Impact of Green Building Features and Initiatives on Individual Productivity and Organisational Performance in Office Buildings
Date
2023-06
Authors
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Publisher
University of the Witwatersrand, Johannesburg
Abstract
The uptake of sustainability within the real estate sector has come to the fore in the last twenty years. More specifically this has involved the development and implementation of green certification tools within the commercial property market. There are various green building tools that are applied in the different developed markets to standardise building certification within each market. Some tools are adapted versions of another tool, for example Green Star (Australia) was used as the benchmark for the development Green Star South Africa. One of the categories within every type of green building tool is indoor environmental quality (IEQ). Building occupants tend to be more aware of their indoor environment more than any other building component that may be classified as a green building feature and initiative (GBFI). Specific GBFIs impact the following IEQ factors: ventilation, natural vs artificial light, ambient temperature, humidity levels, noise levels, and office configuration. Green building research has shown that operationally green buildings benefit both owners and tenants, which also has a positive impact on building values. Many green building advocates have stated that green buildings also result in improved individual productivity and organisational performance. There is, however, conjecture amongst academic researchers regarding the accuracy of measuring productivity of knowledge workers within an office environment. Common approaches for measuring productivity include creating a simulated office as an experimental environment and setting tasks for the participant to perform in different environmental conditions. Post occupancy evaluations (POE) and building user surveys are other instruments for gathering productivity data, however these are often in the form of self-assessment, which carries an element of bias. The purpose of this research was to develop and test a theoretical framework that connected the implementation of GBFIs, specifically enhanced IEQ, to individual productivity and organisational performance. The theoretical loop is that enhanced IEQ may positively impact both individual productivity and organisational performance, which could justify the implementation of GBFIs within an office building in an on-going basis. The research comprised four academic articles. The first article was a literature review looking at past research linking green buildings and productivity. This resulted in the proposal of the theoretical model. The second article was a scoping literature review that focused on the main methods that were applied in conducting research between green building and occupant productivity to provide support for the model. Papers three and four comprised empirical research that separately analysed individual productivity and organisational performance. The paper that qualitatively analysed individual productivity indicated that location and amenities, specifically those that focused on safety and reliable building services, positively contributed to individual productivity. The second empirical paper quantitively focused on organisational performance specifically focused on financial services companies (FSCs) and the average green return ratio (AGRRi) within the context green and non-green buildings and IEQ scores. Three funds (low, moderate and high risk) were analysed for each FSC to determine if there was a statistically significant relationship between annualised returns and IEQ, which was only apparent for the South African (SA) equity fund. It was established when comparing the sample of FSCs based in green certified buildings versus conventional (non-green) in terms of group average returns, that the FSCs based in green buildings outperformed the FSCs based in conventional buildings. The differences in annualised returns have been forecasted (compounded monthly and annually), which provides an indication that on average, clients investing in FSCs occupying green buildings will yield great overall wealth over the long-term (thirty years) than clients investing in FSCs located in conventional buildings. It was further established that there was a sweet spot for IEQ scores, which relate to annualised returns for FSCs located in green certified buildings. Based on the qualitative and quantitative findings there is potential for future research to expand the application of the theoretical model to other industries and real estate sectors. Furthermore, this research could be incorporated into environmental, social and governance (ESG) research studies, which could potentially provide justification at the executive level for further insight into unpacking the relationship between individual productivity and organisational performance arising from investing in the quality of the built infrastructure of the office.
Description
Thesis submitted in fulfilment of the requirement for the Degree of Doctor of Philosophy, Department of Psychology, Faculty of Humanities, School of Human and Community Development, University of the Witwatersrand, Johannesburg, 2023.
Keywords
Green building features and initiatives (GBFIs), Indoor environmental quality (IEQ), Individual productivity, Organisational performance, Financial services companies (FSCs), Average green return ratio incremental (AGRRi), UCTD
Citation
Nurick, Saul David. (2023). Impact of Green Building Features and Initiatives on Individual Productivity and Organisational Performance in Office Buildings. [PhD thesis, University of the Witwatersrand, Johannesburg]. WIReDSpace. https://hdl.handle.net/10539/40171