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Sustainability – “The Triple Bottom Line”
Sustainability doesn’t require sacrifice;it requires a new frame of mind
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Green Building Trends
New roles are emerging – Chief Sustainability Officer, Director of Energy and Sustainability, etc.
Green Building market is large and growing rapidly -- $12 billion in construction starts in 2008, $60 billion by 2010
Price premium for Green Buildings is shrinking, making them even more economically beneficial
Existing building registrations up in all verticals markets
Focus on improved Operations and Maintenance procedures that reduce operating costs
Carbon is playing a more important role in the Green Building discussion
Green Buildings are part of the legislative and the boardroom strategic agenda
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Green is becoming a competitive driver…
75% said sustainability
is either an
important part of
corporate strategy or expect it to be important in the future
Why have a sustainability strategy?
1.To have a competitive advantage
2.To be seen as leaders in sustainability
3.Public interest in the environment
Recent global survey of CEOs on the topic of sustainability:
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Development and conversions of existing building stock to green operations
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Where should you start? Target your facilities…
Why? Existing buildings account for:
40% of all energy
68% of all electricity
12% of the potable water
40% of raw materials
40% of GHG emissions
30% of waste output
The answer is not constructing new Green Buildings…
Source: USGBC
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The greenest building is one that already exists.
Greenhouse gas emissions from renovation are 30-50% less than an equal investment in new construction
At the same time, 20% more jobs are created with renovation projects
Source: Carnegie Mellon Green Design Institute Life Cycle Assessment Tool, eiolca.net
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Green initiatives are abundant and growing…
19 Federal agencies use LEED as standard
40-50 cities, higher education facilities and others have mandated LEED
NACo Green Government initiative
US Conference of Mayors Climate Initiative
Energy Independence and Security Act 2007
Clinton Climate Initiative Building Retrofit Program
American College and University Presidents Climate Commitment
Association for the Advancement of Sustainability in Higher Education
Collaboration for High Performance Schools
USGBC/Clinton Climate Build Green Schools initiative
Green Grid (IT)
Green Guide for Healthcare
Architecture 2030
BOMA 7-Point Challenge/CCI Center for Energy and Climate Solutions
Government
Education
Private Sector
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Green building characteristics
Energy and Water Savings
Emission Reductions
Operations & Maintenance Savings
Improved Workforce Productivity
Employee Attraction and Retention (green buildings attract and help retain employees)
Business Retention and Expansion (green businesses attract more green businesses to a community)
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Other benefits of green buildings…
Extends equipment life
Reduces maintenance costs
Reduces risk from energy price spikes
Reduces environmental risk
Reduces insurance liability with healthier employees
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A green building really addresses more than the building…
Green Building
Green Landscaping and
Green Transportation
Green Operations,
Services, Products,
Programs and Procurement
a green, sustainable facility incorporates
all three elements
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Green Buildings
“As green goes mainstream, standard buildings will rapidly become obsolete and lose value. To avoid this problem, building owners should carry out green renovations.”
Charles Lockwood
Harvard Business Review, June 2006
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Life Cycle Cost of Buildings “For offices,
LEED building energy use
intensity averaged
33% below the
national average for commercial buildings.”
Source: New Building Institute, 2008
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Economically, green buildings…
MAXIMIZE SUSTAINABILITY
Save energy and water
Increase market value of building
Cut operational costs
SAVE MONEY
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Environmentally, green buildings…
MAXIMIZE SUSTAINABILITY
Cut greenhouse gas emissions
Maintain natural resources
Encourage green practices of tenants or owner occupants
SAVE THE ENVIRONMENT
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Socially, green buildings…
MAXIMIZE SUSTAINABILITY
Tenant/worker productivity/retention
Enhance public image
Reduce absenteeism; Improve health
BUILD COMMUNITY
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How do I move forward?
Follow Leadership in Energy & Environmental
Design (LEED®) requirements for new and existing buildings, O&M
Follow ENERGYSTARTM benchmarking
hig
h p
erform
ance
green
bu
ildin
g
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What is the LEED System?
Leadership in
Energy and
Environmental
Design
A voluntary national guide for developing high-performance, sustainable buildings and interiors.
