This document summarizes a panel discussion on sustainability and green business practices. The panel discussed how businesses can reduce their environmental impact through various strategies like assessing energy usage, setting reduction goals, improving efficiency, and obtaining green building certifications. Government incentives are available to help businesses implement sustainability projects that save energy and cut costs. Going green can provide competitive advantages and improved financial performance over the long run.
2. Sustainability: The Triple Bottom Line
“Meeting the needs of
the present without
compromising the ability
People Planet
of future generations to sustainable employee sustainable resources
and customer base and operating environment
meet their own needs.”
Brundtland Commission
(1987)
Profits
sustainable business
increased present value
2
3. Why Green Your Business?
Regulation
Competition – Transparency
Stakeholder demands – Supply Chain
Recruiting – Retention
Cut energy costs – Waste
Government Incentives
THE BOTTOM LINE:
It’s good business sense, short and long-term!
3
4. Green Outperforms the Market
“According to a recent study by A.T. Kearney,
99 sustainability-focused companies* …
outperformed the broader market by an average of
10 percent from September to November 2008,
and by 15 percent from May to November.”
Daniel Mahler, Ph.D., Partner, A.T. Kearney
*selectedfor being on either the Dow Jones Sustainability Index
or the Goldman Sachs SUSTAIN focus list, or both
4
5. Hudson Gain’s Evolution to Green
Talent Talent
Acquisition Development
Sustainable
Leadership
5
6. Sustainability Leadership
Going Green? Don't Hire a Sustainability Chief
Until You Read This Study!
The Role of the
Chief Sustainability
Officer (CSO)
in Corporations
6
7. How Do You Green Your Business?
Assess, then prioritize based on your strategy
Build the business case
Plan, set goals and accountabilities
Consider extending ROI timelines
Grow your people in the process
Measure and celebrate
Get professional help if or as needed
There’s NO ONE-SIZE fits all
7
28. Limits to Growth
Growing population
Intensive resource usage
Limited resource stocks
Fragile ecosystems
Unsustainable consumption trends(!)
Two planets needed by 2050? (UNEP)
29.
30. Family-Owned Flooring Business
Operating > 94 years
>2,000 employees - 700 in NJ
7 U.S. manufacturing sites
– Resilient & HQ’s in New Jersey
– Carpet in Georgia
– Laminate in North Carolina
– Wood in North Carolina and Alabama
– Rubber in California & Florida
– Tile joint venture in Texas
31. WASTEFUL BUILDINGS - USA
20,000 landfills - >15,000 reached limit & closed
40% of landfill content is construction waste
Construction waste equals municipal garbage
40. The LEED Rating Systems
NC EB: O&M CI
New Construction Existing Buildings: Operations
& Major Renovations and Maintenance Commercial Interiors
2000* 2004* 2004*
CS Schools H
Core and Shell Homes
2006* 2007*
2008*
* Year rating system first implemented.
41.
42. *As of April 2009, over 5 billion
square feet of commercial
building space is involved with
the LEED green building
certification system.
66. NSF 140 Sustainable
Carpet Assessment Standard
Safe for Public Health & Environment
Renewable Energy & Energy Efficiency
Material, Biobased or Recycled
Facility or Company Based
Reclamation, Sustainable Reuse & End of Life
Mgt.
(total of 113 available points)
67. NSF 332 Sustainable Product Standard –
Resilient Flooring
Informed Product Design
Intelligent Product Manufacturing
Long – Term Value
Progressive Corporate Governance
(total of 99 available points)
73. The Business Case for Sustainability
At Ingersoll Rand
Bizmania
October 5, 2009
Kevin R. Tubbs
74. Business overview
Ingersoll Rand
– $ 17 billion company
– 64,000 employees
– Products and services in nearly 200 countries
– Over 100 manufacturing facilities worldwide
– In 2008 was named to the Dow Jones Sustainability North
America Index and included on seven KLD socially
responsible investment indexes.
Trane, a business of Ingersoll Rand
– Leading global provider of integrated HVAC systems,
services and solutions
– 29,000 employees
– 29 manufacturing facilities worldwide
74 Bizmania – October 5, 2009
75. Sustainability at Ingersoll Rand
Triple bottom line
• We communicate the company's "triple
bottom line" business strategy as Green,
Giving, Growing. Collectively, these three
elements are essential to operating a
responsible business.
