitation (Barlow, 2007; United Nations World Water Assessment Programme, 2003). Unclean water contains pathogens that are harmful to humans and cause a series of illnesses, including typhoid, cholera, dysentery and hepatitis (World Health Organization, 2004). Over 1 billion people around the world lack access to safe freshwater, and over 3.4 million people die annually from water borne illnesses (World Health Organization, 2004).

Image 5

Image 5: Water Stress (Source: http://news.bbc.co.uk/2/ low/science/nature/3747724.stm


20

2.1.3 Urbanization

Regions around the world are rapidly urbanizing and new urban areas are competing for the global water supply. Smaller communities that once relied on self-sufficient water wells and small sanitation systems are growing to require larger and more intricate water supply systems (World Business Council for Sustainable Development, 2006). However, these developing areas do not have adequate water infrastructure in place to support their growing populations. Regions in Mumbai, Jakarta, Manila, and Beijing possess poorly built living environments that do not have basic sanitary fixtures such as toilets, taps or shower facilities (Barlow, 2007; Cohen, 2006). Not only does urban water use require significant monetary investment towards public infrastructure, it also increases incidences of wastewater, sewage, and water pollution (Corr et al., 2008).

2.1.4 Climate change

Global climate change also affects the supply of freshwater. Increases in greenhouse gases are projected to shift conventional weather patterns creating severe water related occurrences such as heavy precipitation events and flooding (Schindler, 2006). Despite the fact that these precipitation events could increase freshwater availability in some areas, higher temperatures could also increase the rate of evaporation from surface waters and glaciers, thus reducing the available freshwater supply (Environment Canada, 2006). In the pacific coast of North America, decreased snowfall events and decreased water flow in rivers and lakes are diminishing annual freshwater supplies to several Canadian and American cities, including Vancouver, Seattle, and Los Angeles (Miller, 2007). Furthermore, severe drought events are projected to occur as a result of higher average temperatures, and could occur in some acute areas of the world that are already suffering from significant water shortage (Environment Canada, 2006). Australia, which is among the most water scarce regions in the world, is experiencing record-breaking drought events and increasing surface evaporation rates (Climate Action Network Australia, 2007). In 2002, southeastern parts of the country had suffered the worst drought period in five decades (Climate Action Network Australia, 2007). Image 6

2.1.5 Intensive withdrawal and consumption

Global freshwater sources, including lakes, rivers and underground aquifers, are being depleted at a rate faster than can be replenished (United Nations World Water Assessment Programme, 2003). Intensive withdrawal not only harms the reproductive capacity of some freshwater sources, it also results in the degradation of natural eco-systems, such as wetlands and river deltas through decreasing water levels and decreasing species diversity. For example, the Aral Sea (Image 6), located between Uzbekistan and Kazakhstan in northern Asia, has been declining in size since the 1960s when the

Image 6: Abandoned Boat in the Aral Sea (Source: http://keralaarticles.com/wp-content/uploads/2008/05/aral-sea.jpg)

Image 6


21

Amu Dar’ya and the Syr Dar’ya rivers, which flowed directly in to the Aral Sea, were diverted and used for cotton and rice irrigation (Welsh, 2000). As a result of this diversion, the Aral Sea had already lost sixty percent of the original volume by 1987, and since the 21st century, has shrunken by more than half the original size in 1960 (World Business Council for Sustainable Development, 2006). The Aral Sea was once home to a thriving port economy and aquatic ecosystem that no longer exists.

2.1.6 Social and economic polarization

A 2003 index produced by the United Kingdom National Environment Research Council’s Centre for Ecology and Hydrology called the Water Poverty Index (WPI), highlights an imbalance in global water access between developed and developing nations. The WPI serves as an evaluation tool linking household welfare with water availability, indicating the degree to which water scarcity impacts human populations. The index ranks countries using a combination of both physical and socioeconomic factors related to water use.

Nations that have a high score on the WPI have a high access to freshwater whereas those that rank low on the index are subject to severe water stress. Of the 147 countries indexed, Asia and Africa possess the largest share of water stressed countries (Centre for Ecology and Hydrology, 2003). Finland, Canada, Iceland, Norway, Guyana, Suriname, Austria, Ireland, Sweden and Switzerland are the top ten countries on the index (World Business Council for Sustainable Development, 2006).

The WPI serves to indicate two major trends. First, there is a positive correlation between wealth and water access. High-income nations have lower instances of water stress and water scarcity and low-income nations are prone to high levels of water stress. Second, natural water abundance is not a predicator of high water access. Freshwater requires infrastructure to withdraw, treat and purify water, and many nations such as Brazil, do not currently have the economic or infrastructure to produce freshwater for human consumption despite natural freshwater abundance (World Wildlife Fund United Kingdom, 2003).

2.2 Key issues affecting Canada’s freshwater resources Canadians may be surprised to learn that they are on the verge of a national water crisis, compounded by poor water habits (overuse, waste, ignorance), climate change, and political tension. Water consumption rates in Canada are among the highest in the world and many regions in the country are using finite reserves of freshwater at unsustainable rates. Furthermore, climate change is expected to reduce the available freshwater supply in Canada, as melting glaciers and higher evaporation rates begin to deplete freshwater sources in all regions (Environment Canada, 2006). In addition, in light of a national water shortage, the US is pressuring the Canadian government to open freshwater trading between the two nations.


22

2.2.1 The myth of abundant freshwater

Canada is in an envious position as a water wealthy nation, possessing 6 percent of the world’s renewable freshwater supply and 20 percent of the world’s total freshwater supply (Environment Canada, 2008a). Accordingly, this data would suggest that Canadians enjoy an abundance of freshwater – a concept that has been celebrated by many government and media officials. However, contrary to the popular belief that Canadians enjoy an overabundance of freshwater, much of the freshwater in Canada is located in areas inaccessible by humans. Sixty percent of Canada’s freshwater supply is locked away in glaciers, ice caps and water bodies found in the northern areas of Canada (Environment Canada, 2006). Furthermore, many of Canada’s lakes and rivers run northward, away from the majority of Canadians living in the southern parts of the country. Urban regions in Canada, therefore, have access to only 40 percent of the country’s entire freshwater supply (Labelle, 2001, February 16). In addition, freshwater is not equally dispersed across Canada, and is instead found primarily in the Pacific and Atlantic coastal regions of the country (Labelle, 2001, February 16). Climate and topography are key contributors for higher freshwater availability, and abundant rain fall in these areas, climbing as high as 1400 millimeters annually in some regions, is significantly higher than the land-locked and drought prone Prairie Provinces, which have only 500 millimeters of rainfall annually (Labelle, 2001, February 16). Rainfall is an important precursor to freshwater production, and regions that do not enjoy regular rainfall succumb to drought and water scarcity. For example, some areas of British Columbia and the Yukon receive such little rainfall that several water experts have termed these areas de facto ‘deserts’, meaning that dry climates and high rates of evaporation leave these areas extremely arid (Labelle, 2001, February 16). In the Canadian Prairies, new urban growth is expected to strain already limited freshwater supplies sourced from the Rocky Mountains (Schindler, 2006). Furthermore, the North American Great lakes, which supply water to several urban areas in Eastern Canada and the United States, are rapidly shrinking in size (Science Daily, 2008, Jan 1). Accordingly, we can draw two conclusions from this section. First, freshwater in Canada is finite, smaller in amount than perceived, and cannot support the growing urban population due to geographical and topographical realities. Second, freshwater sources are not found equally across the country and some areas do not have access to adequate freshwater sources due to climate and location.


23

Figure 8: OECD Per Capita Water Use, 2008

2.2.2 Overconsumption of water

Canadians consume an inordinate amount of water compared to other nations (Government of Alberta, 2005). Per capita, Canadians consume over 330 litres per day and 1600 cubic metres per year, twice the amount of water consumption compared to the European Union, and quadruple the amount of some individual high-income countries such as Sweden, Denmark and the United Kingdom (Government of Alberta, 2005). According to the Organization for Economic Co-operation and Development (OECD), of 29 nations that are part of the OECD, Canada has the second highest per capita water consumption levels second only to the US, which has the dubious distinction of having the highest per capita water use out of the OECD member nations (OECD Environmental Directorate, 2008) (Refer to Figure 8). Furthermore, Canada ranks 26 out of 29 OECD nations in terms of total water consumption, with Mexico, Japan and the US being the only nations to consume more water annually (Government of Alberta, 2005). According to Environment Canada, water use in Canada has increased by 25 percent in the last two decades (Brandes and Ferguson, 2003). This trend is in stark contrast to other developed nations such as Poland, Denmark and the US (Even though they are still the highest per capita water users globally), which have been able to reduce their annual water use over the last two decades (Brandes and Ferguson, 2003). Water conservationists have claimed that the perceived abundance of freshwater in Canada has significantly contributed to Canada’s high level of water consumption, and environmental advocates, including the United Nations and the OECD, have vilified Canadians for their high water use patterns (Towie, 2008, June 2).

