Why Sustainability Has Bankers Seeing Green
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Why Sustainability Has Bankers Seeing Green

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Presenter: on A. Levey, LEED® AP, Co-Founder & Chief Lending Officer, GreenChoice Bank ...

Presenter: on A. Levey, LEED® AP, Co-Founder & Chief Lending Officer, GreenChoice Bank

With an ever increasing focus on "green this", and "sustainability that," why is it that so much of how we traditionally do things is so hard to change? Why not re-engineer the ways we approach business operations to marry our business operations with our collective consciousness towards more values-based products and services?

In this interactive workshop, we will take a look at the financial services industry and specifically, how greener principles can be adopted in the banking industry to leave us with a more sustainable future. We will explore ways in which financial institutions can offer products and services that more closely match their clients' (both consumer and business) desires and needs. In doing so, we will also discuss how some of these practices might not only yield more environmentally friendly results, but could yield greater returns to their stakeholders. Can triple bottom line (people, planet, profits) really work in banking?

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Why Sustainability Has Bankers Seeing Green Why Sustainability Has Bankers Seeing Green Presentation Transcript

  • Banking on a Greener Future
    Why Sustainability Has Bankers Seeing Green
    An Interactive Workshop presented by Jon A. Levey, LEED AP
    Co-Founder & Chief Lending Officer, GreenChoice Bank (I/O)
    On Monday, May 4, 2009 at:
  • Who am I?
    Jon A. Levey, Co-Founder & Chief Lending Officer
    LEED® Accredited Professional (LEED® AP) with 18 years of experience in entrepreneurship, real estate development, and finance, including commercial banking, leveraged buy-out financing, and commercial real estate sales and financing.
    Former LaSalle Banker
    Real estate Developer, Consultant, Investor & Broker
    FEEL FREE TO CONTACT ME:
    Jon A. Levey, LEED® AP
    Co-Founder & Chief Lending Officer
    GreenChoice Bank, (I/O)
    Direct dial: 773.799.9398
    JLevey@GreenChoiceBank.com
    www.GreenChoiceBank.com
  • Goals for this afternoon
    This is interactive
    Spirited discussion vs. lecture
    Understand current practices
    Overview of the trends
    What can be done
  • Changing Consumer Mindset – Is this a “movement” or have we already “moved?”
    There has never been greater interest in sustainability and the environment
    • There are approx. 41 million LOHAS (Lifestyles of Health and Sustainability) consumers in the US, though nearly all consumers are changing their behavior
    Increased Environmental Interest
    Changing Consumer Behavior
    • Increased concern for global warming and use of the world’s finite resources
    • 87% of Americans “seriously concerned about the environment”
    • 75% will pay more in taxes and other expenses to support local government-led initiatives to reduce global warming
    • Media driving consumer awareness
    • Al Gore’s “An Inconvenient Truth”
    • NBC Universal’s “Green Week” every April and November
    • 85% of consumers are willing to change their consumption habits to make tomorrow’s world a better place
    • Sustainable products and services are increasingly relevant to consumers
    • US consumers spent $104 billion on green goods and services in 2008
    • Wal-Mart sales of energy-efficient light bulbs exceed 100 million units
    • Hybrid automobile sales up 35% in 2007, will reach nearly a million units per year by 2010
    • 6,000 new “green” product introductions in 2007, nearly double that of 2006.
    Source: IBM, Edelman goodpurpose study, Mintel, National Marketing Institute
  • Changing Business Mindset
    This is translating into an increase in “green” business activity. Green building, in particular, is an area of opportunity.
    • Yet few banks have a strong commitment to this sector and the ability to support the community through environmentally responsible banking
    Increasing Business Activity
    Green Building
    • Venture capital investment in “cleantech” has more than quadrupled in the past 4 years
    • Growing nationwide sustainable business network, evidenced by Co-Op America’s Green Business Conference
    • Almost 4,000 LEED-certified buildings in the US, up from 700 in 2006 and 400 in 2005
    • Chicago has the most of any city
    • Membership in the U.S. Green Building Council now exceeds 18,000
