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John K Scott
PROFESSIONAL ACCOMPLISHMENTS
• Berkeley FLEXLAB Executive Advisory Board
Chair (2013)
• Colliers Broker Sustainability Practice Group
Chair (2012-Present)
• Cushman & Wakefield Sustainability Task
Force Co- Chair (2006-2012)
• BOMA International Executive Committee
(2011-July 2013)
• Miami Dade Mayor's Sustainability Task
Force Member (2010-Present)
• Commercial Real Estate Energy Alliance
(CREEA) Partnership with DOE, Chair of
Senior Executive Managing Director
Steering Committee and Co-Chair Existing
Colliers International Tampa Bay,
Southwest Central and Northeast
Building Committee. (2010-Present)
Florida
• BOMA International Chair Market Initiative
and Sustainability. (2007-January 2013)
• BOMA's International Political Action
Committee Past Chair (2004-2009)
• BOMA Southern Region, Past President
(2006-2007)
• BOMA Florida President (2003-2004)
• BOMA Miami Dade Past President (20002001)
John was appointed Chair of the BOMA International
Sustainability and Market Initiative Task Force at the 2007
BOMA Winter Business Meeting and completed his
position as a charter member on the BOMA 360 building
program, which was released to the commercial real
estate industry in April of 2009. He was also Co-Chair on
the C&W Energy Environmental Committee from 20002007 and is currently the Chair of Colliers International
Broker Sustainability Practice Group
BUSINESS AND EDUCATIONAL BACKGROUND
• Master's Certification - Tulane University's A.B.
Freeman School of Business
• Real Property Administrator (RPA)
COMMUNITY INVOLVEMENT
• Previous Vice Chairman for the Charter School at
Summerville and Waterstone; two schools which
became "A" schools within their first 4 years of
existence in Miami-Dade
• Member of the Beacon Council Board of Directors
and active in the Membership Committee
• Robert Locke Scholarship Fund
• Actively involved in numerous charities and
community affairs
• Miami Rescue
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About Colliers
2
Colliers Sustainability
SUSTAINABILITY
We educate and lead our team to
adopt sustainable practices that
increase our Clients’ asset value on
an economic, environmental and
social basis. Colliers will set and
meet specific goals (LEED
certifications, ENERGY STAR
benchmarking, green procurement
programs and green workplace
productivity models) and
collaborate with our Clients to
ensure we optimize property
performance, boost building
occupant health and productivity,
work to reduce our environmental
impact and conserve our natural
resources. Our long-term
corporate value is to generate
sustained economic and ecological
value for our Clients, which in turn
positively affects our communities
and employees.
3
Quote:
”The Greatest use of life is to spend it
for something that will outlast it.”
- William James
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Live:
•
Define what constitutes Environment:
•
A major driver of human impact on Earth systems is the
destruction of biophysical resources, and especially, the
Earth's ecosystems. The environmental impact of a
community or of humankind as a whole depends both
on population and impact per person, which in turn
depends in complex ways on what resources are being
used, whether or not those resources are renewable,
and the scale of the human activity relative to the
carrying capacity of the ecosystems involved. Careful
resource management can be applied at many scales,
from economic sectors like agriculture, manufacturing
and industry, to work organizations, the consumption
patterns of households and individuals and to the
resource demands of individual goods and services.
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Real Estate Owner’s Perspective…
Job loss and business consolidation over past three years have
reduced occupancy and rents in most markets
Increased focus retaining tenants, on operating efficiency and
value creation
There is increased risk, reduced NOI and value - real estate assets
are not performing as underwritten
Sustainability is fundamentally a strategy for improving
performance, for competing
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Relevance for Brokers?
