Master Facility & Real Estate Management
Title assignment : Research Academic Thesis
Name module/course code : RESE
Name Tutor : Carla Brouwer
Name student : Jorden van Ramshorst
Full-time / Part-time : Full-time
Greenwich student nr. : 001278544
Saxion student nr. : 532393
Academic year : 2022-2023
Date : 08/08/2023
Word count : 19.966 (without sources and appendix), 36.910 including.
Abstract
This thesis examines the impact of embodied energy and emissions on the financial
planning process of office building stakeholders during the operational phase in the
Dutch real estate market. As sustainability legislation tightens, and hybrid working
threatens office occupation, investors and portfolio managers face increased risk and
uncertainty for their office buildings. To understand how the market will respond to
these changes, the research focuses on the future impact of embodied energy and
emissions on the office building market in various Dutch cities. The main research
question is: How does embodied energy and emissions influence the financial
planning process of office building stakeholders in the operational phase?
The study utilizes desk research, an extended literature review, and a case study
with 10 semi-structured interviews involving investors/portfolio managers and
1
,sustainability advisers. The results highlight that upcoming legislation and trends in
embodied energy and emissions affect multiple stakeholders, and traditional profit
strategies may become less influential in financial planning. Investment and
maintenance decisions for office buildings in the operational phase will likely become
more complex. Proper valuation adjustments towards sustainability will be crucial,
potentially impacting investor/portfolio manager profits. However, further research is
needed to determine if changes will be driven by tenant/user pressure.
In summary, the research highlights the importance of understanding the impact of
embodied energy and emissions on financial planning for office buildings,
considering sustainability responsibilities, legislative implications, early-stage
decision-making, and stakeholder collaboration. Refining the financial investment
model to align with sustainable objectives in office building investments is essential
in navigating the evolving market landscape.
Foreword
Crafting an academic thesis is a demanding journey that requires focus and
patience. I'm grateful to all connected to this thesis, especially Carla Brouwer, my
invaluable thesis coach. Thanks also to Adrienn Eros, Brenda Groen, and Wouter
Visser for their assistance and support. The input from investors/portfolio managers
and sustainability advisers was indispensable. Lastly, heartfelt thanks to my family
for unwavering support throughout. This thesis is an original work created by Jorden
van Ramshorst.
The impact of embodied energy and emissions on the
financial planning process of office building stakeholders
in the operational phase.
Table of Contents
FOREWORD.................................................................................................................................................. 2
INTRODUCTION............................................................................................................................................ 4
1. LITERATURE REVIEW................................................................................................................................. 6
1.1. EMBODIED ENERGY.........................................................................................................................................6
1.2. CLIMATE CHANGE AND EMBODIED ENERGY.........................................................................................................8
1.3. DEEPER UNDERSTANDING OF EMBODIED ENERGY AND EMISSION TRENDS.................................................................8
1.4. THE DEFINITION OF THE TERM “IMPACT”.............................................................................................................9
1.5. EMISSIONS, EMBODIED, EMBODIED CARBON, EMBODIED EMISSIONS & CARBON EMISSIONS........................................9
1.6. OFFICE BUILDINGS.........................................................................................................................................10
1.7. EMBODIED ENERGY AND EMISSIONS IN THE BUILDING LIFE CYCLE..........................................................................11
1.8. THE OPERATIONAL PHASE IN THE BUILDING LIFE CYCLE........................................................................................13
1.9. THE FINANCIAL PLANNING PROCESS.................................................................................................................15
2
, 1.10. INVESTING CHARACTERISTICS.........................................................................................................................17
2. OBJECTIVE, RESEARCH AND SUB-QUESTIONS........................................................................................... 18
2.1. RESEARCH OBJECTIVE....................................................................................................................................19
2.2. THE RESEARCH QUESTION..............................................................................................................................19
3. RESEARCH METHODS.............................................................................................................................. 20
3.1. DATA RESEARCH METHODS............................................................................................................................21
3.2. DATA ANALYSIS............................................................................................................................................22
3.3. RESEARCH METHOD PER SUB QUESTION...........................................................................................................23
4. OPERATIONALIZATION............................................................................................................................ 23
5. SAMPLING............................................................................................................................................... 24
6. VALIDITY & RELIABILITY........................................................................................................................... 27
7. ANALYZING DATA.................................................................................................................................... 28
7.1. THE OUTCOMES OF THE MULTIPLE DATA COLLECTION METHODS.........................................................28
7.2. CASE STUDIES:............................................................................................................................................. 28
7.3. RESULTS SEMI-STRUCTURED INTERVIEWS..........................................................................................................30
7.4. FIRST PART RESULTS ADJUSTED CODE TREE - FINANCIAL PLANNING PROCESS..........................................................30
7.4.1. Short Explanation................................................................................................................................31
7.4.2. Embodied Energy & Emission Trends..................................................................................................31
7.4.3. Investment in Office Buildings............................................................................................................32
7.5. SECOND PART RESULTS ADJUSTED CODE TREE - FINANCIAL PLANNING PROCESS......................................................33
7.5.1. Short Explanation................................................................................................................................34