Figure 8: OECD Per Capita Water Use, 2008

Source: OECD, 2008


24

Box 2: Climate Change in Canada Several areas in Canada are expected to be affected by climate change including: Rocky Mountains

• Increased snowfall • Reduced summer stream flow • Reduced summer soil moisture

Coastal British Columbia

• Flooding of coastal wetlands • Glacial melt and retreat

Sub-Artic

• Thinner ice cover • Increased lake level variability • Drying up of delta regions

Midwest Prairies

• Increased drought events • Declining summer stream flow • Increasing aridity

Great Lakes

• Reduced run-off • Decline in lake levels

(Source: Environment Canada, 2006)

Box 2: Climate Change in Canada

2.2.3 Climate Change

Climate Change is expected to be a main contributor to water stress in Canada. Rising temperatures across Canada have had a marked affect on freshwater availability. Glaciers in Western Canada and snow packs across Canada are melting at an alarming rate, making potential freshwater sources obsolete (Schindler, 2006). Higher evaporation rates are expected to create extreme drought events, especially in Western Canada (Schindler, 2006). These drought events are projected to strain agricultural and industrial production, with some academics claiming that climate change could severely hinder Canadian communities in the Prairie Provinces (Schindler, 2006). The Province of Alberta has already felt the effects of water scarcity, with shifting climatic conditions and intense water use causing water quality problems, wetland destruction, collapsing fisheries and shrinking river flows (Brandes and Ferguson, 2003). Furthermore, fears over climate change and water scarcity have also been linked to the vitality of the Alberta tar sands, as the high volume of water used to produce oil has significantly reduced water supply for other areas of the province as well as producing vast amounts of greenhouse gas emissions (Brandes and Ferguson, 2003).

2.2.4 Water export pressures

Pressure has begun to mount on the Canadian Government to initiate a water export deal in light of an aggressive water security initiative driven by US Officials. Growing water scarcity in the US, due to drought, evaporation and overuse, has put the country in the midst of a national water crisis (Maich, 2005, November 24). The issue of freshwater resources is at the forefront of the US Federal agenda, where as early as 2000, intentions were put forth to import freshwater from Canada to help alleviate water shortages in several American Southwest states such as Arizona, Nevada and California (Maich, 2005, November 24). The Government of Canada has not been receptive to advances made by the US, claiming that North American Free Trade Agreement and General Agreement on Tariffs and Trade legislation could force Canada to uncontrollably export water in limitless quantities if a new water export deal is created (Barlow, 2007; Maich, 2005, November 24). However, this issue has yet to be resolved, and could have several unforeseen political, economic and environmental consequences.


25

Box 3: Water Quality Crises in Canada Walkerton, ON - The most notable water quality crisis in Ontario was in the rural community of Walkerton, where in May of 2000, E. Coli bacteria from agricultural runoff seeped into the water supply system killing seven people and affecting 2,500 others. Poor water treatment procedures and lack of government intervention were cited as major causes for the E. Coli breakout. (CBC News, 2004) Vancouver, BC – After violent storms in November, 2000 increased turbidity levels in freshwater reservoirs, a massive boil water advisory alert was announced to over 2 million residents in the Greater Vancouver Region. Many people were left without adequate freshwater for several weeks.(CBC News, 2006) Tofino, BC – In August, 2006, the resort town of Tofino experienced a massive water crisis after peaked demand and extreme drought shut down all non-essential uses, causing the tourist dependent economy to lose several millions of dollars in expected revenues as vacationers, employees and residents fled the town. In addition, several communities close to Tofino were experiencing boil water advisories at the time, meaning that the entire region was stricken with water supply problems. (CTV News, 2006)

2.2.5 Water quality

According to Environment Canada, water pollution, caused by storm water run off, economic activity and domestic use, affect water quality by placing harmful toxins and chemicals such as nitrates, ammonia and phosphorous directly into freshwater sources (Marsalek et al., 2004). 115, 000 Tonnes of pollutants were directly discharged into Canada’s surface waters in 2005, indicating that many freshwater lakes, streams and rivers are continuously being polluted as a result of human activity (Statistics Canada, Environment Canada, Health Canada, 2007). In addition, increased water demand, due to population growth and growing per capita water use strains municipal water supply system that treat and purify daily freshwater requirements.

Water quality has been an issue in First Nations reserves, with more than half the residing population not having adequate access to drinkable water sources (Canadian Medical Association, 2008, April 7,). Furthermore, communities in the Canadian north constantly experience water quality issues as well, due to poor water sanitation systems and lack of freshwater supply (Government of Canada, 2006). Canadian municipalities are also prone to water quality issues, where from a period of 1994-1999, 26 percent of municipalities across Canada cited some form of water shortage due to poor water quality or peaked demand (Marsalek et al., 2004).

Box 3: Water Quality Crises in Canada


26

Box 4: Boil Water Advisories, Provinces and Territories, 2008 (First Seven Months – January to July, 2008) Ontario 679 British Columbia 530 Newfoundland/Labrador 228 Saskatchewan 126 Quebec 61 Manitoba 59 Alberta 13 New Brunswick 2 Northwest Territories 1 Prince Edward Island 0 Yukon 0 Nunavut 0 (Source: Canadian Medical Association, 2008)

As of April 2008, 1766 boil water advisories were initiated by Health Canada, up from 1419 in 2007 (Brandes and Ferguson, 2003). Communities with boil water advisories do not meet basic water quality standards and are susceptible to several water-borne illnesses. The 2007 Canadian Environmental Sustainability Indicators Report, produced by Statistics Canada, stated that out of 359 water monitoring sites dispersed throughout southern Canada, only 44 percent were listed as having a rating of ‘excellent’ or ‘good’, meaning that only 158 locations consistently met Canadian water quality standards (Statistics Canada, Environment Canada, Health Canada, 2007). The remaining 56 percent of the sites indexed received a rating of ‘fair’, ‘marginal’ or ‘poor’ indicating that water quality at those locations sometimes or often failed to meet water quality standards and were subject to human health issues, ecological degradation and aquatic species destruction (Statistics Canada, Environment Canada, Health Canada, 2007).

Box 4: Boil Water Advisories, Provinces and Territories, 2008


27

3 WATER CONSERVATION: BUILDING A BUSINESS CASE

The business case for water conservation is getting stronger in light of the water related challenges facing Canada and abroad. Businesses must take a pro-active approach towards water conservation, as economic, social and political pressures mount on them to become more water efficient. Energy management, environmental performance measures and water conservation strategies are examples of ways that the real property industry is responding. These responses create new benefits and opportunities for the real property industry to engage in profitable property investing. The following section highlights four emerging realities affecting the real property industry.

3.1 Reality No. 1 – Increasing water costs The cost of water is increasing, and many businesses are feeling the financial implications of this reality through lost revenues and higher operating budgets (Global Environment Management Initiative, 2007). As seen in Figure 9, according to the Earth Policy Institute, water prices have increased by over 40 percent since 2002 in many regions, with Canada having the largest increase at 58 percent. Furthermore, in Figure 10, average Canadian water prices by province and territory are listed for 2001 and 2004. Emerging financial challenges include:

• Higher treatment costs for freshwater, reflected in higher municipal fees • Increased costs for municipal and provincial water demand strategies • Indirect costs from suppliers with water intensive processes and water related disruptions • Business disruptions due to unforeseen or chronic water shortage events • Worker absenteeism due to water-related illnesses or water shortages • Higher operational costs due to increasing water prices

These challenges reveal that increases are not always visible as the cost of water is reflected in many areas other than hydro billings and payments.


28

Figure 9: Average Percentage Water Price Increase, 2002 - 2007

0 10 20 30 40 50 60

Canada

South Africa

Australia

United Kingdom

United Stated

Cou

ntr

y

Percentage

Figure 9: Average Percentage Water Price Increase, 2002-2007

Figure 10: Total Average Commercial Water Prices for 35m³, by Province and Territory

0

50

100

150

200

250

New Brunswick

P.E.I.Newfoundland

YukonQuebec

Manitoba

Saskatchewan

British Columbia

OntarioNova Scotia

AlbertaNorthwest Territories

Nunavut

Province/Territory

Pri

ce (

$)

2001

2004

Figure 10: Total Average Commercial Water Prices for 35m3, by Province and Territory

Source: Clark, Edwin H. (March 2007). Water Prices Rising Worldwide. Earth Policy Institute.

Source: Environment Canada. (2001). Municipal Water Pricing Summary Tables, 2001; Environment Canada. (2004). Municipal Water Pricing Summary Tables, 2004.


29

3.2 Reality No. 2 – Increasing regulation Water stress and scarcity in several countries has resulted in stricter building and environmental regulation. The political and legal implications of these changes dramatically affect the real property industry. For instance, the Federal Government of Australia, coupled with support from regional and local governments, has begun to pressure the development sector to provide resource efficient buildings for government institutions (Innovest Strategic Value Advisors, May 2008). Furthermore, energy efficient requirements in conjunction with Australian building codes have pressured Australian listed property trusts toward adopting higher environmental performance measures in their properties (Innovest Strategic Value Advisors, May 2008). In British Columbia, Canada, water conservation has become a major component of new provincial ‘green’ standards. Both the City of Vancouver and the British Columbia Building Code have mandated stricter water efficiency in new buildings, posing a new challenge for property developers and owners (Office of Housing and Construction Standards, 2008). Emerging regulatory trends include:

• Higher water efficiency standards reflected in updated building codes and development approval processes

• New environmental policies surrounding resource and energy efficiency • Stricter environmental regulations on water quality standards • New regulations on daily water use in residences and offices • Tougher standards for wastewater quality and water pollution • Funding and incentive programs for water efficiency in commercial buildings

3.3 Reality No. 3 – Increasing consumer consciousness Companies are increasingly hearing from consumers – those people who occupy and use their buildings – about the growing importance of energy and water issues (Global Environment Management Initiative, 2007; Innovest Strategic Value Advisors, 2002). Companies that do not comply or fail to understand changes to consumer preferences can negatively affect their bottom-line. Members of the real property industry need to enhance their revenues by applying core competencies to address the water related needs of consumers, such as products that use less water or retrofitting and developing buildings with high water efficiency. Emerging consumer trends include:

• Greater consumer demand for water efficient products • Increasing demand for buildings with high water efficiency • Increasing awareness for companies that display corporate environmental governance • Higher preference for companies that adopt a triple-bottom line approach to their

operations


30

3.4 Reality No. 4 – Increasing investor consciousness Companies seen as purveyors of water conservation are gaining more financial viability as investors and the public alike are increasingly sensitive to long-term social and environmental concerns (Guenster et al., 2005). According to the Global Environment Management Initiative, “Many publicly traded companies are experiencing stakeholder initiatives aimed at corporate environmental governance or decision-making. Such initiatives and associated shareholder expectation can pressure a company to alter its water-related practices or strategic plans” (Global Environment Management Initiative, 2007). Investors are concerned with their purchasing actions, and now consider the larger effects of their investment decisions. Investors are keen to invest in corporations that have an environmental conscience and in turn, make sure businesses set tougher environmental standards for all of their operations.

