Business Sustainability Challenge Energy Efficient Design and Commercial

Competitiveness

1 AIA LU/HSW | Course # EDC8212114-2

1 GBCI CE Hour | Course # 920000887

Speakers: Amy McLean-Salls & Ariana Bain

Credit earned on completion of this course will be reported to AIA CES for AIA members. To receive a Certificate of Completion you must complete and pass the 10 question quiz following this presentation with an 80% or higher, then a certificate of completion will be available for immediate download. This course is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. ___________________________________________ Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

Presentation Overview ▪ Behavior change is a key lever for creating the

radical improvements in energy efficiency needed to achieve design imperatives like the AIA 2030 commitment to carbon neutrality, or Living Building Challenge Net Zero Energy Building Certification

▪ Effectively engaging employees can unlock significant improvements in recruitment, retention, and productivity

Presentation Overview

▪ Promoting and advancing the environmental and social mission of a company is one of the best ways to realize these opportunities and drastically reduce energy consumption

▪ The Business Sustainability Challenge is a publicly funded program in CT that provides a strategic framework for these objectives and offers the technical and financial resources to accomplish them

Energy Efficiency Potential ▪ By 2050, there is the potential to reduce the

building sector’s primary energy use by 38-69% depending on the design choices

▪ This represents an investment opportunity with ~24% annual return on a $500 billion investment for $1.9 trillion in present value

Primary Energy Use by Sector 2010

Energy Efficiency Potential ▪ On average, 1 kWh of energy efficiency costs

only 30-50% of supplying 1 kWh of energy ▪ Savings can be multiplied by the inverse of the

company’s profit margin to calculate the new sales required to generate the same value

So Why Aren’t We Doing It? ▪ Barriers are in the “how” not the “what” ▪ Even if they know about the theoretical

opportunity, many people lack the technical and financial capacity to accomplish change

▪ “Systems Benefit Charges” fund residential, commercial, and industrial energy efficiency programs that provide technical and financial assistance in many states

Overcoming Barriers ▪ In Connecticut, we now have EnergizeCT

bringing together the efforts of the Energy Efficiency Fund, the Connecticut Green Bank and the utilities – United Illuminating and Northeast Utilities.

▪ Connecticut ratepayers are funding it to: ▪ Reduce air pollutants and greenhouse gases ▪ Save money ▪ Create jobs ▪ Reduce the need for new energy generation capacity

Motivation ▪ Extrinsic: carrot and stick ▪ Intrinsic: ▪ Autonomy: the desire to direct our own lives ▪ Mastery: the urge to get better and better at something

that matters ▪ Purpose: the yearning to do what we do in the service

of something larger than ourselves ▪ Sustainability offers the opportunity for

employees to access all three of these areas

Productivity

▪ Productivity = ability * motivation ▪ Ability is a function of recruitment ▪ Motivation is a function of engagement

▪ McKinsey research tells us that high performing employees can generate up to 67% more revenues than average employees

Absenteeism v Presenteeism

▪ Absenteeism: missing work costs ▪ US: $84 billion ▪ UK: £8.4 billion

▪ Presenteeism: being on the job and underperforming due to physical or mental illness, stress, or disengagement costs ▪ US: $260 billion ▪ UK: £15.1 billion

Productivity and Innovation

▪ Straight line correlation between % engaged employees and % of employees believing that their company is pursuing worthwhile environmental and social activities 87% of employees who volunteered with their

companies reported an improved perception of their employer - 82% felt more committed to the organization

Employees with weak relations miss an average of 5.9 days per year while strong relations miss 3.7 days per year

Potential Business Benefits ▪ Companies with engaged employees grew profits

three times faster than competitors ▪ Highly engaged organizations have 87% less

staff turnover and 20% better performance than average

▪ 59% of engaged employees say their job brings out their most creative ideas vs. 3% of disengaged employees

Productivity and Green Building ▪ Productivity gains from working in efficient or

green buildings: – Estimates vary, but 6-16% is middle of the range – In an typical office, people cost 100 times more than

energy, so these increases are worth 6-16 times as much as eliminating the entire energy bill

▪ How do you already talk with clients about the value of green buildings and employee behavior?

