WEBVTT 00:00:00.000 --> 00:00:02.874 align:middle line:90% [SQUEAKING] 00:00:02.874 --> 00:00:04.311 align:middle line:90% [RUSTLING] 00:00:04.311 --> 00:00:05.748 align:middle line:90% [CLICKING] 00:00:05.748 --> 00:00:09.890 align:middle line:90% 00:00:09.890 --> 00:00:13.210 align:middle line:84% JUAN PALACIOS: So connecting to the course, so far, 00:00:13.210 --> 00:00:16.000 align:middle line:84% we've been talking a lot about planet and environmental 00:00:16.000 --> 00:00:19.722 align:middle line:84% and reducing energy for the sake of saving the planet. 00:00:19.722 --> 00:00:21.430 align:middle line:84% And what we are going to talk about today 00:00:21.430 --> 00:00:23.467 align:middle line:84% is not talking about outside the building 00:00:23.467 --> 00:00:24.800 align:middle line:90% but talking inside the building. 00:00:24.800 --> 00:00:26.920 align:middle line:84% So how can we actually think about the strategies 00:00:26.920 --> 00:00:32.020 align:middle line:84% of investing in buildings that will improve the lives of people 00:00:32.020 --> 00:00:33.410 align:middle line:90% in the building, like us. 00:00:33.410 --> 00:00:35.535 align:middle line:84% And we will talk a little bit about this classroom. 00:00:35.535 --> 00:00:38.073 align:middle line:84% We have a sensor over there that is monitoring the air 00:00:38.073 --> 00:00:39.490 align:middle line:84% quality in these classrooms, so we 00:00:39.490 --> 00:00:44.260 align:middle line:84% will see how good the CRE is with us in terms of the places 00:00:44.260 --> 00:00:45.940 align:middle line:90% that they put it. 00:00:45.940 --> 00:00:51.820 align:middle line:84% Here are some of the key formulas and key diagrams 00:00:51.820 --> 00:00:53.930 align:middle line:84% that Siqi always uses for the lecture. 00:00:53.930 --> 00:00:57.280 align:middle line:84% So here is one of the key things of the business case 00:00:57.280 --> 00:01:00.430 align:middle line:84% for green buildings is that the tenants are going 00:01:00.430 --> 00:01:02.020 align:middle line:84% to be better off in a green building 00:01:02.020 --> 00:01:04.209 align:middle line:84% than in a non-green building and mainly 00:01:04.209 --> 00:01:06.740 align:middle line:84% because you have, on the one side, energy costs, 00:01:06.740 --> 00:01:08.530 align:middle line:84% environmental damages, but especially-- 00:01:08.530 --> 00:01:11.120 align:middle line:84% and I will show that this is the largest part of the pie 00:01:11.120 --> 00:01:13.910 align:middle line:84% because employees are going to be more productive, healthier, 00:01:13.910 --> 00:01:15.410 align:middle line:84% more comfortable, and they are going 00:01:15.410 --> 00:01:17.150 align:middle line:84% to choose to be in those buildings. 00:01:17.150 --> 00:01:18.650 align:middle line:84% And therefore, the corporate tenants 00:01:18.650 --> 00:01:21.870 align:middle line:84% are going to make larger bids for those buildings. 00:01:21.870 --> 00:01:23.280 align:middle line:90% That's the theoretical link. 00:01:23.280 --> 00:01:24.710 align:middle line:84% And then we are going to talk about whether that 00:01:24.710 --> 00:01:26.130 align:middle line:90% happens in the market or not. 00:01:26.130 --> 00:01:30.260 align:middle line:84% And also not only today but also on Tuesday, with Siqi 00:01:30.260 --> 00:01:32.880 align:middle line:84% that is there, talking in the corner, is going to happen. 00:01:32.880 --> 00:01:34.748 align:middle line:84% Also, we are going to analyze that decision 00:01:34.748 --> 00:01:36.290 align:middle line:84% in one specific building in New York, 00:01:36.290 --> 00:01:38.165 align:middle line:84% and we are going to have a lot of discussions 00:01:38.165 --> 00:01:41.135 align:middle line:84% about under which conditions this will be holding 00:01:41.135 --> 00:01:43.760 align:middle line:84% and which conditions it is not going to hold in because we have 00:01:43.760 --> 00:01:47.450 align:middle line:84% here people from Latin America, Europe, US, different parts 00:01:47.450 --> 00:01:49.520 align:middle line:90% of the United States, Asia. 00:01:49.520 --> 00:01:51.658 align:middle line:84% It's not going to apply to every market, 00:01:51.658 --> 00:01:53.450 align:middle line:84% but the fundamentals are going to be there. 00:01:53.450 --> 00:01:55.250 align:middle line:84% Whether the market is going to appreciate it or not, 00:01:55.250 --> 00:01:56.400 align:middle line:90% that's a different story. 00:01:56.400 --> 00:01:58.950 align:middle line:84% But the core technology is going to work in the same way. 00:01:58.950 --> 00:02:02.090 align:middle line:84% The core idea of the engineers behind the design 00:02:02.090 --> 00:02:04.010 align:middle line:84% of those buildings is going to be very similar 00:02:04.010 --> 00:02:07.042 align:middle line:84% into why they are going to promote 00:02:07.042 --> 00:02:08.750 align:middle line:84% air quality in the building, why are they 00:02:08.750 --> 00:02:12.560 align:middle line:84% going to upgrade the HVAC, systems in the building, 00:02:12.560 --> 00:02:13.200 align:middle line:90% and so forth. 00:02:13.200 --> 00:02:14.558 align:middle line:90% So the fundamentals are there. 00:02:14.558 --> 00:02:16.100 align:middle line:84% And now the key question afterwards-- 00:02:16.100 --> 00:02:17.720 align:middle line:84% and we are going to discuss a little bit later-- 00:02:17.720 --> 00:02:19.890 align:middle line:84% is whether the market is going to be ready or not. 00:02:19.890 --> 00:02:23.460 align:middle line:84% But today, we are going to learn about the fundamentals. 00:02:23.460 --> 00:02:26.840 align:middle line:84% So why it's also important for the general sustainability 00:02:26.840 --> 00:02:30.170 align:middle line:84% in the real estate sector is that, if you see where 00:02:30.170 --> 00:02:32.120 align:middle line:84% the evolution of the certificates are going, 00:02:32.120 --> 00:02:34.610 align:middle line:84% is that, at the beginning, they were mainly, 00:02:34.610 --> 00:02:39.770 align:middle line:84% mainly focusing on saving energy, reducing emissions, 00:02:39.770 --> 00:02:40.440 align:middle line:90% and so forth. 00:02:40.440 --> 00:02:42.260 align:middle line:84% Actually, at the very beginning, only saving energy 00:02:42.260 --> 00:02:44.270 align:middle line:84% because there was not even the Kyoto protocol 00:02:44.270 --> 00:02:46.040 align:middle line:84% back then but really saving energy, 00:02:46.040 --> 00:02:47.340 align:middle line:90% reducing the energy cost. 00:02:47.340 --> 00:02:50.750 align:middle line:84% It was the beginning of the energy crisis in the 1970s 00:02:50.750 --> 00:02:53.520 align:middle line:84% and '80s in the United States and Europe and so forth. 00:02:53.520 --> 00:02:56.900 align:middle line:84% So that was the focus of green building certification. 00:02:56.900 --> 00:03:01.190 align:middle line:84% As we move towards the present, you 00:03:01.190 --> 00:03:03.380 align:middle line:84% see that health starts to appear more and more. 00:03:03.380 --> 00:03:05.882 align:middle line:84% And you see that it takes more a larger 00:03:05.882 --> 00:03:07.590 align:middle line:84% role in the green building certification. 00:03:07.590 --> 00:03:10.010 align:middle line:84% And you even have, since five years ago, 00:03:10.010 --> 00:03:13.700 align:middle line:84% certifications that are specifically focusing on health 00:03:13.700 --> 00:03:15.780 align:middle line:90% and well-being in the building. 00:03:15.780 --> 00:03:19.040 align:middle line:84% So you see that in the green building 00:03:19.040 --> 00:03:22.250 align:middle line:84% market and the green building sector, the role of health 00:03:22.250 --> 00:03:25.680 align:middle line:84% is going up more and more, especially since COVID-19. 00:03:25.680 --> 00:03:27.192 align:middle line:90% David, tell me. 00:03:27.192 --> 00:03:28.650 align:middle line:84% AUDIENCE: Just a question, I guess. 00:03:28.650 --> 00:03:29.230 align:middle line:90% JUAN PALACIOS: Sure. 00:03:29.230 --> 00:03:30.605 align:middle line:84% AUDIENCE: Are there studies, like 00:03:30.605 --> 00:03:33.200 align:middle line:84% longitudinal or discontinuity studies, 00:03:33.200 --> 00:03:36.390 align:middle line:90% done on whether people are-- 00:03:36.390 --> 00:03:37.587 align:middle line:90% do take less sick days? 00:03:37.587 --> 00:03:38.420 align:middle line:90% JUAN PALACIOS: Yeah. 00:03:38.420 --> 00:03:40.140 align:middle line:90% We'll show you later. 00:03:40.140 --> 00:03:41.000 align:middle line:90% Actually, I did one. 00:03:41.000 --> 00:03:42.140 align:middle line:90% I'm very proud of it. 00:03:42.140 --> 00:03:44.992 align:middle line:84% SIQI ZHENG: [LAUGHS] That's Juan's PhD dissertation. 00:03:44.992 --> 00:03:46.950 align:middle line:84% JUAN PALACIOS: And the work of a lot of people. 00:03:46.950 --> 00:03:50.060 align:middle line:84% So there is-- actually, you are in a very good city 00:03:50.060 --> 00:03:52.590 align:middle line:84% for health and well-being in the built environment. 00:03:52.590 --> 00:03:53.430 align:middle line:90% So you have me. 00:03:53.430 --> 00:03:54.500 align:middle line:90% That's great. 00:03:54.500 --> 00:03:57.980 align:middle line:84% But beyond me, you have the Harvard School of Public Health. 00:03:57.980 --> 00:04:01.520 align:middle line:90% You have Joe Allen in HBS. 00:04:01.520 --> 00:04:02.733 align:middle line:90% You also have John Macomber. 00:04:02.733 --> 00:04:04.650 align:middle line:84% They both wrote the book on Healthy Buildings. 00:04:04.650 --> 00:04:07.903 align:middle line:84% They are very big into understanding 00:04:07.903 --> 00:04:09.320 align:middle line:84% what is the business case and what 00:04:09.320 --> 00:04:11.262 align:middle line:84% are the effects of buildings on human health. 00:04:11.262 --> 00:04:11.970 align:middle line:90% It's quite a lot. 00:04:11.970 --> 00:04:12.830 align:middle line:90% Ariel. 00:04:12.830 --> 00:04:16.170 align:middle line:84% AUDIENCE: What are you talking about in the 1990s to solve 00:04:16.170 --> 00:04:18.110 align:middle line:90% [INAUDIBLE] 00:04:18.110 --> 00:04:19.040 align:middle line:90% JUAN PALACIOS: Yeah. 00:04:19.040 --> 00:04:22.970 align:middle line:84% So that is something that was a rebound in the way 00:04:22.970 --> 00:04:25.530 align:middle line:84% that we understood sustainable buildings in a way. 00:04:25.530 --> 00:04:26.810 align:middle line:90% Well, not actually it was-- 00:04:26.810 --> 00:04:29.227 align:middle line:84% I don't think that they were talking about sustainability. 00:04:29.227 --> 00:04:32.240 align:middle line:84% But anyways, in the 1970s and '80s, they were experiencing 00:04:32.240 --> 00:04:34.850 align:middle line:84% this very similar environment as what we are experiencing now 00:04:34.850 --> 00:04:37.400 align:middle line:84% with the energy prices, very expensive 00:04:37.400 --> 00:04:40.470 align:middle line:84% because of international conflicts and so forth. 00:04:40.470 --> 00:04:42.518 align:middle line:84% The price of oil went up by a lot. 00:04:42.518 --> 00:04:44.810 align:middle line:84% And then all of the sudden, you went from almost paying 00:04:44.810 --> 00:04:47.600 align:middle line:84% nothing for energy and wasting a lot of energy, 00:04:47.600 --> 00:04:50.990 align:middle line:84% not only in cars but also in heating, to being actually 00:04:50.990 --> 00:04:54.830 align:middle line:84% paying a painful price for every degree 00:04:54.830 --> 00:04:57.930 align:middle line:84% that you put up in the heating in the building. 00:04:57.930 --> 00:05:01.280 align:middle line:84% So one of the things that the physicists and engineers figured 00:05:01.280 --> 00:05:02.660 align:middle line:90% out is that, hey, you know what? 00:05:02.660 --> 00:05:04.400 align:middle line:84% One of the most expensive things that you 00:05:04.400 --> 00:05:06.650 align:middle line:84% can-- that you need to do in a building 00:05:06.650 --> 00:05:08.928 align:middle line:84% is to bring fresh air from the outside 00:05:08.928 --> 00:05:10.970 align:middle line:84% because, every time that you bring some fresh air 00:05:10.970 --> 00:05:13.345 align:middle line:84% from the outside, you have to bring it to the temperature 00:05:13.345 --> 00:05:16.370 align:middle line:84% that people inside the building want to have. 00:05:16.370 --> 00:05:19.870 align:middle line:84% That means bringing from 0 degrees 00:05:19.870 --> 00:05:26.880 align:middle line:84% Celsius to 20 or from 90 degrees Fahrenheit to 60 or 80. 00:05:26.880 --> 00:05:27.530 align:middle line:90% I don't know. 00:05:27.530 --> 00:05:29.120 align:middle line:84% Fahrenheit is something that I still have to work 00:05:29.120 --> 00:05:30.920 align:middle line:84% on, but let's say from the 90s to the 80s. 00:05:30.920 --> 00:05:32.540 align:middle line:84% Anyways, that is one of the most expensive things 00:05:32.540 --> 00:05:33.957 align:middle line:84% that you need to do in a building. 00:05:33.957 --> 00:05:34.800 align:middle line:90% So what do you do? 00:05:34.800 --> 00:05:37.383 align:middle line:84% Let's reduce the amount of air that you bring to the building. 00:05:37.383 --> 00:05:39.560 align:middle line:84% That comes with reducing ventilation rates, 00:05:39.560 --> 00:05:41.810 align:middle line:84% but it also comes with designing buildings 00:05:41.810 --> 00:05:43.610 align:middle line:84% that are practically bunkers, where 00:05:43.610 --> 00:05:47.000 align:middle line:84% there is no filtration of air from the outside. 00:05:47.000 --> 00:05:49.280 align:middle line:84% That is great for reducing energy consumption, 00:05:49.280 --> 00:05:52.080 align:middle line:84% but it creates a lot of problems with air quality. 00:05:52.080 --> 00:05:55.340 align:middle line:84% So that was when the term of sick building syndrome 00:05:55.340 --> 00:05:58.250 align:middle line:84% was coined, where people will get into their offices 00:05:58.250 --> 00:06:00.050 align:middle line:90% and will get headaches. 00:06:00.050 --> 00:06:01.700 align:middle line:84% And they will get a lot of problems 00:06:01.700 --> 00:06:03.710 align:middle line:84% that are just purely related to the place 00:06:03.710 --> 00:06:05.610 align:middle line:90% where they were working. 00:06:05.610 --> 00:06:10.650 align:middle line:84% And not to say the risk of infectious diseases, 00:06:10.650 --> 00:06:13.230 align:middle line:84% like COVID and so forth, where basically we 00:06:13.230 --> 00:06:15.840 align:middle line:90% are all sharing our air. 00:06:15.840 --> 00:06:18.780 align:middle line:84% I'm throwing a lot of droplets on you guys, 00:06:18.780 --> 00:06:21.030 align:middle line:84% so the only ones that are preventing you 00:06:21.030 --> 00:06:25.050 align:middle line:84% from breathing what I am exhaling 00:06:25.050 --> 00:06:26.610 align:middle line:84% are these guys there that are trying 00:06:26.610 --> 00:06:30.745 align:middle line:84% to suck the air faster than your lungs can breathe it in. 00:06:30.745 --> 00:06:32.370 align:middle line:84% So all of these problems were happening 00:06:32.370 --> 00:06:33.610 align:middle line:90% in the '70s and the '80s. 00:06:33.610 --> 00:06:36.840 align:middle line:84% There were a lot of problems in the office sector, especially, 00:06:36.840 --> 00:06:38.700 align:middle line:84% and that was something that we're 00:06:38.700 --> 00:06:41.160 align:middle line:90% trying to remediate afterwards. 00:06:41.160 --> 00:06:41.920 align:middle line:90% All right. 00:06:41.920 --> 00:06:44.280 align:middle line:84% And to understand the role of buildings, 00:06:44.280 --> 00:06:47.105 align:middle line:84% you have to understand the role of environment on our health. 00:06:47.105 --> 00:06:48.730 align:middle line:84% We have people from all over the world. 00:06:48.730 --> 00:06:50.695 align:middle line:84% I think that things like-- we have 00:06:50.695 --> 00:06:52.320 align:middle line:84% a lot of environmental threats, but I'm 00:06:52.320 --> 00:06:54.190 align:middle line:84% going to show you the two most prominent. 00:06:54.190 --> 00:06:56.998 align:middle line:84% This is a satellite image of the level of air pollution 00:06:56.998 --> 00:06:57.790 align:middle line:90% all over the world. 00:06:57.790 --> 00:07:00.670 align:middle line:84% You see that almost in any-- you can find your city here. 00:07:00.670 --> 00:07:02.760 align:middle line:84% You can see that anywhere where there is a city, 00:07:02.760 --> 00:07:03.970 align:middle line:90% almost there is a red spot. 00:07:03.970 --> 00:07:06.262 align:middle line:84% That means that there is a high level of air pollution. 00:07:06.262 --> 00:07:09.828 align:middle line:84% So it's almost like pollution is the shadow of humankind. 00:07:09.828 --> 00:07:12.120 align:middle line:84% So because the way that we move, we generate pollution. 00:07:12.120 --> 00:07:13.578 align:middle line:84% The way that we heat our buildings, 00:07:13.578 --> 00:07:15.190 align:middle line:90% we generate pollution, so forth. 00:07:15.190 --> 00:07:16.750 align:middle line:84% And we are trying to remediate that, 00:07:16.750 --> 00:07:20.400 align:middle line:84% but that is now the reality for all places in the world. 00:07:20.400 --> 00:07:24.240 align:middle line:84% And what you see is that WHO considers 00:07:24.240 --> 00:07:26.760 align:middle line:84% that as one of the largest threats, actually. 00:07:26.760 --> 00:07:32.040 align:middle line:84% As you see here, 4.2 million premature deaths due to inhaling 00:07:32.040 --> 00:07:33.520 align:middle line:90% air pollution across the world. 00:07:33.520 --> 00:07:37.710 align:middle line:84% That comes because, when you inhale, these little particles 00:07:37.710 --> 00:07:41.200 align:middle line:84% that come out of the exhausts of buildings, and power plants, 00:07:41.200 --> 00:07:43.900 align:middle line:84% and so forth into your lungs, that damages your lungs. 00:07:43.900 --> 00:07:45.370 align:middle line:90% That gets into your blood flow. 00:07:45.370 --> 00:07:48.552 align:middle line:84% That also hurts your cardiovascular system. 00:07:48.552 --> 00:07:50.260 align:middle line:84% And ultimately, and that's also something 00:07:50.260 --> 00:07:53.200 align:middle line:84% that we've been discovering for the last years 00:07:53.200 --> 00:07:56.420 align:middle line:84% and now is one of the most serious threats, 00:07:56.420 --> 00:07:57.550 align:middle line:90% it gets into your brain. 00:07:57.550 --> 00:07:59.780 align:middle line:84% And it affects your cognitive performance. 00:07:59.780 --> 00:08:03.520 align:middle line:84% So all of those things are things that are out there, 00:08:03.520 --> 00:08:06.040 align:middle line:84% and you guys have been breathing quite a bit of it already 00:08:06.040 --> 00:08:08.410 align:middle line:90% on the way home to here. 00:08:08.410 --> 00:08:09.050 align:middle line:90% All right. 00:08:09.050 --> 00:08:10.450 align:middle line:84% So that's one of the things that the building 00:08:10.450 --> 00:08:11.300 align:middle line:90% is trying to prevent. 00:08:11.300 --> 00:08:12.842 align:middle line:84% And I will talk a little bit about it 00:08:12.842 --> 00:08:15.190 align:middle line:84% because the air that we are breathing here 00:08:15.190 --> 00:08:18.110 align:middle line:84% is being brought up by these guys, these systems. 00:08:18.110 --> 00:08:21.140 align:middle line:84% So we are not breathing through a window or anything. 00:08:21.140 --> 00:08:24.880 align:middle line:84% So this building is between us and those red things 00:08:24.880 --> 00:08:25.690 align:middle line:90% that you see there. 00:08:25.690 --> 00:08:28.700 align:middle line:84% It's between us and those cars that are polluting and so forth. 00:08:28.700 --> 00:08:31.510 align:middle line:84% So all the time that we are spending here 00:08:31.510 --> 00:08:33.309 align:middle line:84% is actually a time that the building 00:08:33.309 --> 00:08:35.679 align:middle line:84% can reduce our exposure to those things 00:08:35.679 --> 00:08:40.120 align:middle line:84% and make us breathing healthier air that we will have outdoor 00:08:40.120 --> 00:08:42.010 align:middle line:90% at the door of the theory. 00:08:42.010 --> 00:08:44.850 align:middle line:84% So the question there will be some of the strategies 00:08:44.850 --> 00:08:47.790 align:middle line:84% that we can do to make that air as healthy as possible. 