1.
The Business Case
for Sustainability
Education
Sustainable
Workforce Training
GBCI and AIA
Credential
Maintenance
Professional
Development
Portland | Cleveland | Los Angeles | New York | San Francisco | Seattle
This presentation is protected by US and International copyright laws. Reproduction,
distribution, display and use of the presentation without written permission of the speaker is
prohibited ©Brightworks 2012
Green Building
and LEED®
Sustainability
Planning

2.
The Business Case
for Sustainability
The Business Case and Beyond
How Deep Integration of Sustainability Thinking Creates Lasting Value
Brightworks Sustainability Advisors
19 April 2012

3.
The Business Case
for Sustainability
Agenda
 Business As Usual
 Sustainability
 Business Strategy and the Business Case 7
- Cost savings - Asset value improvement
- Risk mitigation - Brand enhancement
- Innovation driver - Employee attraction and retention
- Market opportunity
 Tools
 Beyond the Business Case

4.
The Business Case
for Sustainability
Objectives
At the end of this course, you will be able to:
1. Provide context for the two key drivers for Sustainability, the “Ethical
Case” and the “Business Case”.
2. Provide an understanding of Sustainability and Business Strategy.
3. Provide an understanding of the business benefits of green building
and LEED from a tactical and prescriptive approach.
4. Provide an overview of the tools and techniques necessary to develop
a successful business case for sustainability.

5.
The Business Case
for Sustainability
LEED NC Workshop
Brightworks 2008
Business as Usual

6.
The Business Case
for Sustainability

7.
The Business Case
for Sustainability
from www.droughtmonitor.unl.edu

8.
The Business Case
for Sustainability

9.
The Business Case
for Sustainability
LEED NC Workshop
Brightworks 2008
Sustainability

10.
The Business Case
for Sustainability
Sustainable Development is development which meets the
needs of the present without compromising the ability of
future generations to meet their own needs.
World Commission on Environment and Development (The Bruntland Report 1987)
Definitions
UNITED NATIONS DEFINITION

11.
The Business Case
for Sustainability
Sustainability 101
“People, Planet, Profit” or “Economy, Environment, Equity”
TRIPLE BOTTOM LINE (TBL)

12.
The Business Case
for Sustainability
CRADLE TO CRADLE (C2C): Biological and Technical
Nutrient Cycles
Definitions
www.mbdc.com

13.
The Business Case
for Sustainability
Definitions
www.naturalstep.org
...concentrations of substances extracted
from the Earth’s crust,
...concentrations of substances produced by
society,
...degradation by physical means,
...people are not subject to conditions that
systematically undermine their capacity to
meet their needs.
In a sustainable society, nature is not subject
to systematically increasing...
and, in that society...
THE NATURAL STEP: Four “System Conditions” of
Sustainability

14.
The Business Case
for Sustainability
60 miles per gallon
“40% better than code”
Recycling
Less toxics
Zero emissions
100% renewable power
Zero waste
Zero pollution
Sustainable vs. Green
green
green
sustainable
VS.
What’s the Difference?

15.
The Business Case
for Sustainability
Portland’s South Waterfront Redevelopment
2002 to today
Regenerative Design

16.
The Business Case
for Sustainability
LEED NC Workshop
Brightworks 2008
Sustainability &
Business Strategy

17.
The Business Case
for Sustainability
“more than 70 percent of survey
respondents said that their company
has not developed a clear business
case for sustainability.”
Whereas 50 percent of the experts
we surveyed said that their company
had a compelling business case for
sustainability, only 10 percent of the
novices we surveyed did. Further,
when asked about the logic
underlying their organization’s
investments (or lack thereof) in
sustainability initiatives, 68 percent of
experts cited improved financial
returns compared with only 32
percent of novices.

