Transcript Slide 1

Sustainability – “The Triple Bottom Line”
Sustainability doesn’t require sacrifice;
it requires a new frame of mind
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Green Building Trends

Green Buildings are part of the
legislative and the boardroom
strategic agenda
 New roles are emerging – Chief Sustainability Officer, Director of Energy
and Sustainability, etc.
 Green Building market is large and growing rapidly -- $12 billion in
construction starts in 2008, $60 billion by 2010
 Price premium for Green Buildings is shrinking, making them even more
economically beneficial
 Existing building registrations up in all verticals markets
 Focus on improved Operations and Maintenance procedures that reduce
operating costs
 Carbon is playing a more important role in the Green Building discussion
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Green is becoming a competitive driver…
Recent global survey of CEOs on the topic of sustainability:
75% said sustainability
Why have a sustainability strategy?
is either an
important part of
corporate strategy or
expect it to be important
in the future
1.To have a competitive advantage
2.To be seen as leaders in sustainability
3.Public interest in the environment
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Development
and conversions
of existing
building stock to
green
operations
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Where should you start? Target your facilities…
Why? Existing buildings account for:
 40% of all energy
 68% of all electricity
 12% of the potable water
 40% of raw materials
 40% of GHG emissions
 30% of waste output
The answer is not constructing
new Green Buildings…
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Source: USGBC
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The greenest building is one that already exists.
 Greenhouse gas emissions from renovation are 30-50%
less than an equal investment in new construction
 At the same time, 20% more jobs are created with
renovation projects
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Source: Carnegie Mellon Green Design Institute Life
Cycle Assessment Tool, eiolca.net
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Green initiatives are abundant and growing…
19 Federal agencies use LEED as standard
40-50 cities, higher education facilities and others have mandated LEED
NACo Green Government initiative
Government
US Conference of Mayors Climate Initiative
Energy Independence and Security Act 2007
Clinton Climate Initiative Building Retrofit Program
American College and University Presidents Climate Commitment
Education
Association for the Advancement of Sustainability in Higher Education
Collaboration for High Performance Schools
USGBC/Clinton Climate Build Green Schools initiative
Green Grid (IT)
Green Guide for Healthcare
Private
Sector
Architecture 2030
BOMA 7-Point Challenge/CCI Center for Energy and Climate Solutions
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Green building characteristics
 Energy and Water Savings
 Emission Reductions
 Operations & Maintenance Savings
 Improved Workforce Productivity
 Employee Attraction and Retention
(green buildings attract and help retain
employees)
 Business Retention and Expansion
(green businesses attract more green
businesses to a community)
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Other benefits of green buildings…
 Extends equipment life
 Reduces maintenance costs
 Reduces risk from energy price
spikes
 Reduces environmental risk
 Reduces insurance liability with
healthier employees
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A green building really addresses more than the building…
Green Building
Green
Landscaping and
Green
Transportation
Green
Operations,
Services,
Products,
Programs and
Procurement
a green, sustainable facility incorporates
all three elements
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Green Buildings
“As green goes mainstream,
standard buildings will
rapidly become obsolete and
lose value. To avoid this
problem, building owners
should carry out green
renovations.”
Charles Lockwood
Harvard Business Review, June 2006
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Life Cycle Cost of
Buildings
“For offices,
LEED building
energy use
intensity
averaged
33%
below
the national
average for
commercial
buildings.”
Source: New Building
Institute, 2008
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Economically, green buildings…
Save energy and
water
Increase market
value of building
SAVE MONEY
Cut operational costs
MAXIMIZE
SUSTAINABILITY
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Environmentally, green buildings…
Cut greenhouse gas
emissions
SAVE THE
ENVIRONMENT
Maintain natural
resources
Encourage green
practices of tenants
or owner occupants
MAXIMIZE
SUSTAINABILITY
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Socially, green buildings…
Enhance public
image
BUILD
COMMUNITY
Tenant/worker
productivity/retention
Reduce absenteeism;
Improve health
MAXIMIZE
SUSTAINABILITY
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How do I move forward?
Follow ENERGYSTAR
benchmarking
TM
high performance
green building
Follow Leadership in
Energy & Environmental
Design (LEED®)
requirements for new and
existing buildings, O&M
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What is the LEED System?
Leadership in
Energy and
Environmental
Design
A voluntary national guide for developing
high-performance, sustainable buildings and
interiors.