00:08:47.790 --> 00:08:50.890 align:middle line:84% That will come with investments in the HVAC system and so forth. 00:08:50.890 --> 00:08:52.800 align:middle line:84% This is one of the key things, especially 00:08:52.800 --> 00:08:55.920 align:middle line:84% in areas like California, where you have wildfires but also 00:08:55.920 --> 00:08:59.100 align:middle line:84% Beijing, Delhi, and so forth, where there is a lot of focus 00:08:59.100 --> 00:09:00.870 align:middle line:84% on, how do you filter the air in a way 00:09:00.870 --> 00:09:03.793 align:middle line:84% that you reduce as much as possible the level of particles 00:09:03.793 --> 00:09:04.960 align:middle line:90% that people will breathe in? 00:09:04.960 --> 00:09:05.830 align:middle line:90% So that's one. 00:09:05.830 --> 00:09:07.600 align:middle line:90% The second one is temperature. 00:09:07.600 --> 00:09:12.030 align:middle line:84% We are talking a lot about not throwing CO2 to the atmosphere, 00:09:12.030 --> 00:09:14.940 align:middle line:84% but we know that if you throw CO2 to the atmosphere, 00:09:14.940 --> 00:09:17.400 align:middle line:84% the whole-- the planet will warm up. 00:09:17.400 --> 00:09:20.790 align:middle line:84% And the amount of heat waves and so forth will increase. 00:09:20.790 --> 00:09:22.890 align:middle line:84% There are a lot of studies to show 00:09:22.890 --> 00:09:27.000 align:middle line:84% that-- the effect of heat on human health and cold 00:09:27.000 --> 00:09:27.910 align:middle line:90% on human health. 00:09:27.910 --> 00:09:31.620 align:middle line:84% And there is around five million premature deaths every year 00:09:31.620 --> 00:09:35.010 align:middle line:84% due to being exposed to extremely cold or extremely warm 00:09:35.010 --> 00:09:35.590 align:middle line:90% weather. 00:09:35.590 --> 00:09:38.048 align:middle line:84% So again, one of the things that our weather-- our building 00:09:38.048 --> 00:09:40.930 align:middle line:84% is doing is that we are not exposed to the cold weather 00:09:40.930 --> 00:09:45.930 align:middle line:84% outdoor in the City of Boston today and being freezing 00:09:45.930 --> 00:09:47.410 align:middle line:90% there, being sitting down. 00:09:47.410 --> 00:09:50.430 align:middle line:84% But actually, we are in a very comfortable, rather even warm 00:09:50.430 --> 00:09:54.390 align:middle line:84% room here that is trying to make our temperature exposure better 00:09:54.390 --> 00:09:55.540 align:middle line:90% than it is out there. 00:09:55.540 --> 00:09:59.290 align:middle line:84% So buildings, the way that we are conceptualizing this-- 00:09:59.290 --> 00:10:01.540 align:middle line:84% and there are way more things that we can think about. 00:10:01.540 --> 00:10:03.450 align:middle line:84% But today, what we are going to conceptualize 00:10:03.450 --> 00:10:05.490 align:middle line:84% is buildings that are going to generate an environment that 00:10:05.490 --> 00:10:06.910 align:middle line:90% is better than out there. 00:10:06.910 --> 00:10:08.530 align:middle line:84% That's how we are going to think. 00:10:08.530 --> 00:10:10.842 align:middle line:84% So we are not thinking of building generating problems 00:10:10.842 --> 00:10:13.050 align:middle line:84% by themselves, that there is also some things related 00:10:13.050 --> 00:10:14.133 align:middle line:90% to materials and so forth. 00:10:14.133 --> 00:10:16.128 align:middle line:84% But mainly the way that a lot of people 00:10:16.128 --> 00:10:17.670 align:middle line:84% are conceptualizing healthy buildings 00:10:17.670 --> 00:10:19.620 align:middle line:84% are buildings that are creating a better environment. 00:10:19.620 --> 00:10:22.195 align:middle line:84% And it can also be creating a better physical environment, 00:10:22.195 --> 00:10:23.820 align:middle line:84% so it will make you move more, that you 00:10:23.820 --> 00:10:26.310 align:middle line:84% will be moving out there with different staircases 00:10:26.310 --> 00:10:26.950 align:middle line:90% and so forth. 00:10:26.950 --> 00:10:30.120 align:middle line:84% But basically, buildings are trying to make us better off 00:10:30.120 --> 00:10:30.850 align:middle line:90% than out there. 00:10:30.850 --> 00:10:32.690 align:middle line:84% That's the definition of a healthy building, 00:10:32.690 --> 00:10:35.934 align:middle line:90% very layman terms. 00:10:35.934 --> 00:10:39.300 align:middle line:84% And this is important because, if you think about your daily 00:10:39.300 --> 00:10:41.880 align:middle line:84% life-- and this is an old survey, 00:10:41.880 --> 00:10:44.230 align:middle line:84% but it's still the survey that everyone quotes-- 00:10:44.230 --> 00:10:46.755 align:middle line:84% we spend 90% of the time indoors. 00:10:46.755 --> 00:10:48.630 align:middle line:84% This is something that they did these surveys 00:10:48.630 --> 00:10:52.050 align:middle line:84% about across the United States to show 00:10:52.050 --> 00:10:55.300 align:middle line:84% how many people will-- where will people spend time in. 00:10:55.300 --> 00:10:59.520 align:middle line:84% And you see that if you sum all the indoor places 00:10:59.520 --> 00:11:04.020 align:middle line:84% in their home, their factory, or a bar, or restaurant, most of it 00:11:04.020 --> 00:11:06.630 align:middle line:84% happens to be indoors and in a building, 00:11:06.630 --> 00:11:09.640 align:middle line:84% actually, except for the vehicle part. 00:11:09.640 --> 00:11:14.820 align:middle line:84% So 90% of our time, our air, our temperature, our movements, 00:11:14.820 --> 00:11:17.460 align:middle line:84% our light is shaped by a building, 00:11:17.460 --> 00:11:20.160 align:middle line:84% giving the building a very big role in our lives 00:11:20.160 --> 00:11:24.330 align:middle line:84% and, therefore, giving the building a very big X and power 00:11:24.330 --> 00:11:28.820 align:middle line:84% to shape our health, shape our well-being, and so forth. 00:11:28.820 --> 00:11:32.040 align:middle line:84% And indoors is not always so great, 00:11:32.040 --> 00:11:34.770 align:middle line:90% not in Europe, not in the US. 00:11:34.770 --> 00:11:37.520 align:middle line:84% So you see around 5% of people in the United States 00:11:37.520 --> 00:11:43.305 align:middle line:84% live, on average, in a house that needs certain work. 00:11:43.305 --> 00:11:44.180 align:middle line:90% That can be moderate. 00:11:44.180 --> 00:11:45.570 align:middle line:90% It can be severe. 00:11:45.570 --> 00:11:48.470 align:middle line:84% But 5% of people that need to live in a place better than they 00:11:48.470 --> 00:11:49.220 align:middle line:90% are doing now. 00:11:49.220 --> 00:11:51.600 align:middle line:84% If you go to the renters, this will be double. 00:11:51.600 --> 00:11:53.630 align:middle line:84% So one out of 10 renters will actually 00:11:53.630 --> 00:11:56.120 align:middle line:84% be living in a place that needs some work. 00:11:56.120 --> 00:11:59.510 align:middle line:84% If you go to the low-income renters, that will be way more, 00:11:59.510 --> 00:12:01.680 align:middle line:84% so it would be 15% of the population will be there. 00:12:01.680 --> 00:12:04.310 align:middle line:84% So if you especially dig into the subpopulations that 00:12:04.310 --> 00:12:06.080 align:middle line:84% will need more support and actually 00:12:06.080 --> 00:12:10.400 align:middle line:84% the ones that are probably suffering for with the most 00:12:10.400 --> 00:12:12.710 align:middle line:84% severe health problems, then this 00:12:12.710 --> 00:12:15.400 align:middle line:84% is actually worse than the graph that you 00:12:15.400 --> 00:12:16.650 align:middle line:90% see for the entire population. 00:12:16.650 --> 00:12:18.300 align:middle line:90% And the same for Europe. 00:12:18.300 --> 00:12:21.740 align:middle line:84% But we are going to talk about not so much 00:12:21.740 --> 00:12:24.267 align:middle line:90% about the people that are-- 00:12:24.267 --> 00:12:25.850 align:middle line:84% about the buildings that make us sick, 00:12:25.850 --> 00:12:28.225 align:middle line:84% but we are going to talk about investment strategies that 00:12:28.225 --> 00:12:30.300 align:middle line:84% will actually try to promote health and make 00:12:30.300 --> 00:12:32.000 align:middle line:90% us healthier in a way. 00:12:32.000 --> 00:12:32.500 align:middle line:90% All right. 00:12:32.500 --> 00:12:34.680 align:middle line:84% So the whole lecture today, how can we 00:12:34.680 --> 00:12:36.948 align:middle line:84% invest in a building to make it to make us healthier? 00:12:36.948 --> 00:12:39.240 align:middle line:84% How can we actually think about the health implications 00:12:39.240 --> 00:12:43.230 align:middle line:84% of investing in any of those technologies? 00:12:43.230 --> 00:12:45.750 align:middle line:90% And this is important for both. 00:12:45.750 --> 00:12:50.040 align:middle line:84% Before, there was not a lot of reactions 00:12:50.040 --> 00:12:51.040 align:middle line:90% from the public sector. 00:12:51.040 --> 00:12:53.310 align:middle line:84% But if you really look at the amount of money 00:12:53.310 --> 00:12:55.260 align:middle line:84% that governments spend in health, 00:12:55.260 --> 00:12:58.260 align:middle line:84% it's around-- in a normal year for a lot of countries, almost 00:12:58.260 --> 00:13:04.050 align:middle line:84% $1 out of $10 that we generate goes to paying health care 00:13:04.050 --> 00:13:08.130 align:middle line:84% and to make us avoid from dying or make 00:13:08.130 --> 00:13:10.650 align:middle line:90% us less sick than we are. 00:13:10.650 --> 00:13:12.370 align:middle line:90% Basically, $1 out of $10. 00:13:12.370 --> 00:13:14.440 align:middle line:84% And if you see that what happen after COVID, 00:13:14.440 --> 00:13:17.830 align:middle line:84% you see that, in places like the United States, things skyrocked. 00:13:17.830 --> 00:13:20.580 align:middle line:84% So it's a substantial amount of all the money 00:13:20.580 --> 00:13:23.800 align:middle line:84% that we generate in a country going to health care. 00:13:23.800 --> 00:13:27.870 align:middle line:84% And also there are a lot of estimates 00:13:27.870 --> 00:13:31.720 align:middle line:84% of cost of unhealthy workers for private sector. 00:13:31.720 --> 00:13:34.230 align:middle line:84% This is one of the most famous articles from the Harvard 00:13:34.230 --> 00:13:38.790 align:middle line:84% Business Review that estimate that $150 billion 00:13:38.790 --> 00:13:44.470 align:middle line:84% per year in the US office sector goes to pay 00:13:44.470 --> 00:13:46.730 align:middle line:90% workers that are not fully fit. 00:13:46.730 --> 00:13:49.507 align:middle line:84% So they are going there with burnout problems. 00:13:49.507 --> 00:13:52.090 align:middle line:84% They are going there with some physical problems and so forth. 00:13:52.090 --> 00:13:55.150 align:middle line:84% They still earn the full salary because they show up 00:13:55.150 --> 00:13:58.968 align:middle line:84% in the office, but they are not performing at the best. 00:13:58.968 --> 00:14:01.510 align:middle line:84% And that goes back to things like the sick building syndrome, 00:14:01.510 --> 00:14:05.590 align:middle line:84% where you make someone work in a place that makes them miserable. 00:14:05.590 --> 00:14:08.420 align:middle line:84% And then they, therefore, cannot exert their full potential. 00:14:08.420 --> 00:14:11.230 align:middle line:84% And I will also show you that there are some things that you 00:14:11.230 --> 00:14:14.320 align:middle line:84% can think about compensating, like kind of, oh, I 00:14:14.320 --> 00:14:15.280 align:middle line:90% have low concentration. 00:14:15.280 --> 00:14:16.520 align:middle line:90% But I stay extra hours. 00:14:16.520 --> 00:14:18.910 align:middle line:84% So I bear the cost as an employee. 00:14:18.910 --> 00:14:21.940 align:middle line:84% I get some extra coffee, and I still-- 00:14:21.940 --> 00:14:23.380 align:middle line:84% even if I feel a little bit dizzy 00:14:23.380 --> 00:14:25.810 align:middle line:84% or whatever, I'll just get the job done. 00:14:25.810 --> 00:14:27.400 align:middle line:84% But when it comes to decision making, 00:14:27.400 --> 00:14:29.770 align:middle line:84% when it comes to negotiations, when it comes to being 00:14:29.770 --> 00:14:33.430 align:middle line:84% a boardroom and you need to make a sharp decision, 00:14:33.430 --> 00:14:34.810 align:middle line:90% that cannot be compensated. 00:14:34.810 --> 00:14:38.170 align:middle line:84% If you make a bad decision in a strategic meeting, 00:14:38.170 --> 00:14:41.210 align:middle line:84% that is going to haunt you for the rest of the quarter, 00:14:41.210 --> 00:14:41.880 align:middle line:90% at least. 00:14:41.880 --> 00:14:44.840 align:middle line:84% So if that is affected by the place where 00:14:44.840 --> 00:14:47.630 align:middle line:84% we are making those decisions, even at the very low margin, 00:14:47.630 --> 00:14:50.420 align:middle line:84% you will see big consequences because these are big numbers. 00:14:50.420 --> 00:14:53.280 align:middle line:84% The 10% of the GDP of the United States is a big number. 00:14:53.280 --> 00:14:57.230 align:middle line:84% So even if you do a 0.5% change on this number, 00:14:57.230 --> 00:15:02.490 align:middle line:84% it's going to be a big change for the whole country, 00:15:02.490 --> 00:15:05.310 align:middle line:84% the same for $150 million for the US sector. 00:15:05.310 --> 00:15:09.380 align:middle line:84% So we are going to be moving in those margins, small impacts 00:15:09.380 --> 00:15:11.190 align:middle line:90% but hopefully credible. 00:15:11.190 --> 00:15:15.020 align:middle line:84% But if you make a small impact in a big part of the pie, 00:15:15.020 --> 00:15:17.970 align:middle line:84% it's going to generate a big impact after all. 00:15:17.970 --> 00:15:20.480 align:middle line:84% And that's different from the energy efficiency, 00:15:20.480 --> 00:15:23.390 align:middle line:84% where utilities, as we will show in the income statements 00:15:23.390 --> 00:15:27.170 align:middle line:84% from tenants, utilities to be relatively small part. 00:15:27.170 --> 00:15:28.910 align:middle line:84% But we can actually make a big impact 00:15:28.910 --> 00:15:31.800 align:middle line:84% with energy efficient investments. 00:15:31.800 --> 00:15:34.400 align:middle line:84% But you need to make a big impact because, otherwise, it 00:15:34.400 --> 00:15:37.130 align:middle line:84% will not make a meaningful change in the income 00:15:37.130 --> 00:15:39.090 align:middle line:90% statements of tenants. 00:15:39.090 --> 00:15:41.480 align:middle line:84% But here, it is-- you have a large share of the pie. 00:15:41.480 --> 00:15:44.250 align:middle line:84% It's very difficult to make even any small impact. 00:15:44.250 --> 00:15:46.520 align:middle line:84% But if you do, you have very big numbers 00:15:46.520 --> 00:15:48.860 align:middle line:84% that will actually make a very big impact after all 00:15:48.860 --> 00:15:50.680 align:middle line:90% when you compute that. 00:15:50.680 --> 00:15:52.540 align:middle line:90% Any reflections, Siqi? 00:15:52.540 --> 00:15:54.350 align:middle line:84% SIQI ZHENG: Yeah, that's why the CRE, 00:15:54.350 --> 00:15:57.677 align:middle line:84% we are committed to make this place a very healthy place. 00:15:57.677 --> 00:15:58.510 align:middle line:90% JUAN PALACIOS: Amen. 00:15:58.510 --> 00:16:01.120 align:middle line:84% SIQI ZHENG: We are going to renovate this lecture 00:16:01.120 --> 00:16:04.920 align:middle line:90% hall to make it healthier. 00:16:04.920 --> 00:16:06.520 align:middle line:90% And you understand the facts. 00:16:06.520 --> 00:16:07.480 align:middle line:90% JUAN PALACIOS: Exactly. 00:16:07.480 --> 00:16:10.270 align:middle line:84% So if you want-- if you have any requests, 00:16:10.270 --> 00:16:14.230 align:middle line:84% please send an email to Siqi with a nice sofa or something. 00:16:14.230 --> 00:16:15.192 align:middle line:90% I already doing so. 00:16:15.192 --> 00:16:16.900 align:middle line:84% SIQI ZHENG: Yeah, but after you graduate. 00:16:16.900 --> 00:16:19.705 align:middle line:90% [LAUGHTER] 00:16:19.705 --> 00:16:20.715 align:middle line:90% Office visit. 00:16:20.715 --> 00:16:22.090 align:middle line:84% JUAN PALACIOS: But you can always 00:16:22.090 --> 00:16:24.173 align:middle line:84% come-- you will anyways come for the commencement. 00:16:24.173 --> 00:16:26.300 align:middle line:84% So imagine being here with a nice sofa, 00:16:26.300 --> 00:16:28.150 align:middle line:90% and I think that would be nice. 00:16:28.150 --> 00:16:28.720 align:middle line:90% Great. 00:16:28.720 --> 00:16:31.810 align:middle line:84% OK, so now that we understand the science 00:16:31.810 --> 00:16:34.180 align:middle line:90% and what buildings do to-- 00:16:34.180 --> 00:16:38.590 align:middle line:84% what environment makes to us and the prospects of making 00:16:38.590 --> 00:16:42.160 align:middle line:84% a lot of money, let me go really into, first, 00:16:42.160 --> 00:16:44.680 align:middle line:84% the impact of buildings or the proven impact 00:16:44.680 --> 00:16:47.350 align:middle line:84% in the research of buildings on human health 00:16:47.350 --> 00:16:49.600 align:middle line:90% by me but also by others. 00:16:49.600 --> 00:16:53.150 align:middle line:84% And then also not only on the occupants and the people, 00:16:53.150 --> 00:16:55.670 align:middle line:84% the users of those buildings, but also how that scales up 00:16:55.670 --> 00:16:58.670 align:middle line:84% all the way to an investment valuable decisions. 00:16:58.670 --> 00:17:02.000 align:middle line:84% So how the tenants will actually be able to pay for this or not 00:17:02.000 --> 00:17:04.099 align:middle line:84% and why would they pay, so basically thinking 00:17:04.099 --> 00:17:05.490 align:middle line:90% about the accounting of those. 00:17:05.490 --> 00:17:07.130 align:middle line:84% So my employees are healthier, but that 00:17:07.130 --> 00:17:08.900 align:middle line:90% doesn't mean that I care. 00:17:08.900 --> 00:17:12.141 align:middle line:84% But actually, if that means money for me, then I will care, 00:17:12.141 --> 00:17:14.599 align:middle line:84% and I will actually make sure that I'm in the best office-- 00:17:14.599 --> 00:17:17.815 align:middle line:84% or that office is at the best performance that it can be. 00:17:17.815 --> 00:17:19.190 align:middle line:84% But then also, of course, talking 00:17:19.190 --> 00:17:23.630 align:middle line:84% about when we climb the ladder, also some barriers to adoption. 00:17:23.630 --> 00:17:27.109 align:middle line:84% So even if we prove that these buildings make people healthier, 00:17:27.109 --> 00:17:30.890 align:middle line:84% even if we prove that these buildings will make people more 00:17:30.890 --> 00:17:34.420 align:middle line:84% productive, is this going to scale up to the final decision 00:17:34.420 --> 00:17:37.540 align:middle line:84% maker that is able to actually put the money 00:17:37.540 --> 00:17:38.840 align:middle line:90% to make that investment? 00:17:38.840 --> 00:17:41.800 align:middle line:84% And we were talking before with William about the fact 00:17:41.800 --> 00:17:44.320 align:middle line:84% that sometimes these split incentives are not 00:17:44.320 --> 00:17:45.310 align:middle line:90% easy to solve. 00:17:45.310 --> 00:17:47.030 align:middle line:84% And we will have them here again. 00:17:47.030 --> 00:17:51.853 align:middle line:84% And actually we'll have a little bit more complex flavor 00:17:51.853 --> 00:17:54.020 align:middle line:84% than even the energy efficiency for certain reasons. 00:17:54.020 --> 00:17:55.458 align:middle line:90% So we need to understand both. 00:17:55.458 --> 00:17:57.250 align:middle line:84% We need to understand what is the potential 00:17:57.250 --> 00:17:59.092 align:middle line:84% of these investments, but we also 00:17:59.092 --> 00:18:01.300 align:middle line:84% need to understand very clearly what are the barriers 00:18:01.300 --> 00:18:04.640 align:middle line:84% and also start the conversation about what are the solutions. 00:18:04.640 --> 00:18:10.670 align:middle line:84% So this is the whole purpose of the conversation today. 