cincinnati mec 2009 presentation: evolving green economy

Evolving Green

Economy … Financing,

Design, Energy & Legal

Implications of

Sustainable Practices

and Their Impacts to

Manufacturing

18th Annual Business & Industry’s

Environmental Health & Safety Symposium

March 25, 2009

PRESENTERS

Summer J. Koladin PlantzStaff Attorney, Vorys Legal Counsel

Donna RobichaudDuke Energy Corporation

Gregory WardVice President, Wells Fargo Real Estate Group

Todd D. Holloway RLA, PWS

Principal, Civil & Environmental Consultants, Inc.

Sustainability

Motivation

Objectives

Incentives

Execution

“The ability to provide for the needs of the current generation

without compromising the needs of future generations…”

The Dow Jones Sustainability Index defines corporate sustainability as:

“a business approach that creates long-term shareholder value by

embracing opportunities and managing risks deriving from economic,

environmental and social developments.”

MOTIVATION

Summer J. Koladin PlantzVorys Legal Counsel

Legal Issues Associated with

Sustainable Manufacturing

Company

Lenders Consumers

Regulators

Shareholders/

Investors

Partners

Employees

Competitors

Public/

Community

When do legal issues arise?

• Components

• Production

• Transportation

• Marketing & Use

• Disposal

• Reuse

What is in your product?

• Consumer Product

Safety Improvement

Act of 2008

• REACH

• State legislative

proposals

Transportation and Packaging

• GHS

– Classification

– Labeling

– Packaging

Transportation and Packaging• What materials are you using to transport

and ship your products?

• UPS

– No left turns– http://www.pressroom.ups.com/mediakits/factsheet/0,1889,1493,00.html

• Fetzer Wine

– Lighter wine bottles– http://www.fetzer.com/protect.aspx

Advertising• Federal Trade

Commission “Green

Guides”

– No false or misleading

advertising

• What are you using?

– Catalogue, ads

– What are these items

made from?

Contracting

• Details, details, details

• Environmental Audits

• Component

Parts/Supply Chain

• Manufacturing

Specifications

Disclosure Obligations• What risks related to sustainability are

associated with your manufacturing

process?

• Are you required to disclose these risks?

– Shareholders, Directors, Partners, Investors,

Lenders may ask

• Emissions Disclosures

• Climate Risk & Emissions Management

• Physical Risks of Climate Change

• Regulatory Risks

– Excel Energy and Dynegy Settlements

OBJECTIVES

Donna RobichaudDuke Energy Corporation

INCENTIVES

Gregory WardWells Fargo Real Estate Group

Operating Incentives – Your

Money!• Retain money for your company from

items you hate spending on in the first

place:

– Taxes

– Utilities (Energy, Water,

Waste/Recycling)

– Financing

– Soft Costs (Design, Renovation,

Changes in Processes)

– Employee Retention

• Comply with ever-increasing standards

from your customers

Incentives – Real Estate• Not just for new construction – retrofits can also be

“Green” - Sustainable design improves cost of future retrofits, too!

• Design costs can be lower - coordinated design effort, cheaper/easier retrofits in the future

• Lower Operating Costs for Facilities – also limit financial risk of possible future tax increases– Energy costs for the building alone can be reduced

(25%-35% on average)

– Greater control over water and energy use, access to power, period controls to limit unproductive use

• Marginal Cost to “Go Green” - cost difference can be negligible (0-3% on average)

Types of Incentives

• Branding/Reputation

• Complying with tougher customer requirements– (ISO, etc.)

• Tax Incentives– Building materials and systems (new 8 year term on

Solar, lots of other state & local incentives – new Federal incentives coming)

– Equipment –can be utilized to reduce cost of financing

– Energy

• Improved worker productivity

How to Get Most Bang for

Incentive Buck

• Study trends in your industry – target any project to meet future needs– Can you serve your customers without an improved

process/facility/equipment?

– Can your suppliers meet your needs?

– Does a new standard require a shift in supply chain?

• Understand terms of any tax incentives (products, process, materials, timeframe)

• Work with qualified professionals to assess ROI (architects, contractors, any industrial design experts for a new or renovated facility)

Educate Service

Providers/Suppliers

• Educate service providers

– Accountant

– Banker

– Appraiser

– Attorney• They must understand Cost/Benefit and the potential

positive/negative impacts to your business

• Work with suppliers and customers to ensure costs/incentives are managed across organizations

EXECUTION

Todd D. Holloway RLA, PWS

Civil & Environmental Consultants, Inc.

Unites States Green Building Council

Heartland Regional Chapters

NAIOP

Facilities, Processes and Image

EXECUTION

“the Triple Bottom Line”

Source: www.Sustainability-ed.org

EXECUTION

Environmental Impact of Buildings in the US

EXECUTION

The Average High Performance/Green Building Saves:

EXECUTION

Life Cycle Benefits

EXECUTION

LEED® DefinedHigh Performance Building Rating:

EXECUTION

Green Facilities and Infrastructure

- Advanced Storm Water Management

- Natural Lighting/High Efficiency Lighting

- High Efficiency Roofing

- Native/Low Maintenance Landscaping

- High Efficiency HVAC/R

- Indoor Air Quality

-Reduced Emissions

- On-site Renewable Energy

(examples: Ford Motor Rouge Assembly

Proctor and Gamble, Lodz, Poland)

US Citizenship and Immigration

Services-Detroit, MI

Source: Arcus Group, Cleveland Ohio,

architects

High Performance Facilities

EXECUTION

Green Business Processes

- Waste Management and Recycling

(shipping and cast off)

- Delivery Methods

-Water Use Efficiency

(water re-use, bio-treatment)

- Supply Chain Requirements

(ISO 14001 and ISO 26000)

- Worker Productivity and Satisfaction

(sick days, health care costs, output, accuracy)

EXECUTION

Sustainable Image and Public Relations

-Talent Attraction and Retention

(the Millennials)

- Purchase Orders and Consumer Preferences

- Brand Distinction and Differentiation

- Community Stewardship/Good Company Image

(fuels all three above)

QUESTIONS?

Summer J. Koladin Plantz

513.723.4030

skplantz@vorys.com

Gregory W. Ward

216.344.6945

Greg.W.Ward@wellsfargo.com

Donna Robichaud

513.419.5980

Donna.Robichaud@duke-energy.com

Todd Holloway

248.374.8600

tholloway@cecinc.com