Those companies displaying exemplary environmental performance and standards are seen as “Responsible Corporate Citizens” (RCC). RCCs have the undeniable advantage of increasing company reputation and marketability by pursuing socially and environmentally sustainable business practices (Innovest Strategic Value Advisors, 2002). Similar in nature to the concept of corporate responsibility and sustainability (CR&S), RCCs represent a motive for corporations to ‘green’ approaches to their operations. Being a RCC provides image enhancement, a factor proving valuable for corporations in light of growing water issues.


31

4 GLOBAL AND LOCAL INITIATIVES TO PROMOTE WATER CONSERVATION

4.1 International 4.1.1 United Nations

http://www.un.org/english/

Growing concerns over the ecological livelihood of the world was brought to focus by the UN over a series of biological, environmental and resource directed initiatives beginning in the 1970s. The need to create both awareness and an integrated approach to water management and conservation was initially discussed during the Mar del Plata Action Plan of the 1977 Conference on Water, the 1992 Dublin Conference on Water and the Environment, and Agenda 21, held at the 1992 Rio Earth Summit (United Nations World Water Assessment Programme, 2003). These initiatives made direct reference to human water use, with specific concerns over a growing lack of freshwater as well as a rising trend of overconsumption in some nations. Coupled with support from the UN Commission on Sustainability and the March 2000 Ministerial Conference at The Hague, UN Water, a water program created by the UN, developed the ‘World Water Assessment Programme (WWAP)’ (United Nations World Water Assessment Programme, 2003). The WWAP’s main focus was to by 2015, “halve the proportion of people who are unable to reach or afford safe drinking water and to stop the unsustainable exploitation of water resources (United Nations World Water Assessment Programme, 2003)”. This would be accomplished by developing water management strategies at the regional, national and local levels, which promote both equitable access and adequate supply (United Nations World Water Assessment Programme, 2003). While it is yet to be seen whether this goal will be reached, the WWAP’s continues to reach out to institutions, businesses, non governmental organizations and governments in an attempt to address global water issues.

4.1.2 World Water Council http://www.worldwatercouncil.org/

The World Water Council (WWC) is an international multi-stakeholder platform aimed at increasing awareness for global water issues. The mission of the WWC is “to promote awareness, build political commitment and trigger action on critical water issues at all levels, including the highest decision-making level, to facilitate the efficient conservation, protection, development, planning, management and use of water in all its dimensions on an environmentally sustainable basis for the benefit of all life on earth”. Created as an affiliate of UN after the 1992 Rio Earth Summit called for the formation of a world water organization, The WWC is most notably recognized as the host of the ‘World Water Forums’, an series of international events used to address global water issues. So far, five World Water Forums have been held: Marrakech in 1997, The Hague in 2000, Kyoto in 2003, Mexico in 2006, and Istanbul in 2009.


32

4.1.3 World Wildlife Fund http://www.worldwildlife.org/

In 2004, the World Wildlife Fund (WWF), an internationally recognized organization focusing on environmental sustainability and ecological preservation, developed the Global Freshwater Programme (GFP) (World Wildlife Fund, 2004). The main objective of the GFP was to promote the sustainable use of freshwater while preserving the ecological integrity of water sensitive areas. Three key objectives were developed:

• Ensure healthy environmental processes in the world's richest river basins and eco-systems, including those threatened by unsustainable infrastructure

• Protect and sustainably manage 250 million hectares of representative wetlands by 2010 • Promote the adoption by government and industry of policies and techniques that

conserve life in rivers and reduce poverty for dependent communities

Part of the objective of the GFP is to develop and support freshwater programs in different regions, each with their own site specific mandates and initiatives. WWF United Kingdom (UK) is the most notable example forwarding the GFP. WWF UK has developed several interesting programs, including a water protection strategy targeting wetlands and river basins (World Wildlife Fund, 2004).

4.1.4 International Water Resources Association http://196.36.166.88/iwra/

Created in 1972, the International Water Resources Association strives to improve the sustainable management of water “worldwide through dialogue, education, and research”. The IWRA has made a clear goal to promote water sustainability through a networking and international collaboration. The IWRA seeks to promote the sound management of water through

• Advancing water resources and related environmental research • Promoting water resources education • Improving exchanges of information and expertise • Networking with other organizations who share common interests and goals • Providing an international forum on water resource issues

The IWRA is hosting the 13th ‘World Water Congress’ in 2008. In addition, the IWRA hosts several international conferences, with scientific research and sustainable development being part of the Association’s major discussion topics.

4.1.5 European Union Water Initiative (Supra-National) http://euwi.jrc.it/

The 2002 United Nations World Summit for Sustainable Development (WSSD) launched the European Union Water Initiative (EUWI), aimed at implementing water resource management


33

targets set forth by the WSSD (EU Water Initiative, ). Coupled with support from the Millennium Development Goals, a United Nation human development objective, the EUWI is the European Union’s main water management initiative developed from the United Nations. The EUWI’s main goal is to explore the efficient use of water through collaboration with human stakeholder partnerships and funding programs (EU Water Initiative, ).

4.2 United States 4.2.1 CALFED Bay-Delta Program (California)

http://calwater.ca.gov/index.aspx

The CALFED Bay-Delta Program (CBDP) is a joint initiative by 25 state and federal agencies in the state of California aimed at protecting the water supply and ecological health of the San Francisco Bay-Sacramento-San-Joaquin River Delta (State of California, 2007). The San Francisco Bay-Sacramento-San-Joaquin River Delta is an important ecological feature for the state of California and is the largest source of freshwater to Californians. The State of California enacted tougher water conservation policies due to growing water stress and supply issues. The CALFED Program has a multi-tiered approach to water and ecological conservation, with a focus on water use efficiency, water quality, and eco-system restoration (State of California, 2007).

4.2.2 Five Year Conservation Plan – Southern Nevada Water Authority (Nevada) http://www.snwa.com/html/

The state of Nevada has experienced severe water stress throughout the last decade (Southern Nevada Water Conservation Authority, 2008). With a dry climate and a limited source of freshwater, Nevada is developing plans and management strategies to address its unique water circumstances. The Southern Nevada Water Authority (SNWA), a major fresh water provider to several cities in the state, has developed the Five Year Conservation Plan aimed at promoting water use efficiency. Several unique programs are in place in Nevada, including monetary incentives for the retrofit of water efficient technologies in homes and business, as well as water use restrictions for residential and commercial landscaping and water-conscious development regulations limiting the construction of commercial and residential landscapes that are heavy water users (Southern Nevada Water Conservation Authority, 2008).

4.3 Australia 4.3.1 Australia Government Department of Environment, Water, Heritage, and the Arts

http://www.environment.gov.au/index.html

The Australia Government Department of Environment, Water, Heritage, and the Arts (DEWHA), a statutory body of the Federal Government, has been a leader in the development of several government funded water resource management programs. The DEWHA has implemented a number of recent water conservation initiatives:

• The National Water Initiative, a nation wide water conservation policy aimed at conserving water through equitable and sustainable water use practices.


34

• The Government Water Fund, a 2 billion dollar program investing in water infrastructure and water management systems.

• The Raising National Water Standards Programme, a 200 million dollar investment initiative aimed at improving Australia’s ability to measure, monitor and manage the county’s water resources.

4.3.2 Sydney Water (Sydney)

http://www.sydneywater.com.au/

Australia has garnered recent attention surrounding its water conservation initiatives, with the country developing unique and precedent setting policies aimed at the proper management and conservation of water. Sydney Water is the local water authority that provides water to people residing in Sydney, Illawarra and the Blue Mountains, and has been one of Australia’s most pro-active organizations surrounding water use (Tridel, 2008). Several notable initiatives include:

• Business Water Saver Grant: A pilot project where small and medium sized businesses can apply for funding to retrofit and implement water efficient technologies and equipment in existing buildings

• Every Drop Counts Program: Aimed specifically at Commercial and Institutional Buildings, the Every Drop Counts Business Program provides water saving strategies for businesses that spend more that 70,000 (Aus) in water related charges. Some strategies include water audits and the development of water conservation plans for entire buildings.

• Best Practice Guidelines: Sydney Water has also developed several best practice guidelines for commercial buildings. The guidelines are strategies and procedural outlines that help commercial building owners and operators familiarize themselves with water management and conservation.

4.3.3 New South Wales Department of Energy, Utilities and Sustainability

http://www.deus.nsw.gov.au/index.asp

The New South Wales Department of Energy, Utilities and Sustainability (DEUS), is a regional water authority whose responsibility is to develop sustainable water use policy in the New South Wales region. The DEUS has developed the Water for Life initiative, a region-wide water conservation plan that has initiatives for the residential, industrial and commercial sectors. The most notable projects include:

• Water Savings Action Plan: All businesses that are high water users (In excess of 50 million litres annually) must submit and create a Water Savings Action plan aimed at implementing water management and conservation strategies.

• Metropolitan Water Plan – The Metropolitan Water Plan (WMP) is an integrated water management plan with several policies aimed at reducing water use in the commercial sector.