00:18:10.670 --> 00:18:14.560 align:middle line:84% And finally, to wrap up, to connect to the first two 00:18:14.560 --> 00:18:16.430 align:middle line:84% lectures of the course, including also 00:18:16.430 --> 00:18:18.850 align:middle line:84% the introductory lecture, the three first lectures 00:18:18.850 --> 00:18:21.190 align:middle line:84% of the course, connecting healthy and green, 00:18:21.190 --> 00:18:23.870 align:middle line:84% and is there a trade off or not, and so forth. 00:18:23.870 --> 00:18:28.690 align:middle line:84% And if we have time, given a projector part, 00:18:28.690 --> 00:18:31.720 align:middle line:84% I can also give you a glimpse of how COVID is going to shift 00:18:31.720 --> 00:18:35.180 align:middle line:84% or is shifting all of these things. 00:18:35.180 --> 00:18:37.130 align:middle line:90% All right. 00:18:37.130 --> 00:18:39.410 align:middle line:90% Jason. 00:18:39.410 --> 00:18:41.690 align:middle line:84% AUDIENCE: How do you design these studies 00:18:41.690 --> 00:18:45.000 align:middle line:84% to control for all the other factors that go into-- 00:18:45.000 --> 00:18:46.830 align:middle line:84% because, often, healthy building, 00:18:46.830 --> 00:18:49.440 align:middle line:84% green buildings are also just newer buildings, 00:18:49.440 --> 00:18:52.380 align:middle line:84% maybe with a better layout, or more ergonomic 00:18:52.380 --> 00:18:53.550 align:middle line:90% furniture, better lighting. 00:18:53.550 --> 00:18:55.258 align:middle line:84% How do you control for the fact that it's 00:18:55.258 --> 00:18:57.750 align:middle line:84% the healthiness or the greenness that is what's 00:18:57.750 --> 00:18:59.730 align:middle line:90% causing productivity increases? 00:18:59.730 --> 00:19:03.920 align:middle line:84% JUAN PALACIOS: Can you hold on that for like five minutes? 00:19:03.920 --> 00:19:06.900 align:middle line:84% I have like three or four or five slides for that for you. 00:19:06.900 --> 00:19:08.710 align:middle line:84% Then you throw all of those comments to me. 00:19:08.710 --> 00:19:10.660 align:middle line:84% But that is going to be an important part of the lecture. 00:19:10.660 --> 00:19:13.020 align:middle line:84% So that's exactly-- that's exactly what we are here. 00:19:13.020 --> 00:19:16.380 align:middle line:84% Actually, one of the main purposes of Siqi 00:19:16.380 --> 00:19:17.850 align:middle line:84% and me in this course is actually 00:19:17.850 --> 00:19:20.520 align:middle line:84% to giving you the right thinking tools 00:19:20.520 --> 00:19:23.880 align:middle line:84% to evaluate those in a way that is a fair assessment 00:19:23.880 --> 00:19:25.710 align:middle line:84% and is an actual assessment of the future 00:19:25.710 --> 00:19:28.385 align:middle line:84% that you want to evaluate and not something else 00:19:28.385 --> 00:19:29.760 align:middle line:84% because that's something that you 00:19:29.760 --> 00:19:33.242 align:middle line:84% can carry for anything that you will do in your job afterwards. 00:19:33.242 --> 00:19:35.700 align:middle line:84% I can teach you everything from the current technology now. 00:19:35.700 --> 00:19:38.457 align:middle line:84% But if it changes in five years, you 00:19:38.457 --> 00:19:40.290 align:middle line:84% are not going to be in a very good position. 00:19:40.290 --> 00:19:42.457 align:middle line:84% But if I teach you how to think about any evaluation 00:19:42.457 --> 00:19:44.450 align:middle line:84% of a technology, you can carry it 00:19:44.450 --> 00:19:49.190 align:middle line:84% for green, healthy, smart heat pumps, hydrogen. Whatever 00:19:49.190 --> 00:19:51.470 align:middle line:84% it is, you will think about the exact same 00:19:51.470 --> 00:19:52.530 align:middle line:90% in the exact same way. 00:19:52.530 --> 00:19:54.238 align:middle line:84% So we are going to do that today. 00:19:54.238 --> 00:19:55.530 align:middle line:90% We are going to do it tomorrow. 00:19:55.530 --> 00:19:57.410 align:middle line:84% We are going-- not tomorrow, sorry, next-- 00:19:57.410 --> 00:19:59.530 align:middle line:84% well, actually, maybe tomorrow in Naco Taco. 00:19:59.530 --> 00:20:00.780 align:middle line:90% I can also give some of those. 00:20:00.780 --> 00:20:02.270 align:middle line:90% [LAUGHTER] 00:20:02.270 --> 00:20:03.890 align:middle line:90% But next week with the green-- 00:20:03.890 --> 00:20:05.940 align:middle line:84% Siqi's lecture, there will be a lot of it. 00:20:05.940 --> 00:20:07.740 align:middle line:84% We call it apple to apple comparison. 00:20:07.740 --> 00:20:10.250 align:middle line:84% So you really want to compare things that are exactly 00:20:10.250 --> 00:20:13.940 align:middle line:84% the same except for the fact that that specific feature 00:20:13.940 --> 00:20:17.210 align:middle line:84% that you are looking at is changing. 00:20:17.210 --> 00:20:17.730 align:middle line:90% All right. 00:20:17.730 --> 00:20:22.250 align:middle line:84% So in terms of what we can do in the building and given that city 00:20:22.250 --> 00:20:25.490 align:middle line:84% is going to put a lot of money, what 00:20:25.490 --> 00:20:28.790 align:middle line:84% can we do to this lecture hall to make it-- there you go. 00:20:28.790 --> 00:20:30.098 align:middle line:90% We have an inquiry already. 00:20:30.098 --> 00:20:32.390 align:middle line:84% AUDIENCE: What always bugged me about this lecture hall 00:20:32.390 --> 00:20:34.495 align:middle line:90% is there is no outdoor light. 00:20:34.495 --> 00:20:36.120 align:middle line:84% JUAN PALACIOS: Wait, wait one a second. 00:20:36.120 --> 00:20:37.497 align:middle line:90% Siqi, can you take notes? 00:20:37.497 --> 00:20:38.330 align:middle line:90% SIQI ZHENG: OK, yes. 00:20:38.330 --> 00:20:40.040 align:middle line:90% [LAUGHTER] 00:20:40.040 --> 00:20:40.937 align:middle line:90% Very important. 00:20:40.937 --> 00:20:42.770 align:middle line:84% AUDIENCE: There's no outdoor light, and so-- 00:20:42.770 --> 00:20:43.385 align:middle line:84% SIQI ZHENG: But this is really hard. 00:20:43.385 --> 00:20:44.885 align:middle line:84% AUDIENCE: --it's harder to see the-- 00:20:44.885 --> 00:20:47.580 align:middle line:84% one, you don't get the health benefits from it. 00:20:47.580 --> 00:20:49.650 align:middle line:84% And also you don't see the time pass. 00:20:49.650 --> 00:20:52.797 align:middle line:84% And so you're just like, I've been in here for so long. 00:20:52.797 --> 00:20:53.630 align:middle line:90% And the hours just-- 00:20:53.630 --> 00:20:53.850 align:middle line:90% [LAUGHTER] 00:20:53.850 --> 00:20:54.710 align:middle line:90% --go by and by. 00:20:54.710 --> 00:20:56.502 align:middle line:84% You're just like, what happened to the day? 00:20:56.502 --> 00:20:58.770 align:middle line:84% That's my biggest complaint with this room. 00:20:58.770 --> 00:20:59.580 align:middle line:90% JUAN PALACIOS: Can we test that? 00:20:59.580 --> 00:21:01.663 align:middle line:84% How long do you think that you've been today here? 00:21:01.663 --> 00:21:03.740 align:middle line:90% 00:21:03.740 --> 00:21:04.950 align:middle line:90% Six hours, eight hours? 00:21:04.950 --> 00:21:06.712 align:middle line:90% [LAUGHTER] 00:21:06.712 --> 00:21:07.670 align:middle line:90% AUDIENCE: I don't know. 00:21:07.670 --> 00:21:09.428 align:middle line:90% 25 minutes? 00:21:09.428 --> 00:21:10.970 align:middle line:84% JUAN PALACIOS: No, actually, today it 00:21:10.970 --> 00:21:12.470 align:middle line:90% feels shorter than it is. 00:21:12.470 --> 00:21:13.880 align:middle line:90% You've been here 40 minutes. 00:21:13.880 --> 00:21:14.930 align:middle line:90% AUDIENCE: Oh, OK. 00:21:14.930 --> 00:21:15.420 align:middle line:84% JUAN PALACIOS: Is that a compliment? 00:21:15.420 --> 00:21:16.628 align:middle line:90% I'll take it as a compliment. 00:21:16.628 --> 00:21:18.040 align:middle line:90% Let's slow down time for now. 00:21:18.040 --> 00:21:19.720 align:middle line:90% Anyone else? 00:21:19.720 --> 00:21:20.830 align:middle line:90% Any inquiry. 00:21:20.830 --> 00:21:23.500 align:middle line:84% So we have-- OK, let's bring it back to here, lighting 00:21:23.500 --> 00:21:25.460 align:middle line:84% and views, I will I will call that one. 00:21:25.460 --> 00:21:26.520 align:middle line:90% Lighting and views. 00:21:26.520 --> 00:21:27.230 align:middle line:90% Anything else? 00:21:27.230 --> 00:21:27.730 align:middle line:90% John. 00:21:27.730 --> 00:21:29.710 align:middle line:84% AUDIENCE: So ergonomically, these chairs 00:21:29.710 --> 00:21:32.330 align:middle line:90% are designed to stay in place. 00:21:32.330 --> 00:21:37.330 align:middle line:84% So we're always kind of like portioning our spine. 00:21:37.330 --> 00:21:39.560 align:middle line:84% After we've been in the chairs three hours, 00:21:39.560 --> 00:21:41.320 align:middle line:90% we kind of walk like this. 00:21:41.320 --> 00:21:42.345 align:middle line:90% [LAUGHTER] 00:21:42.345 --> 00:21:44.470 align:middle line:84% JUAN PALACIOS: No, it's very important, ergonomics. 00:21:44.470 --> 00:21:45.530 align:middle line:90% Anyone else? 00:21:45.530 --> 00:21:46.988 align:middle line:84% SIQI ZHENG: Yeah, we will fix that. 00:21:46.988 --> 00:21:47.650 align:middle line:90% [LAUGHTER] 00:21:47.650 --> 00:21:49.535 align:middle line:90% We will change all the chairs. 00:21:49.535 --> 00:21:50.410 align:middle line:90% JUAN PALACIOS: Becky? 00:21:50.410 --> 00:21:51.910 align:middle line:84% AUDIENCE: Also related to the chair, 00:21:51.910 --> 00:21:54.910 align:middle line:84% I would like to know if there's any fire 00:21:54.910 --> 00:21:58.750 align:middle line:84% retardant in these fabrics because they can be 00:21:58.750 --> 00:22:00.258 align:middle line:90% very hazardous to your health. 00:22:00.258 --> 00:22:01.550 align:middle line:90% JUAN PALACIOS: Yeah, materials. 00:22:01.550 --> 00:22:05.050 align:middle line:84% AUDIENCE: And so, yeah, if these coatings of all the materials 00:22:05.050 --> 00:22:05.952 align:middle line:90% have VOCs or not. 00:22:05.952 --> 00:22:06.910 align:middle line:90% JUAN PALACIOS: Correct. 00:22:06.910 --> 00:22:07.757 align:middle line:90% AUDIENCE: Yeah, so? 00:22:07.757 --> 00:22:09.465 align:middle line:84% JUAN PALACIOS: Very important, materials. 00:22:09.465 --> 00:22:11.380 align:middle line:84% AUDIENCE: As well as the carpet, yeah, the VOCs. 00:22:11.380 --> 00:22:12.280 align:middle line:90% JUAN PALACIOS: Yeah. 00:22:12.280 --> 00:22:15.563 align:middle line:84% VOCs, so we were talking about outdoor air quality problems 00:22:15.563 --> 00:22:16.730 align:middle line:90% with pollution and so forth. 00:22:16.730 --> 00:22:19.090 align:middle line:84% But of course, we deploy things in buildings 00:22:19.090 --> 00:22:22.350 align:middle line:84% that are, a lot of times, poison and poisoning us. 00:22:22.350 --> 00:22:24.110 align:middle line:84% So that's important, and that's something 00:22:24.110 --> 00:22:25.950 align:middle line:84% that the science is getting there. 00:22:25.950 --> 00:22:27.980 align:middle line:84% But there's a lot of information asymmetries. 00:22:27.980 --> 00:22:32.000 align:middle line:84% There's a lot of opacity on what each of these materials 00:22:32.000 --> 00:22:36.740 align:middle line:84% have in them that can actually affect us in one way or another. 00:22:36.740 --> 00:22:39.260 align:middle line:84% AUDIENCE: It's just small, too, so that if you skip class, 00:22:39.260 --> 00:22:41.316 align:middle line:90% it's very easy to get caught. 00:22:41.316 --> 00:22:42.303 align:middle line:90% [LAUGHTER] 00:22:42.303 --> 00:22:43.970 align:middle line:84% JUAN PALACIOS: That I don't know that we 00:22:43.970 --> 00:22:46.290 align:middle line:90% will fix but valid concern. 00:22:46.290 --> 00:22:48.350 align:middle line:90% And so we have materials. 00:22:48.350 --> 00:22:49.190 align:middle line:90% We have ergonomics. 00:22:49.190 --> 00:22:50.325 align:middle line:90% We have light and we-- 00:22:50.325 --> 00:22:51.200 align:middle line:90% AUDIENCE: [INAUDIBLE] 00:22:51.200 --> 00:22:52.640 align:middle line:90% JUAN PALACIOS: Anyone? 00:22:52.640 --> 00:22:53.629 align:middle line:90% [INAUDIBLE] 00:22:53.629 --> 00:22:55.962 align:middle line:84% AUDIENCE: I don't know how the conditions of ventilation 00:22:55.962 --> 00:22:59.210 align:middle line:84% sitting in here, but after [INAUDIBLE] class, 00:22:59.210 --> 00:23:04.286 align:middle line:84% which is three hours, at the end of the day, I can't focus, 00:23:04.286 --> 00:23:05.660 align:middle line:90% and I actually get a headache. 00:23:05.660 --> 00:23:07.215 align:middle line:90% Not all the time, but sometimes. 00:23:07.215 --> 00:23:08.340 align:middle line:90% JUAN PALACIOS: Ventilation. 00:23:08.340 --> 00:23:09.720 align:middle line:90% So here, we are testing it. 00:23:09.720 --> 00:23:11.887 align:middle line:84% This guy, I don't know whether you guys can read it. 00:23:11.887 --> 00:23:13.130 align:middle line:90% It says 700. 00:23:13.130 --> 00:23:15.890 align:middle line:84% When it will get to 1,000 or 900, 00:23:15.890 --> 00:23:20.330 align:middle line:84% then these things we'll actually start consider as not healthy. 00:23:20.330 --> 00:23:22.250 align:middle line:90% We are keeping it below. 00:23:22.250 --> 00:23:26.240 align:middle line:84% But we will show you that even going from these levels 00:23:26.240 --> 00:23:28.040 align:middle line:84% all the way to 500 can actually have 00:23:28.040 --> 00:23:30.317 align:middle line:84% a benefit from concentration and so forth. 00:23:30.317 --> 00:23:32.150 align:middle line:84% But that is definitely one of the key things 00:23:32.150 --> 00:23:35.840 align:middle line:84% that, at the moment, because of COVID but also beforehand, 00:23:35.840 --> 00:23:38.270 align:middle line:84% ventilation is being considered the flagship 00:23:38.270 --> 00:23:40.350 align:middle line:90% of healthy buildings. 00:23:40.350 --> 00:23:42.680 align:middle line:84% So if you are in a building that is not 00:23:42.680 --> 00:23:44.720 align:middle line:84% good in terms of air quality, it's very hard 00:23:44.720 --> 00:23:46.820 align:middle line:90% to argue that it's healthy. 00:23:46.820 --> 00:23:47.650 align:middle line:90% Anything else? 00:23:47.650 --> 00:23:48.150 align:middle line:90% One more. 00:23:48.150 --> 00:23:49.250 align:middle line:90% Give me one more. 00:23:49.250 --> 00:23:50.480 align:middle line:90% We talk about views. 00:23:50.480 --> 00:23:51.860 align:middle line:90% We talk about ergonomics. 00:23:51.860 --> 00:23:53.580 align:middle line:84% We talk about VOCs and materials. 00:23:53.580 --> 00:23:55.080 align:middle line:90% We talk about ventilation. 00:23:55.080 --> 00:23:56.520 align:middle line:90% We talk about-- Tamar. 00:23:56.520 --> 00:23:57.740 align:middle line:90% AUDIENCE: Lights. 00:23:57.740 --> 00:23:58.760 align:middle line:90% JUAN PALACIOS: Lights. 00:23:58.760 --> 00:23:59.940 align:middle line:90% Artificial lighting, yeah. 00:23:59.940 --> 00:24:00.440 align:middle line:90% This-- 00:24:00.440 --> 00:24:02.797 align:middle line:84% AUDIENCE: And also just the tone of them [INAUDIBLE] 00:24:02.797 --> 00:24:03.630 align:middle line:90% JUAN PALACIOS: Yeah. 00:24:03.630 --> 00:24:06.490 align:middle line:84% AUDIENCE: [INAUDIBLE] if it could imitate-- 00:24:06.490 --> 00:24:08.890 align:middle line:84% last time I got light that imitates the sun. 00:24:08.890 --> 00:24:10.120 align:middle line:90% JUAN PALACIOS: Yes. 00:24:10.120 --> 00:24:12.230 align:middle line:90% Yeah, that's an important one. 00:24:12.230 --> 00:24:14.800 align:middle line:84% I have a joint position with the University of Maastricht. 00:24:14.800 --> 00:24:16.450 align:middle line:84% There you have Philips, and Philips 00:24:16.450 --> 00:24:20.240 align:middle line:84% is developing a lot of work into trying to mimic natural light. 00:24:20.240 --> 00:24:22.360 align:middle line:84% The reality is that you look at the science. 00:24:22.360 --> 00:24:26.230 align:middle line:84% It's very hard to mimic it, but there is definitely 00:24:26.230 --> 00:24:29.002 align:middle line:84% a room for improvement in terms of what we have here 00:24:29.002 --> 00:24:29.960 align:middle line:90% and what we could have. 00:24:29.960 --> 00:24:31.840 align:middle line:84% But it is very hard to mimic any effects 00:24:31.840 --> 00:24:35.750 align:middle line:84% that the Sun has on us in our circadian rhythms and so forth. 00:24:35.750 --> 00:24:39.430 align:middle line:84% But we can make our lives less miserable by being here. 00:24:39.430 --> 00:24:40.253 align:middle line:90% Yeah. 00:24:40.253 --> 00:24:41.670 align:middle line:84% AUDIENCE: Those two lights kind of 00:24:41.670 --> 00:24:43.423 align:middle line:84% makes the PowerPoint hard to see somewhat. 00:24:43.423 --> 00:24:45.090 align:middle line:84% JUAN PALACIOS: That I can fix right now. 00:24:45.090 --> 00:24:46.110 align:middle line:90% [LAUGHTER] 00:24:46.110 --> 00:24:47.678 align:middle line:90% Can I fix it? 00:24:47.678 --> 00:24:48.220 align:middle line:90% I don't know. 00:24:48.220 --> 00:24:49.370 align:middle line:90% SIQI ZHENG: You can set at 2. 00:24:49.370 --> 00:24:51.078 align:middle line:84% AUDIENCE: I don't know if you can control 00:24:51.078 --> 00:24:52.633 align:middle line:90% every single one of them. 00:24:52.633 --> 00:24:53.550 align:middle line:90% SIQI ZHENG: Lights, 2. 00:24:53.550 --> 00:24:54.250 align:middle line:90% JUAN PALACIOS: That's great. 00:24:54.250 --> 00:24:56.667 align:middle line:84% Sometimes, actually, just about asking the right question. 00:24:56.667 --> 00:24:58.260 align:middle line:90% [LAUGHTER] 00:24:58.260 --> 00:25:00.520 align:middle line:90% AUDIENCE: And also, I noticed-- 00:25:00.520 --> 00:25:04.260 align:middle line:84% JUAN PALACIOS: Something about me, my perfume? 00:25:04.260 --> 00:25:06.130 align:middle line:84% AUDIENCE: The 10 slots works for ours. 00:25:06.130 --> 00:25:08.820 align:middle line:84% But if it's a student from Sloan or Harvard, 00:25:08.820 --> 00:25:10.230 align:middle line:90% it just doesn't work. 00:25:10.230 --> 00:25:11.185 align:middle line:90% [LAUGHTER] 00:25:11.185 --> 00:25:12.810 align:middle line:84% JUAN PALACIOS: That's an easy fix, too. 00:25:12.810 --> 00:25:13.992 align:middle line:90% AUDIENCE: Yes, much bigger. 00:25:13.992 --> 00:25:15.284 align:middle line:90% SIQI ZHENG: Oh, they are super. 00:25:15.284 --> 00:25:15.909 align:middle line:90% AUDIENCE: Yeah. 00:25:15.909 --> 00:25:16.706 align:middle line:90% AUDIENCE: Oh. 00:25:16.706 --> 00:25:18.840 align:middle line:90% We should ask them [INAUDIBLE] 00:25:18.840 --> 00:25:20.913 align:middle line:84% JUAN PALACIOS: We are not inclusive. 00:25:20.913 --> 00:25:21.580 align:middle line:90% All right, guys. 00:25:21.580 --> 00:25:23.100 align:middle line:90% But these are-- let me-- 00:25:23.100 --> 00:25:24.773 align:middle line:84% I put it also in the reading notes. 00:25:24.773 --> 00:25:26.190 align:middle line:84% But these are-- pretty much we hit 00:25:26.190 --> 00:25:28.240 align:middle line:90% into everything that is there. 00:25:28.240 --> 00:25:29.517 align:middle line:90% We missed noise. 00:25:29.517 --> 00:25:31.350 align:middle line:84% This is sort of a bunker, so we don't really 00:25:31.350 --> 00:25:32.040 align:middle line:90% have a lot of noise. 00:25:32.040 --> 00:25:32.582 align:middle line:90% That is good. 00:25:32.582 --> 00:25:35.460 align:middle line:84% But of course, comes at the cost of not having any views 00:25:35.460 --> 00:25:36.580 align:middle line:90% or anything like that. 00:25:36.580 --> 00:25:38.460 align:middle line:84% Plants, we don't have any plants here. 00:25:38.460 --> 00:25:40.120 align:middle line:84% Siqi has the office full of plants, 00:25:40.120 --> 00:25:42.570 align:middle line:84% but she didn't dare to bring any one here. 00:25:42.570 --> 00:25:46.440 align:middle line:84% And then, as we say, design and so forth, and of course, 00:25:46.440 --> 00:25:51.210 align:middle line:84% there's a lot of work into the access and the design 00:25:51.210 --> 00:25:54.740 align:middle line:84% or something of how you make people move in a building. 00:25:54.740 --> 00:25:58.210 align:middle line:84% So you see that, in a lot of these healthy buildings, 00:25:58.210 --> 00:26:00.850 align:middle line:84% when you enter, the most prominent thing that you have 00:26:00.850 --> 00:26:04.240 align:middle line:84% is the staircase to make you go up, and move, and exercise. 