2/1/2011            The Business Value              of Going Green    CELIA HAMMOND, LEED AP O+M, BEP            FEBRUARY ...
2/1/2011CONSOL ENERGY CENTER           The Pirates are doing it     Through the work of greening        initiatives durin...
2/1/2011    Every person is affected:            Owners           Designers           Engineers          Contractors      ...
2/1/2011                             Why?      The impact of the design construction       and operation of the built    ...
2/1/2011          Green Building Movement:   Green Building: transform the    way built environments are    designed, bui...
2/1/2011    Green Buildings:               Generate   economic               benefits               Areresource-efficien...
2/1/2011AverageSavings ofGreenBuildings                                                                 WASTE             ...
2/1/2011 Triple Bottom Line:    Measures projects based on performance in society,     environment, and economy          ...
2/1/2011LEED: Leadership in Energyand Environmental Design                  LEED designed to meet need to                ...
2/1/2011LEED Score Card                       10
2/1/2011             LEED Prerequisites & Credits   Prerequisites required, credits optional   100 base points, 6 Innova...
2/1/2011                   LEED or Leeds?            LEED                           Leeds          Green Building         ...
2/1/2011       Why consider green…. Or LEED?         Getty Center         Adobe Incorporated         Missouri Botanical...
2/1/2011                          Energy ConsumptionDefining and              Water ConsumptionMeasuring               ...
2/1/2011LEED – Water Efficiency (WE)      Water Management                  “When the                  wells dry, we      ...
2/1/2011Indoor Plumbing Fixture Efficiency                     Waterless                     Fixtures                     ...
2/1/2011                Water Savings = Cost Savings   C&W at Adobe Towers water management program saved    more than $3...
2/1/2011        Energy & Atmosphere (EA)  Energy costs are a large portion of overall   operating expenses of buildings  ...
2/1/2011       Energy Star Portfolio Manager – managed by the EPA       Free website to input the following data:        ...
2/1/2011          Energy        ConsumptionAccording to the Environmental Protection Agency, the average commercial buildi...
2/1/2011   Materials & Resources       Life Cycle Example:Carpet Tile vs Roll Floor Covering                              ...
2/1/2011       Life Cycle Example:Maintenance/Replacement Expense  Replace         Replace stained or     entire carpetw...
2/1/2011                 Sustainable Purchasing   Everyday goods –       Paper (printer, notebooks, envelopes etc)     ...
2/1/2011                     Waste Diversion Understand your waste stream – do an audit Where do these items go and how ...
2/1/2011    Waste Diversion – Make it competitive Set your metric and a goal that is reasonable Push the limit a little ...
2/1/2011         Indoor Environmental Quality Air Quality Daylight and Views Green Cleaning Thermal Comfort Occupant C...
2/1/2011                Green Cleaning Policy Green Cleaning (low cost , no cost)    Sustainable cleaning systems    Su...
2/1/2011ADOBE SYSTEMS INCORPORATED    The Business Case   For LEED Certification             Adobe Towers   Adobe Systems ...
2/1/2011                               Adobe Towers              Adobe Systems Incorporated’s Headquarters Buildings  •   ...
2/1/2011 Load Management     26 separate load management projects:     •6 applications of motion sensors to curtail      l...
2/1/2011                               ROI  C O N S I D E R T H AT M O S T E X I T S I G N S U S E T W O 2 0   WAT T I N C...
2/1/2011              Waste Management                                    Multiple Combined Projects:                     ...
2/1/2011Adobe’s Savings Through Sustainability         Total progress as of December 31, 2008:         • Effectively reduc...
2/1/2011        ANOTHER       PERSPECTIVE   Actually,  it is easy being green,…and profitable!        Celia Hammond       ...
