Cincinnati MEC 2009 Presentation: Evolving Green Economy

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Presentation at Cincinnati conference re: Evolving Green Economy

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Cincinnati MEC 2009 Presentation: Evolving Green Economy

  1. 1. 18th Annual Business & Industry’s Environmental Health & Safety Symposium March 25, 2009 Evolving Green Economy … Financing, Design, Energy & Legal Implications of Sustainable Practices and Their Impacts to Manufacturing
  2. 2. PRESENTERS Summer J. Koladin Plantz Staff Attorney, Vorys Legal Counsel Donna Robichaud Duke Energy Corporation Gregory Ward Vice President, Wells Fargo Real Estate Group Todd D. Holloway RLA, PWS Principal, Civil & Environmental Consultants, Inc.
  3. 3. Motivation Sustainability Execution Objectives Incentives
  4. 4. “The ability to provide for the needs of the current generation without compromising the needs of future generations…” The Dow Jones Sustainability Index defines corporate sustainability as: “a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.”
  5. 5. Summer J. Koladin Plantz Vorys Legal Counsel MOTIVATION Legal Issues Associated with Sustainable Manufacturing
  6. 6. Regulators Lenders Consumers Shareholders/ Company Competitors Investors Public/ Employees Community Partners
  7. 7. When do legal issues arise? • Components • Production • Transportation • Marketing & Use • Disposal • Reuse
  8. 8. What is in your product? • Consumer Product Safety Improvement Act of 2008 • REACH • State legislative proposals
  9. 9. Transportation and Packaging • GHS – Classification – Labeling – Packaging
  10. 10. Transportation and Packaging • What materials are you using to transport and ship your products? • UPS – No left turns – http://www.pressroom.ups.com/mediakits/factsheet/0,1889,1493,00.html • Fetzer Wine – Lighter wine bottles – http://www.fetzer.com/protect.aspx
  11. 11. Advertising • Federal Trade Commission “Green Guides” – No false or misleading advertising • What are you using? – Catalogue, ads – What are these items made from?
  12. 12. Contracting • Details, details, details • Environmental Audits • Component Parts/Supply Chain • Manufacturing Specifications
  13. 13. Disclosure Obligations • What risks related to sustainability are associated with your manufacturing process? • Are you required to disclose these risks? – Shareholders, Directors, Partners, Investors, Lenders may ask • Emissions Disclosures • Climate Risk & Emissions Management • Physical Risks of Climate Change • Regulatory Risks – Excel Energy and Dynegy Settlements
  14. 14. Donna Robichaud Duke Energy Corporation OBJECTIVES
  15. 15. Gregory Ward Wells Fargo Real Estate Group INCENTIVES
  16. 16. Operating Incentives – Your Money! • Retain money for your company from items you hate spending on in the first place: – Taxes – Utilities (Energy, Water, Waste/Recycling) – Financing – Soft Costs (Design, Renovation, Changes in Processes) – Employee Retention • Comply with ever-increasing standards from your customers
  17. 17. Incentives – Real Estate • Not just for new construction – retrofits can also be “Green” - Sustainable design improves cost of future retrofits, too! • Design costs can be lower - coordinated design effort, cheaper/easier retrofits in the future • Lower Operating Costs for Facilities – also limit financial risk of possible future tax increases – Energy costs for the building alone can be reduced (25%-35% on average) – Greater control over water and energy use, access to power, period controls to limit unproductive use • Marginal Cost to “Go Green” - cost difference can be negligible (0-3% on average)
  18. 18. Types of Incentives • Branding/Reputation • Complying with tougher customer requirements – (ISO, etc.) • Tax Incentives – Building materials and systems (new 8 year term on Solar, lots of other state & local incentives – new Federal incentives coming) – Equipment –can be utilized to reduce cost of financing – Energy • Improved worker productivity
  19. 19. How to Get Most Bang for Incentive Buck • Study trends in your industry – target any project to meet future needs – Can you serve your customers without an improved process/facility/equipment? – Can your suppliers meet your needs? – Does a new standard require a shift in supply chain? • Understand terms of any tax incentives (products, process, materials, timeframe) • Work with qualified professionals to assess ROI (architects, contractors, any industrial design experts for a new or renovated facility)
  20. 20. Educate Service Providers/Suppliers • Educate service providers – Accountant – Banker – Appraiser – Attorney • They must understand Cost/Benefit and the potential positive/negative impacts to your business • Work with suppliers and customers to ensure costs/incentives are managed across organizations
  21. 21. Todd D. Holloway RLA, PWS Civil & Environmental Consultants, Inc. Unites States Green Building Council Heartland Regional Chapters NAIOP EXECUTION Facilities, Processes and Image
  22. 22. “the Triple Bottom Line” Source: www.Sustainability-ed.org EXECUTION
  23. 23. Environmental Impact of Buildings in the US EXECUTION
  24. 24. The Average High Performance/Green Building Saves: EXECUTION
  25. 25. Life Cycle Benefits EXECUTION
  26. 26. LEED® Defined High Performance Building Rating: EXECUTION
  27. 27. Green Facilities and Infrastructure - Advanced Storm Water Management - Natural Lighting/High Efficiency Lighting - High Efficiency Roofing - Native/Low Maintenance Landscaping - High Efficiency HVAC/R - Indoor Air Quality US Citizenship and Immigration Services-Detroit, MI -Reduced Emissions Source: Arcus Group, Cleveland Ohio, architects - On-site Renewable Energy High Performance Facilities (examples: Ford Motor Rouge Assembly Proctor and Gamble, Lodz, Poland) EXECUTION
  28. 28. Green Business Processes - Waste Management and Recycling (shipping and cast off) - Delivery Methods -Water Use Efficiency (water re-use, bio-treatment) - Supply Chain Requirements (ISO 14001 and ISO 26000) - Worker Productivity and Satisfaction (sick days, health care costs, output, accuracy) EXECUTION
  29. 29. Sustainable Image and Public Relations -Talent Attraction and Retention (the Millennials) - Purchase Orders and Consumer Preferences - Brand Distinction and Differentiation - Community Stewardship/Good Company Image (fuels all three above) EXECUTION
  30. 30. QUESTIONS? Summer J. Koladin Plantz 513.723.4030 skplantz@vorys.com Gregory W. Ward 216.344.6945 Greg.W.Ward@wellsfargo.com Donna Robichaud 513.419.5980 Donna.Robichaud@duke-energy.com Todd Holloway 248.374.8600 tholloway@cecinc.com

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