Making Sense of Sustainability: the reality of costs and benefits

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Making Sense of Sustainability the reality of
costs and benefits
Paul von Paumgartten Director Energy
Environmental Affairs Johnson Controls, Inc.
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Classic Definition of Sustainability

• New Organizational Metric

Economy
Ecology
Equity
Triple Bottom Line
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Sustainable Business Practices

• Why Sustainability is Here to Stay

Top and Bottom Line Impact
Government Environmental Mandates
Transparent Corporate Governance
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Total Organizational Commitment to Sustainability
Total Commitment to Sustainability
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Organizational Commitment to Sustainability
Green Buildings
Total Commitment to Sustainability
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Environmental Impact of Buildings
Americans spend as much as 90 of time indoors.

• Buildings
• Consume almost 40 of all energy.
• Add 40 to atmospheric emissions.
• Use 68 of all electricity.
• Use 12 freshwater, 88 potable water.
• Take up to 40 municipal solid waste stream.
• Exploit significant amounts of land.

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Energy Savings Actions

• 1990-2000
• Energy Cost Savings 16.7 billion
• Electric Energy Savings 166 million MWh
• Electric Demand Reductions 2,500 MW
• Carbon Dioxide Emissions Reduction 217 Million
  Tons
• Enough energy saved to power all California
  households for 2 years

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Total Energy Savings Actions

• 1990-2020
• 95 billion in energy savings
• 981 MWh in electric energy savings
• 6,000 MW in electric demand reduction (15 new 400
  MW power plants)
• 5.3 billion MMBTU reduction in direct fuel use
• Total energy savings
• 4 of of Kyoto goals
• Could power all California households for 13
  years

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Characteristics of Green Buildings

• Optimal environmental and economic performance
• Increased efficiencies, saving energy and
  resources
• Satisfying, productive, quality indoor spaces
• Whole-building design, construction, and
  operation over entire life cycle
• Fully integrated approach teams, processes,
  systems

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Life Cycle Cost of Buildings
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Economic Benefits of Green Design

• Lower Construction Costs
• Reduced site preparation and landscaping
• Lower waste disposal costs by 50 to 98 percent
• Reduced Operating Costs
• Lower utility costs by 20 to 50 percent
• Reduced maintenance costs
• Higher Valuation of Building
• Rule of Thumb divide reduction in annual
  operating costs by 10 percent to get increased
  value of building.
• Up to 4 increased valuation for every 1 spent.

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Economic Benefits of Green Design

• More Productive Environment
• Better tenant and worker attraction/retention
• Less absenteeism by 45 percent
• Higher productivity up to 16 percent
• Reduced Insurance and Risk of Liability
• Healthy occupants, greater occupant satisfaction
• Lower environmental impacts
• Streamlined regulatory approvals
• Higher Visibility and Marketability

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U.S. Green Building Council

• National coalition representing all sectors
  of the building industry.
• Promotes design, construction, operation of
  environmentally responsible, profitable, healthy
  places to live and work.
• Launched Leadership in Energy and Environmental
  Design (LEED) in 2000.
• Rating system to guide sustainable project
  development

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LEED Point Categories

• Sustainable Sites
• Materials Resources
• Water Efficiency
• Energy Atmosphere
• Indoor Environmental Quality
• Innovation

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LEED Programs

• Building Certification
• Green, Silver, Gold, Platinum
• Professional accreditation
• Training workshops
• Educational resources
• Website www.usgbc.org

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LEED Family of Products
For New Construction
For Existing Buildings
For Commercial Interiors
For Core and Shell
For New Homes  
For Neighborhood Developments
Under Development
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LEED Vertical Markets
Retail
K-12 Schools    
Multiple Family
Installations and Campuses
Labs
Health Care
Industrial  
Hospitality
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U.S. Green Building Council Growth

• 6000 member companies, firms, or organizations
• 2000 registered building projects
• 50 chapters/70 USGBC staff

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LEED EB Pilot Participants

• National Geographic Society
• Pentagon
• U.S. GSA
• State of Maryland
• City of Chicago
• Furman University
• Duke University
• JohnsonDiversey

• Microsoft
• Johnson Johnson
• Liberty Property Trust
• Russellville School District
• Buffalo Public Schools
• Cambridge Memorial Hospital
• Hewlett Packard
• Milliken Carpets

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Business Impact of Green
Source USGBC case studies
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Path to Sustainability
Gain Support
Prioritize
Communicate
Implement

• Strategic Sustainability Plan for Organization
• Business Case development
• Economic
• Environment
• Social

• Utility Bill Processing Payment
• Benchmarking
• Energy Star
• GHG Emissions management

• Energy Efficiency
• Operational
• Alliance Solutions

• Education
• Internal Comm.
• External Comm.
• Impact Reporting
• LEED
• Energy Star
• GHG
• Footprint
• Sustainability

• Assessment
• Financial Evaluator
• Project Management
• Certification
• Portfolio Management

A Comprehensive Portfolio-Based Approach to
Sustainability