Everyone wants to have "green buildings" that are good for the environment, community, occupants, and owner. But most organizations have a wide range of existing building vintages, limited funding, and the effort to green-up their facilities can be daunting. This presentation outlines how developing a “Portfolio Strategy” for your organization can help you to coordinate various sustainability efforts and focus on the areas of most value to your organization. Integrating sustainability with your normal capital planning and facilities management activities is the best way to ensure steady and progressive accomplishment of your sustainability objectives.

1. Developing a Green Building
Strategy for Your Organization
ABSTRACT: Everyone wants to have "green buildings" that are good for the environment,
community, occupants, and owner. But most organizations have a wide range of existing
building vintages, limited funding, and the effort to green-up their facilities can be daunting.
This presentation will outline how developing a “Portfolio Strategy” for your organization can
help you to coordinate various sustainability efforts and focus on the areas of most value to
your organization. Integrating sustainability with your normal capital planning and facilities
management activities is the best way to ensure steady and progressive accomplishment of
your sustainability objectives.
Bob Lambe, Managing Partner
PRES Location Strategies
A Division of PRES Services

2. Sustainability Challenges
Interest is high in “green buildings” and sustainability, but
many organizations face challenges in making progress….
• Lots of Hype / Information Overload
o Confusion and misaligned expectations based on various
standards (Energy Star, LEED, Green Globes, Executive orders
13423 and 13514)
o Some “Green marketing” is questionable.
o Lots of changing terminology as vendors try to position their
products/services for advantage.
• Technology is Changing
o Rapid rate of development makes it hard to keep up.
o Short history for some technology makes it hard to validate claims.
o Proficient skill sets not always available.
• Meanwhile Life Goes On…
o Property managers need to continue day to day activities.
o Organizations sometimes have conflicting priorities
(environmental, health, security, or other hot issue of the moment).
o Lack of incremental funding.
© PRES Services, LLC 2010 - Page 2

3. Use An Integrated Portfolio Strategy
Integrating green building and sustainability items as part
of your overall “normal” property management activities
is much easier if you have a portfolio strategy.
1. Develop the strategic direction required by your company –
focus on the desired “end state” for the property portfolio
with sustainability as clear part of the plan.
2. Outline the logical steps necessary to get from the current
situation to the desired end state and address organization
and cultural issues required to advance sustainability.
3. Be sure your day-to-day operations maintain the benefits
obtained from your sustainability initiatives and green
building projects.
4. Implement a spectrum of projects that advance the overall
sustainability of the building portfolio one step at a time.
© PRES Services, LLC 2010 - Page 3

4. Develop Portfolio Strategy
Your Portfolio Strategy will define what buildings are
expected to be needed by your organization, where
they should be located, and how green you want them.
Portfolio Strategy - Rational, systematic
approach to establishing the right facilities
in the right locations at the right time and
operating them appropriately.
• An integrated, sustainable, portfolio strategy starts with
a location strategy to address where your facilities
should be located, then identifies their functionality &
size as well as the sustainable principles used to build
and operate them.
• Three parts needed for Sustainable Portfolio strategy:
o Develop strategic facilities portfolio plan with initial emphasis on
finding the optimal location; then on functionality and size.
o Determine your overarching sustainability goal(s).
o Assign a set of sustainability objectives for each property.
© PRES Services, LLC 2010 - Page 4

5. Develop a Strategic Portfolio Plan
• The strategic portfolio plan identifies
the facilities needed to support the
organization’s business plan.
• Location is often an overlooked aspect
of the strategic plan but is important for
both cost and sustainability reasons.
o Balance of travel cost and facility cost is
important, especially for field operations.
o Reduction of unnecessary travel is essential
to reduce CO2 footprint of organization.
o Preliminary opportunity assessments
determine if relocations have advantages.
• Goal is to sort properties into groups:
o New sites required
o Sites to keep for existing function
o Sites to keep for new function
o Sites “on bubble” (not sure)
o Sites to close
• Allows investment focus on properties
with most long-term strategic value.
© PRES Services, LLC 2010 - Page 5

6. Understand the Sustainability “Journey”
• The best sustainability programs
recognize the need for phasing.
• The higher the standards,
the higher the initial cost.
• Sustainability is
multi-dimensional:
o Energy
o Water
o Solid waste
o Air
• Obtain executive support
for prioritized approach:
o By type of building.
o By degree of benefit.
o By other criteria as appropriate:
• New build
• Renovation
• Refit
• Transition
© PRES Services, LLC 2010 - Page 6

7. Strategy Guides Sustainability Objectives
• After confirming a portfolio strategy (location, size, functionality) ,
sustainability objectives can be assigned to each property:
Location Strategy: Example Sustainable Objective:
Develop new Comply with desired standard for all new
buildings.
Keep with major changes Bring towards desired standard with
(expand, renovate…) renovations and targeted projects.
Keep “as-is” and/or Bring towards desired standard with
minor changes (refit) targeted projects.
On “bubble” (unclear Only make financially justified investments
whether to keep or close) until keep/close determined.
Close or relocate Only make financially justified investments.
• These objectives can be refined on a site-by-site basis with
assessment/review of each building that evaluates specific
conditions with respect to the long term strategic plan for that
property:
o Space type and functional utilization.
o Condition of building and equipment.
o Ability to apply sustainable principles and practices.
© PRES Services, LLC 2010 - Page 7