35

4.4 Canada 4.4.1 Canada Water Act

http://laws.justice.gc.ca/en/C-11/index.html

The Canada Water Act (CWA), originally passed in 1970, is a regulatory document that sets out the constitutional powers of the Federal and Provincial Government with respect to water resources. The purpose of the CWA is to formulate “policies and programs with respect to the water resources of Canada and to ensure the optimum use of those resources for the benefit of all Canadians” (Department of Justice Canada 1985). Administered by Environment Canada, the CWA gives Provincial Bodies primary jurisdiction over the control and protection of freshwater in Canada. The main role for the Federal Government, therefore, is to act as a liaison between national and provincial water resource interests, including federal waters, fisheries and international relations.

4.4.2 Canadian National Action Plan to Encourage Water Use Efficiency http://www.ec.gc.ca/WATER/en/info/pubs/action/e_action.htm

The Canadian National Action Plan (CNAP), developed by the Canadian Council of Ministers of the Environment, is a national platform aimed at encouraging the efficient use of water in municipalities (Canadian Council of Ministers of the Environment, 1994). The CNAP was initiated in 1994 after growing concerns over the rising capital cost of water infrastructure and the growing rate of water consumption began to strain the financial livelihood of municipalities. Involving a range of stakeholders, including government agencies, environmental organizations and local municipal governments, the goals of the CNAP are to encourage municipalities to:

• Promote education and awareness on water conservation • Encourage the application of water efficient technologies and water auditing procedures • Develop municipal water efficiency plans for each municipality

Overall, the CNAP has been implemented in some municipalities, with water education programs and stricter water use regulations being established in several provinces. Several major cities in Canada have used the CNAP as a framework for more site specific and local water conservation programs. However, because the CNAP is a national framework, proper steps towards water conservation need to be taken at the provincial and municipal level, where water resources are direct responsibilities.

4.4.3 Federal Water Policy http://www.ec.gc.ca/Water/en/info/pubs/fedpol/e_fedpol.htm

The Federal Water Policy (FWP), passed in 1987, is a statement of the Federal Government’s goals and mandates with respect to freshwater resources. The main objective of the FWP is “to encourage the use of freshwater in an efficient and equitable manner consistent with the social, economic and environmental needs of present and future generations”. In order to achieve this, the FWP sets out a framework for the development of five different strategies or focus areas:


36

• Water Pricing – Including the equitable valuation of water and market regulation of water prices

• Science Leadership – including the development of research and technology • Integrated Planning – including ecological protection, habitat preservation, and multi-

stakeholder collaboration • Legislation – including the regulation of water pollution, and the coordination of inter-

provincial water regulation • Public Awareness – including the development of public information and national water

information programs The Federal Government has designated the Interdepartmental Committee on Water (ICW) as the Federal body that will coordinate and implement the FWP. 4.4.4 City of Toronto Water Efficiency Plan (Toronto, Ontario)

http://www.toronto.ca/watereff/plan.htm

The Water Efficiency Plan (WEP), initially launched in 2002, is an ongoing water efficiency strategy developed by the City of Toronto. The WEP’s main objective is to seek out a 15 percent target reduction for water use in the city by 2011. The plan, which is to be implemented incrementally over the next several years, is designed to target all sectors of water consumption, including residential, industrial and commercial sectors. The plan has developed 21 main water conservation strategies that have been finalized into seven main areas:

• System leak detection • Computer controlled irrigation • Watering restrictions • Toilet replacement • Clothes washer replacement • Outdoor water audits • Indoor water audits


37

5 WATER CONSERVATION: WATER EVALUTION SYSTEMS

5.1 Water evaluation systems: Tools to assess water use

Water evaluation systems (WES) are different types of tools used to track and rate a building’s water performance and efficiency. WESs help to discover areas for improvement in a commercial building, and also allow a property owner or manager to create specific changes and water efficient strategies. Several different types of WESs exist globally, each with their own individual tools and methods for evaluation.

5.2 Types of water evaluation systems

5.2.1 Water rating systems

A Water Rating System (WRS) is a measuring tool that assesses water use for a building assigning points or values based on its water efficient procedures. Higher points are assigned for lower water consumption rates and higher water efficiency. The ranking or number of points assigned rate the building for its level of water efficiency and serves as an indicator for the building. Some water rating systems award or certify those buildings that have been rated and display exemplary water efficiency. Water Rating Systems are generally conducted by environmental organizations that are endorsed by both the government sector and business sector, and function as an independent certification bodies for a country or region.

(Please refer to Appendix A for more information regarding these auditing systems)

5.2.2 Water benchmarks

Water Benchmarks measure and compare a building’s water consumption patterns against other buildings operating in the same industry or sector. This sets an industry or sector water consumption ‘standard’ used to evaluate other buildings. Water benchmarks have a 3-tiered categorization format for buildings:

1) Those that operate below the industry standard 2) Those that operate at the industry standard 3) Those that operate significantly above the industry standard and are seen as examples of

‘best practices’ for water efficiency Water benchmarks are usually conducted by environmental organizations that are endorsed by both the governments and business sectors. However, an individual property owner can use water benchmarking methods across their own property portfolio, creating individual water consumption targets or standards for their own buildings.


38

(Please refer to Appendix A for more information regarding these benchmarking systems)

5.2.3 Water audits

A water audit is a detailed assessment of the actual water use of a building. Functioning as an accounting tool for water use, the purpose of a water audit is to explore a building’s ‘water supply system’ in its totality. In a water audit, total water use is broken down into different categories to seek out potential areas in the system where water is either being poorly used or wasted. Water audits explore:

• Total water usage for the building • Water consumption for bathrooms (Including urinals, toilets and sinks) • Water consumption for facilities (Including HVAC systems, pumps, boilers and coolers) • Water consumption for landscape and irrigation (Including plant watering) • Flow rates for pipes, fixtures and meters

Once the audit is completed, areas for improvement are identified and water performance targets can be set. Water audits differ from rating systems and benchmarking strategies in the fact that water audits only assess the building’s water supply system and do not provide a method of comparison to other buildings. However, water audits are often supplemented with other ranking or certification processes including rating and benchmarking to form a complete water performance measure. Most local energy or water associations perform water audits on commercial buildings. (Please refer to Appendix A for more information regarding these auditing systems)

5.2.4 Water efficiency guidelines

Water efficiency guidelines (WEGs) are detailed plans that allow a building owner or manager to establish better Water Conservation Strategies. Usually produced as a step-by-step outline or checklist, WEGs usually provide a general framework that helps establish and define water conservation goals for a specific commercial building. WEGs not only focus on the technical aspects of water conservation, but also focus on the behavioral aspects of human water use, including an individual’s cleaning and sanitation habits. WEGs often accommodate action plans or agreements between individuals to help evaluate and define Water Conservation Strategies for a specific building or corporation. Most local energy or water authorities have water efficiency guidelines or advice on improving water efficiency in buildings.

(Please refer to Appendix A for more information regarding these efficiency guidelines)


39

5.2.5 Building performance rating systems

A Building Performance Rating System (BPRS) is an evaluation tool used to assess and rate the overall environmental performance of a building or structure. Usually broken down into different categories or criteria, the overall objective of a BPRS is to measure and rate a building’s energy efficiency and ecological sensitivity. Some rating systems award or certify buildings that display strong environmental performance.

Water efficiency is placed as an independent sub-section or category in a BPRS, with higher points for water efficiency contributing to the overall score or rating of a building. Water efficiency is measured by the amount and type of water efficient technologies in place, or the amount or percentage of water consumed. BPRSs are usually conducted by environmental organizations that are endorsed by both the governments and business sectors, and function as an independent certification bodies for a country or region

(Please refer to Appendix A for more information regarding these rating systems)


40

Table 2: List of Water Evaluation Systems

Name Type Location Synopsis Source NABERS Office Water

Water Rating System

Australia - 5 star rating system for existing buildings - 5 star rating set at 350 Litres/m2/year

http://www.nabers.com.au/office.aspx

Water Efficiency Labeling Scheme

Water Rating System

Australia - rates and certifies water efficiency in appliances

http://www.waterrating.gov.au/.

Watermark Project

Water Benchmark United Kingdom

- Uses benchmark to compare buildings - 9.3m3 per annum industry standard, 6.4m3 best practice standard

http://www.ogcbuyingsolutions.gov.uk/energy/watermark/

One-2-Five Water Benchmark and Rating System

Australia, US - diagnostic tool used to track water use in a building or a property portfolio

http://www.one-2-five.com/default.asp

Watergy Tool Water Audit US - Downloadable software used to analyze water efficiency and cost savings

http://www1.eere.energy.gov/femp/information/download_watergy.html

Business Water Conservation Initiatives

Water Audit Vancouver, British Columbia

-Uses a standardized template that properties owners use to track water use in a building

http://www.gvrd.bc.ca/water/business-conservation-initiatives.htm

Global Water Tool

Water Efficiency Guideline

World Wide - Online tool used to audit water use in a building while comparing it to local water supply conditions

http://www.wbcsd.org

Water Efficiency Guide


Australia - Handbook used to help a property owner develop a water conservation strategy

http://www.environment.gov.au/settlements/publications/government/water-efficiency-guide.html

Best Practices Guidelines for


Australia - Serves as a water efficiency framework for commercial buildings and shopping centres - Provides information on different rating systems available

http://www.sydneywater.com.au/SavingWater/InYourBusiness/

Green Star Building Performance Rating System

North America -Measures environmental impact, points awarded for site selection, design, construction and maintenance

http://www.gbca.org.au/green-star/

Go Green Building Performance Rating System

North America - Online tool performance tool - design guideline for green building policies

http://www.bomagogreen.com/

Table 2: List of Water Evaluation Systems

Please see Appendix A for more information regarding these Water Evaluation Systems


