Sustainability at DardenHow We Live and How We

Learn

Background on Darden Initiative Process Commitments Actions Questions

Mission Statement

The Darden Graduate School of Business improves society by developing principled leaders for the world of practical affairs.

Academic Programs

Full-Time MBA Program (640 Students)MBA for Executives Program (120 Students)Executive Education – Open Enrollment and

Custom Programs (4,000 Participants)Doctoral Program (15 Students)Research Centers

The Olsson Center

An international leader in the field of business ethics, the Olsson Center for Applied Ethics serves as a critical resource for executives, scholars, students, and Darden

alumni who are faced with the challenges of integrating ethical thinking into business decision-making. It is ranked among the top academic centers for the study of ethics.

B.R.I.C.E.

The Business Roundtable Institute for Corporate Ethics is an independent entity established in partnership with Business Roundtable—an association of 160 CEOs from leading companies.

The Institute brings together leaders from business and academia to fulfill its mission to renew and enhance the link between ethical behavior and business practice through executive education programs, practitioner-focused research and outreach.

The Batten Institute

The mission of the Batten Institute is to create thought leadership (research), translate thought leadership (publishing), and enrich the Darden experience (teaching and student experiences). Initiatives sponsored by the Batten Institute help share best practices with leaders in the world of practical affairs in the areas of entrepreneurship and innovation. 

Batten Institute's four major areas of field research include: corporate innovation to achieve internally-generated revenue growth; environmental sustainability; economic development in emerging regions through entrepreneurship; and the growth of new

industries, with a focus on life sciences.

Darden’s Goodwin Grounds

Goodwin Grounds• 560,000 GSF• 11 Buildings

(‘79-’02)• 20 Acre Campus

1. Darden School• 5 Buildings• 260,000 GSF

2. Sponsors Executive Residence Center• 5 Buildings• 140,000 GSF• 180 Guest Rooms

3. Darden Garage• 500 vehicle capacity

Eco-Effectiveness Metrics(Water, Waste, Energy and related CO2 Emissions:

12/07)

Why?Improved Bottom LineSupport Mission to improve society by developing principled leaders for the world of practical affairs. Reduced Operating Costs & Resource Savings (Water,

Energy, Waste Management) Better Building Performance Increased Value over Lifecycle Enhanced Productivity / Improved Learning Experience Reduced Liability / Improved Risk Management Links to Sustainability Initiatives within Operations,

Curriculum and Research Opportunities & Innovations that are Valuable within

Marketplace

Net Energy Use/Capita: + 29 MMBTU for FY 2007

Economic Benefits School Expenditures for Purchased Energy is budgeted at $635,000 for

FY 2008 Attractive investment opportunities available to reduce annual

expenditures Potential shift to capital cost and remove from annual expenditures for

positive economic life cycle performance Energy costs projected to increase (Electricity – 6%-20% for FY 2009,

Natural Gas – highly variable/random walk); reduction in use removes price escalation risk and service interruption risk

Social Benefits Energy investments can result in improved comfort and related

productivity and educational performance improvements Educational opportunity linked to SustainabilityEnvironmental Benefits Improve environmental quality by reducing negative impacts of use of

fossil fuels and nuclear power on environmental quality – air, water, land, greenhouse gas emissions

Net CO2 Building Emissions/Capita: + 9,309

Pounds for FY 2007Economic Benefits CO2 Emissions offsets selling within marketplace, opportunity for

value creation ($83,778 @ $15/ton for FY 2007) Attractive investment opportunities available to reduce emissions

and produce carbon offsetsSocial Benefits Educational opportunity linked to Sustainability Innovation in carbon trading, energy efficiency and renewable

energy sectors Leading Schools committed to carbon neutralityEnvironmental Benefits Reduce greenhouse gas emissions and related contribution to

negative impacts of global climate change

BenchmarksSource: Mick Womersley of Unity College (11/07)

CO2 Emissions by Campus(pounds per student per year, years variable)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Darden - FY2007

How do we become Carbon Neutral?(February, 2008)

Darden's Goodwin GroundsNet CO2 Building Emissions Targets (Pounds): FY2007 - FY2020

Emission Reducing Wedges

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Conservation

EnergyEfficiency

Renewable EnergyProduction

Renewable EnergyPurchase

Carbon OffsetProjects

25% Reduction by 2010

Carbon Neutral - Net Zero by 2020

Financial Exposure: Carbon Offset Expenditures (2/08)

Darden Carbon Offset Expenditures to Meet Reduction Goals:FY2008-FY2020

$5,819

$11,638

$18,911

$23,275

$29,094

$34,913

$40,732

$46,551

$52,369

$58,188

$64,007

$69,826

$75,645

$2,909$5,819

$9,456$11,638

$14,547$17,456

$20,366$23,275

$26,185$29,094

$32,003$34,913

$37,822

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Carbon Offset - $10/ton Carbon Offset - $5/ton

NPV@10%=$236,642 NPV@10%=$118,321

25% Sustaining25% Reduction by 2010

100% Sustaining - Carbon Neutral - Net Zero by 2020

How do we create Zero Waste?(February, 2008)

Darden SchoolSolid Waste Disposal Targets (Pounds): FY2007 - FY2020

Waste Reduction Wedges

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

25% Reduction by 2010

Reduce

TechnicalCycle

BiologicalCycle

Zero Waste by 2020

Su

stain

ab

ilit

y at

Dard

en

Bob BrunerDean, Darden School of Business

“Darden will be a zero waste, carbon neutral enterprise by 2020 and a top ten school for Teaching and research on Sustainability by 2013.”

