1. 2/1/2011
The Business Value
of Going Green
CELIA HAMMOND, LEED AP O+M, BEP
FEBRUARY 1, 2011
And you….?
Never really heard of green building – nor
understand the hype?
Heard of “being green” – energy efficient?
Know of LEED buildings in PA, understand it
involves more than energy efficiency?
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CONSOL ENERGY CENTER
The Pirates are doing it
Through the work of greening
initiatives during the 2010 season
the Pirates recycled:
27.7 tons of Glass
5.5 tons of aluminum cans
22.2 tons of plastic
14.5 tons of paper
101.1 tons of baled cardboard
11.2 tons of used cooking oil
42.5 tons of yard waste
262.3 tons of food waste
61.9 tons of other recyclable materials
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Every person is affected:
Owners
Designers
Engineers
Contractors
Sub-Contractors
Tenants (Organizations)
Occupants (Individuals)
Everyone is involved and affected:
Owners
Tenants/
Designers
Occupant
Contractor
Engineers
/ Subs
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Why?
The impact of the design construction
and operation of the built
environment has profound
implication for human health
environment and economy.
On average people spend over 85% of
their time inside a building.
Green Building Movement:
The trend has risen dramatically
over the past decade
Federal, State and Local agencies
are requiring sustainable facilities
and making laws to support them.
US General Services Administration
requires LEED certification on new
construction
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Green Building Movement:
Green Building: transform the
way built environments are
designed, built, and operated
Impact earliest stages of planning
to beyond the end of life
Encompass production and fate of
every substance that crosses into
or out of a project
US Buildings:
72% of electricity consumption
39% of energy use
38% of all carbon dioxide (CO2) emissions
40% of raw materials use
30% of waste output
14% of potable water consumption
Green Building aims to minimize human
impact on natural resources
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Green Buildings:
Generate economic
benefits
Areresource-efficient
& comfortable
Contain the amenities
necessary for better
quality of life
Green Buildings:
Green building is propelled by belief
that design, construction, and
operation of buildings can & should
address:
energy efficiency
smart growth
water conservation
indoor environmental quality
material selection and life-cycle
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7. 2/1/2011
Average
Savings of
Green
Buildings
WASTE
COST
WATER SAVINGS
USE 50-90%
CARBON SAVINGS
SAVINGS 30-50%
35%
ENERGY
SAVINGS
30%
Source:
Test Capital E
Facility Life Cycle Cost
Occupant
Salaries
92%
Operations & Design &
Maintenance Construction
6% 2%
Based on 30-year lifecycle BOMA report
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Triple Bottom Line:
Measures projects based on performance in society,
environment, and economy
(people, planet, profit)
Green buildings measure/enhance the sustainability of
buildings based on TBL
Refocusesthe measurement of corporate performance
from shareholder’s perspective (mostly financial) to a
stakeholder’s (any impact on anyone)
U.S. Green Building Council
Non-profit founded 1993
Nation’sforemost coalition
of green leaders
Promotes environmentally responsible,
profitable, and healthy buildings
Members are from more than 15,000 diverse
organizations
More than 70 regional chapters
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9. 2/1/2011
LEED: Leadership in Energy
and Environmental Design
LEED designed to meet need to
system to define and
measure green buildings
First committee comprised of:
architects, real estate agents, a
building owner, a lawyer, an
environmentalist, and other
industry representatives
LEED – Green Building Rating System
Third-party green building certification
program
Nationallyaccepted benchmark for the
design, construction, and operation of high
performance green buildings.
Voluntary,consensus-based, comprehensive,
and flexible
Prevents “greenwashing”
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12. 2/1/2011
LEED or Leeds?
LEED Leeds
Green Building City in the UK
Rating System
Using LEED as a Guide
Sustainable practices are best management practices
Many implemented at low cost/no cost, not capital
Actual certification costs money – Do you need a
plaque?
Is there an ROI for your organization?
Will your business stock go up?
Are your clients asking you about your “greenness”?
What is your public image?
Does management have personal initiative?
What is your competitor doing?
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13. 2/1/2011
Why consider green…. Or LEED?
Getty Center
Adobe Incorporated
Missouri Botanical Garden (MOBOT)
State of Colorado
Dr. James Heneghan
Pentagon
GE
Synopsys
Cushman & Wakefield
Where to start?