Environmental Social Economic
Stewardship Responsibility Prosperity
Green Giving Growing
Reducing our own “Inspiring Progress” Positioning
environmental footprint Award recognizing Ingersoll Rand as the
employee action industry-leading
provider of green
solutions
75 Bizmania – October 5, 2009
76. Expanding to sustainability reporting
• IR published environmental, health
and safety (EHS) reports in 2004,
2005, and 2006
• Trane published Corporate
Citizenship Reports for 2004
through 2006
• 2007 annual report introduction
• 2007 sustainability report
– expansion of our previous
EHS reports; covers our
economic, environmental
and social performance
76 Bizmania – October 5, 2009
77. Drivers for Change – Tyler, TX.
• Tyler Plant produces residential air conditioning
systems
• Business landscape:
– Expiration of five year fixed price electrical contract
– Rising energy cost +70% on $4M spend
– Dramatic downturn in housing market
Ingersoll Rand acquires Trane – June, 2008
– Corporate goal of 15% normalized reduction in
manufacturing energy use by 2013
77 Bizmania – October 5, 2009
78. Facilities & Infrastructure
• Campus style facility; Total 1.1 million square feet, 700KSF
manufacturing / test, balance Engineering, offices & warehouse
•
• 100PSI & 400PSI Compressor Dry Air (CDA) Systems; 5,000 SCFM
total demand @ -40F DP
• Four 900 Ton Trane Centrifugal Chillers running in series / parallel,
operating at 380F Comfort cooling in manufacturing area
• 2400 Ton Process Cooling Tower Water System
• 1-600 HP & 1-35 HP gas fired boiler
•
• Mix of HID lighting, T12, T8 & T5 fluorescents
78 Bizmania – October 5, 2009
79. Internal case study
• Trane’s largest production facility in Tyler, Texas, headquarters
of residential systems business
• Energy team developed a phased plan that is expected to yield
$1.1 million in annual savings
• Approach currently being used at two additional Ingersoll Rand
locations, with a goal of six locations in 2009
• Policy & Deployment • Energy Efficiency Projects
• Management / factory awareness • Equipment / systems efficiency
• Electrical sub-metering • Production methods
• Ownership of results and empowerment • Waste minimization, leaks and losses
• Metrics, monitoring and reporting • Focused investment
• Energy Conservation Measures • Pricing Strategies
• Behavior changes • Supply / rate management
• Off / on controls nights / weekends • Demand management
• Basic operations and maintenance • Off-peak load shifting
• “Low hanging fruit” projects
79 Bizmania – October 5, 2009
81. Project Summary
• Multiple Benefits are being achieved:
– Increased Employee Engagement
– Significant decrease in Greenhouse Gas Emissions
– Use of remote monitoring and engineering support to
reduce cost and “hold the gains”
– Delivering better than expected raw cost avoidance
($480,000 in calendar year 2008)
• Total Projected Costs: Approximately $1.8 M
• Projected Annual Savings: Approximately $1.1 M
81 Bizmania – October 5, 2009
82. Serving Customers
Business value of sustainability
• Ingersoll Rand has the most LEED-accredited engineers of
any company. We use that expertise to help our customers and,
increasingly, to help our own facilities achieve green building
status.
• It’s also one of only four energy service companies asked to
participate in the Clinton Climate Initiative (CCI).
• In 2007, Trane’s CenTraVac™ chilled water system won the
prestigious “Best-of-the-Best” Award from the U.S. Environmental
Protection Agency for its contributions to strategic ozone
protection. It is the most energy efficient system available for large
buildings.
82 Bizmania – October 5, 2009
83. Ingersoll Rand and Trane help buildings go
green by:
• Designing and engineering green buildings – TRACE™ 700
is the complete design tool for load, system, energy and
economic analysis, and is recommended by the USGBC to
receive LEED points
• Constructing green buildings – EarthWise™ systems use
state-of-the-art Trane products, systems and controls to
optimize performance.
• Operating and controlling green buildings – Tracer
Summit™ controls give advanced control of complex systems
to achieve energy savings and measure performance.
83 Bizmania – October 5, 2009
84. Energy efficiency curriculum
• Trane’s BTU Crew educational program
teaches energy awareness and conservation
measures for buildings and offers students the
opportunity to conduct comprehensive energy
audits as they explore career opportunities that
harness their interests in science, technology,
engineering and math careers.