- April 24, 2008

Vision: How We Live and How We Learn

How We Live and How We Learn

We teach best about Sustainability when we are grappling ourselves with the challenges of implementing Sustainability practices.

Operations

Facility

How We

Live

Teaching

Research How We

Learn

Implementation-Leadership

Dean of School

Associate Dean of Faculty

Faculty Team of 4

Faculty

Net Impact VP of Campus Greening

Net Impact VP of Curriculum Change

Students

Mgr., Sustainability Programs

Facilities Administrator

General Mgr., Hotel and Food Service

Associate Dean, Administration

Executive Director, Corporate Relations

Executive Director, Darden Foundation

Staff

New Courses

Topics in Entrepreneurial Innovation, Sustainability & Finance

Professor Andy LarsonCo-taught with Mark White from UVA’s McIntire School

Building Great Global Companies for the 21st Century & Beyond

Professors Richard Brownlee and Sherwood Frey

Student Business Projects

For creditIncreasingly focused on social

entrepreneurship, SustainabilityOpportunity to address Darden’s

Sustainability goals

Darden Facilities Operational EffectivenessThe Road to Sustainability at Darden

Rich BaltimoreHolden Lee

Jayson LipseyApril 28, 2008 DBP Report

Findings for GHG

Darden’s GHG Footprint for fiscal year 2007= 4075 Mtons CO2 (15.63 kg CO2/sq. ft.) For comparison, HBS = 18.6 kg CO2/sq. ft, but Mass. electricity is “dirtier.” 1 (Harvard also calculated

their GHG Inventory using the GHG Protocol. Emissions per area allows a more apples-to-apples comparison.)

Monthly Greenhouse Gas Emissions for Fiscal Year 2007

-

50

100

150

200

250

300

350

400

450

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Months

Mto

ns o

f CO

2 Total

Electricity

Natural gas

1. http://www.greencampus.harvard.edu/ggi/hbs.php

Metrics and Calculations - Solid Waste

Total waste output 185 tons of garbage for FY07; peaks in October and April. Given 1200 persons, approx. 310 lbs of garbage per person Recycling rate is 8.2%

Illustration Given, an average African elephant bull weighs 6.5 tons2, 185

tons ≈ 27 elephants

1. source: Keith Crawford and Cheryl Gomez2. http://en.wikipedia.org/wiki/Elephant

≈

Value Map of Recommendations

Low ImpactHigh Impact

Sh

ort

Term

Lon

g T

erm

• Set a lower target for water consumption per person

• Increase number of recycling bins• PR campaign for water conservation• PR campaign for recycling• Conduct water consumption audit• Conduct a lighting efficiency survey

• Analyze impact of “green” for applicants

• Install solar panels

• Develop new waste diversion strategies• Implement “green purchasing” for non-

food services (e.g. furniture).• Install rainwater collection system• Invest in geothermal heat exchange

system• Invest in fuel cell power generation• Investigate Tier 3 GHG inventory

1

2

3

4

• Conduct a trash audit• Update waste management procedures• Implement “green purchasing” for food

services (e.g. organic foods, packaging)• Replace faucets with more efficient

fixtures• Install WeatherTRAK smart irrigation

system• Install wireless electricity metering• Conduct HVAC efficiency survey

Actions – New Roles

Hired alumna Erika Herz as Mgr. of Sustainability Programs

Hired new Executive Director of the Batten Institute, Mike Lenox, renowned scholar in business strategy and the environment

Joined ACORE and AASHE (UVA-wide)New Net Impact VPs of Campus Greening

and Curriculum Change

Actions – Education and Communication

Hosted Net Impact Week, speaker series with Duke, Energy, Cargill and GE discussing their sustainability innovations

Held first ever Sustainability and Renewable Energy Forum featuring leading companies (student-initiated)

Held community “town-hall” meeting to brainstorm strategies for achieving a Zero Waste, Zero Carbon Darden

Communication is critical Dean Bob Bruner’s popular blogs Launching Darden GreenPod podcast series Faculty and staff portal on Sustainability resources

Actions – Operations

Executive Chef: move from boxed lunches to platters Executive Education: change student materials from

paper to online; switch from bottled water to water coolers

Students: initiated electronic exam delivery instead of paper pick-up

Staff: summer party to include bike and scooter display of alternative commuting options

Facilities Manager (LEED professional): wrote Sustaining American Campuses (benchmarking other schools), Greening Darden, and Sustaining Darden’s Goodwin Grounds: Green Profile.

Success Criteria

Lead the way among universities in both curriculum and operations

Be on track to achieve short-, medium- and long term goals, using the metrics we will outline in 2008

Community is engaged in the issues, solving problems, connected with other institutions and sharing best practices

Alumni and corporate partners are engaged with us

Questions

Keith A. Crawford, AICP, LEED APUniversity of VirginiaDarden School of Business Facilities Administrator

Phone: 434-924-4795Email: kac3p@virginia.edu