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LEED programs
 Building certification
 Certified
 Silver
 Gold
 Platinum
 Professional accreditation
 Training workshops
 Educational resources – www.usgbc.org
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LEED Point Categories
LEED requirements address the complete life cycle of a building –
from the site on which it sits, to the cleaning of the facility.
Standardizes credit categories for all rating systems:
 Sustainable Sites
 Water efficiency
 Energy and Atmosphere
 Materials and Resources
 Indoor Environmental Quality
 Innovation
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Case Study: Johnson Controls Building Efficiency HQ
Project: 130,000 sq. ft. Brengel Technology Center,
Milwaukee, WI; first and only dual-certified building
Challenge: Demonstrate that it doesn’t have to cost
more to build a high performance green building
Results: LEED Silver Certification NC/ LEED Gold
Certification EB
 35% reduction in operating costs (approximately
$.76 per sq ft lower than traditional buildings)
 Avoided emissions (2 million pounds of CO2; 180
pounds of CO; 14,000 pounds of sulfur dioxide)
 $76,000 energy savings annually
 $225,000 initial savings from integrated building
systems
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The greening process is getting easier…
“… we have access to tools that are proven to lower
overhead costs, improve productivity and strengthen the
bottom line.”
Charles Lockwood, Harvard Business Review, 2006
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Our “Path to Sustainability”: a green toolkit
Follow the path…
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Determine Energy Use,
Calculate GHG
Baseline, Assess
Building Portfolio
Fund
Green
Project
Create a
Green Plan
Implement
Solutions
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Educate,
Communicate
and Report
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Create a green plan
Create a
Green Plan
 Use our award-winning strategic planning tool – the
Sustainability Navigator
 What if you could
 Prioritize facility needs...across your organization?
 Learn about best practices...from other industries?
 Achieve organizational alignment…around specific
strategies?
 Reach consensus on solutions…with all stakeholders?
And get it all done in one day??
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Plan
Assess
Fund
Implement Educate Report
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Establish Goals
 Comprehensive report of findings
 Suggested timeline for action
 Suggested “how-to” plan for action
 Priorities of sustainability for your organization
We take you from planning to action plan -quickly and easily
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Plan
Assess
Fund
Implement Educate Report
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Assess Building Portfolio – Establish GHG and Energy Baselines
 Utility Bill Processing and Payment
 pays and tracks your utility bills
 this tool identifies billing errors and validates rate calculation
 the data is then used for energy benchmarking and greenhouse gas
(GHG) reporting
 Energy Benchmark – submits building data to ENERGYSTAR®
Portfolio Manager to maintain your performance score
 compares your facility to other like facilities
 Greenhouse Gas (GHG) Reports – automatically converts your
energy use data to GHG emissions
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Plan
Assess
Fund
Implement Educate Report
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Assess Building Portfolio – Establish GHG and Energy Baselines
 Green Compass Part I: a comprehensive green
building assessment/management tool
 building assessment tool - scorecard
 financial evaluator – ROI analysis
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Plan
Assess
Fund
Implement Educate Report
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Green Building Solutions Process
Customer Energy
Database (1 yr.
history min.)
Energy usage per sq. ft.
Portfolio Manager
EPA ENERGYSTAR
Benchmarking tool
ES>= 75 Points
Qualifies for
ENERGYSTAR label
ES>= 69 Points
Meets the Energy
performance for LEED
EB
ES<= 69 Points
Energy upgrades
required
Focused energy audit
JCI validation of utility
data and ES program
minimum standards
Project Development
Agreement
ENERGYSTAR label
award (bldg plaque)
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Install upgrades to meet
69 point hurdle
Green Compass LEED EB
O&M Audit
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Green Building Solutions Process (cont’d)
Green Compass
Scorecard/ROI Reports
USGBC Registration
Opt not to pursue LEED
Meet LEED as is
Need to develop LEED credits
Align LEED with savings streams
Credit-by-Credit
Develop LEED EB project
Develop Documentation
USGBC Submission
(Green Compass/LEED online)
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Deliver LEED EB Certification!
