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Making Sense of Sustainability: The Reality of Costs and Benefits


Rule of Thumb: divide reduction in annual operating costs by 10% to get ... To avoid this problem, building owners should carry out green renovations. ... – PowerPoint PPT presentation

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Title: Making Sense of Sustainability: The Reality of Costs and Benefits

Making Sense of Sustainability The Reality of
Costs and Benefits
The Alliance for Sustainable Built
Environments Bill Gregory, Milliken
Company and Gerrit Reinders, Johnson Controls
Making Sense of Sustainability The Reality of
Costs and Benefits
Bill Gregory Director of Sustainable
Strategies Milliken Company The Alliance for
Sustainable Built Environments
Classic Definition of Sustainability
Triple Bottom Line
Organizational Commitment to Sustainability
Green Buildings
Total Commitment to Sustainability
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.
  • Today 80 of Americans live in cities. By 2050,
    90 will.

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

Life Cycle Cost of Buildings
Typical Building Life 40 yrs.
Economic Benefits of Green Design
  • Lower Construction Costs
  • Reduced site preparation and landscaping
  • Reduced construction waste disposal costs by 50
    to 98
  • Rightsized equipment (mechanical, electrical,
    plumbing, etc.)
  • Reduced Operating Costs
  • Average decrease 8-9 across industry
  • Reduced utility costs by 20 to 50
  • Reduced water use (indoor/outdoor) 20-50
  • Reduced maintenance costs
  • Rightsized equipment reduced OM costs
  • Higher Valuation of Building
  • Average increase building value 7-8
  • Up to 4 increased valuation for every 1 spent.
  • Average ROI enhanced by 6.7
  • Average Occupancy Ratio increase 3.4
  • Average Rent increase 3
  • Rule of Thumb divide reduction in annual
    operating costs by 10 to get increased value of

Economic Benefits of Green Design
  • More Productive Environment
  • Better tenant and worker attraction/retention
  • Less absenteeism by 45
  • Higher productivity up to 16
  • Reduced Insurance and Risk of Liability
  • Reduced Insurance costs average savings 5
  • Healthy occupants, greater occupant satisfaction
  • Lower environmental impacts
  • Streamlined regulatory approvals
  • Higher Visibility and Marketability
  • Employer/building of choice
  • Free and effective PR
  • First mover advantage

Risk of inaction?
  • As green goes mainstream, standard buildings
    will rapidly become obsolete and lose value. To
    avoid this problem, building owners should carry
    out green renovations. corporations no longer
    have an excuse for eschewing the environmental
    and economic sustainability - they have access to
    tools that are proven to lower overhead costs,
    improve productivity, and strengthen the bottom
  • Charles Lockwood, Harvard Business ReviewJune

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.
  • Nov 2006 USGBC was officially designated ANSI
    accredited standards developer
  • Explosive Growth
  • 7,200 member organizations (representing
    millions of employees)
  • Chapters each State (50) and 12 countries
  • 92,000 Actively engaged individuals
  • 33,000 LEED-AP

LEED Programs
  • Building Certification
  • Green, Silver, Gold, Platinum
  • Professional accreditation
  • Training workshops
  • Educational resources
  • Web site

Point System under LEED
Source US Green Building Council (USGBC)
LEED NC Green 26 pts, Silver 33 pts, Gold 39
pts, Platinum 52 pts LEED EB Green 28 pts,
Silver 36 pts, Gold 43 pts, Platinum 57 pts
Key Market Developments
  • 20 states, 59 cities and some of the biggest
    names in the industry have committed to LEED
  • HOK, Gensler, Turner, Durst, Hines, Thomas, and
    Silverstein to name a few
  • GSA (largest landlord in USA) and 10 other
    Federal Agencies endorse LEED
  • White House
  • GSA, DOD, Interior, State, EPA, Army, Air Force,
    Navy, USDA

20 States Have Adopted LEED
Source USGBC - updated November 2006
Boston Green Building Initiative
  • Boston will be one of first major cities in U.S.
    to implement green building requirements for
    public and private buildings
  • Washington, D.C. is currently voting on similar
  • Pasadena, Calif., and Montgomery County, Md.,
    adopted the standards in 2006
  • Affects projects of 50,000 sq. ft. or more
  • Must meet at least 26 of about 70 areas of design
    and construction requirements (LEED-based)
  • Developer certifies and city confirm builders
  • No Third-Party Involvement or Certification
  • Faster Turn Around
  • Less Expensive