18.
The Business Case
for Sustainability
The Business Case
7
5
6
Market Opportunity
4
Risk Mitigation
Cost Savings Asset Value Improvement
Innovation Driver
Brand Enhancement
1
2
3 Employee Attraction and Retention

19.
The Business Case
for Sustainability
• RETAIL PRODUCT VENDOR
• COMPANY IN HIGHLY COMPETITIVE
TALENT MARKET
• SPEC BUILDING
Risk Mitigation
Asset Value
Improvement
Employee
Attraction and
Retention
Market
Opportunity
Innovation
Driver
Cost Savings
Brand
Enhancement
Risk Mitigation
Asset Value
Improvement
Brand
Enhancement
Innovation
Driver
Market
Opportunity
Employee
Attraction and
Retention
Cost Savings
THE SEVEN DON’T CHANGE, BUT THEIR RELATIVE IMPORTANCE VARIES
The Business Case
• MANUFACTURING COMPANY WITH
LARGE OR COSTLY WASTE STREAM
• OWNER-OCCUPIED BUILDING, OR

20.
The Business Case
for Sustainability
The Business Case
Cost Savings
1
5
6
Market Opportunity
4
Risk Mitigation
Cost Savings Asset Value Improvement
Innovation Driver
Brand Enhancement
1
2
3 7 Employee Attraction and Retention

21.
The Business Case
for Sustainability
The Business Case
OHSU
CENTER FOR HEALTH AND
HEALING
Portland, Oregon
$140 million construction cost
$2 premium for sustainable features
• 5 gas-fired microturbines
• massive PV array on S. façade
• membrane bio-reactor, on-site waste
treatement
• eco-roof
$500,000 SDC charge offset
$1.3m tax credits (state + federal)
$600,000 projected annual
operating cost savings
Cost Savings
1

22.
The Business Case
for Sustainability
The Business Case
“Interface began its journey to sustainability by
focusing on the elimination of waste. At Interface, we
define waste as anything that does not provide value
to the customer. This includes traditional forms of
waste such as off-quality and scrap, as well as
nontraditional forms of waste such as overuse of
materials, inventory losses, etc.
The cumulative avoided costs from waste
elimination activities since 1995 are calculated to
be over $433 million…”
source: www.interfaceglobal.com
Cost Savings
1

23.
The Business Case
for Sustainability
The Business Case
Risk Mitigation
2
7
5
6
Market Opportunity
4
Risk Mitigation
Cost Savings Asset Value Improvement
Innovation Driver
Brand Enhancement
1
2
3 Employee Attraction and Retention

24.
The Business Case
for Sustainability
The Business Case
Risk Mitigation
2

25.
The Business Case
for Sustainability
The Business Case
Risk Mitigation
2

26.
The Business Case
for Sustainability
The Business Case
Risk Mitigation
2

27.
The Business Case
for Sustainability
The Business Case
Innovation Driver
3
7
5
6
Market Opportunity
4
Risk Mitigation
Cost Savings Asset Value Improvement
Innovation Driver
Brand Enhancement
1
2
3 Employee Attraction and Retention

28.
The Business Case
for Sustainability
The Business Case
Innovation Driver
3
“In 2005 Cisco designated the recycling
group as a business unit, set clear
objectives for it, and drew up a
national P&L account. As a result, the
reuse of equipment rose from 5% in
2004 to 45% in 2008, and Cisco’s
recycling costs fell by 40%.
“The unit has become a profit
center that contributed $100 million
to Cisco’s bottom line in 2008.”

29.
The Business Case
for Sustainability
The Business Case
Innovation Driver
3

30.
The Business Case
for Sustainability
The Business Case
Market Opportunity
4
7
5
6
Market Opportunity
4
Risk Mitigation
Cost Savings Asset Value Improvement
Innovation Driver
Brand Enhancement
1
2
3 Employee Attraction and Retention

31.
The Business Case
for Sustainability
The Business Case
Market Opportunity
4

32.
The Business Case
for Sustainability
The Business Case
Market Opportunity
4
REQUIRED BY REGULATION

33.
The Business Case
for Sustainability
The Business Case
Market Opportunity
4
AIM Environmental Technology Program
CalPERS $600 million Environmental Technology
Program Board targets investments in
environmental technology solutions that are
more efficient and less polluting than existing
technologies…

34.
The Business Case
for Sustainability
The Business Case
Asset Value Improvement
5
7
5
6
Market Opportunity
4
Risk Mitigation
Cost Savings Asset Value Improvement
Innovation Driver
Brand Enhancement
1
2
3 Employee Attraction and Retention

