"SMART Blue, Smart Buildings, Smart Business."
Purpose of the project
The concepts of sustainability, yet knowledge of green building best practices and certifications are not universally known, the rate of adoption and contributing to higher costs. To overcome these challenges, in 2011 we created SMART Blue® (SB), a proprietary sustainable building certification platform to help educate the market, bridge the gap between no certification and an expensive, third party certification and to reduce the environmental and social impacts and operating costs at our assets.
Globally, buildings account for more than 33% of total CO2 emissions and 80% of those emissions take place during the operational phase. (ULI Greeprint, 2014). PGIM “Partnership” requires a sustainability commitment from PGIM and its JV partners to overcome emerging market challenges by sharing knowledge and creating new tools to cost effectively reduce resource use while improving the environment. Our SMART Blue green building certification system is one cornerstone of our sustainability strategy for emerging markets, mitigating evolving regulatory and other sustainability risks (i.e. resource scarcity and reliability) that could negatively impact the quality and valuation of an asset. Segmented into five sustainable areas - Energy, Water, Waste, Social Responsibility/Quality of Life, and Risk Prevention, SMART Blue also prepares our assets for a future third party certification, such as LEED, as the demand for green buildings in emerging markets matures. The objectives of SMART Blue include broadening the awareness and knowledge of sustainable construction practices throughout the supply chain, reducing the operating expenses of the built environment for tenants and building owners while reducing the environmental impacts of the construction and operation of the real estate industry to benefit all of society.
SB platform provides practical sustainability education, training and tools for our third-party partners (third-party developers, operators, property managers and leasing agents) to help transform the way buildings are being built, operated and leased in emerging markets. In Mexico, we have delivered an annual sustainability workshop for our employees and partners since 2010, introducing and training hundreds of suppliers, service providers, contractors and real estate professionals on many sustainability topics. Together, the training and tools have created an effective strategy to deploy practical sustainable concepts into the construction and real estate industry in emerging markets such as Mexico.
With the 9 projects certified in 2015, SB has produced average results per project as follows
• 5%+ energy savings
• 20% to 40% water savings or a total of 130,000+ gallons (500 m3) annually Additionally, the SB program has provided for:
• 900+ individuals receiving green building training
• 20.8 tons of materials diverted from landfills
• 127+ tons of recycled steel
• Less CO2 generated SB helps to mitigate evolving regulatory issues prevalent in emerging markets and contributes to the overall well-being of society.
This solution is targeted for Emerging markets and may not be suitable for developed markets.
Magnitude of the benefits
Please contact David de Vos, Chief Sustainability Officer, PGIM Americas Sustainability Council- LatAm