    • In July 2008, the US Green Building Council and the Institute of Real Estate Management (with 18,000 members) signed a Memorandum of Intent to promote green building development
    Source: The Cleantech Group
  • Growth of Green Building
    The U.S. green building market is accelerating at a dramatic rate
    • Green building construction starts have exploded from a negligible amount 10 years ago, and are expected to rise to up to $140 billion by 2013
    • 70% of buyers are either more or much more inclined to purchase a green home over a conventional home in down housing market.
    Source: McGraw-Hill
  • In the US, alone, buildings account for:
    ・ 71% of electricity consumption,
    ・ 39% of energy use,
    ・ 39% of all carbon dioxide (CO2) emissions,
    ・ 40% of raw materials use,
    ・ 12% of potable water consumption.
    Source: USGBC
  • Green Building
    LEED (Leadership in Energy & Environmental Design)
    • LEED is an internationally recognized certification system that measures how well a building or community performs across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts. - LEED points are awarded on a 100-point scale, and credits are weighted to reflect their potential environmental impacts. Additionally, 10 bonus credits are available, four of which address regionally specific environmental issues. A project must satisfy all prerequisites and earn a minimum number of points to be certified.
    Certified
    Silver
    Gold
    Platinum
    THERE ARE SEVERAL MEASUREMENT CRITERIA USED IN GREEN BUILDING
  • Source: USGBC
  • Green Building
    Energy Star
    ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy
    An ENERGY STAR qualified facility meets strict energy performance standards set by EPA and uses less energy, is less expensive to operate, and causes fewer greenhouse gas emissions than its peers. Energy use in commercial buildings and manufacturing plants accounts for nearly half of all energy consumption in the U.S. at a cost of over $200 billion per year, more than any other sector of the economy. Commercial and industrial facilities are also responsible for nearly half of U.S. greenhouse gas emissions which contribute to global warming.
    THERE ARE SEVERAL MEASUREMENT CRITERIA USED IN GREEN BUILDING
  • Living Building Challenge
    The Living Building Challenge is attempting to raise the bar and define a closer
    measure of true sustainability in the built environment, at least as far as what is currently possible and given the best knowledge available today. Projects that achieve this level of performance can claim to be the ‘greenest’ in North America and as close to true sustainability as currently possible.
    Summary of Prerequisites
    NumberCategoryPrerequisite
    One Site Design Responsible Site Selection
    Two Site Design Limits to Growth
    Three Site Design Habitat Exchange
    Four Energy Net Zero Energy
    Five Materials Materials Red List
    Six Materials Carbon Footprint
    Seven Materials Responsible Industry
    Eight Materials Appropriate Materials Radius
    Nine Materials Construction Waste
    Ten Water Net Zero Water
    Eleven Water Sustainable Water Discharge
    Twelve Indoor Environmental Quality Civilized Work
    Thirteen Indoor Environmental Quality Source Control
    Fourteen Indoor Environmental Quality Ventilation
    Fifteen Beauty & Inspiration Design for Spirit
    Sixteen Beauty & Inspiration Inspiration and Education
  • GREATER PRODUCTIVITY & QUALITY OF LIFE + GREATER VALUE
  • Does building green have to be expensive?
    Greening Buildings and Communities: Costs and Benefits
  • Chicago: One of The Greenest Cities
    Chicago is positioning itself as an epicenter of environmental responsibility, as evidenced by local developments
    “The Greenest Cityin America”
    Green Exchange
    Other GreenChicago Initiatives
    • Mayor Daley initiated government initiatives:
    • Chicago Climate Action
    • Green Permits program
    • Chief Environmental Officer
    • Chicago is at the forefront
    • Over 4 million SF of green roofs
    • Most LEED-registered developments in the country
    • Billed as “the country’s first green business community.”
    • LEED Platinum certification and various other green features.
    • 272,000 SF of space marketed to companies that offer sustainable products and services
    • Chicago Climate Exchange
    • Growing “Green” network — Chicago Sustainable Business Alliance
    • Emphasis by Chicago area developers on green building techniques and products—used as a point of differentiation