• Top corporations increasingly require green – including the GSA, largest
tenant in the US, requiring Energy Star and LEED for all new facilities –
means demand is increasing
• Green Building Codes – new construction will increasingly be greener and
much more energy efficient
• Federal, State and Local legislation – increasingly requiring or incentivizing
green
• Being knowledgeable about sustainability… is a differentiator, shows
leadership, adds value to both tenants and landlords you represent and is
what the best brokers understand
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Energy Efficiency is a Potential Leading Indicator of Overall Superior
Operations Quality and Financial Performance
Occupancy Rates
Energy Star
Direct Rental Rates
Non-Energy Star
Energy Star
91%
$32
90%
$31
89%
Non-Energy Star
$30
88%
$29
87%
$28
86%
$27
85%
84%
$26
83%
$25
82%
$24
2005 2q
2007 3q
2005 2q
2007 3q
Analysis conducted by the CoStar Group of ENERGY STAR buildings compared to peer set of non
ENERGY STAR buildings.
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Work:
•
Private vs. Public Partnerships- CREEA – BOMA - USGBC
•
US Department of Energy- CBEA
•
CREEA
•
REA
•
HEA
•
BOMA
•
•
•
7 Point Challenge
Lighting Campaign
USGBC
•
•
New EBOM
Recertification of existing Projects
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7 Point Challenge
• 22 companies reached the primary goal of reducing energy consumption by
30% across their portfolios, and that 17 companies achieved all 7 points of
the challenge.
• 857 participating buildings representing more than 184 million square feet of
office space.
• BOMA International now has an amazing story to tell of how voluntary efforts
move mountains -- or at least significantly reduce our carbon footprint
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7 Point Challenge
On top of submitting, the following companies wowed us by their
stunning efforts on all seven points of the 7 Point Challenge:
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Pulse of the Industry
Most Pressing Issues Facing Your Members
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Sea level rise:
IPCC says 7” to 22” by 2100,
much more if rapid ice sheet collapse occurs
Most scientists would go on record for 1m rise (30 inches)
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Work:
Organizational Trends:
• Mandatory Versus Voluntary
• EPA Energy Star
•
•
•
•
Seattle
New York
Washington, DC
California
• Government and Municipality Requirements
• Utilities
•
Deregulated vs. Regulated
•
Feed-in-Tariffs
•
Energy Efficiency - PACE
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Work:
 Making a difference- The Role of an Individual in Today’s
Sustainable Marketplace-Changing Habits One Day at a Time
• Education
 Waste- The New Starbucks• Selling Materials To China
• Glass is Less Profitable
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Better Buildings Alliance
Who is Involved?
>200 member organizations | >500 individual participants | > 10 billion sq ft
30%
Commercial Real Estate
& Hospitality
> 8 billion sq ft
43%
Healthcare
Nearly 1 billion sq ft
Higher Ed – 22 members, 200 million + sq ft
16%
Retail
> 2 billion sq ft
New Public Sector too!
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Members of the BBA
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Commercial
Real Estate
Food
Service
Grocery
Technology Solutions
Lighting
Healthcare
Hospitality
Higher
Education
Market Solutions
Financing
Strategies
Space
Conditioning
Plug & Process
Loads
Public
Buildings
Public Sector Solutions
Financing
Strategies
Leasing and Tenant
Engagement
Data
Management
Training / Workforce
Strategic Energy
Planning
Laboratories
Refrigeration
Food Service Tech
Retail
Appraisals and
Valuation
Energy Savings
Performance
Contracts
Data Access
Energy Information
Systems
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Reliable Resources, Real Results
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2013 Highlights
In 2013, the Better Buildings Alliance members’ combined portfolios totaled over 10 billion square feet
for the first time – or 1/8 of the commercial building sector.
Better Buildings Alliance members made significant progress saving energy in their portfolios. On
average, members reported average savings of ~2% over the previous year’s energy use.
Project team participation grew by over 75%, with more members than ever actively pursuing energysavings solutions in the Better Buildings Alliance 15 teams.
To date, we have issued 2 technology challenges, 2 technology adoption campaigns, and 10
procurement specifications to help companies select efficient heating, cooling, lighting, refrigeration,
and water heating technologies. If everyone switched today to technologies that meet these
specifications, we could save over 1.6 quadrillion Btus and over $10 billion every year.
Formed an advisory board of leading industry organizations to inform the development of a green
leasing recognition program and implementation roadmap.