8. Create Tactical Plan
The tactical plan will identify specific actions that
advance the identified portfolio strategy – can translate
directly into budget items or staff assignments.
• Follow-up investigations on specific properties/issues:
o Building assessments, renovation/consolidation planning
o Waste stream audits, water/energy sub-metering
• Capital Improvement Plan
o Funding is always a concern (next slide)
• Establish a sustainable culture
o Adopt green O&M practices
o Education & promotional programs (staff, occupants, public)
o Keep up to date on green industry developments
• Performance and measurement
o Tracking progress & benchmarking
© PRES Services, LLC 2010 - Page 8

9. Strategy Helps Reduce Funding Needs
• Few organizations have reserves for sustainability; a
“self-funded” program is often the practical necessity.
o Start savings with very first actions then build on success.
o Generate support from financial community to allocate accrued
savings to offset program costs in a special “reserve fund”.
• Build the fund with savings produced from a full range of
property initiatives:
o Value extracted from surplus building assets and space
reductions.
o Cost savings in FM operations (vs. established baseline).
o Reductions in “emergency” spending.
o Reinvested annual property depreciation.
o Reductions in energy, water, and waste costs.
o Energy procurement program that reduces risk of future
commodity increases.
o Core business productivity gains.
o Supplement as possible with rebates, tax credits and other
incentives.
© PRES Services, LLC 2010 - Page 9

10. O&M Savings/Sustainability Measures
The O&M measures will include all those “non-capital
investment” activities that generate savings and provide
or maintain sustainability benefits.
• Modify facility O&M processes to assure continuous
performance of green buildings.
o Operating facilities appropriately includes not just service level,
asset management, and cost efficiency, but also sustainability.
o Make staff and contractors aware of sustainability objectives.
o Include occupant education programs.
• Roll out green cleaning.
• Implement conservation/recycling programs.
• Launch no-cost/low-cost energy savings measures.
o Lighting, commissioning, controls.
o Work up to continuous commissioning mindset.
© PRES Services, LLC 2010 - Page 10

11. Strategy Allows Systematic Savings
• Reduce building-related travel
o Organizations with substantial field
operations have significant travel costs
that are often reduced with territory
optimization.
o Organizations with multiple properties can
effectively group building contracts to
reduce maintenance travel.
• Prioritize site assessments
o Benchmark costs and usage to identify
buildings with highest opportunity.
o Low cost building audits can identify
specific measures that reduce cost or
improve sustainability.
o Systematically focus on sites that offer
best return on effort.
© PRES Services, LLC 2010 - Page 11

12. Execute Projects
Incorporate sustainability principles into all of your
“normal” building projects to leverage investments
already being made.
• The incremental cost to incorporate green building
measures during building construction or renovation is
far less than when done separately.
o Set standards for new construction/leases.
o Include relevant work in renovation projects.
o Be proactive about capital repairs (next slide).
• Include targeted investments for sustainability projects
in your capital plan:
o Any project that is financially justified.
o Projects with a significant impact on energy/water use.
o Projects that set an example or test new technology.
o On-site renewable energy and other progressive options.
© PRES Services, LLC 2010 - Page 12

13. Strategy Facilitates Proactive Projects
• Some organizations spend a significant
funds on “emergency” repairs when
equipment fails.
o Equipment failure typically occurs when the
equipment is needed most, creating an
emergency situation.
o Failures often disrupt business operations
(cost and risk to core business).
o Need to get system restored quickly reduces
time to evaluate options and adds cost.
• Plan ahead for failures/ replacements
based upon equipment age/condition.
o Building and equipment lifecycles allow some
predictability.
o Condition assessments improve predictability
and identify specific issues.
o Proactive replacement planning should
consider the planning horizon for each building
and identify the appropriate technology/design
that meets anticipated use of the building and
sustainability objectives.
© PRES Services, LLC 2010 - Page 13

14. A Sustainable Strategy
Apply the 4-step approach in cycles of increasing
detail/sophistication to keep building on success.
Example Getting Started Activities
Use “opportunity Gain executive Commissioning Execute no-cost &
assessments” to support for “self- review of targeted low -cost projects
identify quick starts funding” approach buildings
Example Activities to Continue the Program
Develop long range Perform building Start green cleaning Apply standards on
property strategy assessments all new buildings and
major renovations.
Example of More Advanced Activities
Develop on-site Integrated capital Perform ongoing Implement targeted
energy strategy improvement plan benchmarking projects
© PRES Services, LLC 2010 - Page 14

15. Contact Us for More Information
• Strategic Portfolio • Tactical Property • Building • Energy
Planning Planning Commissioning Management
• Location Analysis • Energy • Facility • Proactive HVAC
• Opportunity Procurement Benchmarking Replacement Plans
Assessments • Building • Territory • Turnkey Energy
Assessments optimization Projects
Bob Lambe, Managing Partner
PRES Location Strategies
Bob.Lambe@PRES-Services.com
315-601-6010 Cell
PRES Location Strategies PRES Energy
www.PRES-Location.com www.PRES-Services.com
© PRES Services, LLC 2010 - Page 15