7.5.2. Office Building Portfolio Characteristics.............................................................................................34
7.5.3. Location...............................................................................................................................................35
7.5.4. Energy Labels......................................................................................................................................36
7.5.5. Height Office Buildings........................................................................................................................36
7.5.6. Presence of Renewable Energy Innovations.......................................................................................37
7.6. THIRD PART RESULTS ADJUSTED CODE TREE - FINANCIAL PLANNING PROCESS.........................................................38
7.6.1. Short Explanation................................................................................................................................39
7.6.2. Legislation...........................................................................................................................................39
7.6.3. Stakeholder Collaboration..................................................................................................................40
7.6.4. The investor/portfolio manager..........................................................................................................42
7.6.5. Financial Planning Process..................................................................................................................43
7.6.6. Investing Factors.................................................................................................................................44
7.7. RESULTS CODE TREE BUILDING LIFE CYCLE........................................................................................................45
7.8. ADJUSTED CODE TREE - BUILDING LIFE CYCLE MODEL.........................................................................................45
7.8.1. Short Explanation................................................................................................................................46
7.8.2. Building Life Cycle...............................................................................................................................46
7.8.3. Product & Construction Stage.............................................................................................................47
7.8.4. Materials.............................................................................................................................................47
7.8.5. Building Structure...............................................................................................................................48
7.8.6. Use/Operational Stage.......................................................................................................................48
7.8.7. Operational Energy (Emissions)..........................................................................................................49
7.8.8. End of Life Stage.................................................................................................................................50
7.8.9. Retrofit................................................................................................................................................50
7.9. RESULTS ANSWERING THE SUB-QUESTIONS........................................................................................................51
7.9.1. Research Question 1...........................................................................................................................51
7.9.2. Research Question 2...........................................................................................................................52
7.9.3. Research Question 3...........................................................................................................................53
8. CONCLUSIONS.................................................................................................................................................54
8.1. Conclusion Case Studies.........................................................................................................................54
8.2. Conclusion Research Question...............................................................................................................55
8.2.1. The impact of embodied energy and emissions.................................................................................55
3
, 8.2.2. The financial planning process............................................................................................................56
8.2.3. Office building stakeholders during the operational phase................................................................56
9. DISCUSSION & LIMITATIONS.................................................................................................................... 57
9.1. Limitations that occurred.......................................................................................................................60
10. RECOMMENDATIONS............................................................................................................................ 60
10.1. RECOMMENDATIONS FOR THE FIELD...............................................................................................................60
10.2. FURTHER RESEARCH RECOMMENDATIONS.......................................................................................................61
11. SOURCES............................................................................................................................................... 62
APPENDIX 1................................................................................................................................................ 69
ADJUSTED CODE TREE FOR FINANCIAL PLANNING PROCESS AFTER FIELD RESEARCH....................................72
APPENDIX 2 – CONSENT FORM TEMPLATE................................................................................................... 73
MODEL CONSENT FORM.......................................................................................................................................73
APPENDIX 3................................................................................................................................................ 75
INTERVIEW TRANSCRIPT + FIRST PHASE CODING........................................................................................................75
APPENDIX 4................................................................................................................................................ 95
ANALYZING RESULTS OF CASE STUDIES....................................................................................................................95
2001 ANALYSIS OF EMBODIED ENERGY OF OFFICE BUILDINGS (BY HEIGHT) – FACILITIES...................................................95
2010 IDENTIFICATION OF PARAMETERS FOR EMBODIED ENERGY MEASUREMENT: A LITERATURE REVIEW – ENERGY AND
BUILDINGS......................................................................................................................................................... 96
1999 - EMBODIED ENERGY ANALYSIS OF FIXTURES, FITTINGS AND FURNITURE IN OFFICE BUILDINGS – FACILITIES...................98
2016 - EMBODIED CARBON EMISSIONS OF OFFICE BUILDING: A CASE STUDY OF CHINA'S 78 OFFICE BUILDINGS – BUILDINGS &
ENVIRONMENT..................................................................................................................................................101
2022: THE ECONOMIC IMPACTS OF CARBON EMISSION TRADING SCHEME ON BUILDING RETROFITS: A CASE STUDY WITH U.S.
