pg 1 1 sustainability – “the triple bottom line” sustainability doesn’t require sacrifice;...

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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…


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…


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

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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


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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


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Green Compass Part I: a comprehensive green building assessment/management tool

building assessment tool - scorecard

financial evaluator – ROI analysis


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


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Utility BillUtility Bill

Before

Performance Contracting – your costs today


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Utility Bill

Payment for Efficiency Upgrades

Customer Savings

Utility Bill


Customer Savings

Before During

Performance Contracting – during the term of the contract

Immediately begin to enjoy the savings


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Utility Bill


Customer Savings

Utility Bill


Customer Savings

Before During After

Performance Contracting – enjoying the full savings

Enjoy the full savings


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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


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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


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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


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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


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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


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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

pg 1 1 sustainability – “the triple bottom line” sustainability doesn’t require sacrifice;...

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