41

Name Type Location Synopsis Source Leadership in Energy and Environmental Design (LEED)

Building Performance Rating System

North America - Points-based rating system based on 5 criteria: Site development, energy use, water use, material selection and indoor environmental quality

http://www.cagbc.org/

CIRIA Best Practice Indicators


United Kingdom

- An evaluation method which uses benchmarks to compare the environmental performance of a building

http://www.ciria.org.uk/

Energy Star Portfolio Manager


United States - An online portfolio manager that helps property managers track and evaluate their water and energy performance across in their buildings

http://www.energystar.gov/index.cfm?c=evaluate_performance.bus_portfoliomanager#manage

CASBEE Building

Performance Rating System

Japan - Performance tool based on 4 factors: energy efficiency, resource efficiency, local environment, indoor environment

http://www.ibec.or.jp/CASBEE/english/overviewE.htm

Table 2: List of Water Evaluation Systems (Continued)

Please see Appendix A for more information regarding these Water Evaluation Systems


42

6 WATER CONSERVATION: BEST PRACTICE EXAMPLES

6.1 Brookfield Place

Brookfield Place, owned and operated by Brookfield Properties, is a high-rise commercial development in Toronto, Ontario. Brookfield Properties has developed several new ways to conserve water in one of its premier properties, retrofitting the building with automated faucets and low flush toilets that create a water savings of over 50 percent a year (Green Toronto Awards, 2008). Furthermore, Brookfield Place has installed new variable frequency drive Chillers11 saving the building over 50 percent in HVAC related energy costs. Brookfield Place also received a BOMA Go Green Plus award for environmental sustainability, and is helping the Canada Green Building Council develop new accreditation criteria for the LEED rating system for commercial buildings (Green Toronto Awards, 2008).

6.2 Colliers International Colliers International is a multi-disciplinary real estate development company that has been recognized as a leader in water conservation. Several properties in Australia that are managed by Colliers International have been retrofitted with water efficient fixtures, saving the property management group several of millions of litres in freshwater annually (Australian Government Department of the Environment and Heritage, October 2006). In 2005, Colliers International’s Direct Property Investment Fund was given the ‘The highest percentage of water reduction” award by Sydney Water (Colliers International, 2005 November). The installation of waterless urinals throughout Colliers International's eighteen level Adelaide, Australia Office has seen a reduction in water consumption in the vicinity of four million litres a year. The initiative cost $2,400 and delivered water cost-savings of $8,200 (Australian Government Department of the Environment and Heritage, October 2006). Furthermore, Colliers International’s 227 Elizabeth Street commercial building in Sydney, Australia, reduced water consumption in the building by 59 percent in 2005 (Australian Government Department of the Environment and Heritage, October 2006). Image 7

11 Variable Frequency Drive Chillers are an HVAC component that helps to control motor speeds and detect energy surges. HVAC systems can be retrofitted with Variable Frequency Drive Chillers to monitor, control and efficiently use energy and water.

Image 7: Brookfield Place [Center]. (Source: http://en.wikipedia.org)

Image 7


43

6.3 GPT Group and Jones Lang LaSalle Asset Management Services

GPT Group is one of Australia’s largest property companies with total assets in the range of $12 billion dollars covering 800,000 square metres of floor area (Australian Government Department of the Environment and Heritage, October 2006). During 2005-2007, The GPT Group, in partnership with Jones Lang La Salle Asset Management Services (JLL AMS), reduced water consumption by 40 percent across several of their properties (Australian Government Department of the Environment and Heritage, October 2006). In their Citi Group Building, which is partially owned by Macquarie Office Trust, water use was reduced by over 51 percent during the same two-year period (Australian Government Department of the Environment and Heritage, October 2006).

GPT Group and JLL AMS are currently part of the Sydney Water Every Drop Counts Program, and are the second commercial property owners to achieve a One-2-Five (see appendix) water management 5-Star Rating (Australian Government Department of the Environment and Heritage, October 2006). In 2007, only three companies worldwide have achieved this rating, with the GTP Group and JLL AMS setting an annual water consumption rate of 1170 L/m2 – a ten percent reduction from 2006 levels (Australian Government Department of the Environment and Heritage, October 2006).

6.4 Investa Property Group

Investa Property Group is one of the largest commercial property owners in Australia and is an industry leader in the adoption of environmentally sustainable building practices. Several projects in their property portfolio demonstrate a commitment to water conservation, and include partnerships with Sydney Water and the Every Drop Counts Business Programme. Investa Property Group has taken a unique approach to its water conservation, using a mixture of both managerial and technical measures to increase water efficiency.

In terms of managerial strategies, Investa Property Group (Investa) established a Sustainability Policy outlining its goals for energy efficiency and water conservation, involving both property managers and occupants (Australian Government Department of the Environment and Heritage, October 2006). In 2003, Investa set to reduce water consumption by 25 percent over a three year span in several of its properties and surpassed the target before that time (Australian Government Department of the Environment and Heritage, October 2006). Furthermore, Investa, with the support of Sydney Water and Melbourne Water, has progressively investigated new opportunities to reduce water in commercial buildings, ultimately setting new standards and practices for the real property industry in Australia.

Investa has explored several technical measures towards water conservation, including the use of water audits and water monitoring systems. The water monitoring system is a recent addition to Investa’s list of Water Conservation Strategies. It is a highly advanced electronic water supervision system measuring water usage in buildings in real time and identifying both leakages


44

and sources of water use (Australian Government Department of the Environment and Heritage, October 2006). These two techniques alone have produced an average of 43 percent water savings it its properties (Australian Government Department of the Environment and Heritage, October 2006). Investa has also retrofitted several of its buildings with waterless urinals, low flush toilets and low flow showerheads saving the property group over 150 Kilolitres per year (Australian Government Department of the Environment and Heritage, October 2006).

6.5 Lachlan REIT Ltd.

Lachlan REIT Ltd., a property investment fund owning several buildings in Australia, is among the fastest growing property investment groups in the country. Managed by Becton Investment Management, Lachlan REIT Ltd. has an extensive list of properties on their portfolio that have been certified by the NABERS Office Water rating system. Several buildings owned by Lachlan REIT Ltd., have been awarded a 4 star rating or higher, displaying exemplary water efficiency (National Australian Built Environment Rating System, 2006).

6.6 Stockland Property Group

The Stockland Property Group is an example of a commercial property owner that has taken several technical measures to reduce water consumption. In 2005, the Stockland Property Group took on a major retrofit project of its head office building located in Sydney, Australia. During the retrofit process, the building was installed with waterless urinals, Water Efficiency Labeling scheme (Refer to Table 2) certified efficient taps, and a water efficient HVAC system (Australian Government Department of the Environment and Heritage, October 2006). The Stockland Property Group developed and implemented a water management plan that ensured proper monitoring and maintenance of water-related equipment and fixtures. After the retrofit process was completed, water use in the head office building was reduced by almost 22 percent, saving over 18.240 Kilolitres of water annually (Australian Government Department of the Environment and Heritage, October 2006). Furthermore, the Stockland Property Group’s was one the first large-scale commercial property owners to have its portfolio be certified by the NABERS Office Water Rating System.

6.7 Tridel

Tridel is a Toronto based condominium development group that has received several awards for adopting green building designs their properties. In 2007, Tridel was awarded the Greater Toronto Home Builder Association’s High Rise Green Builder of the Year for developing several new communities that display high water and energy efficiency (Tridel, 2008). Furthermore, Tridel received a 2005 Green Toronto Award for their commitment to environmental sustainability. Several of their condominiums are LEED certified and are equipped with water efficient fixtures and Energy Star appliances (Tridel, 2008).


45

7 DEVELOPING A WATER CONSERVATION STRATEGY

The previous sections of this report put forth several reasons why water conservation is important for the real property industry, highlighted tools and strategies that can be used to measure water use performance, and listed several companies in the real property sector that are taking pro-active approaches towards water conservation. This section is a guideline that property owners and managers may use to develop a water conservation strategy for their properties adapted from Australian and North American best practice guidelines12. Developing a water conservation strategy (WCS) for a specific building or commercial real-estate portfolio is a great way to conserve water.

7.1 Step 1: Commitment and responsibility The first step in developing a WCS is to seek out commitment and responsibility from the various stakeholders involved who are concerned with water efficiency and conservation. Individuals must be identified as leaders who are to serve as managers of a WCS. Commitment and Responsibility must involve the following:

• What are the goals and outcomes of developing a water conservation program? • Who is to serve as a leader in this process? • How should they be held accountable to this process? • Does a water conservation strategy fit in to the larger goals and objectives of the

company?

7.2 Step 2: Information and analysis The first step in developing a WCS is to collect and gather data and information related to water use in a building. Water audits (Refer to Section 5.2.3) are great ways to identify how and where water is used in a commercial building. Performing a water audit can be an arduous process, and many local water authorities conduct a water audit or meter evaluation. Information and Analysis must involve the following:

• How is water used in the building? • What are the annual consumption rates? • How much are the water and energy bills? How can they be lowered? • Is there any inefficiency that exists? If so where?

7.3 Step 3: Performance Evaluation Once information and analysis of the water consumption trends in a building are identified, the next step is to evaluate the building’s water efficiency. At this stage, a property manager or owner could choose to use a WES (Refer to section 5) as a way to rate or explore the performance of the building. Performance Evaluation must involve the following:

• How does my building compare to other similar buildings?

12 Source: (Australian Government Department of the Environment and Heritage, October 2006; Corr et al., 2008; Metro Vancouver, 2008a; Sydney Water, 2007)


46

• What are the industry standards for water consumption in my sector? • Are there any ratings or certifications in place for water efficiency in my local jurisdiction? • Where are the areas for improvement in my property? How can my property be an

industry leader? • What are some technical measures to be taken (Refer to Table 1 for information on

technical measures)?