MEDIUM OFFICE BUILDINGS – BUILDING & ENVIRONMENT........................................................................................102
2019 - EXPLORING THE PATHWAY FROM ZERO-ENERGY TO ZERO-EMISSION BUILDING SOLUTIONS: A CASE STUDY OF A
NORWEGIAN OFFICE BUILDING – ENERGY & BUILDINGS............................................................................................105
2018 - CASE STUDY OF THE UPGRADE OF AN EXISTING OFFICE BUILDING FOR LOW ENERGY CONSUMPTION AND LOW CARBON
EMISSIONS – ENERGY & BUILDINGS......................................................................................................................107
2009 - LIFE CYCLE ENERGY ASSESSMENT OF A TYPICAL OFFICE BUILDING IN THAILAND – ENERGY & BUILDINGS...................107
2008: ENVIRONMENTAL LIFE CYCLE ASSESSMENT OF A COMMERCIAL OFFICE BUILDING IN THAILAND - THE INTERNATIONAL
JOURNAL OF LIFE CYCLE ASSESSMENT....................................................................................................................108
2010 – CONFERENCE PAPER - CRITICAL SUCCESS FACTORS OF SUSTAINABLE OFFICE DEVELOPMENT IN THE NETHERLANDS - CIB
WORLD CONGRESS 2010-BUILDING A BETTER WORLD............................................................................................108
APPENDIX 5 – INTERVIEW SEMI-STRUCTURED QUESTIONS........................................................................110
APPENDIX 6 – PROJECT PROGRESS FORM..................................................................................................113
APPENDIX 7 – PARTICIPATION LETTER....................................................................................................... 116
Introduction
This introduction provides the necessary context in order to understand the research
problem.
In late 2015, the Conference of Parties (CoP) in Paris produced a new Climate
Accord (Nea, 2023). This Climate Accord will go into effect in 2020 once more than
55 countries have ratified it, accounting for more than 55% of global emissions. The
Climate Accord is set to decrease the total worldwide emissions in order to stop the
global warming from increasing (Unfccc, 2015). The Netherlands is among those 55
countries. The Climate Accord affects many industries on a national level, including
4
Title assignment : Research Academic Thesis
Name module/course code : RESE
Name Tutor : Carla Brouwer
Name student : Jorden van Ramshorst
Full-time / Part-time : Full-time
Greenwich student nr. : 001278544
Saxion student nr. : 532393
Academic year : 2022-2023
Date : 08/08/2023
Word count : 19.966 (without sources and appendix), 36.910 including.
Abstract
This thesis examines the impact of embodied energy and emissions on the financial
planning process of office building stakeholders during the operational phase in the
Dutch real estate market. As sustainability legislation tightens, and hybrid working
threatens office occupation, investors and portfolio managers face increased risk and
uncertainty for their office buildings. To understand how the market will respond to
these changes, the research focuses on the future impact of embodied energy and
emissions on the office building market in various Dutch cities. The main research
question is: How does embodied energy and emissions influence the financial
planning process of office building stakeholders in the operational phase?
The study utilizes desk research, an extended literature review, and a case study
with 10 semi-structured interviews involving investors/portfolio managers and
1
,sustainability advisers. The results highlight that upcoming legislation and trends in
embodied energy and emissions affect multiple stakeholders, and traditional profit
strategies may become less influential in financial planning. Investment and
maintenance decisions for office buildings in the operational phase will likely become
more complex. Proper valuation adjustments towards sustainability will be crucial,
potentially impacting investor/portfolio manager profits. However, further research is
needed to determine if changes will be driven by tenant/user pressure.
In summary, the research highlights the importance of understanding the impact of
embodied energy and emissions on financial planning for office buildings,
considering sustainability responsibilities, legislative implications, early-stage
decision-making, and stakeholder collaboration. Refining the financial investment
model to align with sustainable objectives in office building investments is essential
in navigating the evolving market landscape.
Foreword
Crafting an academic thesis is a demanding journey that requires focus and
patience. I'm grateful to all connected to this thesis, especially Carla Brouwer, my
invaluable thesis coach. Thanks also to Adrienn Eros, Brenda Groen, and Wouter
Visser for their assistance and support. The input from investors/portfolio managers
and sustainability advisers was indispensable. Lastly, heartfelt thanks to my family
for unwavering support throughout. This thesis is an original work created by Jorden
van Ramshorst.
