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Appendix 5: Glossary

Agenda 21
Programme of action adopted by the 1992 United Nations Conference on Environment and Development.
BOMA
Building Owners and Managers Association UK. New Zealand equivalent known as the Property Council of New Zealand.
Californian Sustainable Building Task Force
A partnership of 40 governmental agencies working towards incorporating sustainable building principles into California's capital outlay process.
Capitalisation rate
The rate of return a property will produce on the owner's investment.
Carbon tax
A charge or tax levy on fossil fuels (oil, natural gas) based on their carbon content. When burned, the carbon in these fuels becomes carbon dioxide in the atmosphere, the chief greenhouse gas.
Crown loans
Investments in energy efficient technologies or loans available through the Energy Efficiency and Conservation Authority to government departments, district health boards, Crown owned companies, territorial authorities, regional councils, universities, polytechnics, schools and crown entities for energy efficient projects. These organisations have a collective energy spend of around $200 million pa. A review of 10 audits in the public sector over the past two years indicates a total saving potential of around 14%. Of that, 8% are low-cost savings and are generally able to be funded internally. The remaining 6% require capital investment.
Discount rate
The interest rate used in calculating the present value of future cashflows.
EECA
Energy Efficiency and Conservation Authority. EECA's role is to encourage, promote, and support the uptake of energy efficient initiatives and new renewable energy.
ESD
Ecologically Sustainable Development. ESD is a concept that recognises the need to integrate short and long term economic, social and environmental aspects into the management of all of our activities including the building environment.
Global warming
An increase in the near surface temperature of the earth. Global warming occurred in the distant past as a result of natural influences, but the term is most often used to refer to the warming predicted to occur as a result of increased man-made emissions of greenhouse gases.
Green Building Council of Australia and Green Building Council of New Zealand (GBCA)
Aninternational body of councils committed to promotion and education of sustainable buildings. Six councils exist around the world including Australia and eight councils are emerging around the world including New Zealand.
Green leases
A 'green lease' is a lease between the landlord and tenant of a 'green building' or a conventional building that is proposed to be refurbished as a 'green building'. It incorporates ecologically sustainable development principles that ensure the ongoing use and operation of that building to minimise environmental impacts, by establishing targets for energy and water use and obligation on the tenant for the sustainable use of buildings.
Greenstar
An Australian office building environmental rating scheme developed and administered by the Australian Green Building Council.
Govt3
A Ministry for the Environment programme for agencies to improve the sustainability of their activities. The 'Govt' in Govt3 stands for government and the '3' stands for the 'three pillars of sustainability': environmental, social and economic.
IRR
Internal rate of return. The discount rate at which the present value of the future cash flows of an investment equals the cost of the investment. The discount rate with a net present value of 0.
Infrastructure Auckland
A defunct infrastructure asset-holding authority responsible for planning and funding infrastructure projects in Auckland. Now a disestablished part of the Auckland Regional Council.
LNG
Liquefied natural gas. Natural gas liquefied by reducing its temperature to -162 degrees Celsius at atmospheric pressure. It remains a liquid at -82oC and 4.64 MPa. In volume, it occupies 1/600 of that of the vapour at standard conditions.
Marginal cost
The changes in total cost that arise when the quantity produced (or purchased) changes by one unit. For example, if a firm wants to produce more, it might find that it has to employ people on overtime, so additional units of output cost more to produce.
NABERS
National Australian Built Environment Rating System. NABERS is a performance-based rating system that measures an existing building's overall environmental performance during operation. NABERS will rate a building on the basis of its measured operational impacts - including energy, refrigerants (greenhouse and ozone depletion potential), water, stormwater runoff and pollution, sewage, landscape diversity, transport, indoor air quality, occupant satisfaction, waste and toxic materials.
NEECS
The National Energy Efficiency and Conservation Strategy. Prepared as a requirement of the Energy Efficiency and Conservation Act 2000. As required by the Act, the Strategy is organised around policies, objectives and targets, supported by a set of means (or measures). The Strategy's purpose is to promote energy efficiency, energy conservation and renewable energy and move New Zealand towards a sustainable energy future.
Non-residential building
Area that provides commercial, industrial and public facilities.
NPV
Net present value. The future stream of benefits and costs converted into equivalent values today. This is done by assigning monetary values to benefits and costs, discounting future benefits and costs using an appropriate discount rate, and subtracting the sum total of discounted costs from the sum total of discounted benefits.
Performance-based leases
Leases that include provisions for meeting agreed benchmarks for energy and water consumption.
Present value (PV)
The current value or worth of an amount to be received in the future. In the case of an annuity, present value is the current worth of a series of equal payments or savings to be made in the future.
Post-occupancy evaluation
Post-occupancy evaluation involves systematic evaluation of opinion about buildings in use, from the perspective of the people who use them. It assesses how well buildings match users' needs, and identifies ways to improve building design, performance and fitness for purpose.
Property Council
A professional association that represents members with a vested interest in commercial property, including building owners, developers, agents, construction companies, investment companies, asset managers and service suppliers.
PROBE
UK post-occupancy evaluation method for buildings.
Resource Management Act (RMA)
An Act of Parliament passed in 1991, it is New Zealand's principal environmental legislation. Its objective is to promote sustainable management of New Zealand's natural and physical resources. It is designed to deliver superior environmental protection with greater economic efficiency and public accountability.
Renewable
Energy sources that are, within a short timeframe relative to the Earth's natural cycles, sustainable, and include non-carbon technologies such as solar energy, hydropower and wind as well as carbon-neutral technologies such as biomass.
Simple payback
An energy investment's simple payback period is the amount of time it will take to recover the initial investment in energy savings, dividing initial installed cost by the annual energy cost savings. For example, an energy-saving measure that costs $5,000 and saves $2,500 per year has a simple payback of 5000 divided by 2500, or two years. While simple payback is easy to compute, it fails to factor in the time value of money, inflation, project lifetime or operation and maintenance costs. To take these factors into account, a more detailed life-cycle cost analysis must be performed. Simple payback is useful for making ballpark estimates of how long it will take to recoup an initial investment.
Socially responsible investment (SRI)
A process that takes social, environmental and ethical criteria into account when investing in companies.
Sustainable building
The term sustainable building is used interchangeably with green building. Its purpose is to reduce the adverse human impacts on the natural environment, while improving our quality of life and economic well-being.
Tenancy lifetime care
The management of a tenanted commercial building by a building owner to ensure outcomes in terms of operating costs, environmental and user satisfaction outcomes are maintained over the life of the tenancy.
Total occupancy cost neutral
By considering the total occupancy costs, including rental and operating cost over the lease period, a higher rental cost can be cost neutral if it is offset by lower operating costs.
Whole-of-life cost
A whole-of-life approach takes account of the initial costs of building and also of the full costs of operating the building. Taken a stage further, it takes into account costs that might otherwise be excluded, such as raw materials extraction and processing, packaging and disposal of the building materials when the buildings useful life is at an end. It includes service maintenance and repairs, energy and other running costs, security of supply etc.