• Program elements also incorporated in Girl
Scouts of the USA’s national energy journey
for Girl Scout Juniors
84 Bizmania – October 5, 2009
88. A NEW JERSEY PERSPECTIVE
On Energy Saving Incentives
89. m
Program Market Manager:
TRC Energy Services, Inc.
900 Route 9 North, Suite 104
Woodbridge, NJ, 07095 Presenter:
732-855-0033 Dr. Ron Maslo, P.E.
Project Manager
732-996-2762 (Cell)
732-556-9190 (Office)
90. NJ Clean Energy Program
• Introduced March 9, 2001, as part of the Electric Discount and Energy
Competition Act, N.J.S.A. 48:3-49 et. Seq, February 9, 1999.
• Funding comes from “Societal Benefits” or “SBC” Charge on Utility bill,
N.J.S.A. 48:3-60(a)(3).
• Provisions for Commercial & Industrial projects, Residential Projects, and
Renewable Energy projects
• New construction projects must be in designated Smart Growth areas
to be eligible for incentives.
• Refer to the Program Guide found at www.njcleanenergy.com/ssb
under “Quick Start”
91. Why Energy-Efficiency Programs?
• Save energy and money by reducing the
demand for energy
• Protect the environment
– Less emissions
– Cleaner air
• “Transform” the Market Place
– change behaviors - think high efficiency first
– encourage sustainable practices
92. OWNERSHIP COST SUMMARY
(40-year building life cycle approximation)
Alteration
Operating &
Costs
Maintenance
25% Costs
50%
14%
Financing Front-end
11% decisions
result in long
range impact
Construction
93. Who Can Participate?
All New Jersey C&I Electric and Gas customers
(who pay Societal Benefits, i.e., not served by municipal utility)
Opportunities for all size and type projects:
– New construction (new buildings & additions)
– Major renovation (gut-rehabilitations)
– Equipment replacement
94. Incentives Available For:
• Design Assistance Grants
• Pre-Qualified Equipment
• Custom Measures with energy-saving potential
• Cost-sharing for Studies & Commissioning
95. Design Assistance Grants
• Comprehensive Design Support
– At conceptual design stage of construction project
– For Facilities of 50,000 Square Feet and Larger
• OR HVAC > 150 tons and Demand > 75kW
– Brainstorming: $1,000 grant
– Energy Modeling: $5000 minimum
– Incremental design incentive: up to $5,000
• Modified Design Support
– Design substantially complete, but before bidding
– Goal to re-consider energy saving potential
– Up to $5,000 on case-by-case basis
96. Pre-Approved Technologies
– Electric Chillers – Variable Frequency Drives ...
($8 to $170 / ton) ($60 to $155 / HP)
– Natural Gas Cooling – NEMA Premium Motors - 1 to
($185 to $450 / ton) 200 hp ($45 to $700 / motor)
– Electric Unitary HVAC Systems ..
($40 to $92 / ton) – Prescriptive & Performance
– Ground Source Heat Pumps Lighting ($10 to $284 / fixture)
($370/ton) – Lighting Controls
– Gas Heating ($300 minimum / ($20 to $75 / unit)
furnace or boiler) & DHW
Heating ($50 minimum / heater)
97. Custom Electric and/or Gas Projects
• Opportunities for non-pre-qualified technologies
• Submit Custom Equipment applications and custom project data
sheet estimating:
1. Savings over established “base-line”, for example, 20
kW minimum demand reduction or 25,000 kWh saved
per yr. or 10 to 15 % Gas Savings
2. Life-cycle costs vs. life-cycle savings
• If project qualifies: (Benefit/Cost Ratio >1.0, Payback > 24
months
Incentive equals $0.16 per Kwh/yr or $1.60 per Therm saved.
98. Other Ways to Participate
• Multiple Measures Bonus (up to 10% extra)
For projects with lighting and non-lighting incentives or
2 non-lighting incentives, if lighting previously upgraded
• Building Commissioning (CX)
For K-12 public schools only (at least 50,000 s.f. in area)
Must follow Comprehensive Design Path
50% of Commissioning Agent fee to $30,000 maximum
99. NJ SmartStart Buildings Rules
• Send to TRC Energy Services (Market Manager):
- Application & Worksheet (if applicable)
- Copies of latest Utility Bills and W-9 form
- Equipment Manufacturer Technical Data Sheets
• You must receive TRC’s approval letter prior to the removal
of existing, or installation of new, equipment
- When incentives > $5,000 for HVAC or motors
- For all other energy-efficiency measures (EEMs)
• Install in accordance with the “approval letter” within the
specified time frame
100. NJ SmartStart Rules (continued)
• Submit “proof-of-purchase” documentation and tax
clearance certificate. Incentive will be the lesser of:
Approved program incentive amount
Actual equipment cost of the EEM
• Allow 60 days for delivery of incentive after
submission of all required documentation.