7.4 Step 4: Management Water consumption patterns of individuals are a key determinate of a building’s overall water efficiency and management is an important part of a WCS. Management must address the following:

• What are the key water performance targets for the building? • What principles and objectives must be adopted into the WCS to reach those targets? • Are there any water related training, education, and motivation practices that can be

implemented? • What are some standards and guidelines that I want the occupants to follow (Refer to

Box 4)?

7.5 Step 5: Implementation Implementation is the next step towards developing a water conservation strategy. Once the general framework is completed, the next step is to find ways towards adopting the plan and making realistic changes. The following must be addressed:

- What are the steps towards getting the WCS approved by senior levels?

- Are there any funding or program incentives available? - What is our budget for implementing a WCS? - What resources do we currently have, and what do we need to

acquire? - Is the WCS realistic? Once it is implemented, how will it remain

accountable? Box 5: REALpac National Standard Green Lease for Single-Building Office Projects

Box 5: REALpac National Standard Green Lease for Single-Building Office Projects The REALpac Green Office Lease incorporates the latest sustainability principles and objectives and enables landlords and tenants sustainability targets for energy, water, indoor air quality, and recycling. The Green Lease also enables landlords to carry out "green" renovations to existing building stock. (For more information, please refer to http://www.realpac.ca > Standards > “Green” Office Lease)


47

Step 6: Evaluation and review The last step in implementing a WCS is to review and evaluate the level of success. Several criteria are used:

• Did we reach out performance targets? • Were our goals and outcomes achieved? • Did the strategy evolve over time? • Positives and Negatives? • Areas for improvement? • Next steps?


48

CONCLUSIONS Water stress is a problem worldwide. Water shortages occur in all regions of the world, and water security is projected to be an issue equal to global climate change in the near future. As freshwater resources decline in availability due to population growth, urbanization, water pollution, climate change and overuse, water shortages are likely to affect regions through increasing social and environmental tribulations. Ultimately, this report has made the following conclusions:

• Water crises are occurring worldwide, and Canada is susceptible to water stress • Water stress has social, environmental, economic, and political implications that affect

the Canadian real property industry • Many commercial buildings in Canada use water inefficiently, particularly in heating and

cooling systems, sanitary fixtures and amenities, and landscaping • There are several resources, tools and measures that help commercial properties

conserve water, including evaluation systems, conservation strategies, and technical and managerial measures

• Several properties in North America and Australia have displayed exemplary water efficiency and social and environmental responsibility

• Water efficiency presents itself as an opportunity for the real property industry with several financial and economic incentives

The Canadian real property industry is in a unique position surrounding freshwater resources, given the intensive use of freshwater in commercial properties, as well as the emerging reality for businesses to become more socially and environmentally responsible. The global water crisis poses a risk to the Canadian real property industry as increasing water costs and stricter government regulations negatively affect the bottom line of businesses in the real property sector. Furthermore, consumer and investor demand for businesses to display social and environmental responsibility mean that water conservation and water efficiency become important factors for financial viability and marketplace advantage. REALpac recommends that businesses in the real property sector take a proactive approach towards water conservation and water efficiency. This report has explored numerous ways the real property sector can better manage freshwater resources, including the use of water evaluation systems and water conservation strategies to explore water and energy performance in commercial properties. Furthermore, there are a series of technical and managerial measures that can be taken to reduce water consumption, including retrofitting properties with water efficient technologies, as well as the development of management goals and conservation plans for both property owners and occupants. Ultimately, the real property industry cannot abate the global water crisis alone, and will require collaboration with a series of different stakeholders. Water resources need to be at the forefront


49

of environmental policy in Canada and abroad, and corporations in both public and private sectors need to make proper steps towards water conservation and water efficiency. Furthermore, residential water use needs to be reduced, especially in Canada where over fifty percent of the municipal water supply is used residentially. Accordingly, Canadians per capita use over 330 litres per day – a trend that is among the highest worldwide. Additional research and development needs to be conducted surrounding water conservation in commercial properties. While there is a host of different water evaluation systems available globally, Canada does not have a water specific performance system in place for commercial properties at this time. Furthermore, given the wide range of properties that businesses in the real property sector own and manage, there needs to be more research on how water is specifically used in different types of properties, including retail, office, industrial, hotel, multi-family residential, seniors residential, and mixed-use properties. While this report highlighted water use in commercial buildings generally, more explorative water use research for different building types will be needed to develop better and more successful water conservation strategies for the real property industry.


50

LIST OF ABBREVIATIONS CALFED Program – CALFED Bay/Delta Program BOMA – Building Owners and Managers Association BPRS – Building Performance Rating Systems BWCI – Business Water Conservation Initiatives CASBEE – Comprehensive Assessment System for Building Environmental Efficiency CNAP – Canadian National Action Plan CR&S – Corporate Responsibility and Sustainability CWA – Canada Water Act DEUS – Department of Energy Utilities and Sustainability (New South Wales, Australia) DEWHA – Australian Government Department of Environment, Water, Heritage and the Arts EUWI - European Union Water Initiative FWP – Federal Water Policy GFP – Global Freshwater Program HVAC – Heating, Ventilation and Air Conditioning ICI – Industrial, Commercial and Institutional Investa – Investa Property Group IWRA – International Water Resources Association LEED – Leadership in Energy and Environmental Design OECD – Organization for Economic Co-operation and Development NABERS Office Water – National Australian Built Environment Rating System for Office Water RCC – Responsible Corporate Citizens SDTC – Sustainable Development Technology Canada UK – United Kingdom US – United States USGBC – United States Green Building Council UN – United Nations WBSCD – World Business Council for Sustainable Development WCS – Water Conservation Strategy WEG – Water Efficiency Guidelines WEM – Water Evaluation Method WELS – Water Efficiency Labeling Scheme WEP – Water Efficiency Plan WPI – Water Poverty Index WRS – Water Rating System WSSD – World Summit for Sustainable Development WWAP – World Water Assessment Programme WWC – World Water Council WWF – World Wildlife Fund


51

REFERENCES

Australian Government Department of the Environment and Heritage. (October 2006) Water Efficiency Guide: Office and Public Buildings. Available from http://www.environment.gov.au/settlements/publications/government/pubs/water-efficiency-guide.pdf.

Barlow, M. (2007) Blue Covenant: The global water crisis and the coming battle for the right to water. Toronto, Ontario: McClelland & Stewart Ltd.

Brandes, O.M., and Ferguson, K. (2003) Flushing the future? Examining urban water use in Canada.Polis Project on Ecological Governnance. Available from http://www.waterdsm.org/publications.htm.

Canadian Council of Ministers of the Environment. National Action Plan To Encourage Municipal Water Use Efficiency. in Environment Canada [database online]. (1994) Available from http://www.ec.gc.ca/WATER/en/info/pubs/action/e_action.htm [accessed May 16, 2008].

Canada Green Building Council. (2008) Email sent from CaGBC to Michael Brooks, sent August 13, 2008, Subject: Contribute to the development of LEED Canada 2009 for New Construction and Major Renovations / Contribuez au développement du système d'évaluation de LEED Canada 2009 pour les nouvelles constructions et les rénovations majeures . Water discussion available from http://my.cagbc.org/newsletter/index.php?sbget=enews_articles,1,353,,0,,,52,,,;enews_issues,1,52,,0,;enews_archives,1,1,,0,&issue=52&recipient=12345 [accessed August 14, 2008].

Canadian Medical Association. (2008, April 7,) 1766 boil water advisories now across Canada.Canadian Medical Association Journal. Available from www.cmaj.ca.

Centre for Ecology and Hydrology. (2003) The Water Poverty Index: International Comparisons.Natural Environment Research Council. Available from http://www.ec.gc.ca/Water/images/info/facts/e-Water_poverty_index.htm.

Climate Action Network Australia. Climate Change and Water in Asutralia. in Climate Action Network Australia [database online]. (2007) Available from http://www.cana.net.au/water/index.html [accessed June 18, 2008].

Cohen, B. (2006) Urbanization in developing countries: Current trends, future projections, and key challenges for sustainability', Technology in Society, vol.28, pp.68-80.

Colliers International. (2005 November) Property Management Knowledge Report: Water Conservation Recognised.Colliers International.

Corr, K., Adams, I., and Boynton, D. (2008) Water use and sustainable commercial buildings. Vol. 2008. Yourbuilding. http://www.yourbuilding.org/display/yb/Water+use+and+sustainable+commercial+buildings ed.

Department of Energy, Utilities and Sustainability. (2005) NABERS Office Building Trial. New South Wales Government. Available from http://www.nabers.com.au/news.aspx?type=5&code=LIBRARY&site=2.


52

Department of Justice Canada. (1985). Canada Water Act. Act ed. Vol. C-11. Canada.

Department of the Environment and Heritage. (2005) Water Efficiency Guide: Office and Public Buildings. Australian Government.

Environment Canada. 2004 Municipal Water Use Data. in Government of Canada [database online]. (2008a) Available from http://www.ec.gc.ca/Water/en/manage/use/e_data.htm [accessed May 15, 2008].

Environment Canada. Water: How do we use it? in Government of Canada [database online]. (2008b) Available from http://www.ec.gc.ca/Water/en/info/facts/e_use.htm [accessed May 14, 2008].

Environment Canada. Water – Vulnerable to Climate Change. in Government of Canada [database online]. (2006) Available from http://www.ec.gc.ca/Water/en/info/pubs/FS/e_FSA9.htm [accessed May 15, 2008].

EU Water Initiative. (2008) EU Water Initiative. Available from http://www.euwi.net/ [accessed May 12, 2008].

