Facilities professionals are struggling with balancing environmental impacts and financial impacts. This presentation goes over three key challenges and offers some ideas on how to approach sustainability in a pragmatic way.

1. Two Shades of Green:Reducing Environmental Impacts and Operating Costs Marty Chobot VP of Product Management, FM:Systems

2. A little about me/FM:Systems VP of product management for FM:Systems FM:Systems has 26 years of FM software experience FM:Systems launching new Sustainability Module

3. Enough about me… What’s your primary work?(FM, design/engineering, other) What’s your “attitude” toward green building concepts…(master plan, selected green concepts, no green strategies)

4. Learning Goals Gain an overview of tools and methods for forecasting and measuring sustainability efforts Understand how technology can help facility professionals balance financial and environmental impacts Learn how technology can improve communication and collaboration for sustainability efforts

5. Agenda IFMA Study and FMS Customer Research: Key Challenges to Getting Green Managing Environmental Impacts and Building Performance Forecasting Financial and Environmental Impacts Influencing Organizational Behavior

6. IFMA Research and FMS Customer Research

7. Challenge 1: We’re acting tactically, not strategically IFMA SURVEY QUESTION: Which one of the following statements best describes your facility’s/organization’s attitude toward green building concepts?

8. We’re too busy chasing the pigs to build the fence

9. Challenge 2: It’s difficult to forecast sustainability impacts “Cost Paradox” Why be green? “Save Money” In customer calls, consistent belief that green means cost savings as well as environmental savings Why not? “It’s too expensive!” 73% selected “Financial Challenges” as a challenge to sustainability initiatives

10. Challenge 3: How do we change organizational behavior? Influencing management policy (top down) Influencing corporate culture (bottom up) Educating and retraining the FM team

11. Using information to address these challenges Get strategic about sustainability Strategically manage building performance Forecast the value of going green Learn how to build a business case Use lifecycle analysis and capital planning tools Communicate! Use your technology to communicate with employees

12. Managing Environmental Impacts and Building Performance

13. Strategically Managing Building Performance First step: Identify areas of concern and areas of impact You may care about all environment impacts You only have resources (human, financial) to manage several Energy, water, emissions, waste, etc.

14. Building Performance : Focus on quality not quantity “The fewest number of highest quality metrics possible” Too much becomes noise and is difficult to manage Always better to under promise and over deliver!

15. Building Performance: Define Approach for Metrics Baselines Starting point for a given metric Targets Goal value for a given metric Thresholds Internal values to identify good or poor performance Cross-tabs Comparing two or more similar items Benchmarks External data used as basis for comparison

16. Example: Monthly Resource Use BASELINE Multi-year average TARGET Sum of related Project forecasts

17. Building Performance: Looking at data over time Current state What is the situation on the ground today? Snapshots What has happened in the past? Trends Are there any relationships between the snapshots? Can/should we continuously gather data? Forecasts What will happen based on assumptions?

18. Forecasting Environmental Impacts and Building Performance

19. Challenge 2: It’s difficult to forecast sustainability impacts “Cost Paradox” Why be green? “Save Money” In customer calls, consistent belief that green means cost savings as well as environmental savings Why not? “It’s too expensive!” 73% selected “Financial Challenges” as a challenge to sustainability initiatives

20. Forecasting: Use Capital Planning and Budgeting Methods Look at cash flows and environmental impacts over time not just initial outlay Use capital budgeting tools: NPV IRR ROI Evaluate multiple scenarios for a given project Prioritize multiple projects

21. Forecasting: Basics of Capital Budgeting Use common assumptions – term of the evaluation, discount rate (cost of capital) Identify initial outlay (IO) Identify components of cost and benfits models Costs: Initial Outlay, Ongoing Labor, Replacement Parts Benefits: Energy Savings, Tax Incentives, Etc.

22. Forecasting: Scenario Analysis Example

23. Forecasting: Scenario Comparison Example

24. Forecasting: Don’t get caught fortune telling… New York Penal Law Section 165.35 – Fortune Telling § 165.35 Fortune telling. A person is guilty of fortune telling when, he claims or pretends to tell fortunes, or holds himself out as being able, by claimed or pretended use of occult powers, to answer questions or give advice on personal matters... Fortune telling is a class B misdemeanor.

25. Forecasting: Communicate Assumptions Recognize that your forecasts will not be 100% accurate Forecasts are models - not always precisely true but approximate Make your degree of confidence in the data explicit Make any assumptions explicit Part of the consensus building during the planning process “The perfect is the enemy of the good” Voltaire

26. Influencing Organizational Behavior

27. Challenge 3: How do we change organizational behavior? Influencing management policy (top down) Influencing corporate culture (bottom up) Educating and retraining the FM team

28. Influencing Behavior: Management Speak dollars Executive Management “I need to better manage my enterprise energy costs.” Every $100K lost to energy inefficiency is equivalent to losing $910K in new revenues “What if we tie it to their budgets?” Link space chargeback rates to environmental impacts

29. Influencing Behavior: Creating a Sustainable Organizational Culture Encourage Personal Accountability “I want to show the building’s current performance in terms of energy and emissions. It’s the occupant’s personal carbon footprint.” Make it fun! “What if we create a competition between buildings to see who could be most energy efficient?”

30. Influencing Behavior: Educating and Retraining the FM Team Make sustainability processes consistent “I want to know that assessment done in Buffalo is consistent with an assessment done in Vegas.” Automate reporting Use notifications to keep everyone on the same page

31. Influencing Behavior: Using Technology Create a Portal Reports & Dashboards Show Building Performance Promote Building Certifications Promote Projects/Initiatives Notifications Email alerts about sustainability efforts and achievements

32. Questions to Take Away What environmental impacts do we care about? Are we measuring them consistently over time? Are we presenting solid business cases for sustainability projects? How can we engage the entire organization in our efforts?

33. Thank you!! Your questions? Feel free to follow up: Marty Chobot mchobot@fmsystems.com