00:26:04.240 --> 00:26:08.512 align:middle line:84% And in some others, what you see most prominent is an elevator. 00:26:08.512 --> 00:26:10.720 align:middle line:84% And we are not talking about the high-rise buildings, 00:26:10.720 --> 00:26:12.860 align:middle line:84% where you don't have any alternative there. 00:26:12.860 --> 00:26:15.700 align:middle line:84% But we are talking also about four- or five-storey office 00:26:15.700 --> 00:26:18.250 align:middle line:84% building, where you could definitely walk upstairs. 00:26:18.250 --> 00:26:20.440 align:middle line:84% And you still make people the default 00:26:20.440 --> 00:26:23.230 align:middle line:84% and ask them to go to an elevator. 00:26:23.230 --> 00:26:23.780 align:middle line:90% All right. 00:26:23.780 --> 00:26:26.050 align:middle line:90% But what I like is that almost-- 00:26:26.050 --> 00:26:29.950 align:middle line:84% I assure you that what I like is that almost, in any class, 00:26:29.950 --> 00:26:33.190 align:middle line:84% I always come to the conclusion that this graph is 00:26:33.190 --> 00:26:35.320 align:middle line:90% intuitive for everyone. 00:26:35.320 --> 00:26:39.190 align:middle line:84% We all think that there is a better way to design buildings 00:26:39.190 --> 00:26:40.490 align:middle line:90% and along the same dimensions. 00:26:40.490 --> 00:26:42.320 align:middle line:84% So this is nothing that is rocket science. 00:26:42.320 --> 00:26:46.490 align:middle line:84% It's not that I'm asking you how an RNA vaccine works. 00:26:46.490 --> 00:26:50.110 align:middle line:84% This is something that, if you give people the opportunity 00:26:50.110 --> 00:26:53.460 align:middle line:84% to talk, they will always point out the same problems. 00:26:53.460 --> 00:26:56.050 align:middle line:90% Tamar. 00:26:56.050 --> 00:26:58.410 align:middle line:84% AUDIENCE: Are these all being measured [INAUDIBLE] 00:26:58.410 --> 00:27:01.750 align:middle line:84% JUAN PALACIOS: So a lot of the top part 00:27:01.750 --> 00:27:03.830 align:middle line:84% are measured at a continuous basis. 00:27:03.830 --> 00:27:05.890 align:middle line:90% So this guy is measuring-- 00:27:05.890 --> 00:27:07.660 align:middle line:84% is a chip sensor, and it already measures 00:27:07.660 --> 00:27:09.827 align:middle line:84% thermal comfort, already measures indoor air quality 00:27:09.827 --> 00:27:12.770 align:middle line:84% and ventilation, not very difficult to measure 00:27:12.770 --> 00:27:16.002 align:middle line:84% the tones and the intensity, especially 00:27:16.002 --> 00:27:16.960 align:middle line:90% the intensity of light. 00:27:16.960 --> 00:27:19.390 align:middle line:84% And noise and acoustics also very easy to measure. 00:27:19.390 --> 00:27:23.470 align:middle line:84% A lot of these guys will be way more qualitative to measure 00:27:23.470 --> 00:27:24.680 align:middle line:90% and will be-- 00:27:24.680 --> 00:27:27.520 align:middle line:84% the studies will be a little bit less strong 00:27:27.520 --> 00:27:29.740 align:middle line:84% than what you have out there because also this comes 00:27:29.740 --> 00:27:30.890 align:middle line:90% from environmental science. 00:27:30.890 --> 00:27:34.210 align:middle line:84% This comes from more the psychology and softer part 00:27:34.210 --> 00:27:35.652 align:middle line:90% of the scientific world. 00:27:35.652 --> 00:27:38.110 align:middle line:84% AUDIENCE: So you don't need the bottom parts to be included 00:27:38.110 --> 00:27:39.267 align:middle line:90% in order to determine the-- 00:27:39.267 --> 00:27:40.100 align:middle line:90% JUAN PALACIOS: Yeah. 00:27:40.100 --> 00:27:40.750 align:middle line:90% AUDIENCE: [INAUDIBLE] 00:27:40.750 --> 00:27:42.500 align:middle line:84% JUAN PALACIOS: I mean to be comprehensive. 00:27:42.500 --> 00:27:44.440 align:middle line:84% But you definitely-- there is definitely 00:27:44.440 --> 00:27:46.960 align:middle line:84% studies that would say that makes a difference and so forth. 00:27:46.960 --> 00:27:48.543 align:middle line:84% With this one, you can actually almost 00:27:48.543 --> 00:27:52.048 align:middle line:84% pinpoint like what you will do in a basic real estate 00:27:52.048 --> 00:27:53.840 align:middle line:84% economics, like elasticities, and so forth. 00:27:53.840 --> 00:27:56.477 align:middle line:84% Like for every unit increase that you will have in indoor air 00:27:56.477 --> 00:27:58.810 align:middle line:84% quality, how much you will expect in any of the outcomes 00:27:58.810 --> 00:27:59.770 align:middle line:90% and so forth here. 00:27:59.770 --> 00:28:02.840 align:middle line:84% There is no unit increase in biophilia and views. 00:28:02.840 --> 00:28:05.580 align:middle line:84% Either you have them or not, and it's also very complex. 00:28:05.580 --> 00:28:07.380 align:middle line:84% So what do you see outdoors and so forth? 00:28:07.380 --> 00:28:09.588 align:middle line:84% But there's a lot of studies, especially in hospitals 00:28:09.588 --> 00:28:12.050 align:middle line:84% about recovery times and so forth of patients 00:28:12.050 --> 00:28:13.742 align:middle line:84% when they are having natural light, 00:28:13.742 --> 00:28:15.200 align:middle line:84% when they are having certain views, 00:28:15.200 --> 00:28:18.700 align:middle line:84% when they have wooden rooms instead of just this whitish 00:28:18.700 --> 00:28:19.200 align:middle line:90% room. 00:28:19.200 --> 00:28:20.950 align:middle line:84% And so for, actually, the hospitals, there 00:28:20.950 --> 00:28:23.475 align:middle line:84% are a few podcasts that I'm happy to put in the Canvas 00:28:23.475 --> 00:28:24.600 align:middle line:90% if you find it interesting. 00:28:24.600 --> 00:28:26.060 align:middle line:84% But this is the place where we would really 00:28:26.060 --> 00:28:28.200 align:middle line:84% need all of these technologies to be the best. 00:28:28.200 --> 00:28:32.030 align:middle line:84% And unfortunately, this is where we make the worst design 00:28:32.030 --> 00:28:35.632 align:middle line:84% options that is actually very, very sad, that we actually 00:28:35.632 --> 00:28:38.090 align:middle line:84% make people going through one of the most difficult moments 00:28:38.090 --> 00:28:40.940 align:middle line:84% in their life, from the family side or from the patient side, 00:28:40.940 --> 00:28:43.820 align:middle line:84% in the rooms that are actually white with no consideration 00:28:43.820 --> 00:28:46.370 align:middle line:84% for design and making them more miserable 00:28:46.370 --> 00:28:48.840 align:middle line:84% than their disease will actually even make them. 00:28:48.840 --> 00:28:51.820 align:middle line:84% So there's a lot of-- they're very interesting topics. 00:28:51.820 --> 00:28:53.080 align:middle line:90% AUDIENCE: I have a question. 00:28:53.080 --> 00:28:53.405 align:middle line:90% JUAN PALACIOS: Of course. 00:28:53.405 --> 00:28:55.072 align:middle line:84% AUDIENCE: Have you heard of any research 00:28:55.072 --> 00:28:56.580 align:middle line:90% based on carpets and allergens? 00:28:56.580 --> 00:28:56.880 align:middle line:90% JUAN PALACIOS: Mhm. 00:28:56.880 --> 00:28:58.340 align:middle line:84% AUDIENCE: Because I know as we walk over it, 00:28:58.340 --> 00:29:00.007 align:middle line:84% it releases a lot of particles in there. 00:29:00.007 --> 00:29:01.890 align:middle line:84% But it seems more modern buildings 00:29:01.890 --> 00:29:05.640 align:middle line:84% don't go for carpeting that seemed to how [INAUDIBLE] 00:29:05.640 --> 00:29:07.667 align:middle line:90% comfort or, yeah. 00:29:07.667 --> 00:29:08.500 align:middle line:90% JUAN PALACIOS: Yeah. 00:29:08.500 --> 00:29:10.590 align:middle line:84% There are quite a lot of these things 00:29:10.590 --> 00:29:15.570 align:middle line:84% out there of like the risk, the problems with carpets, and VOCs, 00:29:15.570 --> 00:29:19.800 align:middle line:84% and so forth, and the dust that will make people less healthy 00:29:19.800 --> 00:29:23.580 align:middle line:84% or, in schools, make asthma attacks and so forth more likely 00:29:23.580 --> 00:29:24.417 align:middle line:90% and so forth. 00:29:24.417 --> 00:29:25.750 align:middle line:90% There are a lot of these things. 00:29:25.750 --> 00:29:28.735 align:middle line:84% But the problem is that when it comes to-- 00:29:28.735 --> 00:29:30.360 align:middle line:84% when it comes to materials, the problem 00:29:30.360 --> 00:29:32.490 align:middle line:84% of thinking about it in a systematic way 00:29:32.490 --> 00:29:35.190 align:middle line:84% is that, when it comes to make decisions for your own building 00:29:35.190 --> 00:29:37.110 align:middle line:84% on how do you upgrade them, there 00:29:37.110 --> 00:29:41.040 align:middle line:84% is not a lot of information about any of these things, 00:29:41.040 --> 00:29:43.320 align:middle line:84% composition and treatment, along the way. 00:29:43.320 --> 00:29:45.600 align:middle line:90% So we don't know where these-- 00:29:45.600 --> 00:29:47.610 align:middle line:84% what kind of paint they put in these wood 00:29:47.610 --> 00:29:50.437 align:middle line:84% to make it more resistant to different things and so forth. 00:29:50.437 --> 00:29:52.770 align:middle line:84% So it's very hard to understand the chemical composition 00:29:52.770 --> 00:29:53.800 align:middle line:90% of anything like that. 00:29:53.800 --> 00:29:54.970 align:middle line:90% You will expect that-- 00:29:54.970 --> 00:29:57.900 align:middle line:84% and that's one of the discussion points of the Healthy Buildings 00:29:57.900 --> 00:30:00.780 align:middle line:84% book of these Harvard professors, you will-- 00:30:00.780 --> 00:30:02.260 align:middle line:90% they put it in a very nice way. 00:30:02.260 --> 00:30:05.050 align:middle line:84% You will find it crazy nowadays if you 00:30:05.050 --> 00:30:07.730 align:middle line:90% will buy any-- can I take this? 00:30:07.730 --> 00:30:11.530 align:middle line:84% You will buy any drink or any food item 00:30:11.530 --> 00:30:13.030 align:middle line:84% and you will not see the composition 00:30:13.030 --> 00:30:15.190 align:middle line:84% of every single thing that came into the production 00:30:15.190 --> 00:30:16.160 align:middle line:90% of these guys. 00:30:16.160 --> 00:30:19.840 align:middle line:84% But you cannot see anything at all when you buy any building 00:30:19.840 --> 00:30:22.210 align:middle line:84% or almost any building component that you want to deploy 00:30:22.210 --> 00:30:23.120 align:middle line:90% in a building. 00:30:23.120 --> 00:30:26.350 align:middle line:84% So to have this strategy in a systematic way, 00:30:26.350 --> 00:30:29.120 align:middle line:84% we are a long way down the road to go. 00:30:29.120 --> 00:30:30.730 align:middle line:84% And that also affects, by the way, 00:30:30.730 --> 00:30:33.130 align:middle line:84% a lot of the problems when it comes to energy efficiency, 00:30:33.130 --> 00:30:34.870 align:middle line:84% that we don't have these building passports that 00:30:34.870 --> 00:30:36.730 align:middle line:84% will actually understand-- let us understand 00:30:36.730 --> 00:30:39.145 align:middle line:84% what is all the elements, and the characteristics, 00:30:39.145 --> 00:30:40.520 align:middle line:84% and the efficiency, and so forth. 00:30:40.520 --> 00:30:42.170 align:middle line:90% So then we could actually just-- 00:30:42.170 --> 00:30:45.760 align:middle line:84% as almost like a Lego type of work from an engineering 00:30:45.760 --> 00:30:47.590 align:middle line:84% perspective to see what type of elements 00:30:47.590 --> 00:30:50.090 align:middle line:84% do we need to upgrade to have the biggest impact because we 00:30:50.090 --> 00:30:52.090 align:middle line:84% bought something that we don't know what has on, 00:30:52.090 --> 00:30:53.860 align:middle line:84% and we have to even break the roofs 00:30:53.860 --> 00:30:56.230 align:middle line:84% and so forth to understand what is really in there 00:30:56.230 --> 00:30:58.220 align:middle line:84% or get into the machines and so forth. 00:30:58.220 --> 00:30:59.330 align:middle line:90% So it's very hard. 00:30:59.330 --> 00:31:02.050 align:middle line:84% We don't have a systematic information system 00:31:02.050 --> 00:31:03.400 align:middle line:90% on components in buildings. 00:31:03.400 --> 00:31:06.910 align:middle line:84% And that's something that will require those type of strategies 00:31:06.910 --> 00:31:08.800 align:middle line:90% to flourish. 00:31:08.800 --> 00:31:10.420 align:middle line:90% Yes. 00:31:10.420 --> 00:31:14.120 align:middle line:84% AUDIENCE: So the light of this room and the [INAUDIBLE] 00:31:14.120 --> 00:31:20.330 align:middle line:84% are the essential factors, conditions to the house building 00:31:20.330 --> 00:31:24.830 align:middle line:84% because, before I worked in the headquarter above the house 00:31:24.830 --> 00:31:30.050 align:middle line:84% building and pretty high standard about the [INAUDIBLE]. 00:31:30.050 --> 00:31:38.929 align:middle line:84% So [INAUDIBLE] and control the lights [INAUDIBLE]. 00:31:38.929 --> 00:31:40.780 align:middle line:84% So it is important in the industry. 00:31:40.780 --> 00:31:42.940 align:middle line:90% JUAN PALACIOS: Yeah. 00:31:42.940 --> 00:31:44.180 align:middle line:90% Yeah, very important. 00:31:44.180 --> 00:31:44.903 align:middle line:90% Yeah, yeah. 00:31:44.903 --> 00:31:46.570 align:middle line:84% Lighting is something that is definitely 00:31:46.570 --> 00:31:49.700 align:middle line:84% affecting a lot of our biorhythms and so forth. 00:31:49.700 --> 00:31:52.120 align:middle line:84% And then you can go against the clock and the day 00:31:52.120 --> 00:31:54.280 align:middle line:84% if you flatten it out over the entire day. 00:31:54.280 --> 00:31:55.270 align:middle line:90% All right. 00:31:55.270 --> 00:31:56.770 align:middle line:84% Today, we are going to talk about, 00:31:56.770 --> 00:31:59.470 align:middle line:84% mainly for the sake of time, because otherwise we 00:31:59.470 --> 00:32:02.140 align:middle line:84% will have to be here as long as the studio 00:32:02.140 --> 00:32:03.885 align:middle line:84% class and the other day or ventures, 00:32:03.885 --> 00:32:06.010 align:middle line:84% and it's really not the purpose to lock you up here 00:32:06.010 --> 00:32:08.060 align:middle line:90% for five, six hours today. 00:32:08.060 --> 00:32:09.850 align:middle line:84% So I'm going to give you-- we are going 00:32:09.850 --> 00:32:14.110 align:middle line:84% to walk through the whole value chain of ventilation and air 00:32:14.110 --> 00:32:17.080 align:middle line:84% quality just to show how to think about it, how 00:32:17.080 --> 00:32:18.880 align:middle line:84% to be critical about it, the science, 00:32:18.880 --> 00:32:22.750 align:middle line:84% how to be knowledgeable about, how tenants will think about it, 00:32:22.750 --> 00:32:25.490 align:middle line:84% and also how to discuss what are the barriers to it. 00:32:25.490 --> 00:32:28.150 align:middle line:84% So let's go through two basic examples 00:32:28.150 --> 00:32:30.070 align:middle line:84% and then climb from the very bottom 00:32:30.070 --> 00:32:31.490 align:middle line:90% all the way to the very top. 00:32:31.490 --> 00:32:35.560 align:middle line:84% And you will tell me when you have any questions and comments 00:32:35.560 --> 00:32:36.230 align:middle line:90% and so forth. 00:32:36.230 --> 00:32:37.930 align:middle line:84% OK, I like this lively discussion, 00:32:37.930 --> 00:32:39.290 align:middle line:90% so I'm very happy today. 00:32:39.290 --> 00:32:42.070 align:middle line:84% I think that we are beating the previous class last year. 00:32:42.070 --> 00:32:43.157 align:middle line:90% It was very lively. 00:32:43.157 --> 00:32:44.240 align:middle line:90% You remember, [INAUDIBLE]? 00:32:44.240 --> 00:32:45.740 align:middle line:84% You were always a quiet guy, though. 00:32:45.740 --> 00:32:47.870 align:middle line:90% [LAUGHTER] 00:32:47.870 --> 00:32:48.858 align:middle line:90% Very, very smart. 00:32:48.858 --> 00:32:50.150 align:middle line:90% That's why we picked him to TA. 00:32:50.150 --> 00:32:51.930 align:middle line:84% And I'm actually even his thesis advisor. 00:32:51.930 --> 00:32:53.660 align:middle line:90% But quiet, you are quiet. 00:32:53.660 --> 00:32:55.022 align:middle line:90% But at Naco Taco he talks. 00:32:55.022 --> 00:32:55.980 align:middle line:90% Tomorrow, you can come. 00:32:55.980 --> 00:32:57.530 align:middle line:90% [LAUGHTER] 00:32:57.530 --> 00:32:59.930 align:middle line:90% You do, do you? 00:32:59.930 --> 00:33:01.160 align:middle line:90% You see. 00:33:01.160 --> 00:33:02.910 align:middle line:84% You put him in Naco Taco, he talks. 00:33:02.910 --> 00:33:05.270 align:middle line:90% That's the impact of buildings. 00:33:05.270 --> 00:33:11.158 align:middle line:84% All right, so the [LAUGHS] exactly. 00:33:11.158 --> 00:33:11.700 align:middle line:90% I don't know. 00:33:11.700 --> 00:33:14.640 align:middle line:90% I haven't-- I cannot say that. 00:33:14.640 --> 00:33:18.320 align:middle line:84% So all right, so first thing that we are going to do 00:33:18.320 --> 00:33:21.930 align:middle line:84% is how we are going to connect these different strategies. 00:33:21.930 --> 00:33:23.760 align:middle line:84% How are we going to evaluate the impact? 00:33:23.760 --> 00:33:27.707 align:middle line:84% So I don't know whether you guys have done any work on funds, 00:33:27.707 --> 00:33:29.040 align:middle line:90% but you have these impact funds. 00:33:29.040 --> 00:33:31.165 align:middle line:84% What they do all the time is to-- one of the things 00:33:31.165 --> 00:33:33.050 align:middle line:84% that you need to do to create an impact fund 00:33:33.050 --> 00:33:35.960 align:middle line:84% is to show the impact that you do, 00:33:35.960 --> 00:33:37.460 align:middle line:84% that you create with the investments 00:33:37.460 --> 00:33:39.710 align:middle line:84% that you do with the money that you have in the fund. 00:33:39.710 --> 00:33:42.000 align:middle line:84% So let's think about healthy buildings studied 00:33:42.000 --> 00:33:43.590 align:middle line:84% from the impact fund perspective, 00:33:43.590 --> 00:33:47.000 align:middle line:84% so how we actually are able to evaluate impact in a way 00:33:47.000 --> 00:33:48.770 align:middle line:84% that we can go to investors, developers 00:33:48.770 --> 00:33:50.395 align:middle line:84% and pitch it to them in a way that say, 00:33:50.395 --> 00:33:54.740 align:middle line:84% hey, do you want to generate a building that can promote x? 00:33:54.740 --> 00:33:56.660 align:middle line:84% This is one technology that you need 00:33:56.660 --> 00:33:59.015 align:middle line:84% to deploy because I know what is the impact of that. 00:33:59.015 --> 00:34:02.490 align:middle line:84% For that, there are multiple ways to think about it. 00:34:02.490 --> 00:34:05.703 align:middle line:84% But one of the most intuitive ones that I think, 00:34:05.703 --> 00:34:07.370 align:middle line:84% especially when it comes to air quality, 00:34:07.370 --> 00:34:11.540 align:middle line:84% is coming from the environmental science 00:34:11.540 --> 00:34:15.560 align:middle line:84% and the environmental science literature, 00:34:15.560 --> 00:34:18.469 align:middle line:84% where when you want to evaluate the impact 00:34:18.469 --> 00:34:20.630 align:middle line:84% of any threat, any poisoning element, 00:34:20.630 --> 00:34:22.137 align:middle line:90% you have different steps. 00:34:22.137 --> 00:34:23.929 align:middle line:84% So you have-- first, you need to understand 00:34:23.929 --> 00:34:25.909 align:middle line:84% what is the concentration of that threat. 