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The Business Value of Going Green

  1. 1. 2/1/2011 The Business Value of Going Green CELIA HAMMOND, LEED AP O+M, BEP FEBRUARY 1, 2011 And you….? Never really heard of green building – nor understand the hype? Heard of “being green” – energy efficient? Know of LEED buildings in PA, understand it involves more than energy efficiency? 1
  2. 2. 2/1/2011CONSOL ENERGY CENTER The Pirates are doing it  Through the work of greening initiatives during the 2010 season the Pirates recycled:  27.7 tons of Glass  5.5 tons of aluminum cans  22.2 tons of plastic  14.5 tons of paper  101.1 tons of baled cardboard  11.2 tons of used cooking oil  42.5 tons of yard waste  262.3 tons of food waste  61.9 tons of other recyclable materials 2
  3. 3. 2/1/2011 Every person is affected: Owners Designers Engineers Contractors Sub-Contractors Tenants (Organizations) Occupants (Individuals)Everyone is involved and affected: Owners Tenants/ Designers Occupant Contractor Engineers / Subs 3
  4. 4. 2/1/2011 Why?  The impact of the design construction and operation of the built environment has profound implication for human health environment and economy.  On average people spend over 85% of their time inside a building. Green Building Movement: The trend has risen dramatically over the past decade Federal, State and Local agencies are requiring sustainable facilities and making laws to support them.  US General Services Administration requires LEED certification on new construction 4
  5. 5. 2/1/2011 Green Building Movement: Green Building: transform the way built environments are designed, built, and operated Impact earliest stages of planning to beyond the end of life Encompass production and fate of every substance that crosses into or out of a project US Buildings: 72% of electricity consumption 39% of energy use 38% of all carbon dioxide (CO2) emissions 40% of raw materials use 30% of waste output 14% of potable water consumptionGreen Building aims to minimize human impact on natural resources 5
  6. 6. 2/1/2011 Green Buildings:  Generate economic benefits  Areresource-efficient & comfortable  Contain the amenities necessary for better quality of life Green Buildings: Green building is propelled by belief that design, construction, and operation of buildings can & should address:  energy efficiency  smart growth  water conservation  indoor environmental quality  material selection and life-cycle 6
  7. 7. 2/1/2011AverageSavings ofGreenBuildings WASTE COST WATER SAVINGS USE 50-90% CARBON SAVINGS SAVINGS 30-50% 35% ENERGY SAVINGS 30% Source: Test Capital E Facility Life Cycle Cost Occupant Salaries 92% Operations & Design & Maintenance Construction 6% 2% Based on 30-year lifecycle BOMA report 14 7
  8. 8. 2/1/2011 Triple Bottom Line:  Measures projects based on performance in society, environment, and economy (people, planet, profit) Green buildings measure/enhance the sustainability of buildings based on TBL Refocusesthe measurement of corporate performance from shareholder’s perspective (mostly financial) to a stakeholder’s (any impact on anyone) U.S. Green Building Council  Non-profit founded 1993  Nation’sforemost coalition of green leaders  Promotes environmentally responsible, profitable, and healthy buildings  Members are from more than 15,000 diverse organizations  More than 70 regional chapters 8
  9. 9. 2/1/2011LEED: Leadership in Energyand Environmental Design  LEED designed to meet need to system to define and measure green buildings  First committee comprised of: architects, real estate agents, a building owner, a lawyer, an environmentalist, and other industry representatives LEED – Green Building Rating System  Third-party green building certification program  Nationallyaccepted benchmark for the design, construction, and operation of high performance green buildings.  Voluntary,consensus-based, comprehensive, and flexible  Prevents “greenwashing” 9
  10. 10. 2/1/2011LEED Score Card 10
  11. 11. 2/1/2011 LEED Prerequisites & Credits Prerequisites required, credits optional 100 base points, 6 Innovation & Design points, 4 Regionalization points (110 total)  Certified: 40-49 points  Gold: 60-79 points  Silver: 50-59 points  Platinum: 80+ points LEED Rating Systems 11
  12. 12. 2/1/2011 LEED or Leeds? LEED Leeds Green Building City in the UK Rating System Using LEED as a Guide Sustainable practices are best management practices Many implemented at low cost/no cost, not capital Actual certification costs money – Do you need a plaque?  Is there an ROI for your organization?  Will your business stock go up?  Are your clients asking you about your “greenness”?  What is your public image?  Does management have personal initiative?  What is your competitor doing? 12