    Chicago is an ideal market in which to launch a “green” bank
  • What does it mean to be green?
    Recycling & waste management?
    Energy efficiency?
    Renewable resources?
    Local?
    Triple Bottom Line (people, planet, profits)?
  • What does it mean to be green?
    Recycling & waste management?
    Energy efficiency?
    Renewable resources?
    Local?
    Triple Bottom Line (people, planet, profits)?
  • The 3 R’s
    ©2007 Sandia Corporation
  • What does it mean to be green?
    Recycling & waste management?
    Energy efficiency?
    Renewable resources?
    Local?
    Triple Bottom Line (people, planet, profits)?
  • What does it mean to be green?
    Recycling & waste management?
    Energy efficiency?
    Renewable resources?
    Local?
    Triple Bottom Line (people, planet, profits)?
  • What does it mean to be green?
    Recycling & waste management?
    Energy efficiency?
    Renewable resources?
    Local?
    Triple Bottom Line (people, planet, profits)?
  • What does it mean to be green?
    Recycling & waste management?
    Energy efficiency?
    Renewable resources?
    Local?
    Triple Bottom Line (people, planet, profits)?
  • What does it mean to be green?
    What else?
  • What’s NOT green about banking?
    Back office
    Physical plant
    Internal processes
    Customer communication
    Waste management
    Products and Services
    And, how could it be changed?
  • What’s NOT green about banking?
    Back office
    Physical plant
    Internal processes
    Customer communication
    Waste management
    Products and Services
    And, how could it be changed?
  • What’s NOT green about banking?
    Back office
    Physical plant
    Internal processes
    Customer communication
    Waste management
    Products and Services
    And, how could it be changed?
  • What’s NOT green about banking?
    Back office
    Physical plant
    Internal processes
    Customer communication
    Waste management
    Products and Services
    And, how could it be changed?
  • What’s NOT green about banking?
    Back office
    Physical plant
    Internal processes
    Customer communication
    Waste management
    Products and Services
    And, how could it be changed?
  • What’s NOT green about banking?
    Back office
    Physical plant
    Internal processes
    Customer communication
    Waste management
    Products and Services
    And, how could it be changed?
  • What’s NOT green about banking?
    Back office
    Physical plant
    Internal processes
    Customer communication
    Waste management
    Products and Services
    And, how could it be changed?
  • What’s NOT green about banking?
    Anything Else?
    And, how could it be changed?
  • What is a green bank?
    Built from the ground up with sustainability in mind. --- According to Javelin Research, one out of five consumers said green initiatives cement the bond they have with their bank
    • Located in environmentally responsible buildings that take advantage of all the latest green technologies and features to improve performance.
    • Visually illustrating green technology for visitors to “take away.”
    Branch
    Back Office/Operations
    • Incorporate the latest technology to minimize paper waste, including electronic documents and statements, image check processing, etc.
    • Better pricing/terms for real estate construction and mortgage loans that meet certain environmental hurdles or businesses that help further the cause of environmental sustainability
    • These incentives will be based on consistently applied criteria and will continue to employ sound credit risk management principles.
    • Paperless depository accounts with e-billing and e-statements.
    Loan andDepositProducts
    • Operating as an environmentally responsible business through choices such as recycling and employee incentives to use public transportation and hybrid vehicles. Walking the walk as well as talking the talk. Employees who understand “green” (LEED APs)
    Values-BasedGreenChoices
  • Why haven’t all banks moved in this direction?
    Cost
    Legacies
    Culture
    Internal within the financial institution
    External within regulatory environment
    Understanding of the risks/rewards & technology
    Internal within the financial Institution
    External within the regulatory environment
  • A few shining examples
  • DISCUSSION AND Q & A
    Thanks for having me
    FEEL FREE TO CONTACT ME:
    Jon A. Levey, LEED® AP
    Co-Founder & Chief Lending Officer
    GreenChoice Bank, (I/O)
    Direct dial: 773.799.9398
    JLevey@GreenChoiceBank.com
    www.GreenChoiceBank.com