Use LEED (or parts of it) as a Business Tool to
Measure Your Success
“You can’t manage what you can't measure”
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Energy Consumption
Defining and Water Consumption
Measuring Recycling/Waste Diversion
your KPIs Green Cleaning
Comfort Calls
What works for Greenhouse Gas Reduction/Carbon
your organization? Footprint
Alternative Transportation
RMI claims
Energy Use Index – EUI
Data Center Use
Purchasing
You can’t manage what you can’t measure.
LEED - Sustainable Sites (SS)
Commuter
Travel
Surrounding Hardscape
Habitat Management
Site
Impacts
Landscape Heat Island
Management Effect
Stormwater
Management
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LEED – Water Efficiency (WE)
Water Management
“When the
well's dry, we
know the
worth of
water.”
Benjamin Franklin
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Water Savings = Cost Savings
C&W at Adobe Towers water management program saved
more than $30k per year and provided a 22% return on
investment
A commercial office building in Boston replaced existing 3.5
gpf toilets with low-flow 1.6 gpf toilets
Reduced water use by 15%
Initial cost of $32,000
Estimated annual savings of $22,800 and 1.4 year payback
An office building in Boston installed 30 efficient aerators
Reduced water use by 190.000 gallons per year
Initial cost $300
Estimated savings of $1,250 per year with a simple 2 month payback
Water Performance Measurement
Whole Building Meter
Submetering: have permanent meter for one
more water system
Irrigation
Indoor Plumbing Fixtures
Cooling Towers
Domestic Hot Water
Other Process
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Energy & Atmosphere (EA)
Energy costs are a large portion of overall
operating expenses of buildings
2005 average energy cost
$1.51/SF for an office building
EPA’s Energy Star
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20. 2/1/2011
Energy
Consumption
According to the Environmental
Protection Agency, the average
commercial building should be
able to reduce its energy
consumption by 30%, easily.
Metering
If you need to
reduce energy use
by 10% - where do
you begin?
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Materials & Resources
Life Cycle Example:
Carpet Tile vs Roll Floor Covering
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Life Cycle Example:
Maintenance/Replacement Expense
Replace Replace
stained or entire carpet
worn tiles as when stained
needed and worn
Sustainable Purchasing
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Waste Diversion
Understand your waste stream – do an audit
Where do these items go and how much?
Paper
Food
Cardboard
Pallets
Electronics
Green landscape
Other?
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Waste Diversion – Make it competitive
Set your metric and a goal that is reasonable
Push the limit a little – make it successful
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Indoor Environmental Quality
Air Quality
Daylight and Views
Green Cleaning
Thermal Comfort
Occupant Comfort: Occupant Survey
Survey building occupants
thermal comfort
indoor air quality
lighting levels
building cleanliness
acoustics
occupant comfort
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Green Cleaning Policy
Green Cleaning (low cost , no cost)
Sustainable cleaning systems
Sustainable cleaning products
Appropriate dilution systems
Proper training in hazardous use, disposal and packaging
Hand soaps - no antimicrobial
Equipment that reduces IAQ
Innovations/Region Points
Get creative!
Go above and beyond
Get extra points based on where your building is
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28. 2/1/2011
ADOBE SYSTEMS INCORPORATED
The Business Case
For LEED Certification
Adobe Towers
Adobe Systems Incorporated’s Headquarters Buildings
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29. 2/1/2011
Adobe Towers
Adobe Systems Incorporated’s Headquarters Buildings
• 3 buildings, 1 million square feet, completed 1996-2003
• 64 sustainability projects completed over five years
• Cost: $1.4 million; rebates: $389k; annual savings: $1.2 million
• 9.1 month payback; 121% ROI (Return On Investment)
• Electricity use reduced 37%
• Natural gas use reduced 41%
• Domestic water use reduced 22%
• Landscape irrigation water use reduced 76%
• Up to 85% of its solid waste diverted through
composting and recycling
• CO2 emissions reduced 19%; with Renewable
Energy Credits, 38.2%.