  13. 13. 2/1/2011 Why consider green…. Or LEED?  Getty Center  Adobe Incorporated  Missouri Botanical Garden (MOBOT)  State of Colorado  Dr. James Heneghan  Pentagon  GE  Synopsys  Cushman & Wakefield Where to start?Use LEED (or parts of it) as a Business Tool to Measure Your Success“You can’t manage what you cant measure” 13
  14. 14. 2/1/2011  Energy ConsumptionDefining and  Water ConsumptionMeasuring  Recycling/Waste Diversionyour KPIs  Green Cleaning  Comfort CallsWhat works for  Greenhouse Gas Reduction/Carbonyour organization? Footprint  Alternative Transportation  RMI claims  Energy Use Index – EUI  Data Center Use  Purchasing You can’t manage what you can’t measure. LEED - Sustainable Sites (SS) Commuter Travel Surrounding Hardscape Habitat Management Site Impacts Landscape Heat Island Management Effect Stormwater Management 14
  15. 15. 2/1/2011LEED – Water Efficiency (WE) Water Management “When the wells dry, we know the worth of water.” Benjamin Franklin 15
  16. 16. 2/1/2011Indoor Plumbing Fixture Efficiency Waterless Fixtures Low flow FixturesLow-flowdiaphragms Indoor Plumbing Fixture Efficiency  75% water savings from faucets 16
  17. 17. 2/1/2011 Water Savings = Cost Savings C&W at Adobe Towers water management program saved more than $30k per year and provided a 22% return on investment A commercial office building in Boston replaced existing 3.5 gpf toilets with low-flow 1.6 gpf toilets  Reduced water use by 15%  Initial cost of $32,000  Estimated annual savings of $22,800 and 1.4 year payback An office building in Boston installed 30 efficient aerators  Reduced water use by 190.000 gallons per year  Initial cost $300  Estimated savings of $1,250 per year with a simple 2 month payback Water Performance MeasurementWhole Building MeterSubmetering: have permanent meter for one more water system  Irrigation  Indoor Plumbing Fixtures  Cooling Towers  Domestic Hot Water  Other Process 17
  18. 18. 2/1/2011 Energy & Atmosphere (EA)  Energy costs are a large portion of overall operating expenses of buildings 2005 average energy cost  $1.51/SF for an office buildingEPA’s Energy Star 18
  19. 19. 2/1/2011 Energy Star Portfolio Manager – managed by the EPA Free website to input the following data:  Type of facility  Location  Size  Space types  Occupants  Computers per occupant  Utility data© Copyright 2010 Cassidy Turley. 37 19
  20. 20. 2/1/2011 Energy ConsumptionAccording to the Environmental Protection Agency, the average commercial building should be able to reduce its energy consumption by 30%, easily. Metering If you need to reduce energy use by 10% - where do you begin? 20
  21. 21. 2/1/2011 Materials & Resources Life Cycle Example:Carpet Tile vs Roll Floor Covering 21
  22. 22. 2/1/2011 Life Cycle Example:Maintenance/Replacement Expense Replace Replace stained or entire carpetworn tiles as when stained needed and worn Sustainable Purchasing 22
  23. 23. 2/1/2011 Sustainable Purchasing Everyday goods –  Paper (printer, notebooks, envelopes etc)  Binders, Desk Accessories  Toner Cartridges Sustainable Purchasing  Durable Goods – Electronics and Furnishings 23
  24. 24. 2/1/2011 Waste Diversion Understand your waste stream – do an audit Where do these items go and how much?  Paper  Food  Cardboard  Pallets  Electronics  Green landscape  Other? 24
  25. 25. 2/1/2011 Waste Diversion – Make it competitive Set your metric and a goal that is reasonable Push the limit a little – make it successful 25
  26. 26. 2/1/2011 Indoor Environmental Quality Air Quality Daylight and Views Green Cleaning Thermal Comfort Occupant Comfort: Occupant Survey  Survey building occupants  thermal comfort  indoor air quality  lighting levels  building cleanliness  acoustics  occupant comfort 26
  27. 27. 2/1/2011 Green Cleaning Policy Green Cleaning (low cost , no cost)  Sustainable cleaning systems  Sustainable cleaning products  Appropriate dilution systems  Proper training in hazardous use, disposal and packaging  Hand soaps - no antimicrobial  Equipment that reduces IAQ Innovations/Region Points Get creative! Go above and beyond Get extra points based on where your building is 27
  28. 28. 2/1/2011ADOBE SYSTEMS INCORPORATED The Business Case For LEED Certification Adobe Towers Adobe Systems Incorporated’s Headquarters Buildings 28
