Mr. Benjamin W. Pinney, Vice President, Asia Johnson Controls, gave presentation on Building Smarter cities and Migrant workers at 15th Green Building Congress 2017 event at Jaipur
2. Vice President, Enterprise Strategy Asia PacificBenjamin Pinney, Ph.D
Johnson Controls
Combining technology with
insights to build purposeful
solutions that support
cities’ progress, meeting
today’s needs and shaping
better tomorrows
4. 26%
28%
31%
32%
37%
39%
43%
46%
53%
Aging population
Communications infrastructure
Cost reduction
Infrastructure development
(roads/transit/electricity/water/waste)
Public safety
Population growth
Sustainability
Environmental issues (air quality)
Economic development
DRIVERS OF SMART CITY INVESTMENTS
Source: Johnson Control’s
2017 Energy Efficiency Indicator
(EEI) survey of over 150
respondents responsible for smart
city investment decisions in twelve
countries (Argentina, US, Canada,
Germany, India, China, Singapore,
Poland, Colombia, France, Mexico
and Brazil)
5. BARRIERS TO SMART CITY INVESTMENTS
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
7%
9%
10%
11%
12%
12%
12%
21%
Risk aversion
Lack of standards
Lack of private sector engagement
Security concerns
Availability of cost effective technology
Lack of city leadership
Lack of proven business cases
Availability of funding
6. DRIVERS OF SMART CITIES INVESTMENTS Awareness
32
54
32
25
12
36
55
14
48
38
25
35
46
30
26
32
41
36
25
15
26
26
47
31
13
31
14
China
India
94
US/Canada
Brazil 89
95
97
87
99
93
97
94
Germany
Colombia
Singapore
Global
Mexico
The same
A little more
A lot more
Compared to 12 months ago, how much attention is your company/organization paying to energy efficiency now?
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
%
7. DRIVERS OF SMART CITIES INVESTMENTS Motivators
71
51
52
57
63
63
72
94
62
69
47
65
91
92
87
77
62
65
68
62
68
70
82
64
55
Existing government policy
Investor reporting demands
32
15
61
64
Attracting, retaining employees
83
Customer attraction/retention
51
54
Energy cost savings
Greenhouse gas footprint reduction
Increasing energy security
60
33
78
China
US/Canada
Brazil
India
Germany
Overall
top 5
In top 5s by
country
What factors are very or extremely important drivers of energy investment decisions?
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
%
8. DRIVERS OF SMART CITIES INVESTMENTS India
What factors are very or extremely important drivers of energy investment decisions?
29
32
35
40
40
42
45
51
60
61
62
64
83
Enhanced brand or public image
Government/utility incentives/rebates
Increasing the asset value
Attracting, retaining employees
Customer attraction/retention
Existing government policy
Increasing energy security
Greenhouse gas footprint reduction
Energy cost savings
Increase resilience to disruptions
Attracting tenants, rent premiums
Investor reporting demands
Pending/anticipated policy
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
%
9. DRIVERS OF SMART CITIES INVESTMENTS Certification plans
7
3
4
7
4
4
18
2
8
42
64
38
34
45
39
41
35
60
China
India
67
US/Canada
Brazil 49
49
41
38
58
42
68
43
Germany
Colombia
Singapore
Global
Mexico
Planned
Already
Does your organization plan to achieve voluntary green building certification for any of its facilities?
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
%
10. DRIVERS OF SMART CITIES INVESTMENTS Energy neutrality
18
28
12
23
20
9
39
18
45
38
42
24
36
29
42
39
48
26
21
24
37
20
52
20
39
21
1
China
India
87
US/Canada
Brazil 75
88
85
79
100
78
87
91
Germany
Colombia
Singapore
Global
Mexico
Likely
Very likely
Extremely likely
How likely is your organization to have one or more facilities that are nearly zero, net zero or positive energy status in
the next ten years?
