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HKGBC Green Tenancy Driver for Office Buildings
CH 6
SPLIT INCENTIVE CONSENT
Solutions
Creating solutions for Split Incentive is a very challenging task which requires mutual cooperation
and collaboration between stakeholders. On paper, an ideal solution would be to implement a
method which allows the three criteria as mentioned previously to be filled by the same entity.
However, realistically speaking, there are many grey areas where multitudes of factors must
be considered in order to reach a solution. In most cases where problems to solutions for Split
Incentives have arisen,
money
and
payback period
are often a main point of conflict. Who
will bear the financial burden
?
How will the money be repaid
?
What is the share
?
How will the
benefits be shared
?
In addition, large scale revamps of building utilities often result in an opportunity cost. This cost
might be from disruptions in working hours or closure of office space to make way for equipment.
Generally, Split Incentive can be overcome by implementing methods which require parties
to collaborate and set mutually agreed performance targets. In essence, the collaboration
between stakeholders can be interpreted and represented as a single entity which fulfils all
three questions as proposed previously. An example of this is the GOT Committee. Due to the
mutual collaborative structure of stakeholders within the GOT Committee, they are able to set
performance targets, define the actions each stakeholder will uphold, and ultimately provide a
platform for Landlord and Tenant to achieve those shared goals.
Solution Method
Every solution to a Split Incentive is different due to different factors involved. However,
most of them revolve around a common agreement struck by both parties which encourages
sustainable behaviours and practices. Furthermore, both Tenant and Landlord are encouraged
to share data and results with each other to enhance transparency. This reduces the chances for
miscommunication and encourages trust between both parties, hence increases the success rate
of the agreement.