  29. 29. 2/1/2011 Adobe Towers Adobe Systems Incorporated’s Headquarters Buildings • 3 buildings, 1 million square feet, completed 1996-2003 • 64 sustainability projects completed over five years • Cost: $1.4 million; rebates: $389k; annual savings: $1.2 million • 9.1 month payback; 121% ROI (Return On Investment) • Electricity use reduced 37% • Natural gas use reduced 41% • Domestic water use reduced 22% • Landscape irrigation water use reduced 76% • Up to 85% of its solid waste diverted through composting and recycling • CO2 emissions reduced 19%; with Renewable Energy Credits, 38.2%. Cost Summary of ProjectsDescription # Projects Cost Rebate Savings ROILoad Management 26 $445,248 $205,437 $729,185 304%Lighting 19 $300,701 $ 44,918 $155,616 61%Equipment 6 $298,439 $122,575 $107,976 61%Monitor & Controls 1 $ 39,472 $ 11,000 $ 12,001 42%Water Management 3 $145,732 $ 5,396 $ 31,287 22%Waste Stream 1 $ 0 $ 0 $137,380 immediateOffice Supplies 1 $ 0 $ 0 $ 8,700 immediateSustainable Janitorial 1 $ 0 $ 0 $ 0 n/aIndoor Air Quality 1 $ 0 $ 0 $ 0 n/aAlternative Trans 1 $ 0 $ 0 $ 0 n/aCompostable Paper 1 $ 0 $ 0 $ 0 n/aPurchase Alter Energy 1 $ 16,000 $ 0 $ 0 n/aLEED Consult(3 bldgs) 1 $105,000 $ 0 $ 0 n/aRegister/Cert (3 bldg) 1 $ 12,000 $ 0 $ 0 n/aTotal 64 $1,362,592 $389,326 $1,182,145 121% 29
  30. 30. 2/1/2011 Load Management 26 separate load management projects: •6 applications of motion sensors to curtail lighting •Adjusted run-times on equipment and motors, including garage fans, boilers, and fountain pumps •Rescheduled parking garage lighting to reduce operating hours •Relocated thermostats from ceiling’s in IDC closet to optimize temperature readingsLighting Retrofits 19 Separate Lighting Modifications •Converted incandescent lamps to compact fluorescent • Retrofitted high-pressure high sodium lamps in garage to fluorescents • Upgraded fluorescent T8 lamps to latest generation • Changed fluorescent exit signs to LED 30
  31. 31. 2/1/2011 ROI C O N S I D E R T H AT M O S T E X I T S I G N S U S E T W O 2 0 WAT T I N C A N D E S C E N T B U L B S ( A T O TA L O F 4 0 WAT T S O P E R AT E D 2 4 H O U R S P E R D AY ) ,W H I L E A N L E D E X I T S I G N S U S E S 2 WAT T S A N D L E D R E T R O - F I T B U L B S U S E O N LY 1 . 4 WAT T S . AT $ . 1 0 P E R K W H , Y O U C A N E X P E C T T O S AV E OVER $450 IN ENERGY COSTS ALONE OVER THE LIFE OF THE LED EXIT SIGN Green Cleaning Multiple Projects: •100% Green Chemicals •Automatic Solution Dispensers •Microfiber Dust-mops and Wipes •High-filtration Vacuum Cleaners •Training •Use of incentive bonuses 31
  32. 32. 2/1/2011 Waste Management Multiple Combined Projects: •Categorized recycling containers installed in each break room: Compost, Recycling, Trash •Battery and toner cartridge recycling in every break room •All food waste is composted •Light bulbs, lamps and e-waste are recycled through outside contractors •Grass-cycling employed to maintain lawns with no waste •Side-saddle waste baskets added in each office to accommodate both recycling and composting in each office Benefits of Conservation• Reduced Operating Costs $1.2 million reduction in annual operating costs• Increased Building Value A reduction in annual operating costs of $1.2 million equals an increase in building value of $18 - $20 million.• Increased Productivity Studies by Carnegie Mellon show productivity increases ranging from .4% to 18% in green buildings• Increased Market for Potential Employees Environmental issues are increasingly important to employees and potential employees• Increased Investor Market 12% of the investor market only invests in socially and environmentally responsible companies Federal & State Governments give preference to Green Buildings• Reduced Environmental Footprint 32
  33. 33. 2/1/2011Adobe’s Savings Through Sustainability Total progress as of December 31, 2008: • Effectively reduced electricity use 39% • Reduced natural gas use 37% • Reduced domestic water use 38% • Reduced landscape water use 76% • Diverting up to 98% of its solid waste through composting and recycling • Reduced CO2 emissions 19%; with Renewable Energy Credits, 38.2% • Cumulative savings in San Jose to date, $6,288,972 Impact of LEED Certification Description # Projects Cost Rebate Savings ROI Before Registering 30 $888,912 $277,092 $647,747 106% After Registering 34 $473,680 $112,234 $534,398 148% Total 64 $1,362,592 $389,326 $1,182,145 121% 33
  34. 34. 2/1/2011 ANOTHER PERSPECTIVE Actually, it is easy being green,…and profitable! Celia Hammond 202-550-5713 celiahammondleedap@gmail.com 34

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