• The NJBPU reserves the right to cap incentives at
$500,000 per utility account per calendar year.
• Budget for 2009: $51.59M (Includes P4P CHP)
101. New Incentives for 2009
• Direct Install Program
• Pay For Performance Program
• TEACH Energy Education Program
• Local Government Energy Audit Program
102. Direct Install
• Retro-fit Program for facilities with an average peak demand
<200 kW.
• Incentives and education are to encourage early replacement of
eligible, energy consuming equipment.
• Provides for direct installation by pre-qualified contractors.
Incentives are paid directly to the contractor.
• Qualifying Users are eligible for incentives up to 80% of
installed cost of approved projects.
• User pays contractor remaining 20%.
• Budget for 2009 ~ $10.2 M
... back
103. Pay For Performance
• For facilities with an average peak demand of > 200 kW.
• Incentives are based on analysis & simulation and are linked directly to energy
savings, with a 15% reduction as the minimum goal, Lighting cannot exceed
50% of projected savings.
• Three milestone payments:
1) Submittal of Energy Reduction Plan – Incentives are Contingent on moving
forward and are based on $0.10 / sq ft and range from $5K to $50K max (
not to exceed 50% of annual energy expense).
2) Installation of all Recommended Energy Saving Measures – Incentives
equal 60% of total Performance Based incentive.
3) Completion Benchmarking Report - Final incentive equals remaining 40% of
total Performance Based incentive.
• Incentive is capped at $1M / utility meter and $2M / facility. Doubled for
Hospitals, Non-Profits, Universities and Gov’t Facilities
• Payment 1 cannot exceed 50% of annual energy cost.
• Combined Payments 2 & 3 cannot exceed 50% of Project Cost
• EPA Portfolio Manager or LEED EB may be followed to validate savings, along
with post Retrofit billing data.
• Budget for 2009 ~$23.2M
104. Teach - Energy Education Program
(Teaching Energy Awareness with Children’s Help)
• An educational, practical program for approximately 100 K – 12 Public
Schools in 6 to 9 Districts.
• Schools to be Selected by State of NJ based on building
characteristics
• Requires 24 months of energy consumption data to serve as baseline
for comparison of savings versus baseline.
• Will entail modeling of facility to establish a base condition and to
identify energy saving alternatives.
• Will allow administrators to see how their schools are performing
against a local and national sample.
• Provide energy efficiency educational programs for the students and
training of the faculty to teach these programs.
• Budget for 2009: $796K
105. Local Government Energy Audit Program
• Program to audit municipal/county government facilities & NJ State Colleges
and State Universities and to determine energy saving measures.
• Agency submits information to TRC and requests proposal for an energy
audit from contractor on approved NJ Dept of Treasury list.
• Agency pays 25% of audit fee - if recommended upgrades are installed,
equivalent in amount to the 25% fee, the 25% fee is refunded to Agency.
• Agency participating is eligible for upgrade equipment installation through
the Smart Start Program or the Direct Install Program (3Q009).
• Incentive Caps Based on Sq Ft of Facility:
– <750K SF $100K/Yr
– >750K SF, <1,500K SF $150K/Yr
– >1,500 SF, < 2,000K SF $200K/Yr
– >2,000K SF $300K/Yr
• Total 2009 Funding ~ $13.3M
106. For More Information
• Commercial & Industrial Market Manager
TRC Energy Services, Inc.
(732) 855-0033
• Marketing Outreach - EAM Associates, Inc.
Dr. Ron Maslo, P.E.
(732) 996-2762
rmaslo@eamenergy.com
108. How Do You Green Your Business?
Assess, then prioritize based on your strategy
Build the business case
Plan, set goals and accountabilities
Consider extending ROI timelines
Grow your people in the process
Measure and celebrate
Get professional help if or as needed
There’s NO ONE-SIZE fits all
108