00:34:25.909 --> 00:34:29.360 align:middle line:84% So if you want to think about what is the impact of ozone, 00:34:29.360 --> 00:34:35.540 align:middle line:84% or VOCs, or PM 2.5, or something and so on in a given building 00:34:35.540 --> 00:34:38.150 align:middle line:84% or in a given part of the city, you first 00:34:38.150 --> 00:34:41.969 align:middle line:84% need to know how high is the concentration of that pollutant 00:34:41.969 --> 00:34:44.280 align:middle line:90% or chemical in that area. 00:34:44.280 --> 00:34:45.770 align:middle line:84% So the first thing we need to do is 00:34:45.770 --> 00:34:49.850 align:middle line:84% assess how large is the threat, how much of that 00:34:49.850 --> 00:34:53.330 align:middle line:84% pollutant that we want to reduce with those investments is. 00:34:53.330 --> 00:34:55.995 align:middle line:84% And then we need to know-- because, ultimately, 00:34:55.995 --> 00:34:58.120 align:middle line:84% what we want to understand is the impact on people, 00:34:58.120 --> 00:34:59.880 align:middle line:84% we need to understand for everyone 00:34:59.880 --> 00:35:04.140 align:middle line:84% that passes by or every one of the target group that we have, 00:35:04.140 --> 00:35:07.220 align:middle line:84% the occupants, the employees, and so forth, how much exposure 00:35:07.220 --> 00:35:07.720 align:middle line:90% they get. 00:35:07.720 --> 00:35:09.630 align:middle line:84% And that is break out in two parts, 00:35:09.630 --> 00:35:12.690 align:middle line:84% how much they get exposed every time that they are exposed 00:35:12.690 --> 00:35:14.438 align:middle line:90% and how often they get exposed. 00:35:14.438 --> 00:35:15.730 align:middle line:90% And let me give you an example. 00:35:15.730 --> 00:35:17.970 align:middle line:84% For example, we get these kitchen there 00:35:17.970 --> 00:35:21.170 align:middle line:84% that is locked up to almost everyone except for Siqi. 00:35:21.170 --> 00:35:22.890 align:middle line:84% So that's your private kitchen, no? 00:35:22.890 --> 00:35:24.140 align:middle line:90% I don't even have the code. 00:35:24.140 --> 00:35:26.310 align:middle line:84% SIQI ZHENG: Faculty, researchers, and the students. 00:35:26.310 --> 00:35:29.240 align:middle line:84% If we want to use a kitchen, become our researchers. 00:35:29.240 --> 00:35:31.020 align:middle line:90% [LAUGHTER] 00:35:31.020 --> 00:35:33.060 align:middle line:84% JUAN PALACIOS: [INAUDIBLE] is always good. 00:35:33.060 --> 00:35:36.120 align:middle line:84% So there might be like a gas leakage, 00:35:36.120 --> 00:35:39.720 align:middle line:84% and almost nobody will get a problem because nobody 00:35:39.720 --> 00:35:41.680 align:middle line:90% is there almost any time. 00:35:41.680 --> 00:35:44.430 align:middle line:84% I've been there probably twice in four years. 00:35:44.430 --> 00:35:46.620 align:middle line:84% So that's one of the examples that, if you really 00:35:46.620 --> 00:35:50.550 align:middle line:84% want to be a meaningful investment, even if you have 00:35:50.550 --> 00:35:54.390 align:middle line:84% a high concentration of a problem there, of a pollutant 00:35:54.390 --> 00:35:58.320 align:middle line:84% there, you probably don't have the best investment in terms 00:35:58.320 --> 00:36:01.410 align:middle line:84% of improving health because nobody really gets exposed. 00:36:01.410 --> 00:36:04.060 align:middle line:90% Now, a gas leak is very harmful. 00:36:04.060 --> 00:36:06.990 align:middle line:84% So if you spend a few minutes, you probably get passed out, 00:36:06.990 --> 00:36:08.430 align:middle line:90% and you might actually die. 00:36:08.430 --> 00:36:11.370 align:middle line:84% There are other things like poor ventilation 00:36:11.370 --> 00:36:12.960 align:middle line:84% that are definitely less harmful, 00:36:12.960 --> 00:36:14.300 align:middle line:90% but everyone is exposed to. 00:36:14.300 --> 00:36:17.790 align:middle line:84% For example, in this room, we keep climbing up, not yet there. 00:36:17.790 --> 00:36:20.310 align:middle line:84% But imagine that guy goes double. 00:36:20.310 --> 00:36:21.820 align:middle line:90% None of us will die. 00:36:21.820 --> 00:36:24.100 align:middle line:84% Maybe some of us will get sleepy. 00:36:24.100 --> 00:36:26.760 align:middle line:84% But all of us are exposed and for several hours 00:36:26.760 --> 00:36:27.780 align:middle line:90% during the day. 00:36:27.780 --> 00:36:30.480 align:middle line:84% So then when it comes to improving that one, 00:36:30.480 --> 00:36:32.580 align:middle line:84% it's much better because, yeah, the concentration 00:36:32.580 --> 00:36:34.580 align:middle line:84% or the harm of that concentration is much lower. 00:36:34.580 --> 00:36:37.000 align:middle line:90% But the exposure is much larger. 00:36:37.000 --> 00:36:40.680 align:middle line:84% So this is what we need to understand very well, first, 00:36:40.680 --> 00:36:42.082 align:middle line:90% how much we are exposed. 00:36:42.082 --> 00:36:44.040 align:middle line:84% So what is the concentration of whatever factor 00:36:44.040 --> 00:36:45.360 align:middle line:90% we want to improve? 00:36:45.360 --> 00:36:47.280 align:middle line:84% How harmful it is, and that will require 00:36:47.280 --> 00:36:50.130 align:middle line:84% to look into the literature and the standards 00:36:50.130 --> 00:36:53.130 align:middle line:84% from ASHRAE, from EPA, and so forth to understand 00:36:53.130 --> 00:36:54.310 align:middle line:90% how harmful that is. 00:36:54.310 --> 00:36:57.930 align:middle line:84% So it's not the same being exposed to CO 00:36:57.930 --> 00:37:02.530 align:middle line:84% or being exposed to NOx, or then being exposed to VOCs or CO2. 00:37:02.530 --> 00:37:04.780 align:middle line:84% Those things is something that you need to understand, 00:37:04.780 --> 00:37:07.322 align:middle line:84% and that's why the public health literature, epidemiologists, 00:37:07.322 --> 00:37:08.890 align:middle line:90% and so forth end the lives. 00:37:08.890 --> 00:37:12.160 align:middle line:84% So we can break the process of understanding 00:37:12.160 --> 00:37:14.150 align:middle line:84% the impact of an investment in two sides, 00:37:14.150 --> 00:37:16.420 align:middle line:84% so understanding the baseline concentration 00:37:16.420 --> 00:37:20.020 align:middle line:84% and how much we actually reduce the concentration 00:37:20.020 --> 00:37:23.200 align:middle line:84% and then understanding the actual exposure 00:37:23.200 --> 00:37:26.360 align:middle line:84% and the actual impact on the people. 00:37:26.360 --> 00:37:28.180 align:middle line:84% So there's going to be an assessment part, 00:37:28.180 --> 00:37:30.190 align:middle line:84% and there's going to be an attribution part that 00:37:30.190 --> 00:37:32.710 align:middle line:84% is going to, ultimately, connect to the health, and well-being, 00:37:32.710 --> 00:37:33.793 align:middle line:90% and performance of people. 00:37:33.793 --> 00:37:36.190 align:middle line:84% So if we don't understand that black box 00:37:36.190 --> 00:37:38.650 align:middle line:84% on how people are exposed to that investment 00:37:38.650 --> 00:37:40.570 align:middle line:84% and how people are exposed to those threats, 00:37:40.570 --> 00:37:43.360 align:middle line:84% then it doesn't matter whether we are measuring everything 00:37:43.360 --> 00:37:44.300 align:middle line:90% all the time. 00:37:44.300 --> 00:37:47.080 align:middle line:84% We will not be able to connect an investment in the building 00:37:47.080 --> 00:37:49.435 align:middle line:84% to the people that are using that building. 00:37:49.435 --> 00:37:50.310 align:middle line:90% Is that clear enough? 00:37:50.310 --> 00:37:52.910 align:middle line:90% Or we make it more complicated? 00:37:52.910 --> 00:37:53.500 align:middle line:90% Clear enough. 00:37:53.500 --> 00:37:54.500 align:middle line:90% Julio. 00:37:54.500 --> 00:37:59.240 align:middle line:84% AUDIENCE: How can you compare the impact that a pollutant has 00:37:59.240 --> 00:38:00.170 align:middle line:90% on someone? 00:38:00.170 --> 00:38:01.928 align:middle line:90% How can you compare-- 00:38:01.928 --> 00:38:02.720 align:middle line:90% JUAN PALACIOS: CO2? 00:38:02.720 --> 00:38:04.640 align:middle line:84% AUDIENCE: --lowers the concentration 00:38:04.640 --> 00:38:05.778 align:middle line:90% until it kills them? 00:38:05.778 --> 00:38:07.320 align:middle line:84% You have to put it on a scale, right? 00:38:07.320 --> 00:38:09.510 align:middle line:84% JUAN PALACIOS: Well, that is-- yes. 00:38:09.510 --> 00:38:14.690 align:middle line:84% So there is one thing, there is some basic tools 00:38:14.690 --> 00:38:15.615 align:middle line:90% of exposure science. 00:38:15.615 --> 00:38:17.490 align:middle line:84% That is, you have the dose response function. 00:38:17.490 --> 00:38:19.157 align:middle line:84% So that's something that you can compare 00:38:19.157 --> 00:38:20.840 align:middle line:84% with the same outcome, what will be 00:38:20.840 --> 00:38:23.690 align:middle line:84% the impact of every unit of intake 00:38:23.690 --> 00:38:26.340 align:middle line:84% of that pollutant on that given outcome? 00:38:26.340 --> 00:38:28.490 align:middle line:84% When you want to compare across outcomes, 00:38:28.490 --> 00:38:31.190 align:middle line:84% that is something that comes down to, 00:38:31.190 --> 00:38:33.140 align:middle line:90% what do you value as a company? 00:38:33.140 --> 00:38:37.040 align:middle line:84% Or what do you value as a country? 00:38:37.040 --> 00:38:41.160 align:middle line:84% So how much do you value one person 00:38:41.160 --> 00:38:45.180 align:middle line:84% dying versus 300 kids scoring lower 00:38:45.180 --> 00:38:50.407 align:middle line:84% on a test that will let them get a worse job afterwards? 00:38:50.407 --> 00:38:51.990 align:middle line:84% So there is some subjective part there 00:38:51.990 --> 00:38:55.650 align:middle line:84% that will come down to policymaking and preferences 00:38:55.650 --> 00:38:59.340 align:middle line:84% and so forth of people that are just not objective. 00:38:59.340 --> 00:39:01.170 align:middle line:84% It's just-- we have a lot of discussion 00:39:01.170 --> 00:39:06.220 align:middle line:84% about the value of a life, the value of a statistical life. 00:39:06.220 --> 00:39:07.710 align:middle line:90% That's how they call it in that. 00:39:07.710 --> 00:39:10.037 align:middle line:84% Those are things very subjective. 00:39:10.037 --> 00:39:12.120 align:middle line:84% At the end of day, it comes down to the priorities 00:39:12.120 --> 00:39:15.720 align:middle line:84% of your firm, or your local government, 00:39:15.720 --> 00:39:17.550 align:middle line:84% or yourself if you are thinking about, 00:39:17.550 --> 00:39:20.670 align:middle line:84% how do you want to improve the families-- your family's 00:39:20.670 --> 00:39:23.090 align:middle line:90% situation? 00:39:23.090 --> 00:39:24.610 align:middle line:90% Anything else? 00:39:24.610 --> 00:39:25.800 align:middle line:90% Yeah. 00:39:25.800 --> 00:39:34.860 align:middle line:84% AUDIENCE: I have an interesting phenomenon, during 2015 to 2018, 00:39:34.860 --> 00:39:41.600 align:middle line:84% Beijing fire pollution is very [INAUDIBLE] 00:39:41.600 --> 00:39:44.090 align:middle line:90% and affected our house. 00:39:44.090 --> 00:39:49.370 align:middle line:84% So developers preferred to build the [INAUDIBLE] building. 00:39:49.370 --> 00:39:54.010 align:middle line:84% But after that, because the pollution improvement, 00:39:54.010 --> 00:39:58.570 align:middle line:84% and the developer will not prefer to build the house 00:39:58.570 --> 00:40:02.830 align:middle line:84% they're building because it's pretty high cost that the rent 00:40:02.830 --> 00:40:05.567 align:middle line:90% may be a little increase. 00:40:05.567 --> 00:40:06.400 align:middle line:90% JUAN PALACIOS: Yeah. 00:40:06.400 --> 00:40:07.510 align:middle line:84% AUDIENCE: So it's very interesting. 00:40:07.510 --> 00:40:08.890 align:middle line:84% JUAN PALACIOS: Yeah, Beijing is also a good example 00:40:08.890 --> 00:40:11.920 align:middle line:84% because Beijing, you have two things going in parallel. 00:40:11.920 --> 00:40:14.532 align:middle line:84% On the one side, the local government-- 00:40:14.532 --> 00:40:16.240 align:middle line:84% and the same as the national government-- 00:40:16.240 --> 00:40:18.220 align:middle line:84% tries to put down pollution that Siqi's-- 00:40:18.220 --> 00:40:19.550 align:middle line:90% a lot of work there. 00:40:19.550 --> 00:40:20.450 align:middle line:90% She's the expert. 00:40:20.450 --> 00:40:22.390 align:middle line:84% And then on the other side, you get people-- 00:40:22.390 --> 00:40:23.110 align:middle line:90% exactly. 00:40:23.110 --> 00:40:26.170 align:middle line:84% So the threat, the other threat is going down. 00:40:26.170 --> 00:40:28.600 align:middle line:84% And therefore, what you are preventing people 00:40:28.600 --> 00:40:30.740 align:middle line:84% from being exposed to is also going down. 00:40:30.740 --> 00:40:35.080 align:middle line:84% So then the benefits of improving filtration in China 00:40:35.080 --> 00:40:37.150 align:middle line:84% starts to be less problematic than when 00:40:37.150 --> 00:40:40.880 align:middle line:84% you go back to 10 years ago or 15 years ago. 00:40:40.880 --> 00:40:43.670 align:middle line:84% When was the peak of pollution, Siqi, in China? 00:40:43.670 --> 00:40:45.920 align:middle line:84% SIQI ZHENG: Yeah, I think that's more nuanced because, 00:40:45.920 --> 00:40:47.920 align:middle line:84% although the absolute level of the air pollution 00:40:47.920 --> 00:40:50.970 align:middle line:84% is going down thanks to the government regulation, 00:40:50.970 --> 00:40:53.720 align:middle line:84% but people's awareness is going up. 00:40:53.720 --> 00:40:57.080 align:middle line:84% So the wheel is going up, so more and more people 00:40:57.080 --> 00:41:03.103 align:middle line:84% are willing to pay higher price for lower air pollution, 00:41:03.103 --> 00:41:04.520 align:middle line:84% so the absolute level may be down. 00:41:04.520 --> 00:41:07.580 align:middle line:84% But now people are more and more worried about this, 00:41:07.580 --> 00:41:08.790 align:middle line:90% and they care more. 00:41:08.790 --> 00:41:12.140 align:middle line:84% So they still want healthy buildings. 00:41:12.140 --> 00:41:15.290 align:middle line:84% JUAN PALACIOS: And we know that because of your work. 00:41:15.290 --> 00:41:16.310 align:middle line:90% It's true. 00:41:16.310 --> 00:41:19.100 align:middle line:84% AUDIENCE: But actually, developer and customer 00:41:19.100 --> 00:41:23.390 align:middle line:84% have to pay for the green building 00:41:23.390 --> 00:41:25.925 align:middle line:84% That house they're building, the cost is higher-- 00:41:25.925 --> 00:41:27.050 align:middle line:90% JUAN PALACIOS: Much higher. 00:41:27.050 --> 00:41:29.020 align:middle line:84% AUDIENCE: --than the green building. 00:41:29.020 --> 00:41:31.660 align:middle line:84% JUAN PALACIOS: Yeah, the features. 00:41:31.660 --> 00:41:32.420 align:middle line:90% It's not cheap. 00:41:32.420 --> 00:41:34.750 align:middle line:90% That's why we're here. 00:41:34.750 --> 00:41:38.290 align:middle line:84% OK, so in the assessment part into the detection 00:41:38.290 --> 00:41:41.830 align:middle line:84% of how big is the problem and how much actually we have 00:41:41.830 --> 00:41:44.320 align:middle line:84% a threat in our building, one of the things 00:41:44.320 --> 00:41:47.800 align:middle line:84% that is very powerful in the real estate industry 00:41:47.800 --> 00:41:50.200 align:middle line:84% and engineering side is that the price 00:41:50.200 --> 00:41:54.020 align:middle line:84% of these guys, of those sensors is going down dramatically. 00:41:54.020 --> 00:41:58.240 align:middle line:84% So it used to be that something that would measure CO2 with any 00:41:58.240 --> 00:42:02.510 align:middle line:84% trustworthy accuracy will cost like $10,000. 00:42:02.510 --> 00:42:05.860 align:middle line:90% And this guy cost me like $200. 00:42:05.860 --> 00:42:08.030 align:middle line:90% So it's very big drop. 00:42:08.030 --> 00:42:11.170 align:middle line:84% And also the connection to the internet 00:42:11.170 --> 00:42:15.190 align:middle line:84% also makes that the human side of operating those devices 00:42:15.190 --> 00:42:17.440 align:middle line:84% is much, much lower because, beforehand, I 00:42:17.440 --> 00:42:20.530 align:middle line:84% would have to have one person going with it all over the place 00:42:20.530 --> 00:42:22.780 align:middle line:84% and pay that salary to measure anything 00:42:22.780 --> 00:42:25.735 align:middle line:84% and to do an assessment while now I can just connect 00:42:25.735 --> 00:42:26.860 align:middle line:90% these guys to the internet. 00:42:26.860 --> 00:42:29.530 align:middle line:84% They will be loading all-the-time data, 00:42:29.530 --> 00:42:32.470 align:middle line:84% and that will ultimately generate-- 00:42:32.470 --> 00:42:36.220 align:middle line:84% give me the answer of how big is the pollutant concentration 00:42:36.220 --> 00:42:37.970 align:middle line:84% and how big is the problem and so forth. 00:42:37.970 --> 00:42:39.040 align:middle line:90% And on the other side-- 00:42:39.040 --> 00:42:40.790 align:middle line:84% AUDIENCE: From the other eye, [INAUDIBLE], 00:42:40.790 --> 00:42:42.700 align:middle line:84% she is working on very exciting project 00:42:42.700 --> 00:42:46.640 align:middle line:84% downstairs in [INAUDIBLE] lab [INAUDIBLE] scanner. 00:42:46.640 --> 00:42:48.540 align:middle line:84% Do you want to say something about that? 00:42:48.540 --> 00:42:50.150 align:middle line:84% JUAN PALACIOS: How big is the pollution in this area? 00:42:50.150 --> 00:42:52.120 align:middle line:84% AUDIENCE: Yeah, actually, the pollution in Cambridge 00:42:52.120 --> 00:42:54.010 align:middle line:84% compared to a lot of the rest of the world-- 00:42:54.010 --> 00:42:56.260 align:middle line:84% as you saw, like 90% of the world 00:42:56.260 --> 00:43:00.850 align:middle line:84% breathes polluted air is pretty decent here overall, 00:43:00.850 --> 00:43:04.030 align:middle line:84% but there's high spatio-temporal variability. 00:43:04.030 --> 00:43:06.500 align:middle line:84% So as Siqi was saying, even though absolute levels 00:43:06.500 --> 00:43:08.360 align:middle line:84% in some parts of the world are going down, 00:43:08.360 --> 00:43:10.580 align:middle line:84% we're starting to understand more and more of it, 00:43:10.580 --> 00:43:13.740 align:middle line:84% both in the scientific way and in the public perception way. 00:43:13.740 --> 00:43:15.980 align:middle line:84% And also the World Health Organization 00:43:15.980 --> 00:43:20.450 align:middle line:84% is constantly re-evaluating and understanding how they recommend 00:43:20.450 --> 00:43:21.860 align:middle line:84% or how they make those guidelines 00:43:21.860 --> 00:43:23.430 align:middle line:90% on what safe exposure is. 00:43:23.430 --> 00:43:26.060 align:middle line:84% And so I think, with the latest round of revisions, that's 00:43:26.060 --> 00:43:29.660 align:middle line:84% what kind of pushed this number up so high for us to understand 00:43:29.660 --> 00:43:31.490 align:middle line:84% that, wow, we are not doing so well 00:43:31.490 --> 00:43:34.400 align:middle line:84% in terms of mitigating a lot of the root causes of this work. 00:43:34.400 --> 00:43:36.410 align:middle line:84% So there's a lot of interactions and there's 00:43:36.410 --> 00:43:40.460 align:middle line:84% a lot of interplay between the built environment, especially 00:43:40.460 --> 00:43:43.010 align:middle line:84% in urban areas, transportation, air pollution, 00:43:43.010 --> 00:43:46.160 align:middle line:84% and, as Juan was talking about as well, personal exposure. 00:43:46.160 --> 00:43:48.410 align:middle line:84% Different groups are exposed in different ways 00:43:48.410 --> 00:43:50.840 align:middle line:84% depending on what they do, their incomes. 00:43:50.840 --> 00:43:52.850 align:middle line:84% Unfortunately, especially in the United States, 00:43:52.850 --> 00:43:54.950 align:middle line:84% race is a very big indicator of exposure 00:43:54.950 --> 00:43:57.140 align:middle line:84% to air quality and poor environmental conditions. 00:43:57.140 --> 00:43:59.070 align:middle line:84% So it's a very complex set of topics. 00:43:59.070 --> 00:44:01.640 align:middle line:84% But as Juan showed us, there's some really nice ways 00:44:01.640 --> 00:44:02.840 align:middle line:90% that we can combat it. 00:44:02.840 --> 00:44:04.290 align:middle line:90% JUAN PALACIOS: Yeah, exactly. 00:44:04.290 --> 00:44:08.150 align:middle line:84% And I would say, like the WHO puts the alarm up, 00:44:08.150 --> 00:44:12.770 align:middle line:84% which means that it puts the level of acceptable exposure 00:44:12.770 --> 00:44:13.920 align:middle line:90% down every time. 00:44:13.920 --> 00:44:16.123 align:middle line:90% So it goes like 40, 25, 10. 