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LEED programs
Building certification
Certified
Silver
Gold
Platinum
Professional accreditation
Training workshops
Educational resources – www.usgbc.org
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LEED Point Categories
LEED requirements address the complete life cycle of a building – from the site on which it sits, to the cleaning of the facility.
Standardizes credit categories for all rating systems:
Sustainable Sites
Water efficiency
Energy and Atmosphere
Materials and Resources
Indoor Environmental Quality
Innovation
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Case Study: Johnson Controls Building Efficiency HQ
Project: 130,000 sq. ft. Brengel Technology Center, Milwaukee, WI; first and only dual-certified building
Challenge: Demonstrate that it doesn’t have to cost more to build a high performance green building
Results: LEED Silver Certification NC/ LEED Gold Certification EB
35% reduction in operating costs (approximately $.76 per sq ft lower than traditional buildings)
Avoided emissions (2 million pounds of CO2; 180 pounds of CO; 14,000 pounds of sulfur dioxide)
$76,000 energy savings annually
$225,000 initial savings from integrated building systems
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The greening process is getting easier…
“… we have access to tools that are proven to lower overhead costs, improve productivity and strengthen the bottom line.”
Charles Lockwood, Harvard Business Review, 2006
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Our “Path to Sustainability”: a green toolkit
Follow the path…
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Create a Green Plan
Determine Energy Use, Calculate GHG
Baseline, Assess Building Portfolio
Fund Green Project
Implement Solutions
Educate, Communicate
and Report
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Create a green plan
Use our award-winning strategic planning tool – the Sustainability Navigator
What if you could
Prioritize facility needs...across your organization?
Learn about best practices...from other industries?
Achieve organizational alignment…around specific strategies?
Reach consensus on solutions…with all stakeholders?
And get it all done in one day??
Create a Green Plan
Plan Assess Fund Implement Educate Report
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Establish Goals
Comprehensive report of findings
Suggested timeline for action
Suggested “how-to” plan for action
Priorities of sustainability for your organization
We take you from planning to action plan --
quickly and easily
Plan Assess Fund Implement Educate Report
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Assess Building Portfolio – Establish GHG and Energy Baselines
Utility Bill Processing and Payment
pays and tracks your utility bills
this tool identifies billing errors and validates rate calculation
the data is then used for energy benchmarking and greenhouse gas (GHG) reporting
Energy Benchmark – submits building data to ENERGYSTAR® Portfolio Manager to maintain your performance score
compares your facility to other like facilities
Greenhouse Gas (GHG) Reports – automatically converts your energy use data to GHG emissions
Plan Assess Fund Implement Educate Report
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Green Compass Part I: a comprehensive green building assessment/management tool
building assessment tool - scorecard
financial evaluator – ROI analysis
Plan Assess Fund Implement Educate Report
Assess Building Portfolio – Establish GHG and Energy Baselines
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Green Building Solutions Process
Customer Energy Database (1 yr.
history min.)
Energy usage per sq. ft.
Portfolio Manager EPA ENERGYSTAR Benchmarking tool
ES>= 69 PointsMeets the Energy
performance for LEED EB
ES>= 75 PointsQualifies for
ENERGYSTAR label
JCI validation of utility data and ES program minimum standards
ENERGYSTAR label award (bldg plaque)
Green Compass LEED EB O&M Audit
ES<= 69 PointsEnergy upgrades
required
Focused energy audit
Project Development Agreement
Install upgrades to meet 69 point hurdle
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Green CompassScorecard/ROI Reports
USGBC Registration
Opt not to pursue LEED Meet LEED as is Need to develop LEED credits
Align LEED with savings streamsCredit-by-Credit
Develop LEED EB project
Develop DocumentationUSGBC Submission
(Green Compass/LEED online)
Deliver LEED EB Certification!