35.
The Business Case
for Sustainability
The Business Case
Asset Value Improvement
5

36.
The Business Case
for Sustainability
The Business Case
Asset Value Improvement
5

37.
The Business Case
for Sustainability
The Business Case
Asset Value Improvement
5

38.
The Business Case
for Sustainability
The Business Case
Brand Enhancement
6
7
5
6
Market Opportunity
4
Risk Mitigation
Cost Savings Asset Value Improvement
Innovation Driver
Brand Enhancement
1
2
3 Employee Attraction and Retention

39.
The Business Case
for Sustainability
The Business Case
Brand Enhancement
6

40.
The Business Case
for Sustainability
The Business Case
Brand Enhancement
6

41.
The Business Case
for Sustainability
The Business Case
Brand Enhancement
6
Respondents Cited–by a Large Margin–an Improved Image as
the Principal Benefit of Addressing Sustainability

42.
The Business Case
for Sustainability
The Business Case
Employee Attraction and Retention
7
5
6
Market Opportunity
4
Risk Mitigation
Cost Savings Asset Value Improvement
Innovation Driver
Brand Enhancement
1
2
3 7 Employee Attraction and Retention

43.
The Business Case
for Sustainability
The Business Case
Source: SHRM – Advancing Sustainability: HR’s Role
Employee Attraction and Retention
7

44.
The Business Case
for Sustainability
The Business Case
Employee Attraction and Retention
7

45.
The Business Case
for Sustainability
The Business Case
To sustain high levels of performance
Requires high levels of well-being
- Peter Senge

46.
The Business Case
for Sustainability
LEED NC Workshop
Brightworks 2008
Tactical &
Prescriptive Tools

47.
The Business Case
for Sustainability
Sustainability Tools:
Rating Systems

48.
The Business Case
for Sustainability
Sustainability Tools
Change Management
“Change requires you
change something.”
- Bill Reed

49.
The Business Case
for Sustainability
LEED NC Workshop
Brightworks 2008
Beyond the
Business Case

50.
The Business Case
for Sustainability
Global Ecological Crises
Beyond the Business Case
“…2009 was tied for the second
warmest year in the modern record, a
new NASA analysis of global surface
temperature shows.
…in the Southern Hemisphere, 2009
was the warmest year since modern
records began in 1880.
…when we average temperature over
five or ten years to minimize that
variability, we find that global warming
is continuing unabated,“said James
Hansen, the director of GISS
The Ethical Case:
We can see the limits of a
healthy planet and must
change course if we wish to
prosper.

51.
The Business Case
for Sustainability
Value Creation for Total Shareholder Return
Beyond the Business Case
The Business Case:
Sustainability can affect all
the levers companies use to
create value.

52.
The Business Case
for Sustainability
The Ethical Case + The Business Case
The Value Proposition
The Value Proposition for Sustainability

53.
The Business Case
for Sustainability
Resources
RESEARCH ARTICLES
MIT Slone Report : The Business of Sustainability (three reports)
http://sloanreview.mit.edu...I, http://sloanreview.mit.edu...II, http://sloanreview.mit.edu/...III
CoStar Report: Value of Green Building
www.costar.com/josre/doesGreenPayOff.htm
Cost of Green Revisited
http://www.davislangdon.com/USA/Research/ResearchFinder/?c=362,334
HBR: Sustainability As a Key Driver of Innovation
hbr.org/2009/09/why-sustainability-is-now-the-key-driver-of-innovation/ar/1
SHRM: Advancing Sustainability – HR’s Role
http://www.shrm.org/...
Harvard: The Impact of a Corporate Culture of Sustainability on Corporate Behaviour and Performance
http://www.hbs.edu/research/pdf/12-035.pdf

54.
The Business Case
for Sustainability
Green Building
& LEED®
Sustainability
Planning
Workshops
Portland | Cleveland | Los Angeles | New York | San Francisco | Seattle
This presentation is protected by US and International copyright laws. Reproduction,
distribution, display and use of the presentation without written permission of the speaker is
prohibited ©Brightworks 2011
Thank you!
Questions?