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Even if retrofits can improve public health, why should companies pay for it?



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Positive Development From Vicious Circles to V

Even if retrofits can improve public health, why should companies pay for it?
Businesses can save substantial sums while simultaneously contributing to public health. Improved 
lighting and comfort through natural ventilation, daylighting and amenities (such as atriums, 
skylights, courtyards and interior fountains) have produced quantifiable reductions in sick leave, 
absenteeism and workers’ compensation claims.
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In fact, the US Centre for Health Systems and 
Design, among others, has shown that viewing plants and outdoor gardens in hospitals reduces 
stress, use of pain relief medication, recovery time and surgical complications. And similar benefits 
are found in terms of the stress levels and health of workers in offices. Romm found that, while a 
renovated manufacturing plant in California saved 60 per cent on energy costs, it reduced absenteeism 
by 45 per cent – which generated a far greater return on investment than the energy savings. Similarly
when a manufacturer in Georgia moved into a daylit building, workers’ compensation cases dropped 
from 20 to under 1 per year. However, the biggest financial benefit of green buildings is not in 
reduced sick days (a negative), but in increased worker productivity (a positive). Because salaries 
are the biggest cost in many businesses, the financial savings from happy, productive employees is 
far greater than that gained from energy savings, or even reduced health related expenses. Happy 
people tend to move in positive cycles.
How can we tell if eco-retrofitting can really improve worker productivity?
Daylighting, thermal comfort, air quality, ventilation, and the ability of workers to adjust their own 
lighting, temperature and airflow conditions have been shown to lead to measurable productivity 
improvements.
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For example, according to Romm, Lockheed’s daylit energy-efficient engineering 
facility in California saved up to $400,000 a year on energy bills, but also increased productivity by 
15 per cent.
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Significant (although variable) correlations between school test performance and fresh 
air supply have also been established. One study showed students in daylit schools (with no glare) 
out-performed those in non-daylit schools by 20 per cent or more on standardized tests.
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An analysis 
by Carnegie Mellon’s Centre for Building Performance and Diagnostics showed improved lighting 
would add $370,000 to the first cost of a typical workplace but save $680,000 in energy use and other 
reduced operating costs.
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The productivity benefit, however, could be up to $14.6 million. The City 
of Melbourne, Australia, made a large investment in achieving a world’s best practice standard in its 
new Council House Two (CH2) building. Technologies included external shower towers, solar stacks, 
water mining from city sewers, co-generation, wind turbines and chilled ceiling beams. Despite added 
research and building costs, the city council anticipates a payback period of 8 to 10 years, using a 
modest estimate for savings in health and productivity. Better yet, the 60L building in Melbourne 
showed how to retrofit a building. In such cases, even so-called ‘mistakes’ are constructive as they 
provide valuable lessons. Moreover, on top of reduced sickness and increased productivity, green 
buildings have even been shown to increase retail sales. 


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