00:44:16.123 --> 00:44:17.540 align:middle line:84% And it seems that it will get to 0 00:44:17.540 --> 00:44:20.900 align:middle line:84% because any particle that we will breathe 00:44:20.900 --> 00:44:23.040 align:middle line:90% will generate, somehow, damage. 00:44:23.040 --> 00:44:25.880 align:middle line:84% And on the other side, the data from people, 00:44:25.880 --> 00:44:29.030 align:middle line:84% our phones are generating so much data of us 00:44:29.030 --> 00:44:30.560 align:middle line:84% and all the wearables, some people 00:44:30.560 --> 00:44:32.730 align:middle line:84% I can see here with Apple Watches and so forth. 00:44:32.730 --> 00:44:36.680 align:middle line:84% So we now have access of pools and movement 00:44:36.680 --> 00:44:39.170 align:middle line:84% and so forth from a bunch of people 00:44:39.170 --> 00:44:41.730 align:middle line:84% that were actually very unaffordable, again, 00:44:41.730 --> 00:44:42.770 align:middle line:90% a few years ago. 00:44:42.770 --> 00:44:47.240 align:middle line:84% Now, when it comes to the attribution side-- so how do 00:44:47.240 --> 00:44:48.680 align:middle line:90% we connect these data together? 00:44:48.680 --> 00:44:50.930 align:middle line:84% Or how we do connect the data from buildings 00:44:50.930 --> 00:44:53.530 align:middle line:90% to any outcome of people? 00:44:53.530 --> 00:44:58.580 align:middle line:84% This is where the striking difference comes with respect 00:44:58.580 --> 00:45:00.830 align:middle line:84% to evaluating energy efficiency investments, 00:45:00.830 --> 00:45:02.550 align:middle line:90% where everything is mechanical. 00:45:02.550 --> 00:45:06.260 align:middle line:84% You know, as a facilities manager, at which level 00:45:06.260 --> 00:45:08.360 align:middle line:84% you are running the engines of an HVAC system, 00:45:08.360 --> 00:45:10.640 align:middle line:84% and you can actually see very accurately what 00:45:10.640 --> 00:45:12.590 align:middle line:84% that will imply for the energy consumption 00:45:12.590 --> 00:45:15.420 align:middle line:84% of that building and the CO2 emissions and so forth. 00:45:15.420 --> 00:45:19.850 align:middle line:84% You cannot do that with the health implications of that 00:45:19.850 --> 00:45:21.190 align:middle line:90% specific action. 00:45:21.190 --> 00:45:24.230 align:middle line:84% You can put the HVAC system up, but, ultimately, 00:45:24.230 --> 00:45:27.830 align:middle line:84% the health impacts of that comes down-- 00:45:27.830 --> 00:45:31.010 align:middle line:84% interacts with the behavioral and the people's behavior 00:45:31.010 --> 00:45:34.940 align:middle line:84% and also with what happens in the city as a whole, too. 00:45:34.940 --> 00:45:39.620 align:middle line:84% So if we are in a very severely polluted day, as [INAUDIBLE] 00:45:39.620 --> 00:45:42.043 align:middle line:84% said, there is a big spatial and temporal variation, 00:45:42.043 --> 00:45:43.460 align:middle line:84% which means that, on some days, we 00:45:43.460 --> 00:45:46.980 align:middle line:84% will be exposed to three times the level than another day. 00:45:46.980 --> 00:45:48.930 align:middle line:84% And actually, from my research, I 00:45:48.930 --> 00:45:51.120 align:middle line:84% could see from the data always the case 00:45:51.120 --> 00:45:54.330 align:middle line:84% that it can change very rapidly from one day to the other 00:45:54.330 --> 00:45:56.990 align:middle line:84% because one of the things that brings pollution is wind. 00:45:56.990 --> 00:45:59.250 align:middle line:84% So in the city like Boston, if the wind is blowing 00:45:59.250 --> 00:46:00.820 align:middle line:90% from the sea, very good. 00:46:00.820 --> 00:46:03.030 align:middle line:84% If the wind is blowing from a city 00:46:03.030 --> 00:46:05.550 align:middle line:84% like New York and the power generation system 00:46:05.550 --> 00:46:07.660 align:middle line:84% of the State of New York, very bad. 00:46:07.660 --> 00:46:08.860 align:middle line:90% We have no control. 00:46:08.860 --> 00:46:11.190 align:middle line:84% It can change very rapidly, and it can be-- 00:46:11.190 --> 00:46:12.840 align:middle line:84% and it doesn't matter for our lungs 00:46:12.840 --> 00:46:15.450 align:middle line:84% because we are still breathing the pollution no matter what 00:46:15.450 --> 00:46:18.090 align:middle line:90% the source is. 00:46:18.090 --> 00:46:21.283 align:middle line:84% So in that sense, the same action 00:46:21.283 --> 00:46:23.700 align:middle line:84% that is improving the filters or improving the HVAC system 00:46:23.700 --> 00:46:25.200 align:middle line:84% can have very different consequences 00:46:25.200 --> 00:46:26.700 align:middle line:84% on the health given the environment 00:46:26.700 --> 00:46:28.320 align:middle line:90% but also given the people. 00:46:28.320 --> 00:46:35.220 align:middle line:84% If I make this lecture hall very healthy and nobody shows up-- 00:46:35.220 --> 00:46:38.370 align:middle line:84% we're going back to the exposure part of the equation-- then 00:46:38.370 --> 00:46:40.030 align:middle line:90% it will have no impact on you. 00:46:40.030 --> 00:46:43.050 align:middle line:84% If I want to see what is the impact of that investment 00:46:43.050 --> 00:46:45.930 align:middle line:84% on the grades of you guys and everyone 00:46:45.930 --> 00:46:50.420 align:middle line:84% connects on Zoom, yeah, fantastic. 00:46:50.420 --> 00:46:51.447 align:middle line:90% No impact on that. 00:46:51.447 --> 00:46:53.030 align:middle line:84% We will have to put very large couches 00:46:53.030 --> 00:46:54.980 align:middle line:84% for us just do napping here because that 00:46:54.980 --> 00:46:56.840 align:middle line:84% would be the only use of that lecture hall. 00:46:56.840 --> 00:46:58.550 align:middle line:84% So all of these behavioral things 00:46:58.550 --> 00:47:03.440 align:middle line:84% make it very hard to assess but also very hard to just 00:47:03.440 --> 00:47:05.780 align:middle line:84% understand from a mechanical perspective what will 00:47:05.780 --> 00:47:07.110 align:middle line:90% be the consequences of that. 00:47:07.110 --> 00:47:09.610 align:middle line:84% And what we are going to talk in the next five to 10 minutes 00:47:09.610 --> 00:47:12.380 align:middle line:84% is going to be about, how do we design studies 00:47:12.380 --> 00:47:14.660 align:middle line:84% or how do we design evaluation systems so 00:47:14.660 --> 00:47:17.330 align:middle line:84% then we can actually assess the health implications 00:47:17.330 --> 00:47:19.340 align:middle line:84% of those impacts, taking into account 00:47:19.340 --> 00:47:21.410 align:middle line:84% that there will be always a behavioral layer 00:47:21.410 --> 00:47:24.230 align:middle line:84% in between the action of the facility manager pulling up 00:47:24.230 --> 00:47:26.510 align:middle line:84% the engines or the action of the developer upgrading 00:47:26.510 --> 00:47:30.170 align:middle line:84% a system in a building and the ultimate consequences 00:47:30.170 --> 00:47:32.180 align:middle line:84% of the people that we care about-- 00:47:32.180 --> 00:47:36.920 align:middle line:84% the residents, the employees, the clients, whatever it is? 00:47:36.920 --> 00:47:39.170 align:middle line:84% If you go to the marketing literature, there is also-- 00:47:39.170 --> 00:47:40.753 align:middle line:84% we don't talk about it here, but there 00:47:40.753 --> 00:47:44.030 align:middle line:84% is a lot of data on how people behave in a supermarket. 00:47:44.030 --> 00:47:46.190 align:middle line:84% And there's a lot of tactics to try 00:47:46.190 --> 00:47:48.340 align:middle line:84% to get every penny from our pockets 00:47:48.340 --> 00:47:50.670 align:middle line:84% every time that we enter in a Walmart, or in a Costco, 00:47:50.670 --> 00:47:53.300 align:middle line:84% or in Prudential Center, and so forth. 00:47:53.300 --> 00:47:53.842 align:middle line:90% Look at Siqi. 00:47:53.842 --> 00:47:55.383 align:middle line:84% She's always buying these [INAUDIBLE] 00:47:55.383 --> 00:47:56.470 align:middle line:90% from Prudential Center. 00:47:56.470 --> 00:48:00.840 align:middle line:84% It's all because of you are [INAUDIBLE] by the design. 00:48:00.840 --> 00:48:01.360 align:middle line:90% All right. 00:48:01.360 --> 00:48:05.160 align:middle line:84% So going back to Jason, this is your moment of glory 00:48:05.160 --> 00:48:08.737 align:middle line:84% because I prepared this lecture, this slides, exactly 00:48:08.737 --> 00:48:09.820 align:middle line:90% to tackle those questions. 00:48:09.820 --> 00:48:12.780 align:middle line:84% So when it comes to understanding the impact, 00:48:12.780 --> 00:48:15.600 align:middle line:84% as you said, it's very hard because, if you just-- 00:48:15.600 --> 00:48:18.540 align:middle line:84% whatever the difference between a healthy building 00:48:18.540 --> 00:48:21.660 align:middle line:84% and a non-healthy building comes in terms of health 00:48:21.660 --> 00:48:24.630 align:middle line:84% and performance, let's say that we find that the people 00:48:24.630 --> 00:48:31.920 align:middle line:84% living in this house are being 5% healthier and 5% more 00:48:31.920 --> 00:48:34.760 align:middle line:84% productive than the guys living in this house. 00:48:34.760 --> 00:48:38.537 align:middle line:84% Now, the question is, what generates those differences? 00:48:38.537 --> 00:48:40.370 align:middle line:84% It could be some features there that could-- 00:48:40.370 --> 00:48:43.310 align:middle line:84% they might have better ventilation and so forth. 00:48:43.310 --> 00:48:45.500 align:middle line:84% But the level of health, especially when 00:48:45.500 --> 00:48:49.250 align:middle line:84% it comes to air quality, is very much shaped by the environment 00:48:49.250 --> 00:48:50.190 align:middle line:90% where these guys are. 00:48:50.190 --> 00:48:51.440 align:middle line:90% So it's very hard. 00:48:51.440 --> 00:48:56.090 align:middle line:84% You have different things like green areas 00:48:56.090 --> 00:48:57.860 align:middle line:84% and so forth that will actually affect 00:48:57.860 --> 00:48:59.810 align:middle line:84% the ultimate level of environmental conditions 00:48:59.810 --> 00:49:00.770 align:middle line:90% in this house. 00:49:00.770 --> 00:49:02.630 align:middle line:84% And that will actually be very different 00:49:02.630 --> 00:49:05.960 align:middle line:84% if we have, in the other side, factories and so forth. 00:49:05.960 --> 00:49:08.090 align:middle line:84% So the outdoor factors change, and we 00:49:08.090 --> 00:49:10.530 align:middle line:84% have to control for that in one way or another. 00:49:10.530 --> 00:49:13.220 align:middle line:84% And also one of the important things that the occupants are 00:49:13.220 --> 00:49:15.650 align:middle line:84% also different because, if you think about that area 00:49:15.650 --> 00:49:18.530 align:middle line:84% and if you think about that house and those two houses 00:49:18.530 --> 00:49:20.510 align:middle line:84% are put in the market, then the question 00:49:20.510 --> 00:49:23.360 align:middle line:84% is, why would you go to the one on the right? 00:49:23.360 --> 00:49:25.040 align:middle line:84% Why would you go to a house that is 00:49:25.040 --> 00:49:29.720 align:middle line:84% in the middle of an industrial area, gray, full of clouds? 00:49:29.720 --> 00:49:31.370 align:middle line:90% Not good. 00:49:31.370 --> 00:49:34.040 align:middle line:84% So the reason why you would go to that house is either 00:49:34.040 --> 00:49:37.080 align:middle line:84% financial-- you can afford-- you cannot afford to go to the one 00:49:37.080 --> 00:49:37.980 align:middle line:90% on the left. 00:49:37.980 --> 00:49:41.760 align:middle line:84% And that means that you probably cannot afford also other things 00:49:41.760 --> 00:49:42.718 align:middle line:90% related to your health. 00:49:42.718 --> 00:49:44.968 align:middle line:84% You might actually not have the best health insurance. 00:49:44.968 --> 00:49:46.137 align:middle line:90% You might not go to the gym. 00:49:46.137 --> 00:49:47.470 align:middle line:90% You might not do all the things. 00:49:47.470 --> 00:49:50.640 align:middle line:84% Or even if you have it, it might be your choice 00:49:50.640 --> 00:49:54.000 align:middle line:84% not to pay the premium for this house. 00:49:54.000 --> 00:49:57.180 align:middle line:84% And it might be your choice also, therefore, 00:49:57.180 --> 00:49:59.730 align:middle line:84% not to go to the gym because I just want to save all my money 00:49:59.730 --> 00:50:00.230 align:middle line:90% or whatever. 00:50:00.230 --> 00:50:02.040 align:middle line:84% Or I just enjoy doing all the things, 00:50:02.040 --> 00:50:04.630 align:middle line:84% enjoying going to the cinema and enjoy going to the gym. 00:50:04.630 --> 00:50:07.980 align:middle line:84% So your value of any health strategy 00:50:07.980 --> 00:50:11.040 align:middle line:84% that you have in your life, not only the place where you live, 00:50:11.040 --> 00:50:15.670 align:middle line:84% is probably much lower than the guy that lives in this house. 00:50:15.670 --> 00:50:17.440 align:middle line:84% And that introduce a lot of problems 00:50:17.440 --> 00:50:19.750 align:middle line:84% because all the difference between these two guys 00:50:19.750 --> 00:50:22.990 align:middle line:84% are not related to this specific guy here 00:50:22.990 --> 00:50:26.080 align:middle line:84% but is related to these but also to the people that 00:50:26.080 --> 00:50:27.630 align:middle line:90% lived in there. 00:50:27.630 --> 00:50:30.960 align:middle line:84% And therefore, if we let people choose the environment where 00:50:30.960 --> 00:50:34.430 align:middle line:84% they live, where they work, then we 00:50:34.430 --> 00:50:38.390 align:middle line:84% will always have this problem confounding our studies 00:50:38.390 --> 00:50:42.110 align:middle line:84% and introducing and basically inflating 00:50:42.110 --> 00:50:44.360 align:middle line:84% the difference between this building and this building 00:50:44.360 --> 00:50:47.990 align:middle line:84% because all of it is inflated by the outdoor environment 00:50:47.990 --> 00:50:51.320 align:middle line:84% and all of it is inflated by the people that 00:50:51.320 --> 00:50:54.540 align:middle line:84% live here versus the people that live here. 00:50:54.540 --> 00:50:57.020 align:middle line:84% AUDIENCE: [INAUDIBLE] this kind of looks like a picture 00:50:57.020 --> 00:50:58.830 align:middle line:90% of the suburbs versus the city. 00:50:58.830 --> 00:51:00.350 align:middle line:90% JUAN PALACIOS: Also. 00:51:00.350 --> 00:51:01.850 align:middle line:84% AUDIENCE: Moving into the city isn't 00:51:01.850 --> 00:51:04.183 align:middle line:84% because you don't have the means to live in the suburbs. 00:51:04.183 --> 00:51:05.935 align:middle line:90% It's a choice. 00:51:05.935 --> 00:51:07.560 align:middle line:84% You want to cut down your commute time. 00:51:07.560 --> 00:51:09.870 align:middle line:84% You want to be closer to amenities. 00:51:09.870 --> 00:51:11.940 align:middle line:90% You want to be closer to work. 00:51:11.940 --> 00:51:16.170 align:middle line:84% It's-- I don't think it's just a you don't have the means to live 00:51:16.170 --> 00:51:17.310 align:middle line:90% here. 00:51:17.310 --> 00:51:19.213 align:middle line:84% Just it's city living versus suburban living. 00:51:19.213 --> 00:51:20.380 align:middle line:90% JUAN PALACIOS: Yeah correct. 00:51:20.380 --> 00:51:22.320 align:middle line:84% So then that would also be like, if you prefer 00:51:22.320 --> 00:51:24.800 align:middle line:84% to live in the suburbs, it's very hard 00:51:24.800 --> 00:51:27.020 align:middle line:84% to imagine that that's the only thing 00:51:27.020 --> 00:51:28.550 align:middle line:84% that you differ from the person that 00:51:28.550 --> 00:51:32.310 align:middle line:90% wants to live in the center. 00:51:32.310 --> 00:51:36.410 align:middle line:84% And then those differences will not 00:51:36.410 --> 00:51:38.180 align:middle line:84% be intertwined also with anything 00:51:38.180 --> 00:51:40.070 align:middle line:84% that affects your health because, if you live 00:51:40.070 --> 00:51:41.570 align:middle line:84% in the suburb, maybe you appreciate also some 00:51:41.570 --> 00:51:44.120 align:middle line:84% walks in the evening while the guy that lives in the city 00:51:44.120 --> 00:51:46.190 align:middle line:84% center, he has appreciated to go to the bar 00:51:46.190 --> 00:51:49.010 align:middle line:84% and have some beers with the co-workers 00:51:49.010 --> 00:51:53.820 align:middle line:84% after work, alcohol versus active living, 00:51:53.820 --> 00:51:55.110 align:middle line:90% very big for health. 00:51:55.110 --> 00:51:56.660 align:middle line:90% So that's just one example. 00:51:56.660 --> 00:51:59.210 align:middle line:84% But basically, once you introduce people sorting 00:51:59.210 --> 00:52:02.120 align:middle line:84% into places, either within the same neighborhood 00:52:02.120 --> 00:52:06.150 align:middle line:84% or across neighborhoods, then you always have the problem of, 00:52:06.150 --> 00:52:08.940 align:middle line:84% if I attach any differences in your health 00:52:08.940 --> 00:52:11.283 align:middle line:84% or in your performance to the place 00:52:11.283 --> 00:52:13.200 align:middle line:84% where you live, to the building that you live, 00:52:13.200 --> 00:52:15.340 align:middle line:90% is it really a fair comparison? 00:52:15.340 --> 00:52:17.340 align:middle line:84% Or you are actually blowing up these differences 00:52:17.340 --> 00:52:19.230 align:middle line:84% by all the other things that he does? 00:52:19.230 --> 00:52:21.570 align:middle line:90% So the challenge here is that. 00:52:21.570 --> 00:52:24.660 align:middle line:84% Because you have this human layer in between the actions 00:52:24.660 --> 00:52:26.430 align:middle line:84% of the facility manager, or the architect, 00:52:26.430 --> 00:52:29.040 align:middle line:84% or the designer and the people that, ultimately, you 00:52:29.040 --> 00:52:32.130 align:middle line:84% care about, you have to take those things into account 00:52:32.130 --> 00:52:33.950 align:middle line:90% very seriously. 00:52:33.950 --> 00:52:37.410 align:middle line:84% And that's what we try to do, the people that 00:52:37.410 --> 00:52:38.890 align:middle line:90% try to do these studies. 00:52:38.890 --> 00:52:41.370 align:middle line:84% And I will show you a little bit a few techniques 00:52:41.370 --> 00:52:44.130 align:middle line:90% that people use. 00:52:44.130 --> 00:52:44.930 align:middle line:90% There you go. 00:52:44.930 --> 00:52:46.040 align:middle line:90% This is one. 00:52:46.040 --> 00:52:51.630 align:middle line:84% One is we don't let people decide their exposure 00:52:51.630 --> 00:52:54.000 align:middle line:84% to something, but we actually manipulate 00:52:54.000 --> 00:52:56.260 align:middle line:90% that exposure in an experiment. 00:52:56.260 --> 00:52:58.020 align:middle line:84% So we invite people-- when we care 00:52:58.020 --> 00:53:00.730 align:middle line:84% about how ventilation affects people, 00:53:00.730 --> 00:53:02.650 align:middle line:90% CO2 levels affect people. 00:53:02.650 --> 00:53:05.760 align:middle line:84% So this guy is measuring in PPM the concentration 00:53:05.760 --> 00:53:07.420 align:middle line:90% of CO2 in the room. 00:53:07.420 --> 00:53:10.440 align:middle line:84% So basics of CO2, when we breathe, 00:53:10.440 --> 00:53:13.680 align:middle line:90% we take oxygen. We exhale CO2. 00:53:13.680 --> 00:53:19.260 align:middle line:84% And then the concentration of CO2 in this room will be up 00:53:19.260 --> 00:53:21.150 align:middle line:84% or will be like-- the CO2 that I'm 00:53:21.150 --> 00:53:25.230 align:middle line:84% exhaling will stay here until the room refreshes 00:53:25.230 --> 00:53:28.230 align:middle line:84% the air with outdoor air and brings back oxygen. 00:53:28.230 --> 00:53:31.305 align:middle line:84% So if this room would be empty, it would be around 450. 00:53:31.305 --> 00:53:32.430 align:middle line:90% That is the outdoor levels. 