In this week's CoStar Green Report, we report on a change in LEED requirements; the latest in a string of environmental initiatives from global banking giant HSBC; Regency Centers' new push for sustainability; and the formation of a new energy management advisory group at Jones Lang LaSalle.


Green Building Council's LEED Gets More Efficient

Proving that more means less, the U.S. Green Building Council (USGBC) has added two mandatory energy efficiency points to its LEED rating system to decrease energy consumption in LEED-certified buildings by up to 14%.

According to USGBC, the measure was "overwhelmingly" approved by its membership, which reached 10,000 earlier this month.

"Improving energy performance will immediately increase the LEED Green Building Rating System's impact in reducing building energy related greenhouse gas emissions," USGBC vice president Tom Hicks said in a statement.

The energy efficiency points can be achieved by decreasing lighting power density, installing automated lighting or HVAC controls, improving general HVAC efficiency, and using EPA Energy Star-eligible equipment, among other approaches.

USGBC said the points would increase energy performance by 14% for new construction and 7% for existing buildings.

Under the LEED system, projects are credited on a point-based scale and certified at a level (Silver, Gold or Platinum, for example) commensurate with the number of points they achieve.

The new points have been folded into LEED's existing point structure rather than added on top of the point scale, so the overall number of points to achieve certification is not changing, said Taryn Holowka, USGBC's director of communications.

The points are a good reflection of the market, which has emphasized energy efficiency through programs like Energy Star and the Clinton Climate Initiative, and energy management initiatives from leading commercial real estate firms including CB Richard Ellis, Jones Lang LaSalle, Transwestern and USAA Real Estate.

"LEED was created to challenge the market; to raise the bar and spur innovation," said Holowka.

The points are also part of a larger climate initiative aimed at reducing carbon emissions that USGBC introduced last year and is implementing in phases. The plan includes starting a carbon dioxide offset program, reducing carbon emissions by 50% at all new commercial LEED projects, and USGBC's planned move to carbon neutrality as an organization by the end of the year.

And USGBC is working on other improvements to the LEED system, including certification rebates for Platinum buildings, smoother transitions between new construction and existing building certification, and new LEED programs for retail, lab and healthcare property. It is also developing a user-friendly prescriptive compliance path for measuring energy output to replace the energy modeling approach, which can be pricier and less accurate in calculations.


HSBC Pledges $90M to Reduce Environmental Footprint

Global financial services firm HSBC will spend $90 million over the next five years to further reduce its environmental impact, adding to a number of green initiatives it already has in place.

"HSBC is determined to develop a sustainable business. Our shareholders, customers and employees consider these issues to be important - and this clearly demonstrates our continuing progress in placing sustainability at the very core of how we do business," Simon Martin, head of Group Sustainability and Corporate Responsibility at HSBC, said in a statement.

The Global Environmental Efficiency Programme will develop flagship environmental buildings; create new management systems to optimize the bank's environmental efficiency; reduce water and energy consumption, waste production and carbon emissions from business travel; and help train and raise awareness among employees on green practices.

The London-based bank has already begun implementing the program at locations in the U.K., India and Hong Kong, where it's installed solar panels, composting vessels and a bio-diesel plant. In Greece, NY, it designed and built its first 'zero-carbon' branch, which cuts energy usage through the use of geothermal ground source heat pumps.

HSBC launched a two-year program in 2004 to go carbon neutral, becoming the first global bank to achieve the designation. Two months ago, the firm announced the HSBC Climate Partnership, a separate five-year program under which the bank will invest $100 million to create a 25,000-person 'green taskforce' to undertake field research. HSBC also participates in carbon offset programs and purchases green electricity in Australia, Brazil, the U.K. and the U.S.

The EPA awarded its Climate Protection Award this year to the bank in recognition of its environmental initiatives.

Other major financial institutions to implement environmental programs this year include Wachovia, Bank of America and Citi. Additionally, a banking consortium comprised of ABN AMRO, Citi, Deutsche Bank, JPMorgan Chase and UBS have agreed to finance Bill Clinton's Energy Efficiency Building Retrofit Program, contributing $1 billion each to the global initiative.

HSBC has more than 10,000 offices in 82 countries in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.


Regency Centers Ramping Up Green Efforts

Regency Centers Corp. , one of the nation's largest shopping center owners, has joined USGBC and formed a green building initiative task force to examine its sustainability practices.

Regency's goal is to become "a leader and innovator in promoting and practicing sustainability," Regency Chief Investment Officer Brian Smith said in a statement.

"We are ramping up Regency's national and regional efforts as a green developer of shopper centers," he said.

The green task force will evaluate internal company initiatives as well as ways to practice sustainability across its 54 million-square-foot retail portfolio. The Jacksonville-based owner, manager and developer of shopping centers has developed 173 centers since 2000, and currently owns more than 400 retail properties.

Regency has also joined USGBC, in part to help support the task force. Regency is the only shopping center developer to formally collaborate with USGBC on a complete shopping center LEED certification program.


Jones Lang LaSalle Forms New Energy Services Group

In an expansion of its globally recognized energy management program, Jones Lang LaSalle has formed the Energy & Sustainability Services group to advise clients on green practices.

"Our corporate occupier and investor clients are increasingly focused on the energy efficiency and sustainability of their real estate," said Colin Dyer, CEO of JLL. "Our Energy and Sustainability Services group is part of our drive to help clients minimize the environmental impact of their properties."

The group consolidates and expands JLL's existing environmental capabilities, providing a consistent service delivery across all markets and promoting the continued development of sustainability research and innovations. The group will provide advisory services in strategy development, sustainable building development and energy-efficient building operations.

John Schinter, JLL's former director of Global Energy Services, will lead the group as global president of Energy & Sustainability Services. Diane Vrkic was promoted to serve as the group's chief operating officer.

JLL has already seen "tremendous success" in its individual energy management and sustainability offerings, and is ready to build off that foundation, said Schinter.

"The formation of Energy & Sustainability Services is a major step forward in our company-wide commitment to being the leading provider of comprehensive environmental property services to corporate occupiers and real estate investors," he said.

JLL was named an EPA 2007 Energy Star Partner of the Year in March. Last month, it received one of five "Stars of Energy Efficiency" awards by public-policy organization The Alliance to Save Energy.