Behavior and Engagement Basics ▪ Make sustainability a practice that you do “with”

the whole company, rather than “to” them ▪ Behavioral change needs to address the barriers

to adopting new changes and the reasons why people exhibit their current behavior (lack of information is rarely the reason)

▪ Engage your employees on sustainability from the beginning of their tenure at the company

Behavior and Engagement Basics ▪ Emphasize starting with small wins and building

trust, cooperation, and engagement over time ▪ A company can move from dealing with

individuals and straightforward environmental indicators to collaboration and innovation, and finally toward symbiotic relationships and industry leadership

Behavior and Engagement Basics ▪ Two traditional approaches to behavior change:

1. Information/education 2. Appealing to economic self-interest

▪ Research has shown that these approaches do not yield significant changes on their own

Behavior and Engagement Basics ▪ It is more effective to use tools and processes

such as Community Based Social Marketing: 1. Select the new/desired behaviors 2. Identify the barriers/benefits to implementing the

selected behaviors 3. Develop strategy to optimize use of tools (such as

making commitments, using technology/apps, creating feedbacks, etc)

4. Pilot to ensure efficacy 5. Implement at a broad scale

Identifying Desired Outcomes ▪ Potential Focus Areas: ▪ Workplace behavior ▪ At home/in the community ▪ How to connect with Industry standards like AIA 2030

Identifying Desired Outcomes ▪ Common Responses: ▪ Recruitment ▪ Retention ▪ Productivity ▪ Innovation

▪ Do you already have a sense of what an engaged employee looks like at your company?

▪ What kinds of behavioral changes would you like to see amongst your employees?

Potential Places to Start ▪ Identify desired outcomes/changes ▪ Start with building small successes ▪ Communicate the mission and context ▪ Assign ownership and develop champions ▪ Offer take home solutions ▪ Develop collaborative opportunities ▪ Implement information and feedback systems to

make progress visible and reinforce success

BSC Introduction ▪ Umbrella approach to support businesses

becoming more sustainable - charts a course toward sustainability

▪ Makes sustainability: – Accessible – Achievable – Profitable Addresses energy efficiency in the context of

sustainability and competitive benefits

Who and Why? ▪ Expanding sustainability from large businesses to

small and medium sized enterprises (SMEs) ▪ SMEs created the majority of jobs in the past 20

years, but as much as 70% of pollution ▪ SMEs implementing comprehensive

sustainability can increase profitability 66% compared to 38% at large businesses

Goals 1. Reduce energy consumption 2. Manage resources responsibly 3. Improve competitiveness 4. Encourage renewable energy production

Vision ▪ Business and industry partner with communities

and stakeholders ▪ Support businesses maintaining competitiveness ▪ Harmonize the strategic sustainability with

existing energy efficiency Commercial and Industrial programs

Strategy and Design ▪ Harmonizes existing C&I programs with business

need for competitiveness ▪ Implements the global gold-standard for

sustainability – Ceres – Global Reporting Initiative Designed for use with the Strategic Energy

Management process

MIT Sloan Study Top sustainability performers:

1. Move early, even if information is incomplete 2. Balance broad, long-term visions with projects offering

concrete near-term "wins” 3. Drive sustainability top-down and bottom-up 4. Aggressively de-silo sustainability - integrating it

throughout company operations 5. Measure everything (and if ways of measuring something

don't exist, invent them) 6. Value intangible benefits seriously 7. Try to be authentic and transparent - internally and

externally

BSC Program Design

Case Study: Pickard Chilton ▪ Pickard Chilton is the first design firm to join the BSC ▪ We are working together to explore how to best

support advancements in the industry ▪ Our initial project together will look at how to blend

individual tracking technology and occupant behavior change together to create significant energy use reduction in a healthy and fun way

Case Study: Pickard Chilton ▪ They create five primary design qualities in their

buildings: ▪ Light ▪ Nature ▪ Environment ▪ Purpose ▪ Activity

Case Study: Pickard Chilton

Case Study: Pickard Chilton

Case Study: Pickard Chilton

Case Study: Pickard Chilton ▪ Five components of real estate as strategic

advantage: ▪ Engage ▪ Recruit ▪ Retain ▪ Collaborate ▪ Value

Takeaways ▪ How can you apply what you’ve learned today to

developing design components and strategy for your own practice?

Thank You!

Followup The content and information in this presentation was taken from a number of sources. Please contact: Ariana Bain: ariana@metabolicconsulting.com Webinars: webinars@bnpmedia.com Continuing Education: CECampus@bnpmedia.com