00:53:32.430 --> 00:53:35.620 align:middle line:84% When we come all in and we are generating CO2, 00:53:35.620 --> 00:53:37.930 align:middle line:84% the room goes-- the CO2 levels in the room 00:53:37.930 --> 00:53:40.720 align:middle line:84% goes up until these guys refresh the air. 00:53:40.720 --> 00:53:45.040 align:middle line:84% So one of the things that people do is that they bring people-- 00:53:45.040 --> 00:53:48.340 align:middle line:84% some of the techniques that people do in research 00:53:48.340 --> 00:53:50.260 align:middle line:84% is that they bring people to a lab, 00:53:50.260 --> 00:53:52.390 align:middle line:84% and they manipulate the environmental conditions 00:53:52.390 --> 00:53:54.430 align:middle line:90% while they are doing a task. 00:53:54.430 --> 00:53:56.680 align:middle line:84% So they are interested in how cognitive performance is 00:53:56.680 --> 00:53:58.280 align:middle line:90% affected by levels of CO2. 00:53:58.280 --> 00:54:04.870 align:middle line:84% What they did was bring in around 24 people, healthy office 00:54:04.870 --> 00:54:07.780 align:middle line:84% workers, to a lab in Sierra Cruz, 00:54:07.780 --> 00:54:12.770 align:middle line:84% and they will have to work in that lab for a whole week. 00:54:12.770 --> 00:54:16.870 align:middle line:84% And every day, the scientists will manipulate the level of CO2 00:54:16.870 --> 00:54:19.370 align:middle line:84% that these people will be working on for six hours. 00:54:19.370 --> 00:54:21.995 align:middle line:84% And at the end of the day, they will give them a cognitive task 00:54:21.995 --> 00:54:25.480 align:middle line:84% to see how their decision making is affected by the level of CO2. 00:54:25.480 --> 00:54:28.270 align:middle line:84% In the best day or in the best CO2 levels, 00:54:28.270 --> 00:54:32.750 align:middle line:84% they will have around 550 PPM is almost outdoor levels. 00:54:32.750 --> 00:54:35.080 align:middle line:90% It's the best that you can have. 00:54:35.080 --> 00:54:37.280 align:middle line:90% In the medium level-- 00:54:37.280 --> 00:54:40.570 align:middle line:84% so what they will say like, a green building day, 00:54:40.570 --> 00:54:43.070 align:middle line:90% it will be 945, almost double. 00:54:43.070 --> 00:54:46.250 align:middle line:84% And in a conventional level, it will be-- 00:54:46.250 --> 00:54:49.390 align:middle line:84% where most of the people will be exposed in a normal building, 00:54:49.390 --> 00:54:51.437 align:middle line:90% it will be around 1400. 00:54:51.437 --> 00:54:53.020 align:middle line:84% These were the levels that actually we 00:54:53.020 --> 00:54:55.462 align:middle line:84% observed a lot of times around MIT before COVID, 00:54:55.462 --> 00:54:57.170 align:middle line:84% but this was like the conventional level. 00:54:57.170 --> 00:55:00.430 align:middle line:84% What you see is that in any level for the performance, 00:55:00.430 --> 00:55:02.530 align:middle line:84% as you go to lower levels of CO2, 00:55:02.530 --> 00:55:04.930 align:middle line:84% the level of cognitive performance increases. 00:55:04.930 --> 00:55:07.210 align:middle line:84% And this means that people are better 00:55:07.210 --> 00:55:11.950 align:middle line:84% able to process information and are better 00:55:11.950 --> 00:55:13.660 align:middle line:90% able to strategize with those. 00:55:13.660 --> 00:55:16.618 align:middle line:84% They were having all of these complex cognitive tasks 00:55:16.618 --> 00:55:18.160 align:middle line:84% that I'm happy to talk about it more, 00:55:18.160 --> 00:55:19.450 align:middle line:84% but they are developed by psychologists 00:55:19.450 --> 00:55:21.520 align:middle line:84% to understand how you your decision making 00:55:21.520 --> 00:55:22.940 align:middle line:90% is impaired by CO2 level. 00:55:22.940 --> 00:55:24.700 align:middle line:84% This is their study that everyone 00:55:24.700 --> 00:55:28.390 align:middle line:84% quotes when they are thinking about ventilation and air 00:55:28.390 --> 00:55:29.480 align:middle line:90% quality in buildings. 00:55:29.480 --> 00:55:32.500 align:middle line:90% This is by Joe Allen here. 00:55:32.500 --> 00:55:34.360 align:middle line:84% The first author is this professor 00:55:34.360 --> 00:55:36.710 align:middle line:84% at Harvard Public Health, School of Public Health. 00:55:36.710 --> 00:55:39.260 align:middle line:84% He's the most famous guy doing these studies. 00:55:39.260 --> 00:55:42.280 align:middle line:84% And this was the study that made him famous, 00:55:42.280 --> 00:55:44.620 align:middle line:84% bringing 24 people into a lab and manipulating 00:55:44.620 --> 00:55:45.740 align:middle line:90% the levels of CO2. 00:55:45.740 --> 00:55:48.740 align:middle line:84% Sometimes science can be simple, powerful, 00:55:48.740 --> 00:55:51.250 align:middle line:84% and, if you're a Harvard professor, impactful, too. 00:55:51.250 --> 00:55:52.780 align:middle line:90% [LAUGHTER] 00:55:52.780 --> 00:55:55.628 align:middle line:84% AUDIENCE: I got a question, really interesting research. 00:55:55.628 --> 00:55:56.170 align:middle line:90% I never saw-- 00:55:56.170 --> 00:55:57.212 align:middle line:90% JUAN PALACIOS: Thank you. 00:55:57.212 --> 00:55:58.580 align:middle line:90% [LAUGHTER] I appreciate it. 00:55:58.580 --> 00:56:01.390 align:middle line:84% AUDIENCE: So in this research, is that saying, simply saying-- 00:56:01.390 --> 00:56:03.040 align:middle line:84% from your perspective, is that saying 00:56:03.040 --> 00:56:06.010 align:middle line:84% that the high concentration of carbon dioxide 00:56:06.010 --> 00:56:08.480 align:middle line:84% will decrease the concentration of [INAUDIBLE]? 00:56:08.480 --> 00:56:12.230 align:middle line:84% Or is it simply saying, because the level of carbon dioxide 00:56:12.230 --> 00:56:16.228 align:middle line:84% is higher, it means there's less fresh air and less oxygen? 00:56:16.228 --> 00:56:18.020 align:middle line:84% JUAN PALACIOS: That's a very good question. 00:56:18.020 --> 00:56:19.895 align:middle line:84% Yeah, these two things are always convoluted, 00:56:19.895 --> 00:56:21.890 align:middle line:84% but in this case, the level of ventilation 00:56:21.890 --> 00:56:22.790 align:middle line:90% was keeping constant. 00:56:22.790 --> 00:56:25.250 align:middle line:84% And they just artificially put CO2 in the room 00:56:25.250 --> 00:56:26.670 align:middle line:90% with a gas bottle. 00:56:26.670 --> 00:56:28.970 align:middle line:84% So this one is purely CO2 levels. 00:56:28.970 --> 00:56:33.890 align:middle line:84% But in this-- in the real world, so I did, for example, 00:56:33.890 --> 00:56:37.670 align:middle line:84% a study trying to measure with those sensors the levels of CO2 00:56:37.670 --> 00:56:39.230 align:middle line:90% in classrooms of-- 00:56:39.230 --> 00:56:41.700 align:middle line:90% the classrooms of 6,000 kids. 00:56:41.700 --> 00:56:43.550 align:middle line:84% And I will get, over time, changes 00:56:43.550 --> 00:56:46.365 align:middle line:84% in CO2 levels after school term, three years 00:56:46.365 --> 00:56:48.740 align:middle line:84% and connected to a test score, seeing that actually there 00:56:48.740 --> 00:56:50.698 align:middle line:84% are big differences when they are exposed that. 00:56:50.698 --> 00:56:53.460 align:middle line:84% That is convoluted with ventilation. 00:56:53.460 --> 00:56:56.750 align:middle line:84% So you are not only exposed to higher levels of CO2 00:56:56.750 --> 00:56:59.300 align:middle line:84% but also probably VOCs and other things that 00:56:59.300 --> 00:57:01.910 align:middle line:84% are more prevalent in the room, where 00:57:01.910 --> 00:57:04.520 align:middle line:84% the level of the ventilation rates are lower 00:57:04.520 --> 00:57:08.340 align:middle line:84% when you are putting flushing less oxygen in. 00:57:08.340 --> 00:57:09.115 align:middle line:90% Yeah. 00:57:09.115 --> 00:57:11.015 align:middle line:84% AUDIENCE: Have you seen a big difference 00:57:11.015 --> 00:57:13.390 align:middle line:84% between a home setting versus an office setting? 00:57:13.390 --> 00:57:17.110 align:middle line:84% Or homes that occupants might have a higher-- 00:57:17.110 --> 00:57:19.550 align:middle line:84% if you're using a gas stove or you have-- 00:57:19.550 --> 00:57:24.320 align:middle line:84% JUAN PALACIOS: Oh yeah, there is very interesting study in-- 00:57:24.320 --> 00:57:26.480 align:middle line:84% the exposure science studies in homes 00:57:26.480 --> 00:57:29.690 align:middle line:84% are usually less prevalent because you have less ability 00:57:29.690 --> 00:57:30.690 align:middle line:90% to measure and so forth. 00:57:30.690 --> 00:57:34.190 align:middle line:84% But there is one done by researchers at MIT, 00:57:34.190 --> 00:57:37.350 align:middle line:84% where they install all sorts of sensors in homes. 00:57:37.350 --> 00:57:40.050 align:middle line:84% And there was like your toaster is killing you. 00:57:40.050 --> 00:57:42.170 align:middle line:84% So that was the MIT news headline 00:57:42.170 --> 00:57:44.420 align:middle line:84% because, when you switch on the toaster, 00:57:44.420 --> 00:57:47.810 align:middle line:84% there was a big spike in particles and so forth. 00:57:47.810 --> 00:57:49.610 align:middle line:90% I think that it depends-- 00:57:49.610 --> 00:57:52.405 align:middle line:84% One of the things that is important to understand 00:57:52.405 --> 00:57:53.780 align:middle line:84% in all of these healthy buildings 00:57:53.780 --> 00:57:57.410 align:middle line:84% is that there is no such a thing as one homogeneous, one thing 00:57:57.410 --> 00:57:58.650 align:middle line:90% that is healthy buildings. 00:57:58.650 --> 00:58:01.350 align:middle line:84% There is a multidimensional aspect. 00:58:01.350 --> 00:58:03.800 align:middle line:84% So in some things, some chemicals, 00:58:03.800 --> 00:58:06.410 align:middle line:84% you will be more exposed in certain offices 00:58:06.410 --> 00:58:09.050 align:middle line:84% than at home because you use different cleaning products. 00:58:09.050 --> 00:58:11.000 align:middle line:84% You also have different ventilation systems 00:58:11.000 --> 00:58:12.410 align:middle line:90% and so forth. 00:58:12.410 --> 00:58:15.800 align:middle line:84% But some others, you will have way more exposure at home 00:58:15.800 --> 00:58:17.970 align:middle line:84% and also depending on the neighborhood and so forth. 00:58:17.970 --> 00:58:20.270 align:middle line:84% So it's very hard to say whether it's healthier 00:58:20.270 --> 00:58:22.450 align:middle line:84% at home than healthier at the office. 00:58:22.450 --> 00:58:24.060 align:middle line:84% There are some chemicals that will 00:58:24.060 --> 00:58:27.540 align:middle line:84% be much more prevalent at home than at the office, 00:58:27.540 --> 00:58:31.310 align:middle line:84% and the other way around will also hold, too. 00:58:31.310 --> 00:58:32.290 align:middle line:90% Carlos. 00:58:32.290 --> 00:58:35.000 align:middle line:90% AUDIENCE: I have a question. 00:58:35.000 --> 00:58:39.430 align:middle line:84% As we're looking into real estate-- like office, lab-- 00:58:39.430 --> 00:58:43.100 align:middle line:84% and all this stuff is being basically imposed 00:58:43.100 --> 00:58:47.180 align:middle line:84% by public policy, at least in the States and Europe, 00:58:47.180 --> 00:58:49.910 align:middle line:84% Are there any studies and any actions 00:58:49.910 --> 00:58:54.048 align:middle line:84% being taken, for example, like at the school level? 00:58:54.048 --> 00:58:54.840 align:middle line:90% JUAN PALACIOS: Yes. 00:58:54.840 --> 00:58:57.173 align:middle line:84% AUDIENCE: Because school properties are also real estate 00:58:57.173 --> 00:58:59.070 align:middle line:90% and are publicly owned-- 00:58:59.070 --> 00:59:03.330 align:middle line:84% it's the public policy is basically 00:59:03.330 --> 00:59:07.770 align:middle line:84% making mandatory for private investors to mutate or retrofit 00:59:07.770 --> 00:59:11.700 align:middle line:84% or whatever their assets into green assets because 00:59:11.700 --> 00:59:18.120 align:middle line:84% of being prone to environment and sustainability. 00:59:18.120 --> 00:59:21.530 align:middle line:84% Are they doing something with their assets, 00:59:21.530 --> 00:59:25.162 align:middle line:84% publicly owned assets to improve or show some support? 00:59:25.162 --> 00:59:26.370 align:middle line:90% JUAN PALACIOS: Yeah, so for-- 00:59:26.370 --> 00:59:28.013 align:middle line:90% yeah, more of the-- 00:59:28.013 --> 00:59:30.180 align:middle line:84% most of the investments that you will see in schools 00:59:30.180 --> 00:59:32.220 align:middle line:84% will be done by public governments or school 00:59:32.220 --> 00:59:36.060 align:middle line:84% districts in a way, some of public or public good money. 00:59:36.060 --> 00:59:39.060 align:middle line:84% There are a lot of money being pumped in since the COVID 00:59:39.060 --> 00:59:41.550 align:middle line:84% because the schools closures was one of the key things that 00:59:41.550 --> 00:59:44.430 align:middle line:84% were happening because these buildings that 00:59:44.430 --> 00:59:46.710 align:middle line:84% were very poorly maintained, especially the HVAC 00:59:46.710 --> 00:59:49.710 align:middle line:84% systems in the US, you will have one out of two schools 00:59:49.710 --> 00:59:53.460 align:middle line:84% that are not having the HVAC system up to speed. 00:59:53.460 --> 00:59:56.920 align:middle line:84% And they will need to modernize, or replace, or even install. 00:59:56.920 --> 00:59:58.890 align:middle line:84% So school systems are really bad. 00:59:58.890 --> 01:00:00.400 align:middle line:90% School buildings are really bad. 01:00:00.400 --> 01:00:02.880 align:middle line:84% And now they were also very densely populated, 01:00:02.880 --> 01:00:05.830 align:middle line:84% so they were at the epicenter of this COVID outbreak. 01:00:05.830 --> 01:00:07.950 align:middle line:84% So now they are getting a lot of public money. 01:00:07.950 --> 01:00:09.480 align:middle line:90% That's what they are having. 01:00:09.480 --> 01:00:09.980 align:middle line:90% All right. 01:00:09.980 --> 01:00:11.480 align:middle line:84% And the same happens with particles, 01:00:11.480 --> 01:00:12.630 align:middle line:90% it's one of my research. 01:00:12.630 --> 01:00:15.960 align:middle line:84% We had with chess players, the strategic decision making 01:00:15.960 --> 01:00:16.960 align:middle line:90% is also impaired. 01:00:16.960 --> 01:00:19.483 align:middle line:84% And again, being back to the point, 01:00:19.483 --> 01:00:21.150 align:middle line:84% this is nothing that you can compensate. 01:00:21.150 --> 01:00:24.120 align:middle line:84% If you are making a decision and you made that decision 01:00:24.120 --> 01:00:27.150 align:middle line:84% and it's worse off, then you can not just 01:00:27.150 --> 01:00:30.030 align:middle line:84% replace it by extra coffee and staying extra hours. 01:00:30.030 --> 01:00:31.060 align:middle line:90% You made that decision. 01:00:31.060 --> 01:00:32.070 align:middle line:90% It's going to hound you. 01:00:32.070 --> 01:00:34.410 align:middle line:84% So if that decision making is impaired, 01:00:34.410 --> 01:00:36.090 align:middle line:90% you have very bad consequences. 01:00:36.090 --> 01:00:37.680 align:middle line:90% One of the things that I am-- 01:00:37.680 --> 01:00:40.110 align:middle line:84% that it also happens in the office building with respect 01:00:40.110 --> 01:00:40.380 align:middle line:90% to health. 01:00:40.380 --> 01:00:41.463 align:middle line:90% There are several studies. 01:00:41.463 --> 01:00:43.050 align:middle line:84% This is one that I did, was basically 01:00:43.050 --> 01:00:45.060 align:middle line:84% understanding what are the impacts 01:00:45.060 --> 01:00:48.400 align:middle line:84% of moving from an normal office building to a healthy building. 01:00:48.400 --> 01:00:50.700 align:middle line:84% Basically, a lot of stuff happening in here 01:00:50.700 --> 01:00:52.860 align:middle line:84% for the technology around ventilation. 01:00:52.860 --> 01:00:55.270 align:middle line:84% They have natural ventilation principles, 01:00:55.270 --> 01:00:59.540 align:middle line:84% where they don't rely a lot in a mechanical ventilation system. 01:00:59.540 --> 01:01:02.140 align:middle line:84% But what they have is a solar chimney that will actually 01:01:02.140 --> 01:01:04.510 align:middle line:84% make the air circulate, very high 01:01:04.510 --> 01:01:06.650 align:middle line:84% ventilation rate in that one, very good building. 01:01:06.650 --> 01:01:08.560 align:middle line:84% And they actually work with me to understand 01:01:08.560 --> 01:01:11.420 align:middle line:84% what are the impacts of this building on health. 01:01:11.420 --> 01:01:14.720 align:middle line:84% So we worked with them for over two years, for three years. 01:01:14.720 --> 01:01:17.750 align:middle line:84% So we were with them before everyone was moved. 01:01:17.750 --> 01:01:20.290 align:middle line:84% And then 70% of the workforce of the municipality 01:01:20.290 --> 01:01:21.850 align:middle line:84% were moved to this healthy building, 01:01:21.850 --> 01:01:24.375 align:middle line:90% and 30% was staying here. 01:01:24.375 --> 01:01:25.750 align:middle line:84% And the reason why they stay here 01:01:25.750 --> 01:01:28.760 align:middle line:84% is mainly because they were not exposed to the public very well. 01:01:28.760 --> 01:01:30.910 align:middle line:84% So if you don't have a lot of meetings with external people, 01:01:30.910 --> 01:01:32.470 align:middle line:84% if the citizens didn't have to meet you, 01:01:32.470 --> 01:01:34.540 align:middle line:84% then they will not have you in the flagship building. 01:01:34.540 --> 01:01:35.950 align:middle line:84% But they will keep you where you are, 01:01:35.950 --> 01:01:37.900 align:middle line:84% which means that it's also a very nice environment 01:01:37.900 --> 01:01:39.460 align:middle line:84% because it's actually not you, again, 01:01:39.460 --> 01:01:41.032 align:middle line:84% who decides where you want to go. 01:01:41.032 --> 01:01:42.490 align:middle line:84% But it's actually the municipality, 01:01:42.490 --> 01:01:43.750 align:middle line:90% very random decision. 01:01:43.750 --> 01:01:45.250 align:middle line:84% It forces you to stay where you are. 01:01:45.250 --> 01:01:46.810 align:middle line:90% Or it forces you to change. 01:01:46.810 --> 01:01:48.640 align:middle line:84% Actually, this building is even put 01:01:48.640 --> 01:01:50.720 align:middle line:84% in an area where it's more polluted. 01:01:50.720 --> 01:01:53.330 align:middle line:84% So it's actually we were expecting that one to backfire. 01:01:53.330 --> 01:01:58.180 align:middle line:84% And they worked with us to be able to assess the health 01:01:58.180 --> 01:02:01.030 align:middle line:84% and well-being of people and also the sick leaves around-- 01:02:01.030 --> 01:02:02.390 align:middle line:90% the changes in sick leave. 01:02:02.390 --> 01:02:04.330 align:middle line:84% And what you see is that when you measure 01:02:04.330 --> 01:02:06.550 align:middle line:84% how these people feel, the people 01:02:06.550 --> 01:02:08.962 align:middle line:84% we were seeing the prevalence of sick building syndrome-- 01:02:08.962 --> 01:02:10.420 align:middle line:84% so the amount of people going there 01:02:10.420 --> 01:02:12.400 align:middle line:90% with fatigue and other symptoms. 01:02:12.400 --> 01:02:14.320 align:middle line:84% And you will see that almost one out of two 01:02:14.320 --> 01:02:16.790 align:middle line:84% will be suffering from that before moving. 01:02:16.790 --> 01:02:19.270 align:middle line:84% And then as they moved, the people 01:02:19.270 --> 01:02:21.573 align:middle line:84% that were to a new building, went down 01:02:21.573 --> 01:02:23.740 align:middle line:84% by half the amount of people reporting sick building 01:02:23.740 --> 01:02:24.400 align:middle line:90% syndrome. 01:02:24.400 --> 01:02:26.150 align:middle line:84% And the others stay where they are. 01:02:26.150 --> 01:02:30.100 align:middle line:84% So this gap here will tell you the difference in health 01:02:30.100 --> 01:02:31.750 align:middle line:90% associated with the building. 