3. Money saved
• U.S. spends $400B+/year
Infrastructure investment
• $279B+ retrofit potential
Local job creation
• 3.3million cumulative job
years
Market Potential
4. 0.0 20.0 40.0 60.0 80.0 100.0 120.0
BRAZIL
CANADA
GERMANY
JAPAN
INDIA
RUSSIA
U.S. BUILDINGS
UNITED STATES
CHINA
Buildings in the U.S. use more
energy than most countries use and
account for 40% of U.S. carbon
emissions
2011 Total Primary Energy Use (Quadrillion BTU)
Why Buildings Matter
5. In large cities with
significant public
transportation,
buildings typically
account for 70% or
more of CO2
emissions and
energy usage.
DISTRICT OF
COLUMBIA
Buildings
(74%)
Transportation
(22%)
Waste (2%)
Metro transit
(2%)
NEW YORK CITY
Buildings
(75%)
Transportation
(20%)
Solid waste,
wastewater
and fugitive (5%)
BOSTON
Buildings
(71%)
Transportation
(29%)
CHICAGO
Buildings
(70%)
Transportation
(21%)
Other (9%)
Why Buildings Matter
8. ENERGY STAR as Industry Standard
Through 2014:
More than
400,000
properties
benchmarking
energy use
More than
25,000
properties are
ENERGY STAR
certified
9. Average 2.4% annual
energy consumption
reduction over 3-year
period.
Utility expenditures
reduced by about 3%.
77% facility managers in
NYC surveyed made
operational changes in
response to benchmark
and transparency. 75%
installed new energy-
efficient equipment.
Energy + Cost Savings
14. High demand for energy-
efficient products and skilled
workers
Small businesses adding staff
and increasing client bases
KEY TAKEAWAY: Financing not
the key barrier. Primary issue is
demand.
Job Creation + Economic Growth
15. Job Creation + Economic Growth
“As a Silicon Valley venture capitalist … I tell our green startup companies to focus on San
Francisco or New York City. That’s where the action is going to be.”
- Elton Sherwin, venture capitalist, senior managing director, Ridgewood Capital
“The Greener Greater Buildings Plan has spurred the New York Market to interest and activity
around energy efficiency. Over the past year, we have begun working with over 75 million
square feet of real estate in New York and over 400 new clients.”
- Lindsay Napor McLean, COO, Ecological
“When an owner sees a benchmarking score that is lower than expected, they’re a little more
receptive to improvements to bring the score up, which in turn lowers their utility costs.”
- Kevin Dingle, president, Sustaining Structures
16. Market Competition +
Consumer Choice
Building performance
data collected
Data shared with
stakeholders and
market
Market compares
building performance
Market rewards
efficient properties
Owners improve
efficiency to remain
competitive
Efficiency of building
stock continuously
improves
19. Energy intensity is
greater in newer office
buildings than older
buildings.
ENERGY STAR
scores are higher
in older office
buildings than
newer buildings.
What the Data is Telling Us
20. The poorest performing buildings use 3 to 7
times the energy and roughly 8 to 13 times the
water of the highest performing buildings.
What the Data is Telling Us
21. Residential energy efficiency is
associated with lower mortgage default
and prepayment risk
32% lower default risk on ENERGY
STAR homes, controlling for other
factors, including price, location and
FICO score.
The more efficient the house, the lower
the default risk.
What the Data is Telling Us
23. 0%
5%
10%
15%
20%
25%
30%
RENTAL PRICE SALE PRICE OCCUPANCY RATE
AVERAGE
PREMIUM
Wiley et al 2010*
Fuerst & McAllister 2009/11
Jackson 2009
Pivo & Fischer 2010*
Eicholtz et al 2010*
Added Value of ENERGY STAR Labels
in Commercial Market
24. Jackson, 2009 Pivo & Fisher, 2010 Fuerst & McAllister,
2011
Eicholtz, 2010Wiley et al.,
2010
Rental Premiums for Green
Commercial Buildings in the U.S.
25. Growth of Companies Reporting Data
$2.8 Trillion
Total gross asset value of
companies and funds reporting
to GRESB Real Estate in 2016
$7.6 Trillion
Institutional capital represented
by 58 GRESB investor
members
26. Existing Barriers
Informational Lack of transparency around efficiency
Institutional Energy efficiency is undervalued
Transactional Split incentives
Organizational Information doesn’t flow within company or process
Inertia Business as usual continues without intervention