Global Environment Management Initiative. Connecting the drops toward creative water strategies. in Global Environment Management Initiative [database online]. (2007) Available from http://www.gemi.org/water/index.htm [accessed June 17, 2008].

Government of Alberta. Water conservation. in Government of Alberta [database online]. (2005) Available from http://www3.gov.ab.ca/env/water/Conservation/uses.cfm [accessed May 20, 2008].

Government of Canada. Canadian Environmental Sustainability Indicators: Northern Areas. in Government of Canada [database online]. (2006) Available from http://www.environmentandresources.ca/default.asp?lang=En&n=95DF5739-1 [accessed June 19, 2008].

Green Toronto Awards. (2008) Brookfield Place. Greenliving. Summer. Green Living Enterprises.

Guenster, N., et al. (2005). The Economic Value of Corporate Eco-Efficiency.1st ed. Available from http://www.innovestgroup.com/images/pdf/the%20economic%20value%20of%20corporate%20eco-efficiency_%2024.01.pdf.

Innovest Strategic Value Advisors. Real Estate Investment Trusts - Asia Pacific. in Innovest Strategic Value Advisors [database online]. (May 2008) Available from http://i-ratings.innovestgroup.com/login.php [accessed May 26, 2008].

Innovest Strategic Value Advisors. (2002) Energy Management & Investor Returns: The Real Estate Sector.Innovest Strategic Value Advisors.

Labelle, C. (2001, February 16) Water: Tomorrows strategic issue. Science and Technology Division, Research Branch, Library of Parliament.

Maich, S. (2005, November 24) America is Thirsty. Maclean's.

Marsalek, J., et al. (2004) Threats to Water Availability in Canada. Environment Canada. Available from http://www.nwri.ca/threats2full/intro-e.html.


53

Metro Vancouver. Business Water Conservation Inititatives. In (2008a) Available from www.gvrd.bc.ca [accessed May 14, 2008].

Metro Vancouver. Smart Steps Business Tools: Office. In (2008b) Available from http://www.gvrd.bc.ca/smartsteps/tools.htm [accessed June 19, 2008].

Miller, K. Climate change and water research. in Environmental and Societal Impacts Group [database online]. (2007) Available from http://www.isse.ucar.edu/water_climate/index.html [accessed June 17, 2008].

National Australian Built Environment Rating System. List of Rated Buildings. in National Australian Built Environment Rating System [database online]. (2006) Available from http://www.nabers.com.au/frame.aspx?show=buildings&code=BUILDINGS&site=2 [accessed May 6, 2008].

OECD Environmental Directorate. (2008) OECD Key Environmental Indicators. Paris, France: Organisation for Economic Development and Cooperation.

Office of Housing and Construction Standards. Greening the BC Building Code. in Office of Housing and Construction Standards [database online]. (2008) Available from http://www.housing.gov.bc.ca/building/green/ [accessed June 23, 2008].

OGCbuying.solutions. (2003) Final Watermark Project Report. Available from http://www.ogcbuyingsolutions.gov.uk/energy/watermark/default.asp.

Schindler, D. (2006) 'The Myth of Abundant Canadian Water', Canadian Foundation for Innovation, vol.March-April, no.21.

Science Daily. (2008, Jan 1) Declining water levels in the Great Lakes may signal global warming.

Southern Nevada Water Conservation Authority. Conservation Plan. in(2008) Available from http://www.snwa.com/html/cons_plan.html [accessed May 16, 2008].

State of California. CALFED Bay-Delta Program. in State of California [database online]. (2007) Available from http://calwater.ca.gov/index.aspx [accessed May 26, 2008].

Statistics Canada, Environment Canada, Health Canada. (2007) Canadian environmental sustainability indicators.Statistics Canada. Available from http://www.statcan.ca/Daily/English/071015/d071015b.htm.

Sustainable Development Technology Canada. (2007) Commercial Buildings - Eco Efficiency: Sustainable Development Business Case.1st ed.

Sydney Water. (2007) Best Practice Guidelines for Water Conservation in Commercial Office Buildings and Shopping Centres. Available from www.sydneywater.com.au.

The Office of Energy Efficiency of Natural Resources Canada. (2002). Reducing Water USe by Installing a closed-loop compressor cooling system. The Office of Energy Efficiency of Natural Resources Canada.

Towie, B. (2008, June 2) Earth 'Drying Up'. Environment Week, no. 14.


54

Tridel. Awards. In (2008) Available from http://www.tridel.com/tridel/awards.php [accessed June 23, 2008].

United Nations Environmental Programme. Vital Water Graphics. In (2002) Available from http://www.unep.org/dewa/assessments/ecosystems/water/vitalwater/ [accessed May 13, 2008].

United Nations World Water Assessment Programme. (2003) Water for People, Water for Life: The United Nations World Water Development Report. United Nations.

Welsh, P. The Aral Sea tragedy. in BBC News [database online]. (2000) Available from http://news.bbc.co.uk/2/hi/asia-pacific/678898.stm [accessed June 15, 2008].

World Business Council for Sustainable Development. (2006) Water: Facts and Trends. Available from www.wbscd.org.

World Health Organization. (2004) Water, sanitation and hygiene links to health. World Health Organization.

World Wildlife Fund. Global Freshwater Programme. in World Wildlife Fund [database online]. (2004) Available from http://www.panda.org/about_wwf/what_we_do/freshwater/our_solutions/index.cfm [accessed May 26, 2008].

World Wildlife Fund United Kindgom. WWF Brazil launches national freshwater campaign. in World Wildlife Fund United Kingdom [database online]. (2003) Available from http://www.wwf.org.uk/news/n_0000000913.asp [accessed June 24, 2008].


55

APPENDICES

APPENDIX A: Global Water Evaluation Strategies for Commercial Buildings

A.1 Water Rating Systems, Water Audits, Benchmarking Tools, and Best Practice Guidelines

World Business Council for Sustainable Development (International)

The World Business Council for Sustainable Development (WBCSD) is a global association representing 200 companies operating within the sustainable development sector. Aside from being a leading source of information on global water issues, The WBCSD is heavily engaged in the promotion of sustainable business practices. For example the WBSCD’s ‘Water Project’ initiative seeks to educate the business industry about urban water management issues, including water efficiency for commercial buildings. Furthermore, the WBCSD’s ‘Global Water Tool’ allows companies and firms the ability to map and audit their water use patterns across different buildings and sites, comparing them with global water supply, watershed13 locations and water scarce areas. For more information, please refer to http://www.wbcsd.org.

National Australian Built Environment Rating System for Office Water Use (Australia)

The National Australian Built Environment Rating System for Office Water use (NABERS Office Water) is a water rating system developed by the New South Wales Department of Energy, Utilities and Sustainability in conjunction with the Australia Greenhouse Building Rating (AGBR). Essentially a performance based rating system for existing buildings; NABERS Office Water is a voluntary tool that assesses a building’s water consumption and its “measured operational impacts on the environment” (Department of Energy, Utilities and Sustainability, 2005). Related specifically to water consumption trends for existing office buildings, NABERS Office Water’s main evaluation tool is a 5 star rating system (Table 3) that certifies or awards a building for is water efficiency performance. The highest rating for commercial buildings (5 out of 5 stars), according to NABERS Office Water, is set at 0.35 (kl/m2) (Table 4). A recent addition to the NABERS rating system is the creating of an environmental performance rating system for

hotels. Table 3

13 A watershed is an area of land where freshwater drains into and becomes a common source of water, usually defined by a system of lakes, rivers and streams.

Rating Annual Water

Consumption (kl/m2)

(Kl/ft2) Percentage of sample rating

at this level or better 1 Star 1.50 16.14 80%

2 Star 1.25 13.45 63%

2.5 Star 1.13 12.16 50%

3Star 1.00 10.76 36%

4 Star 0.75 7.97 17%

5 Star 0.50 5.38 5%

Table 3: NABERS Office Water 5 Star Rating System (2006). Source: DEUS, 2006


56

The rating system for NABERS Office Water functions as a 5 point scale that has different water efficiency Standards or benchmarks for each star rating. As seen in Figure 1, more stars correspond to better water efficiency for a building. However, the criteria for each star rating are not static, and the annual water consumption standards vary across different geographical regions in Australia. Dependent on a combination of climatic, urban and environmental factors, annual water consumption standards can shift to better suit local needs (Table 4).

Table 4

Rating Sydney (kl/m2) (Kl/ft2) Melbourne (kl/m2) (Kl/ft2) Canberra (kl/m2) (Kl/ft2) 1 Star 1.73 18.61 1.03 11.08 0.99 10.65 2 Star 1.39 14.95 0.86 9.25 0.83 8.93

2.5 Star 1.21 13.02 0.77 8.28 0.75 8.07 3 Star 1.04 11.19 0.69 7.33 0.67 7.21

3.5 Star 0.87 9.36 0.6 6.45 0.59 6.35 4 Star 0.70 7.53 0.53 5.70 0.51 5.48

4.5 Star 0.52 5.59 0.43 4.62 0.43 4.62 5 Star 0.35 3.76 0.35 3.76 0.35 3.76

For more information, please refer to http://www.nabers.com.au/office.aspx.

United Stated Department of Energy – Watergy Tool WATERGY is a downloadable model that uses water/energy relationship assumptions to assess potential of water savings and energy savings. The model allows the user to input data (annual energy and water cost and consumption data) and facility data (Amenities, Fixtures, Equipment, Etc.). It then estimates annual savings for water and energy, as well as total cost and payback times for a number of conservation methods. For more information, please refer to http://www1.eere.energy.gov/femp/information/download_watergy.html

Watermark Project (United Kingdom)

The Watermark Project, initiated in April of 2001, is a WCS used to evaluate the water consumption rates for a building. Managed by the Office of Government Commerce (OGC) and funded by Her Majesty’s Treasury’s Invest to Save Budget (ISB), the Watermark Project was developed a business initiative aimed at reducing operating costs associated with different building types, including commercial buildings.