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Funding green projects using Performance Contracting
Performance contracting is encouraged through state
legislation and CCI as a procurement method that allows
projects to be funded using the energy and water savings
1. customer finances facility improvements
2. project energy, water and operational savings are enough
to pay for the financing with an attractive risk-adjusted ROI
3. customer keeps all savings
4. utility and operational savings pay for financing and are
guaranteed by Johnson Controls so your risk is mitigated
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Plan
Assess
Fund
Implement Educate Report
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Performance Contracting – your costs today
Utility Bill
Before
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Plan
Assess
Fund
Implement Educate Report
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Performance Contracting – during the term of the contract
Immediately begin to
enjoy the savings
Utility Bill
Payment for Efficiency Upgrades
Customer Savings
Before During
Plan
Assess
Fund
Implement Educate Report
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Performance Contracting – enjoying the full savings
Enjoy the full savings
Utility Bill
Payment for Efficiency Upgrades
Customer Savings
Before During
Plan
Assess
Fund
After
Implement Educate Report
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Other benefits of performance contracting…
 Most performance contracting projects help our customers qualify for
a significant amount of LEED points with no added costs, other than
documentation process management
 The Green Compass tool can decrease the documentation costs by
25-50% with its template driven web-based platform
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Plan
Assess
Fund
Implement Educate Report
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Implement green building solutions
 Eco-friendly HVAC equipment
 Carbon dioxide monitoring
 Building commissioning/Re-commissioning
 Personal environments
 LEED and ENERGYSTAR Certification
 Under floor air distribution systems
 Integrated building management systems
 Renewable energy solutions
 Water conservation
 Lighting systems
 Green O&M support services – cleaning, landscaping, materials sourcing
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Plan
Assess
Fund
Implement Educate Report
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Manage the Process for LEED Certification/Impact Reporting
 Green Compass Part II: a green building tool
 Project Management tool for process of documentation
development and submitted to USGBC
 Examples of other LEED certified projects for Johnson Controls in
searchable database
 Portfolio Manager – retain information for internal use and recertification
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Plan
Assess
Fund
Implement Educate Report
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Sample projects and green impact…
Project
Sq. Ft.
Annual Savings
Annual Savings
per Sq. Ft.
Johnson Diversey
278,000
$137,000
$0.49
National Geographic
Society
1,000,000
$600,000
$.60
EPA (Sacramento,
CA)
960,000
$950,000
$0.99
Janssen
Pharmaceutical
475,000
$70,000
$0.15
Owens Corning
394,000
$112,965
$0.29
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Educate, Communicate and Report
 Customized web-based training to teach employees,
tenants and owners about how to maximize the
benefits of green buildings through individual activities
 Entertaining, informative approach
 Taught onsite at your location or at Johnson Controls’
Institute locations
 Support materials for reference
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Plan
Assess
Fund
Implement Educate Report
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And finally, don’t forget public relations!
One of the primary drivers for sustainability initiatives is public opinion!
 Press releases
 Hold an event to celebrate LEED and/or ENERGYSTAR awards
 Marketing efforts should capitalize on your green image
 Join sustainability organizations
 Create a sustainability website/report
 Promote your green efforts with tenants, constituents, employees,
neighbors, and the media
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Sustainability: a green building checklist
Set the stage with collaborative planning
Calculate baseline energy and emissions
Assess existing buildings and potential ROI
Use performance contracting to fund
Implement building improvements/solutions
Manage and operate “greenly”
Buy local and engage local contractors
Engage employees or tenants via education
Report results and track performance
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Plan
Assess
Fund
Implement Educate Report
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Did You Know?
Johnson Controls has the largest portfolio of performance
contracting guarantees in North America
Our team include more than 85 LEED Accredited Professionals
throughout North America and the world
Our team has done more LEED certified projects than all of our
competitors combined!
Johnson Controls helped develop the LEED Green Building Rating
System and were charter members of the U.S. Green Building
Council’s board
In 2004, we received the World Environment Center’s Gold Medal
for International Corporate Achievement in Sustainable
Development
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Did You Know?
Typical building lifecycle operations and maintenance impacts of
greening can generate up to $1 per square foot of annual savings
Nearly half of LEED buildings had ENERGYSTAR ratings of at least
75, meeting the qualification for an EPA- ENERGYSTAR building
The International Energy Agency (IEA) estimates that on average,
an additional $1 spent on more efficient equipment and buildings
avoids more than $2 in investment in electricity supply.
Average property value increases as a result of greening ranges
from is 4:1 to 10:1
“Working for a “cool” company or living in a ‘cool’ place is an
economic imperative for attracting workforce; green is cool”
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Source: New Building Institute 3/08, EIA, 2006,
Vandewalle and Assoc, 2008
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