01:02:31.750 --> 01:02:33.370 align:middle line:84% And if you will do the quantification 01:02:33.370 --> 01:02:35.710 align:middle line:84% and link it to the sick leave and so forth, 01:02:35.710 --> 01:02:37.600 align:middle line:84% you will see that, if you will capitalize, 01:02:37.600 --> 01:02:40.570 align:middle line:84% that investment will be around 2.5 million euros 01:02:40.570 --> 01:02:42.370 align:middle line:84% that these municipality's actually 01:02:42.370 --> 01:02:44.800 align:middle line:84% getting by just having people taking 01:02:44.800 --> 01:02:46.790 align:middle line:90% just less days of sick leave. 01:02:46.790 --> 01:02:50.200 align:middle line:84% So it was around one to two days less sick leave, 01:02:50.200 --> 01:02:53.440 align:middle line:84% and that is what you will get there. 01:02:53.440 --> 01:02:55.870 align:middle line:84% Now, why is this important not only for the municipality 01:02:55.870 --> 01:02:57.550 align:middle line:84% but in general for corporate tenants 01:02:57.550 --> 01:03:00.430 align:middle line:84% is because, if you look at the income statements of tenants, 01:03:00.430 --> 01:03:03.880 align:middle line:84% you will see that most of the money of a corporate 01:03:03.880 --> 01:03:05.690 align:middle line:90% goes to pay employees. 01:03:05.690 --> 01:03:09.010 align:middle line:84% So we were talking a lot over the first two lectures 01:03:09.010 --> 01:03:10.757 align:middle line:90% around the-- 01:03:10.757 --> 01:03:12.340 align:middle line:84% not only because of the money but also 01:03:12.340 --> 01:03:15.340 align:middle line:84% the CO2 emissions involved in it. 01:03:15.340 --> 01:03:19.730 align:middle line:84% But basically, about this $3 part of the pie-- 01:03:19.730 --> 01:03:23.590 align:middle line:84% so basically this is the 3-30-300 rule is the proportion 01:03:23.590 --> 01:03:27.378 align:middle line:84% of money that goes to utilities, rent, and payroll. 01:03:27.378 --> 01:03:29.170 align:middle line:84% We were talking about that part of the pie, 01:03:29.170 --> 01:03:31.253 align:middle line:84% and now we are talking about that part of the pie. 01:03:31.253 --> 01:03:33.580 align:middle line:84% So even one very minor change in here 01:03:33.580 --> 01:03:37.520 align:middle line:84% will generate, ultimately, a big impact in the income statements. 01:03:37.520 --> 01:03:40.950 align:middle line:84% So we are going to talk now about how to quantify those. 01:03:40.950 --> 01:03:42.095 align:middle line:90% You want to say something? 01:03:42.095 --> 01:03:42.720 align:middle line:90% AUDIENCE: Yeah. 01:03:42.720 --> 01:03:46.890 align:middle line:84% Well, a good example to support this house 01:03:46.890 --> 01:03:52.260 align:middle line:84% they're building in China, a very famous developer 01:03:52.260 --> 01:03:53.950 align:middle line:90% called Binjiang. 01:03:53.950 --> 01:03:59.490 align:middle line:84% And another of them is famous about the house building, 01:03:59.490 --> 01:04:03.052 align:middle line:90% and they want the same location. 01:04:03.052 --> 01:04:05.940 align:middle line:84% The [INAUDIBLE] projects are always 01:04:05.940 --> 01:04:10.350 align:middle line:84% priced higher than competitors and always 01:04:10.350 --> 01:04:18.450 align:middle line:84% count higher than 10% to 15% price than others, competitors. 01:04:18.450 --> 01:04:25.290 align:middle line:84% And always the consumer prefer this higher price 01:04:25.290 --> 01:04:30.030 align:middle line:84% because they also know what happened to them. 01:04:30.030 --> 01:04:36.690 align:middle line:84% But that self-limitation about this [INAUDIBLE] building, 01:04:36.690 --> 01:04:39.870 align:middle line:90% make it low cost is not-- 01:04:39.870 --> 01:04:41.880 align:middle line:84% JUAN PALACIOS: Yeah, we'll talk more on Tuesday 01:04:41.880 --> 01:04:45.530 align:middle line:84% also about these differences in market segments and so forth. 01:04:45.530 --> 01:04:47.608 align:middle line:90% Yeah. 01:04:47.608 --> 01:04:49.150 align:middle line:84% AUDIENCE: About those people who were 01:04:49.150 --> 01:04:53.785 align:middle line:84% asked to move to [INAUDIBLE] or [INAUDIBLE] that have 01:04:53.785 --> 01:04:56.640 align:middle line:90% to deal with the public city. 01:04:56.640 --> 01:05:00.440 align:middle line:84% Would it be the case that those people have healthier lifestyle 01:05:00.440 --> 01:05:04.160 align:middle line:84% than tend to get sick like others? 01:05:04.160 --> 01:05:06.530 align:middle line:84% JUAN PALACIOS: Yeah, well, that would be the reason why 01:05:06.530 --> 01:05:07.730 align:middle line:90% you will have a baseline. 01:05:07.730 --> 01:05:09.770 align:middle line:84% So we then-- before they were moved, 01:05:09.770 --> 01:05:13.070 align:middle line:84% so if these people were just in general different-- they are. 01:05:13.070 --> 01:05:14.700 align:middle line:84% They are different people and so forth. 01:05:14.700 --> 01:05:16.825 align:middle line:84% But basically, what we are using is the differences 01:05:16.825 --> 01:05:19.492 align:middle line:84% in health symptoms and sick leave before and after 01:05:19.492 --> 01:05:20.700 align:middle line:90% they were moved for everyone. 01:05:20.700 --> 01:05:23.040 align:middle line:84% So you are looking at within person variation. 01:05:23.040 --> 01:05:25.415 align:middle line:84% So in that sense, you are not comparing people to people. 01:05:25.415 --> 01:05:28.100 align:middle line:84% You are comparing someone before and after the move 01:05:28.100 --> 01:05:29.160 align:middle line:90% for both groups. 01:05:29.160 --> 01:05:31.758 align:middle line:84% And the difference in the delta for the people that moved 01:05:31.758 --> 01:05:33.800 align:middle line:84% and the people that didn't move is what gives you 01:05:33.800 --> 01:05:36.860 align:middle line:90% the impact of the building. 01:05:36.860 --> 01:05:37.440 align:middle line:90% All right. 01:05:37.440 --> 01:05:40.730 align:middle line:84% So if you think about the translation of that 01:05:40.730 --> 01:05:44.210 align:middle line:84% into money for the average tenant, you see that most of it 01:05:44.210 --> 01:05:49.010 align:middle line:84% is a fake company, a fake company 01:05:49.010 --> 01:05:52.190 align:middle line:84% that the income statements that the professors at Harvard 01:05:52.190 --> 01:05:55.580 align:middle line:84% came up with to show how to quantify 01:05:55.580 --> 01:05:58.250 align:middle line:90% those benefits for tenants. 01:05:58.250 --> 01:06:01.490 align:middle line:84% See that average center will have $6 million 01:06:01.490 --> 01:06:03.270 align:middle line:84% in revenue, $3 million in payroll. 01:06:03.270 --> 01:06:04.490 align:middle line:90% That is half of it. 01:06:04.490 --> 01:06:08.990 align:middle line:84% And then you will pay $300,000 in rent, $30,000 in utility, 01:06:08.990 --> 01:06:09.780 align:middle line:90% and so forth. 01:06:09.780 --> 01:06:11.570 align:middle line:84% And you want to consider what will happen 01:06:11.570 --> 01:06:15.140 align:middle line:84% if you double the ventilation rate from 20 CFM per person 01:06:15.140 --> 01:06:18.840 align:middle line:84% to 40 CFM per person and see what will be the impact. 01:06:18.840 --> 01:06:21.500 align:middle line:84% So if you bring the science into play, you will be like, OK, 01:06:21.500 --> 01:06:25.880 align:middle line:84% the cost will be around $1,006 That will be the cost 01:06:25.880 --> 01:06:27.530 align:middle line:90% of doubling the ventilation. 01:06:27.530 --> 01:06:29.780 align:middle line:84% That is still a quite significant part of the utility, 01:06:29.780 --> 01:06:31.290 align:middle line:90% but it is what it is. 01:06:31.290 --> 01:06:34.190 align:middle line:84% And now, if you get people less sick, 01:06:34.190 --> 01:06:37.640 align:middle line:84% it means that basically the way that they conceptualize 01:06:37.640 --> 01:06:39.920 align:middle line:84% is that you have to pay less number of people 01:06:39.920 --> 01:06:42.470 align:middle line:84% because now you are paying some people that will be sick. 01:06:42.470 --> 01:06:44.852 align:middle line:84% Or you have to pay less number of days per person 01:06:44.852 --> 01:06:46.310 align:middle line:84% because, some days, you are paying, 01:06:46.310 --> 01:06:47.393 align:middle line:90% and these people are sick. 01:06:47.393 --> 01:06:49.970 align:middle line:84% So you could just do the exact same revenue 01:06:49.970 --> 01:06:53.180 align:middle line:84% with just less money because now these people 01:06:53.180 --> 01:06:55.703 align:middle line:84% are fully operational, and they work all the time. 01:06:55.703 --> 01:06:57.120 align:middle line:84% And they are also more productive, 01:06:57.120 --> 01:06:58.970 align:middle line:84% so they are actually more able to produce whatever they 01:06:58.970 --> 01:07:00.510 align:middle line:90% are doing or better quality. 01:07:00.510 --> 01:07:02.180 align:middle line:90% So that's how it is. 01:07:02.180 --> 01:07:05.940 align:middle line:84% So in total, this is the amount of benefits. 01:07:05.940 --> 01:07:10.040 align:middle line:84% So you see that anyways, again, small impacts on here and here 01:07:10.040 --> 01:07:12.780 align:middle line:84% will have a big impact on the ultimate bottom line. 01:07:12.780 --> 01:07:15.140 align:middle line:90% And that's the message here. 01:07:15.140 --> 01:07:16.653 align:middle line:84% Even if you are very conservative, 01:07:16.653 --> 01:07:18.320 align:middle line:84% you will have-- because you are chipping 01:07:18.320 --> 01:07:21.030 align:middle line:84% in this big, large shares of the pie, 01:07:21.030 --> 01:07:24.830 align:middle line:84% it will be a very, very powerful impact on your income statements 01:07:24.830 --> 01:07:25.440 align:middle line:90% as a tenant. 01:07:25.440 --> 01:07:27.950 align:middle line:84% So if you believe any impact, then it's 01:07:27.950 --> 01:07:30.200 align:middle line:84% worth probably going for it because anything 01:07:30.200 --> 01:07:31.730 align:middle line:84% that will impact these large numbers 01:07:31.730 --> 01:07:34.140 align:middle line:90% will have a big impact here. 01:07:34.140 --> 01:07:37.920 align:middle line:84% Now, and I will also-- for the split incentive 01:07:37.920 --> 01:07:40.290 align:middle line:84% type of bargaining, William, you can still-- 01:07:40.290 --> 01:07:44.460 align:middle line:84% because you grow the pie so much, the landlord can still 01:07:44.460 --> 01:07:46.470 align:middle line:84% say, hey, give me some part of this because I'm 01:07:46.470 --> 01:07:47.720 align:middle line:90% the one making the investment. 01:07:47.720 --> 01:07:51.060 align:middle line:84% And you still have a lot of margin to make both a win-win. 01:07:51.060 --> 01:07:53.850 align:middle line:84% Now, you have to communicate, and we will talk about it later. 01:07:53.850 --> 01:07:56.100 align:middle line:84% Siqi, maybe I need to use five minutes of your lecture 01:07:56.100 --> 01:07:56.920 align:middle line:90% on Tuesday. 01:07:56.920 --> 01:07:58.230 align:middle line:90% Siqi, welcome. 01:07:58.230 --> 01:07:59.160 align:middle line:90% How are you? 01:07:59.160 --> 01:08:00.240 align:middle line:90% You enjoying it? 01:08:00.240 --> 01:08:00.510 align:middle line:90% SIQI ZHENG: Any time. 01:08:00.510 --> 01:08:01.060 align:middle line:90% JUAN PALACIOS: There you go. 01:08:01.060 --> 01:08:01.560 align:middle line:90% Any time. 01:08:01.560 --> 01:08:03.120 align:middle line:90% That's what I like. 01:08:03.120 --> 01:08:04.420 align:middle line:90% Let's blame the projector. 01:08:04.420 --> 01:08:07.140 align:middle line:84% But I don't want to rush the last wrap up 01:08:07.140 --> 01:08:09.270 align:middle line:84% because actually it's connected to you. 01:08:09.270 --> 01:08:12.550 align:middle line:84% But basically, here, you see the idea also 01:08:12.550 --> 01:08:13.800 align:middle line:90% that we talk at the beginning. 01:08:13.800 --> 01:08:16.167 align:middle line:84% You grow the pie, and you have the negotiation. 01:08:16.167 --> 01:08:18.000 align:middle line:84% How much you are going to give and so forth? 01:08:18.000 --> 01:08:20.100 align:middle line:84% And what is the approach to that negotiation 01:08:20.100 --> 01:08:22.950 align:middle line:84% is something that is for the next part. 01:08:22.950 --> 01:08:24.450 align:middle line:84% I will-- I promise that I will only 01:08:24.450 --> 01:08:26.490 align:middle line:84% take five minutes and in a way that 01:08:26.490 --> 01:08:27.700 align:middle line:90% is connected to your lecture. 01:08:27.700 --> 01:08:30.399 align:middle line:84% But I don't want to keep you longer than we are supposed to. 01:08:30.399 --> 01:08:32.982 align:middle line:84% I want to take some questions, and then we are going to go up. 01:08:32.982 --> 01:08:34.340 align:middle line:90% But one last slide. 01:08:34.340 --> 01:08:36.310 align:middle line:84% This is just a hypothetical case, 01:08:36.310 --> 01:08:37.899 align:middle line:84% but this is a slide that will show 01:08:37.899 --> 01:08:40.732 align:middle line:84% you what will be the numbers if you will use the best 01:08:40.732 --> 01:08:42.399 align:middle line:84% science that you have to understand what 01:08:42.399 --> 01:08:44.830 align:middle line:84% are the impacts of increasing ventilation rates, 01:08:44.830 --> 01:08:48.680 align:middle line:84% either doubling or increasing by 20% in an average office 01:08:48.680 --> 01:08:49.930 align:middle line:90% building in the united states. 01:08:49.930 --> 01:08:52.597 align:middle line:84% Actually, for the entire office building portfolio in the United 01:08:52.597 --> 01:08:54.790 align:middle line:84% States, what will be the consequences for the energy 01:08:54.790 --> 01:08:57.189 align:middle line:84% cost, the absenteeism, the sick building 01:08:57.189 --> 01:08:59.720 align:middle line:84% syndrome, and, therefore, the performance here? 01:08:59.720 --> 01:09:03.380 align:middle line:84% And what will be the net present value impacts of that? 01:09:03.380 --> 01:09:05.680 align:middle line:84% You see that, if you will double the ventilation rate, 01:09:05.680 --> 01:09:08.290 align:middle line:84% even before COVID-- this is a study of 2012, 01:09:08.290 --> 01:09:09.830 align:middle line:84% but it's the most comprehensive one. 01:09:09.830 --> 01:09:13.569 align:middle line:84% You have still $37 billion gains of doubling the ventilation 01:09:13.569 --> 01:09:17.090 align:middle line:90% rate, and you will have 20%-- 01:09:17.090 --> 01:09:19.430 align:middle line:84% if you will increase by 20% the ventilation rate, 01:09:19.430 --> 01:09:21.140 align:middle line:84% you will still have $30 billion gains 01:09:21.140 --> 01:09:23.840 align:middle line:84% if you compare the cost versus the benefits, 01:09:23.840 --> 01:09:25.640 align:middle line:84% using the best science available. 01:09:25.640 --> 01:09:28.279 align:middle line:84% Now, these numbers are big enough 01:09:28.279 --> 01:09:32.660 align:middle line:84% that, even if you have a big margin of error, big error bars 01:09:32.660 --> 01:09:37.580 align:middle line:84% there, as you like to do in the science literature, 01:09:37.580 --> 01:09:39.600 align:middle line:84% you will still have a positive number. 01:09:39.600 --> 01:09:43.340 align:middle line:84% So I don't want you to memorize 37 or 13, 01:09:43.340 --> 01:09:45.260 align:middle line:84% but I want you to walk through it 01:09:45.260 --> 01:09:47.180 align:middle line:84% when you have the time before the midterm 01:09:47.180 --> 01:09:48.470 align:middle line:90% to see the whole logic. 01:09:48.470 --> 01:09:50.090 align:middle line:84% And you see and realize that, even 01:09:50.090 --> 01:09:51.800 align:middle line:84% if you have some uncertainties in there, 01:09:51.800 --> 01:09:54.870 align:middle line:84% the gains are so large that is worth considering. 01:09:54.870 --> 01:09:57.240 align:middle line:84% And we will talk more later about the barriers. 01:09:57.240 --> 01:09:59.400 align:middle line:84% That will be how we're going to wrap up everything. 01:09:59.400 --> 01:10:01.820 align:middle line:84% But just for you to go home, saying, 01:10:01.820 --> 01:10:02.970 align:middle line:90% there is something to gain. 01:10:02.970 --> 01:10:05.120 align:middle line:84% And then maybe in Naco Taco, you want to talk about 01:10:05.120 --> 01:10:06.440 align:middle line:90% why wouldn't you do it. 01:10:06.440 --> 01:10:09.240 align:middle line:84% And now I will take the last question, and let you free. 01:10:09.240 --> 01:10:09.860 align:middle line:90% Rohit. 01:10:09.860 --> 01:10:10.485 align:middle line:90% AUDIENCE: Yeah. 01:10:10.485 --> 01:10:15.490 align:middle line:84% So these slides before this one, when you had the survey, 01:10:15.490 --> 01:10:19.540 align:middle line:84% I think the costs were higher than the benefits. 01:10:19.540 --> 01:10:21.920 align:middle line:84% JUAN PALACIOS: Well, the cost only for that part, yes. 01:10:21.920 --> 01:10:26.920 align:middle line:84% But the marginal-- this is the marginal benefit 01:10:26.920 --> 01:10:29.650 align:middle line:84% of making the building sustainable, not only healthy 01:10:29.650 --> 01:10:32.640 align:middle line:84% but also improving the energy efficiency and the circularity. 01:10:32.640 --> 01:10:34.683 align:middle line:84% These are-- I can talk hours about this building. 01:10:34.683 --> 01:10:36.100 align:middle line:84% It's a building that is also based 01:10:36.100 --> 01:10:37.940 align:middle line:90% on principles of circularity. 01:10:37.940 --> 01:10:40.630 align:middle line:84% The building is made-- we actually brought the MST 01:10:40.630 --> 01:10:42.350 align:middle line:90% Netherlands folks there. 01:10:42.350 --> 01:10:44.500 align:middle line:84% The building is made in a way that all materials 01:10:44.500 --> 01:10:49.460 align:middle line:84% can be upcycled, from the tables to the concrete and so forth. 01:10:49.460 --> 01:10:53.020 align:middle line:84% So that requires also an extra amount of money 01:10:53.020 --> 01:10:55.300 align:middle line:84% to select those materials, have the people there 01:10:55.300 --> 01:10:56.967 align:middle line:84% to make sure that they wouldn't treat it 01:10:56.967 --> 01:11:02.030 align:middle line:84% in a way that will make it less upcycleable and so forth. 01:11:02.030 --> 01:11:03.980 align:middle line:90% So all of that is 3.4. 01:11:03.980 --> 01:11:05.230 align:middle line:90% They didn't quantify how much. 01:11:05.230 --> 01:11:07.580 align:middle line:84% It was exactly the healthy aspects. 01:11:07.580 --> 01:11:08.710 align:middle line:90% Everything was a bundle. 01:11:08.710 --> 01:11:10.000 align:middle line:90% What they quantify here-- 01:11:10.000 --> 01:11:11.740 align:middle line:84% but this is only the healthy aspects 01:11:11.740 --> 01:11:14.257 align:middle line:84% that already will cover quite a big chunk of it. 01:11:14.257 --> 01:11:16.090 align:middle line:84% And then if you put the changes in operation 01:11:16.090 --> 01:11:18.298 align:middle line:84% because you have a natural ventilation system instead 01:11:18.298 --> 01:11:20.020 align:middle line:84% of a mechanical ventilation system, 01:11:20.020 --> 01:11:24.670 align:middle line:84% so you need less operational cost of maintaining that HVAC 01:11:24.670 --> 01:11:27.865 align:middle line:84% system and so forth, that cost would be much, much higher. 01:11:27.865 --> 01:11:30.100 align:middle line:84% SIQI ZHENG: No, it's 2.5 million per year all. 01:11:30.100 --> 01:11:30.940 align:middle line:84% JUAN PALACIOS: No, it's capitalized. 01:11:30.940 --> 01:11:31.390 align:middle line:90% SIQI ZHENG: Capitalized. 01:11:31.390 --> 01:11:33.485 align:middle line:84% JUAN PALACIOS: Yeah, everything is capitalized. 01:11:33.485 --> 01:11:34.360 align:middle line:90% Good question, Rohit. 01:11:34.360 --> 01:11:35.600 align:middle line:90% Thank you so much, guys. 01:11:35.600 --> 01:11:37.270 align:middle line:84% I'll see you tomorrow and on Tuesday. 01:11:37.270 --> 01:11:37.957 align:middle line:90% We'll grab up. 01:11:37.957 --> 01:11:39.290 align:middle line:90% Thank you for all the questions. 01:11:39.290 --> 01:11:39.940 align:middle line:90% Appreciate it. 01:11:39.940 --> 01:11:42.390 align:middle line:90% [APPLAUSE] 01:11:42.390 --> 01:11:55.000 align:middle line:90%