The purpose of water benchmarking is “to produce a consumption figure for different buildings/establishments based upon comparisons with other similar sites” ((OGCbuying.solutions, 2003). Therefore, with commercial buildings, water consumption data is collected across different sites to obtain and create a ‘sample’ of water use data in buildings. Variations across different sites (I.e. occupancy, duration of use, type of use) are taken into account to respect site specific variability. Once a sample is compiled, a median or average value

Table 4: NABERS Office Water 5 Star Rating System (2006), Source: DEUS, 2006


57

is subsumed to be the “typical” benchmark for commercial buildings, usually displayed on a normal distribution graph or ‘bell-curve’ (OGCbuying.solutions, 2003). Those that operate below the “typical” benchmark have poor water efficiency, whereas those that operate above the “typical” benchmark are deemed to have good or strong water efficiency. “Best practice” benchmarks are those buildings that operate within the ‘first quartile’ or top 25 percent of the normal distribution (OGCbuying.solutions, 2003). The Watermark Project expresses water consumption in cubic metres per person, per annum. The “typical” benchmark for commercial office buildings, according to the Watermark Project, is estimated to be 9.3 m3/person/annum (OGCbuying.solutions, 2003). The Watermark Project is now operated by ADSM, an environmental solutions group that uses benchmarking data to help private businesses and organizations reduce water consumption. For more information, please refer to http://www.ogcbuyingsolutions.gov.uk/energy/watermark/.

Water Efficiency Labeling Standards Scheme (Australia)

The Australian Government recently announced the creation of the Water Efficiency Labeling Standards (WELS) Scheme, a water efficiency tool applied specifically to appliances. Essentially a rating program for water-related appliances, WELS certifies or awards appliances that exercise high water efficiency. Functioning in similar nature to the Energy Star program in North America, the WELS program sets industry standards for water efficiency by which consumers use as a reference for product purchasing. The WELS program is currently working in conjunction with several Australian water conservation initiatives, including the NABERS Office Water Program. For more information, please refer to http://www.waterrating.gov.au/.

Department of Environment and Heritage: Water Efficiency Guide: Office and Public Buildings

The Water Efficiency Guide serves as an advisory document developed by Australian Department of the Environment and Heritage that provides commercial property owners with a strategy to develop a water conservation plan for their buildings. The document provides detailed information on how to implement a water conservation strategy for a building, as well as providing technical information on how to perform water audits and rectify leakages.

For more information, please refer to http://www.environment.gov.au/settlements/publications/government/water-efficiency-guide.html

The Best Practice Guidelines for Water Conservation in Commercial Buildings and Shopping Centres

The Best Practice Guidelines for Water Conservation in Commercial Buildings and Shopping Centres is an award-winning document produced by Sydney Water that provides extensive information on water conservation in commercial buildings and shopping centres. The guideline contains practical methodologies, fact sheets, case studies, best practices and benchmarking data that help businesses, industries and government organizations understand water use in commercial buildings. The guide also provides information on different types of water rating and


58

benchmarking systems that exist globally. A ‘7-Point’ water conservation plan also exists in the guideline that can be adopted by property owners.

For more information, please refer to http://www.sydneywater.com.au/SavingWater/InYourBusiness/

One-2-Five Program The One-2-Five program is a comprehensive water diagnostic system used to track and monitor water use, while also helping users develop recommended actions to conserve water. Developed by Energetics in 1998, an Australian energy solutions company, the One-2-Five program has been used by multi-national groups, businesses and organizations monitor and track their water performance. Energetics has developed two individual One-2-Five water performance tools:

• One-2-Five Water –Developed for large scale water users • Water Achiever – Developed for small and medium scale water users

For more information, please refer to http://www.one-2-five.com/default.asp

Metro Vancouver – Business Water Conservation Initiatives (Vancouver, British Columbia)

Metro Vancouver, the regional municipal authority representing some 22 municipalities in the Greater Vancouver area, recently (2006) developed the Business Water Conservation Initiatives (BWCI), a series of Water Conservation Strategies specifically directed toward the Industrial, Commercial and Institutional (ICI) Sectors. Contained in the BWCI is a series of sector specific water auditing standards and conservation guidelines, including a Standardized Water Audit Template – a water conservation guide that specifically outlines water auditing processes for specific building types. The BWCI has also paired with the “Smart Steps” program, a Metro Vancouver environmental initiative aimed at the promotion of energy efficiency and energy conservation for businesses. For more information, please refer to: http://www.gvrd.bc.ca/ .

A.2 Building Rating Systems

Green Building Council of Australia (GBCA): Green Star Rating System (Australia)

The Green Star System is a building rating system developed by the Green Building Council of Australia. The rating system is used as a tool to measure the environmental performance of a building, including all aspects of its environmental impact. Green Star covers several categories that are directly related to a projects site selection, design, construction and maintenance. Points are given for actions that show the project has met environmental objectives of the system. For more information, please refer to: http://www.gbca.org.au/green-star/


59

Building Owners and Managers Association (BOMA) Green Globes Rating System (North America)

The Green Globes Rating System, an online environmental performance rating tool for new and existing buildings, is a project originally initiated by the Building Research Establishment's Environmental Assessment Method, in conjunction with the Canadian Standards Association. The Green Globes Rating System serves a both a design guide for the implementation of green building policies as well as an environmental auditing tool. Primarily used in Canada and the United States, the Green Globes rating system has been used extensively by the Government of Canada in many of its government offices. For more information, please refer to: http://www.bomagogreen.com/

Leadership in Energy and Environmental Design (LEED) Green Building Rating System (North America)

The Leadership in Energy and Environmental Design (LEED) Green Building Rating System is a building standard developed by the US Green Building Council (USGBC) and the Canada Green Building Council, and measures the environmental performance of buildings based on five main criteria: sustainable site development, energy use, water consumption, materials selection and indoor environmental quality. The LEED rating system certifies and awards buildings using a four scale rating system. LEED certification is awarded to buildings that achieve 26 points. LEED Silver is awarded for 33 points, with LEED Gold and Platinum being awarded for 39 and 52 points respectively.

Water Use Reduction: The USGBC's LEED 2009 for New Construction, Public Comment Draft 1, Fixture Water Consumption Criteria, cites the US Energy Policy Acts of 1992 & 2005 and the 2006 editions of the US Uniform or International Plumbing Codes as a baseline for plumbing fixture water use. These standards are more stringent than those called for by many provincial or municipal plumbing codes in Canada. CaGBC is currently adapting the USGBC LEED 2009 for New and Major Renovations rating system for use in Canada and has asked its membership for feedback on how the rating system could address leased space not directly controlled by the building owner. Specifically, CaGBC is asking its membership whether having Water Efficiency Prerequisite 2 that requires at least a 20% reduction from the baseline would prevent of new Canadian buildings from certifying under LEED Canada 2009 for New Construction (CaGBC, 2008).

New Water Efficiency Prerequisite: The CaGBC is currently considering instituting a new Water Efficiency Prerequisite that requires whole-building potable water meters for LEED Canada 2009 for New Construction certification. “In some cases, a common or campus operational meter serves several buildings and sites, making it difficult to measure, track or manage consumption at the building scale. This approach would ensure that LEED Canada 2009 for New Construction is compatible with the new LEED Canada 2009 for Existing Buildings: Operations and Maintenance, so certified buildings operators have at the basic tool needed to monitor and manage potable water consumption. However, this approach may also increase costs for some buildings by


60

requiring new building-scale water meters” (CaGBC, 2008). CaGBC is currently asking its members whether LEED Canada 2009 for New Construction ought to include a new Water Efficiency Prerequisite that requires a permanently installed water meter(s) to measure potable water consumption for individual buildings and their sites.

For more information, please refer to: http://www.cagbc.org/

Comprehensive Assessment System for Building Environmental Efficiency Program (CASBEE) (Japan)

The Comprehensive Assessment System for Building Environmental Efficiency (CASBEE) is a Japanese building rating system that focuses a buildings environmental efficiency as an indicator for environmental performance. Four key indicators form the evaluation method for CASBEE: Energy efficiency, Resource efficiency, Local environment, Indoor Environment. For more information, please refer to: http://www.ibec.or.jp/CASBEE/english/overviewE.htm

CIRIA Best Practice Indicators (United Kingdom)

CIRIA is a research organization with a specific focus on the construction industry. CIRIA’s Best Practice Indicators is a series of tools and evaluation methods used to assess a building’s water and energy efficiency, and often refer to the use of benchmarking as a method for analysis. For more information, please refer to: http://www.ciria.org.uk/

United States Environmental Protection Agency Water Sense - ENERGY Star Portfolio Manager

The ENERGY Star Portfolio manager is an online account tool used to track and assess water and energy for a building or property portfolio. The portfolio manager sets standard for energy performance, and also provided resources on developing water and energy conservation goals and strategies. The Portfolio Manager also allows the user to:

• Track multiple energy and water meters for each facility

• Customize meter names and key information

• Benchmark your facilities relative to their past performance

• Monitor energy and water costs

• Share your building data with others inside or outside of your organization

• Enter operating characteristics, tailored to each space use category within your building For more information, please refer to: http://www.ciria.org.uk/ http://www.energystar.gov/index.cfm?c=evaluate_performance.bus_portfoliomanager#manage


61

Documents

Water Conservation and the Canadian Real Property Industry ... · Water Conservation and the Canadian Real Property Industry August 2008 1 FOREWORD When global warming and carbon