Making Sense of Sustainability The Reality of
Costs and Benefits
Gerrit Reinders Director of Sustainable Energy
Strategies Johnson Controls The Alliance for
Sustainable Built Environments
Brengel Technology Center
LEED-Certified BuildingMilwaukee, Wisconsin
Brengel Technology Center
  • Built in 2000
  • 16 million technology customer center
  • 130,000 square feet on 7 floors
  • Complements 100-year-old building next door
  • Minimized footprint by building on existing site
    in citys center

Example of urban redevelopment
Brengel Sustainable Features
Open green-area courtyard in city center
Personal environments for desktop control by
Abundant use of natural daylight with advanced
lighting technology
Building Automation System
  • Optimal energy efficiency and performance with
    Metasys Building Automation System
  • Remote Access
  • Easy to identify energy savings opportunities
  • Energy sub-metering
  • Load profiling
  • Cost report generation

LEED Silver to Gold
  • Modified housekeeping specifications
  • Improved exterior landscaping and snow removal
  • Replaced compact fluorescent with low-mercury
  • Reduced water consumption on existing fixtures
  • Upgraded copying machines for better indoor
    environmental quality
  • Additional parking for environmentally preferable
  • Expanded MV
  • Ongoing recycling
  • Daylighting strategies

Brengel Financial Impact
  • 130,000 sq. ft. added (i.e. 45 growth
  • no additional maintenance personnel
  • 20 decrease in energy (BTU/sf)
  • Integrated control system saved 225,000 during
  • Building consumes 2.5 W/sf
  • Lighting system consumes only 0.86 W/sf
  • 35 reduction in operating costs
  • 76,000 in annual energy savings

4.2 Million Savings Over the Next 10 Years!
National Geographic Society
World HeadquartersWashington, D.C.
National Geographic Society
  • One of the worlds largest scientific and
    educational non-profit organizations
  • Headquarters complex has four buildings

17th Street 40 years old
Hubbard Hall 100 years old
16th Street 60 years old
M Street 20 years old
Sustainable Upgrades
  • Sustainable Site
  • White roof replacement
  • Increased bike rack capacity
  • Reduced exterior light pollution

Close to public transportation, bike racks,
showers lockers
Sustainable Upgrades
  • Energy Atmosphere
  • Boiler/cooling tower upgrades
  • Chiller replacements with HFC refrigerants
  • Air-handling unit upgrades, zone dampers, and fan
  • Building automation system (BAS) DDC conversion
  • Green Power

Sustainable Upgrades
  • Indoor Environmental Quality (IAQ)
  • Complete asbestos abatement
  • Ventilation and exhaust air flow verification
  • BAS based CO2 monitoring system
  • Improved temperature and humidity control through
    upgraded BAS control and window film

Air-handling unit upgrades
Sustainable Upgrades
  • Water Efficiency
  • Efficient flush valve diaphragm replacements
  • Low flow faucet aerators and controls
  • Irrigation system rain gauge controls

Water Sensor
Adopted Operating Policies
  • Site
  • Erosion control during site improvements
  • Hybrid vehicle parking and telecommuting
  • Green landscaping, snow and pest management
  • Energy
  • Benchmark regularly, using ENERGYSTAR
  • Measurement Verification plan
  • Materials Resources
  • Construction waste management
  • Resource reuse and recycled content
  • Procure EnergyStar rated products
  • Certified wood
  • Green housekeeping management
  • Contractor materials management and reporting
  • Indoor Environmental Quality
  • Construction IAQ management plan

National GeographicFinancial Impact
  • Tremendous savings
  • 600,000 in total savings
  • 10 reduction in energy expenses (300K)
  • 300K annual savings in other operating costs
  • Lower water consumption, waste disposal expenses
  • Increased Market Value
  • 7 million investment increased real estate value
    by 24 million
  • Improved equity, credit rating, debt borrowing
    capacity. Reduced cost of money!
  • Results align with National Geographic Society

  • Key Learning
  • things you can do right now

Commission your building
  • Only 1 of buildings are commissioned (US DOE)
  • Commissioning typically discovers 28 problems in
    new buildings, 11 in existing buildings (Alan
    Whitson RPA)
  • Most common problem HVAC
  • Commissioning is a pre-requisite in LEED
  • ROI can be significant - typical business case
  • EB Cost 0.30/sf. Energy Savings 18 Payback
  • NC Cost 1.20/sf. Payback 4.8-yrs.
  • Additional savings (reduced change orders and
    other non-energy savings of
  • Existing Building Savings 0.18/sf
  • New Construction Savings 1.24/sf