The impact of embodied energy and emissions on the
financial planning process of office building stakeholders
in the operational phase.
Table of Contents
FOREWORD.................................................................................................................................................. 2
INTRODUCTION............................................................................................................................................ 4
1. LITERATURE REVIEW................................................................................................................................. 6
1.1. EMBODIED ENERGY.........................................................................................................................................6
1.2. CLIMATE CHANGE AND EMBODIED ENERGY.........................................................................................................8
1.3. DEEPER UNDERSTANDING OF EMBODIED ENERGY AND EMISSION TRENDS.................................................................8
1.4. THE DEFINITION OF THE TERM “IMPACT”.............................................................................................................9
1.5. EMISSIONS, EMBODIED, EMBODIED CARBON, EMBODIED EMISSIONS & CARBON EMISSIONS........................................9
1.6. OFFICE BUILDINGS.........................................................................................................................................10
1.7. EMBODIED ENERGY AND EMISSIONS IN THE BUILDING LIFE CYCLE..........................................................................11
1.8. THE OPERATIONAL PHASE IN THE BUILDING LIFE CYCLE........................................................................................13
1.9. THE FINANCIAL PLANNING PROCESS.................................................................................................................15
2
, 1.10. INVESTING CHARACTERISTICS.........................................................................................................................17
2. OBJECTIVE, RESEARCH AND SUB-QUESTIONS........................................................................................... 18
2.1. RESEARCH OBJECTIVE....................................................................................................................................19
2.2. THE RESEARCH QUESTION..............................................................................................................................19
3. RESEARCH METHODS.............................................................................................................................. 20
3.1. DATA RESEARCH METHODS............................................................................................................................21
3.2. DATA ANALYSIS............................................................................................................................................22
3.3. RESEARCH METHOD PER SUB QUESTION...........................................................................................................23
4. OPERATIONALIZATION............................................................................................................................ 23
5. SAMPLING............................................................................................................................................... 24
6. VALIDITY & RELIABILITY........................................................................................................................... 27
7. ANALYZING DATA.................................................................................................................................... 28
7.1. THE OUTCOMES OF THE MULTIPLE DATA COLLECTION METHODS.........................................................28
7.2. CASE STUDIES:............................................................................................................................................. 28
7.3. RESULTS SEMI-STRUCTURED INTERVIEWS..........................................................................................................30
7.4. FIRST PART RESULTS ADJUSTED CODE TREE - FINANCIAL PLANNING PROCESS..........................................................30
7.4.1. Short Explanation................................................................................................................................31
7.4.2. Embodied Energy & Emission Trends..................................................................................................31
7.4.3. Investment in Office Buildings............................................................................................................32
7.5. SECOND PART RESULTS ADJUSTED CODE TREE - FINANCIAL PLANNING PROCESS......................................................33
7.5.1. Short Explanation................................................................................................................................34
7.5.2. Office Building Portfolio Characteristics.............................................................................................34
7.5.3. Location...............................................................................................................................................35
7.5.4. Energy Labels......................................................................................................................................36
7.5.5. Height Office Buildings........................................................................................................................36
7.5.6. Presence of Renewable Energy Innovations.......................................................................................37
7.6. THIRD PART RESULTS ADJUSTED CODE TREE - FINANCIAL PLANNING PROCESS.........................................................38
7.6.1. Short Explanation................................................................................................................................39
7.6.2. Legislation...........................................................................................................................................39
7.6.3. Stakeholder Collaboration..................................................................................................................40
7.6.4. The investor/portfolio manager..........................................................................................................42
7.6.5. Financial Planning Process..................................................................................................................43
7.6.6. Investing Factors.................................................................................................................................44
7.7. RESULTS CODE TREE BUILDING LIFE CYCLE........................................................................................................45
7.8. ADJUSTED CODE TREE - BUILDING LIFE CYCLE MODEL.........................................................................................45
7.8.1. Short Explanation................................................................................................................................46
7.8.2. Building Life Cycle...............................................................................................................................46
7.8.3. Product & Construction Stage.............................................................................................................47