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
%
11. DRIVERS OF SMART CITIES INVESTMENTS Resilience
28
34
22
22
25
44
48
11
21
43
39
37
51
31
9
44
36
51
17
16
16
16
28
38
8
23
17
China
India
90
US/Canada
Brazil 84
88
88
70
99
74
89
91
Germany
Colombia
Singapore
Global
Mexico
Somewhat important
Very important
Extremely important
How important is resilience (the ability to maintain critical operations during severe weather events or extended
power outages) when considering future energy and building infrastructure investments?
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
%
12. DRIVERS OF SMART CITIES INVESTMENTS Grid independence
14
25
11
17
6
26
15
9
37
39
40
27
8
30
62
38
50
36
23
27
44
67
34
21
37
27
1
China
India
87
US/Canada
Brazil 81
88
88
77
99
77
86
91
Germany
Colombia
Singapore
Global
Mexico
Likely
Very likely
Extremely likely
How likely is your organization to have one or more facilities able to operate off the grid in the next ten years?
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
%
14. SMART CITY
PROJECTS
Technology
Implementations
& Pilots
Results based on Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey with over 150 respondents responsible for smart city investment decisions in
twelve countries including Argentina, US, Canada, Germany, India, China, Singapore, Poland, Colombia, France, Mexico and Brazil
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Building energy management/analytics for public buildings
Telehealth/social care (remote monitoring/support)
Smart waste collection
Smart water meters
Commercial building energy monitoring/reporting
City operations center (emergency response coordination)
Air quality monitoring
Water and wastewater system monitoring (leaks, overflows,…
Smart electricity meters
Intelligent traffic management
Distributed energy programs
Connected / smart street lighting
Broadband infrastructure (public Wi-Fi, fiber network)
Smart public safety (video surveillance/analysis)
City data platform
LED street lighting
Full Implementation Pilot / Partially Implemented
15. ENABLERS OF SMART CITIES INVESTMENTS Technology Trends
Results based on Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey with over 150 respondents responsible for smart city investment decisions in
twelve countries including Argentina, US, Canada, Germany, India, China, Singapore, Poland, Colombia, France, Mexico and Brazil
10%
13%
20%
23%
31%
34%
42%
44%
Autonomous vehicles
Systems Interoperability Standards
Advanced sensing
Systems integration
Data visualization
Cybersecurity
Internet of Things
Data analytics / Machine learning
17. 26%
28%
31%
32%
37%
39%
43%
46%
53%
Aging population
Communications infrastructure
Cost reduction
Infrastructure development
(roads/transit/electricity/water/waste)
Public safety
Population growth
Sustainability
Environmental issues (air quality)
Economic development
SOCIAL DRIVERS OF SMART CITY INVESTMENTS
Source: Johnson Control’s 2017 Energy Efficiency Indicator (EEI) survey of over 150 respondents responsible for smart city investment decisions in twelve countries (Argentina, US, Canada, Germany,
India, China, Singapore, Poland, Colombia, France, Mexico and Brazil)
18. SriLanka
Nepal
Cambodia
India
Vietnam
Myanmar
Bangladesh
LaoP.D.R.
Philippines
Thailand
Indonesia
China
Mongolia
Malaysia
Taiwan
Brunei
Korea
NewZealand
Australia
Japan
Singapore
URBANIZATION THE GROWTH LEVER
10
6
9
8
7
0
1
2
3
4
5
4155.5
1055.0
751.8
37.7
580.5
270.0
547.9
12708.4
84.5
205.5
352.3
1449.5 5521.7
604.8
%
2438.8
44.11517.6
1107.0
53.8
28229.1
97.5
FormativeNascent Mature
2020 GDP$B in
international
$ at purchasing
price parity (PPP)
(area of bubble)
and rate of per
capita GDP
growth 2015-2020
at PPP
Growth and urbanization in Asia Pacific countries w/2015 GDP > $25B, ranked by 2015 urbanization (left to right)
Source: JCI analysis based on International Monetary Fund World Economic Outlook April 2015 update and UN World Urbanization Prospects
Incremental
% share of
population
in cities,
2015 – 2020
(size not
meaningful)
18 19 21 33 34 34 34 39 44 50 54 56 72 75 77 77 82 86 89 93 100% urban
2015
Development
phase
Per capita GDP
growth and
urbanization
2015-2020
Developed,
urbanized, slowing
Rapid growth, urbanization
+ on the cusp of consolidation
Early growth from
a rural base
19. CAPITAL FORMATION PATTERNS
0
5
10
15
20
25
30
35
40
45
50
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Singapore
United States
Korea, Rep.