() Source Portland Energy Conservation, Inc.
Top 10 Deficiencies
  • Incorrect scheduling of HVAC and Lighting
  • Incorrect cooling and heating sequences of
  • Incorrect calibration of sensors and
  • Lack control strategies for comfort and efficient
  • Malfunctioning air and water side economizers
  • Under utilized computer based control systems
  • Short cycling HVAC equipment causing premature
  • Non adherence to design intent and missing
    building documentation
  • Lack of training for building operators or
    service contractors on complex systems
  • Missing specified and paid-for equipment

Source Portland Energy Conservation, Inc.
Control Your Energy Spend
  • Energy consumption monitoring and reporting
  • Track energy and utility usage against baselines
    and determine root cause of fluctuations
  • Check your bills are they accurate?
  • Ensure youre on the right rate/tariff and energy
    usage billed is in-line with monitored and
    calculated values
  • Create Energy dashboard for C level
  • Ensure quantifiable energy performance data is
    readily available and deliver in metrics they
  • eg. /kW or /kWh or /square foot, employee,
    bed, unit of production, etc

Assure Accurate Data Hire a utility bill
processing firm
Validation Variance Tests
  • Prior Balance - reviewed payment history
  • Duplicate Bill - invoice already processed
  • Missed consumption period - call utility
  • Meter Read Dates Out of Sequence
  • New, Deleted or Modified Meter - current count or
    reading compared to last count
  • Compare Bill Total to Sum of Line Items
  • Utility Vendor Not Recognized - vendor must match
    Utility Account Database
  • Utility Account Number Not Recognized
  • Late Fees On Bill - causes identified waivers
    pursued if due to vendor error
  • Date Field Validation - all dates compared to
    current date to each other

Is it billed Correctly? How much are we
paying? How efficient are we? Whats the trend
  • Cost/period
  • Usage/period
  • Cost/unit
  • Demand
  • Power Factor
  • Cost/day
  • Usage/day

Embrace energy efficiencyConsider hiring an ESCO
  • Source New Buildings Institute for USGBC.
  • Analysis of 420 LEED-NC version 2 certified
    buildings through July 2005

Think Life Cycle
  • With all purchases (capital operating)
  • Proper levels of maintenance
  • Apply correct levels of Reactive, Preventative,
    Pro-active and Preemptive maintenance
  • Eliminate low-value maintenance routines and use
    savings to increase the frequency of high-value,
    high return routines
  • Track maintenance and repair
  • Employ CMMS to
  • Assess equipment useful and economic life cycles
  • Forecasting operating and capital budgeting needs
  • Provide audit trails for accreditation

Keep it Green - Life Cycle
  • Optimize your BAS and control systems
  • Track
  • Run times
  • Filter conditions
  • Ventilation rates
  • Setpoint error
  • Air quality
  • Pressurization
  • Continual recommissioning
  • Employ
  • Proven energy management routines
  • CO2 monitoring to control outdoor air intake
  • Alarm monitoring and reporting
  • Base building systems integration

Focus on the Indoor Environment
  • A green-managed, indoor environment promotes the
    well-being of staff
  • Safety
  • We are entrusted and liable for the well-being of
    those who work in our buildings. Elimination of
    toxins such as asbestos, VOCs, harsh chemicals
    and cleaning agents reduce liability
  • Health
  • Sick building syndrome is not an urban myth,
    buildings do become toxic
  • Productivity
  • Even a slight increase in productivity
    significantly impacts the largest element of most
    organizations budgets payroll!

Tools Offered Through IFMA
  • SEEC Sustainability educational program
    delivered via Web
  • Green Compass Web-based building assessment,
    management and certification tool (LEED based)
  • To access go to IFMAs Green Zone

SEEC Sustainable Energy Environmental
  • Key Manager Employee Modules For Online
  • Support materials and resources
  • Internal recognition programs
  • External communication program
  • Audit reporting vehicles to verify

Available at IFMA GreenZone (
Transforming the Marketplace
  • Segmented Into
  • Five Distinct Processes
  • Building Assessment
  • ROI Evaluation and
  • Project Scope Development
  • Green Building
  • Project Management
  • Certification Preparation
  • Facility Management

Available at IFMA GreenZone (
Energy and Environmental InformationYour
Making Sense of Sustainability The Reality of
Costs and Benefits
The Alliance for Sustainable Built
Environments Bill Gregory, Milliken
Company and Gerrit Reinders, Johnson Controls