7.8.4. Materials.............................................................................................................................................47
7.8.5. Building Structure...............................................................................................................................48
7.8.6. Use/Operational Stage.......................................................................................................................48
7.8.7. Operational Energy (Emissions)..........................................................................................................49
7.8.8. End of Life Stage.................................................................................................................................50
7.8.9. Retrofit................................................................................................................................................50
7.9. RESULTS ANSWERING THE SUB-QUESTIONS........................................................................................................51
7.9.1. Research Question 1...........................................................................................................................51
7.9.2. Research Question 2...........................................................................................................................52
7.9.3. Research Question 3...........................................................................................................................53
8. CONCLUSIONS.................................................................................................................................................54
8.1. Conclusion Case Studies.........................................................................................................................54
8.2. Conclusion Research Question...............................................................................................................55
8.2.1. The impact of embodied energy and emissions.................................................................................55
3
, 8.2.2. The financial planning process............................................................................................................56
8.2.3. Office building stakeholders during the operational phase................................................................56
9. DISCUSSION & LIMITATIONS.................................................................................................................... 57
9.1. Limitations that occurred.......................................................................................................................60
10. RECOMMENDATIONS............................................................................................................................ 60
10.1. RECOMMENDATIONS FOR THE FIELD...............................................................................................................60
10.2. FURTHER RESEARCH RECOMMENDATIONS.......................................................................................................61
11. SOURCES............................................................................................................................................... 62
APPENDIX 1................................................................................................................................................ 69
ADJUSTED CODE TREE FOR FINANCIAL PLANNING PROCESS AFTER FIELD RESEARCH....................................72
APPENDIX 2 – CONSENT FORM TEMPLATE................................................................................................... 73
MODEL CONSENT FORM.......................................................................................................................................73
APPENDIX 3................................................................................................................................................ 75
INTERVIEW TRANSCRIPT + FIRST PHASE CODING........................................................................................................75
APPENDIX 4................................................................................................................................................ 95
ANALYZING RESULTS OF CASE STUDIES....................................................................................................................95
2001 ANALYSIS OF EMBODIED ENERGY OF OFFICE BUILDINGS (BY HEIGHT) – FACILITIES...................................................95
2010 IDENTIFICATION OF PARAMETERS FOR EMBODIED ENERGY MEASUREMENT: A LITERATURE REVIEW – ENERGY AND
BUILDINGS......................................................................................................................................................... 96
1999 - EMBODIED ENERGY ANALYSIS OF FIXTURES, FITTINGS AND FURNITURE IN OFFICE BUILDINGS – FACILITIES...................98
2016 - EMBODIED CARBON EMISSIONS OF OFFICE BUILDING: A CASE STUDY OF CHINA'S 78 OFFICE BUILDINGS – BUILDINGS &
ENVIRONMENT..................................................................................................................................................101
2022: THE ECONOMIC IMPACTS OF CARBON EMISSION TRADING SCHEME ON BUILDING RETROFITS: A CASE STUDY WITH U.S.
MEDIUM OFFICE BUILDINGS – BUILDING & ENVIRONMENT........................................................................................102
2019 - EXPLORING THE PATHWAY FROM ZERO-ENERGY TO ZERO-EMISSION BUILDING SOLUTIONS: A CASE STUDY OF A
NORWEGIAN OFFICE BUILDING – ENERGY & BUILDINGS............................................................................................105
2018 - CASE STUDY OF THE UPGRADE OF AN EXISTING OFFICE BUILDING FOR LOW ENERGY CONSUMPTION AND LOW CARBON
EMISSIONS – ENERGY & BUILDINGS......................................................................................................................107
2009 - LIFE CYCLE ENERGY ASSESSMENT OF A TYPICAL OFFICE BUILDING IN THAILAND – ENERGY & BUILDINGS...................107
2008: ENVIRONMENTAL LIFE CYCLE ASSESSMENT OF A COMMERCIAL OFFICE BUILDING IN THAILAND - THE INTERNATIONAL
JOURNAL OF LIFE CYCLE ASSESSMENT....................................................................................................................108
2010 – CONFERENCE PAPER - CRITICAL SUCCESS FACTORS OF SUSTAINABLE OFFICE DEVELOPMENT IN THE NETHERLANDS - CIB
WORLD CONGRESS 2010-BUILDING A BETTER WORLD............................................................................................108
APPENDIX 5 – INTERVIEW SEMI-STRUCTURED QUESTIONS........................................................................110
APPENDIX 6 – PROJECT PROGRESS FORM..................................................................................................113
APPENDIX 7 – PARTICIPATION LETTER....................................................................................................... 116
Introduction
This introduction provides the necessary context in order to understand the research
problem.
In late 2015, the Conference of Parties (CoP) in Paris produced a new Climate
Accord (Nea, 2023). This Climate Accord will go into effect in 2020 once more than
55 countries have ratified it, accounting for more than 55% of global emissions. The
Climate Accord is set to decrease the total worldwide emissions in order to stop the
global warming from increasing (Unfccc, 2015). The Netherlands is among those 55
countries. The Climate Accord affects many industries on a national level, including
4