Cost Summary of Projects
Description # Projects Cost Rebate Savings ROI
Load Management 26 $445,248 $205,437 $729,185 304%
Lighting 19 $300,701 $ 44,918 $155,616 61%
Equipment 6 $298,439 $122,575 $107,976 61%
Monitor & Controls 1 $ 39,472 $ 11,000 $ 12,001 42%
Water Management 3 $145,732 $ 5,396 $ 31,287 22%
Waste Stream 1 $ 0 $ 0 $137,380 immediate
Office Supplies 1 $ 0 $ 0 $ 8,700 immediate
Sustainable Janitorial 1 $ 0 $ 0 $ 0 n/a
Indoor Air Quality 1 $ 0 $ 0 $ 0 n/a
Alternative Trans 1 $ 0 $ 0 $ 0 n/a
Compostable Paper 1 $ 0 $ 0 $ 0 n/a
Purchase Alter Energy 1 $ 16,000 $ 0 $ 0 n/a
LEED Consult(3 bldgs) 1 $105,000 $ 0 $ 0 n/a
Register/Cert (3 bldg) 1 $ 12,000 $ 0 $ 0
n/a
Total 64 $1,362,592 $389,326 $1,182,145 121%
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Load Management
26 separate load management projects:
•6 applications of motion sensors to curtail
lighting
•Adjusted run-times on equipment and
motors, including garage fans, boilers, and
fountain pumps
•Rescheduled parking garage lighting to
reduce operating hours
•Relocated thermostats from ceiling’s in
IDC closet to optimize temperature
readings
Lighting Retrofits
19 Separate Lighting
Modifications
•Converted incandescent
lamps to compact
fluorescent
• Retrofitted high-pressure
high sodium lamps in
garage to fluorescents
• Upgraded fluorescent T8
lamps to latest generation
• Changed fluorescent exit
signs to LED
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ROI
C O N S I D E R T H AT M O S T E X I T S I G N S U S E T W O 2 0
WAT T I N C A N D E S C E N T B U L B S ( A T O TA L O F 4 0
WAT T S O P E R AT E D 2 4 H O U R S P E R D AY ) ,
W H I L E A N L E D E X I T S I G N S U S E S 2 WAT T S A N D L E D
R E T R O - F I T B U L B S U S E O N LY 1 . 4 WAT T S .
AT $ . 1 0 P E R K W H , Y O U C A N E X P E C T T O S AV E
OVER $450 IN ENERGY COSTS ALONE OVER THE
LIFE OF THE LED EXIT SIGN
Green Cleaning
Multiple Projects:
•100% Green Chemicals
•Automatic Solution Dispensers
•Microfiber Dust-mops and Wipes
•High-filtration Vacuum Cleaners
•Training
•Use of incentive bonuses
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Waste Management
Multiple Combined Projects:
•Categorized recycling containers
installed in each break room:
Compost, Recycling, Trash
•Battery and toner cartridge recycling
in every break room
•All food waste is composted
•Light bulbs, lamps and e-waste are
recycled through outside contractors
•Grass-cycling employed to maintain
lawns with no waste
•Side-saddle waste baskets added in
each office to accommodate both
recycling and composting in each
office
Benefits of Conservation
• Reduced Operating Costs
$1.2 million reduction in annual operating costs
• Increased Building Value
A reduction in annual operating costs of $1.2 million equals
an increase in building value of $18 - $20 million.
• Increased Productivity
Studies by Carnegie Mellon show productivity increases ranging
from .4% to 18% in green buildings
• Increased Market for Potential Employees
Environmental issues are increasingly important to employees
and potential employees
• Increased Investor Market
12% of the investor market only invests in socially and
environmentally responsible companies
Federal & State Governments give preference to Green Buildings
• Reduced Environmental Footprint
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Adobe’s Savings Through Sustainability
Total progress as of December 31, 2008:
• Effectively reduced electricity use 39%
• Reduced natural gas use 37%
• Reduced domestic water use 38%
• Reduced landscape water use 76%
• Diverting up to 98% of its solid waste through
composting and recycling
• Reduced CO2 emissions 19%; with Renewable Energy
Credits, 38.2%
• Cumulative savings in San Jose to date, $6,288,972
Impact of LEED Certification
Description # Projects Cost Rebate Savings ROI
Before Registering 30 $888,912 $277,092 $647,747 106%
After Registering 34 $473,680 $112,234 $534,398 148%
Total 64 $1,362,592 $389,326 $1,182,145 121%
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34. 2/1/2011
ANOTHER
PERSPECTIVE
Actually,
it is easy
being green,
…and profitable!
Celia Hammond
202-550-5713
celiahammondleedap@gmail.com
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