Cambodia
Japan
India
Germany
China
Brazil
Gross fixed capital formation (% of GDP), selected countries,1970 – 2016
Source: World Bank
%
20. CONSTRUCTION WORK IS THE BRIDGE
A generational short cut on the way to a services economy
Source: Wikipedia, Reuters India
21. CHINA’S TARGETS
Metric 2010 2030 baseline
scenario
2030 reform
scenario
Urbanization % 52 66 70
Share of labor force in agriculture 38 17.1 11.6
GDP (US$T) 8.5 24.5
GDP growth prior 5 years average % 8.3 4.9 5.2
Total factor productivity growth prior 5 years average % 2.2 2.1 2.5
Consumption as % of GDP 46.5 62.0 66.5
Investment as % of GDP 48.8 35.5 30.9
Secondary industry as % of GDP 48.8 37.2 33.7
Tertiary industry as % of GDP 41.8 58.5 60.6
Urban / rural income ratio 3.8 3.3 2.6
Energy / GDP (TcE/10K RMB) 1.41 0.73 0.64
CO2 emission / GDP (tons/10K RMB 3.32 1.68 1.39
Source: Development Research Center of the State Council’s general equilibrium model via World Bank
Intermediates to shared wealth and stability, Xi Jinping’s KPIs
22. WHAT WE DO SEPARATELY
Engineer for and compete on green standards
Do required training—usually JIT and to meet
standards (e.g. LEED)
Support commissioning and operation
Run internal training programs
23. WHAT WE NEED TO DO TOGETHER
Building Asia’s green cities of the future is about more than energy efficiency - it can drive a virtuous cycle of economic
growth and restructuring, as low-skilled jobs on large construction sites provide opportunities for millions of migrants
On-the-job training can equip laborers to build efficiently — and to build buildings and urban systems that operate
sustainably
Over time, formerly itinerant workers will settle as residents of the cities they helped to build, and to move from having a
toehold on the economic ladder into the consuming, urban middle classes
This virtuous cycle of migration, construction and sustainable urbanization is a necessity if Asia’s countries and cities
are to grow sustainably. Across Asia, this translates into enabling more than 100,000 new urbanites each day
Construction work is a bridge to the future and requires supporting social infrastructure: managed mobility + upskilling
and economic opportunities for hundreds of millions of migrant construction workers over the next decade
If we fail, it will not be down to a lack of technical or economic capacity. The building and information systems, the
planning know-how and the financing mechanisms to realize large-scale green development exist today
A simple vision and formula
24. CALLS TO ACTION
Recognize urbanization as an exercise in large-scale labor mobilization
• The ability to build efficient buildings and infrastructure is a public good
• Skills gained on any one project scatter
Manage to social objectives
• The construction industry’s potential to transform lives exists partly because labor market entry barriers are low
• Mandatory certifications can improve workers’ productivity to the detriment of the industry’s absorptive capacity
• Premature or excessive regulation of a trade tends to push labor into informal markets
Harness existing social networks and relationships
• The role that the labor broker (mestry, kepala, baogongtou) plays in clearing markets for construction workers
can be harnessed to green-skilling
• Typically treated as an economic and legal role… underappreciated as skills and knowledge
management function
• Social pressures and shaming work: investors and employees are enforcers
Pool industry effort
Shape skills and jobs initiatives of city, state, and national governments as sustainability investments
Needed: macro support and coordination for thousands of micro interventions
25. BUILDING SMARTER CITIES SMARTER
Developing workforces as we upgrade environments
benjamin.pinney@jci.com