Green Building Solutions Process (cont’d)
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Funding green projects using Performance Contracting
Performance contracting is encouraged through state legislation and CCI as a procurement method that allows projects to be funded using the energy and water savings
1. customer finances facility improvements
2. project energy, water and operational savings are enough to pay for the financing with an attractive risk-adjusted ROI
3. customer keeps all savings
4. utility and operational savings pay for financing and are guaranteed by Johnson Controls so your risk is mitigated
Plan Assess Fund Implement Educate Report
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Utility BillUtility Bill
Before
Performance Contracting – your costs today
Plan Assess Fund Implement Educate Report
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Utility Bill
Payment for Efficiency Upgrades
Customer Savings
Utility Bill
Payment for Efficiency Upgrades
Customer Savings
Before During
Performance Contracting – during the term of the contract
Immediately begin to enjoy the savings
Plan Assess Fund Implement Educate Report
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Utility Bill
Payment for Efficiency Upgrades
Customer Savings
Utility Bill
Payment for Efficiency Upgrades
Customer Savings
Before During After
Performance Contracting – enjoying the full savings
Enjoy the full savings
Plan Assess Fund Implement Educate Report
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Other benefits of performance contracting…
Most performance contracting projects help our customers qualify for a significant amount of LEED points with no added costs, other than documentation process management
The Green Compass tool can decrease the documentation costs by 25-50% with its template driven web-based platform
Plan Assess Fund Implement Educate Report
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Implement green building solutions
Eco-friendly HVAC equipment
Carbon dioxide monitoring
Building commissioning/Re-commissioning
Personal environments
LEED and ENERGYSTAR Certification
Under floor air distribution systems
Integrated building management systems
Renewable energy solutions
Water conservation
Lighting systems
Green O&M support services – cleaning, landscaping, materials sourcing
Plan Assess Fund Implement Educate Report
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Manage the Process for LEED Certification/Impact Reporting
Green Compass Part II: a green building tool
Project Management tool for process of documentation development and submitted to USGBC
Examples of other LEED certified projects for Johnson Controls in searchable database
Portfolio Manager – retain information for internal use and re-certification
Plan Assess Fund Implement Educate Report
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Sample projects and green impact…
Project Sq. Ft. Annual SavingsAnnual Savings
per Sq. Ft.
Johnson Diversey 278,000 $137,000 $0.49
National Geographic Society
1,000,000 $600,000 $.60
EPA (Sacramento, CA)
960,000 $950,000 $0.99
Janssen Pharmaceutical
475,000 $70,000 $0.15
Owens Corning 394,000 $112,965 $0.29
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Educate, Communicate and Report
Customized web-based training to teach employees, tenants and owners about how to maximize the benefits of green buildings through individual activities
Entertaining, informative approach
Taught onsite at your location or at Johnson Controls’ Institute locations
Support materials for reference
Plan Assess Fund Implement Educate Report
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And finally, don’t forget public relations!
One of the primary drivers for sustainability initiatives is public opinion!
Press releases
Hold an event to celebrate LEED and/or ENERGYSTAR awards
Marketing efforts should capitalize on your green image
Join sustainability organizations
Create a sustainability website/report
Promote your green efforts with tenants, constituents, employees, neighbors, and the media
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Sustainability: a green building checklist
Set the stage with collaborative planning
Calculate baseline energy and emissions
Assess existing buildings and potential ROI
Use performance contracting to fund
Implement building improvements/solutions
Manage and operate “greenly”
Buy local and engage local contractors
Engage employees or tenants via education
Report results and track performance
Plan Assess Fund Implement Educate Report
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Did You Know?
Johnson Controls has the largest portfolio of performance contracting guarantees in North America
Our team include more than 85 LEED Accredited Professionals throughout North America and the world
Our team has done more LEED certified projects than all of our competitors combined!
Johnson Controls helped develop the LEED Green Building Rating System and were charter members of the U.S. Green Building Council’s board
In 2004, we received the World Environment Center’s Gold Medal for International Corporate Achievement in Sustainable Development
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Did You Know?
Typical building lifecycle operations and maintenance impacts of greening can generate up to $1 per square foot of annual savings
Nearly half of LEED buildings had ENERGYSTAR ratings of at least 75, meeting the qualification for an EPA- ENERGYSTAR building
The International Energy Agency (IEA) estimates that on average, an additional $1 spent on more efficient equipment and buildings avoids more than $2 in investment in electricity supply.
Average property value increases as a result of greening ranges
from is 4:1 to 10:1
“Working for a “cool” company or living in a ‘cool’ place is an
economic imperative for attracting workforce; green is cool”
Source: New Building Institute 3/08, EIA, 2006, Vandewalle and Assoc, 2008
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