Launched the Data Access initiative as a team under Market Solutions & supported roll-out of the
Utility Data Access Accelerator
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Implementation Models
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Procurement Specifications
These customizable specifications can be used in writing
requests for proposals (RFPs) from vendors and are
used in actual procurement documents used by
businesses that participate in the Alliance.
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Lighting
Find these online at :ere.energy.gov/BetterBuildingsAlliance
High-Efficiency Troffer Lighting Specification: 50% of all commercial fluorescent lighting fixtures are recessed troffers in 1'x4', 2'x2', 2'x4'
configurations, in operation for more than 10 hours a day on average and collectively consuming more than 87 TWh of electricity
annually. Building owners who use the high-efficiency troffer specification can save 15–45% on their lighting energy costs on a one-forone basis and up to 75% with the use of controls. Nationwide, if all troffers switched today to meet the Better Buildings Alliance
specification requirements, >25 TWh of electricity could be saved annually.
LED Site (Parking Lot) Lighting Specification: Most parking lots are illuminated by older high-intensity discharge (HID) lighting technology
without any energy-saving controls. New light-emitting diode (LED) technology with controls can cut parking lot lighting energy bills by
40% or more while delivering additional benefits including long life, reduced maintenance costs, and improved lighting uniformity.
Around 40 TWh could be saved annually if all parking lot lighting nationwide met the high-efficiency lighting specification.
High-Efficiency Parking Structure Lighting Specification: Parking structures or garages are often lighted by older HID lighting technology
without any energy-saving controls. The latest high-efficiency alternatives with energy-saving controls—including fluorescent, induction,
and LED options—can save building owners more than 40% on their parking lot lighting bills compared to typical code, while delivering
additional benefits including better-lighted spaces. Nationwide, if all parking structures switched today to high-efficiency lighting that
met the requirements of the specification, businesses could save an estimated 36 TWh annually.
High-Efficiency Wall Pack Lighting Specification and Application Guidance: In 2013, the Lighting & Electrical Team added the Wall Pack
Specification and Application Guidance to its suite of exterior lighting resources. By applying this specification and application guidance,
building owners can expect to save 38% on a one-for-one basis and 68% if controls are utilized, as well as reap additional benefits
including longer life and lower maintenance costs. Nationwide, if all wall packs switched today to meet the specification requirements,
commercial building owners could save an estimated 7 TWh annually.
LED Refrigerated Display Case Lighting Specification: This specification delivers approximately 50% energy savings compared to a typical
display case lighting code. If all retail refrigerated display cases switched to LED systems today, that could save an estimated 2.1 TWh of
electricity annually.
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HVAC, Refrigeration, Water Heating & More
Find these online at: eere.energy.gov/BetterBuildingsAlliance
Gas Heaters Specification: High efficiency gas-fired space heaters offer over 10% savings over standard models for semi-conditioned
spaces and other locations using non-centralized heating equipment. Improved space heaters that meet the Better Buildings Alliance
specification raise efficiency by employing features such as condensing heat exchangers, direct-fired combustion, and infrared
technology. If all gas heaters were replaced overnight with products that met the specification, nationwide, commercial building owners
would save > 50 TBtu per year.
Ultra-low Temperature Freezers (ULF) Specification: A typical ULF can use up to 20 kWh of electricity per day - as much as a small house!
High efficiency units that meet the Better Buildings Alliance Specification can save 2,500 kWh per year or up to $1,250 over 5 years.
Commercial Heat Pump Water Heater Specification: An older, electric resistance water heater operated in a building with a hot water
demand of 500 gallons a day, 365 days a year, can cost more than $3,500 each year in electricity costs. A heat pump water heater that
meets the Better Buildings Alliance specification can use 70% less energy and or up to $12,500 over 5 years.
Low-voltage Distribution Transformer Specification: An older transformer in a typical office building can consume 16,000 kWh and cost
more than $1,500 in electricity costs per year. Replacing existing, older transformers with a transformer that meets the specification can
save up to $5,000 over five years.
Fume Hoods Specification: A single fume hood in a typical lab can use more than 20,000 kWh per year. Laboratory fume hoods built to
the specification can reduce electricity use by at least 50%, compared to baseline units—while also reducing space conditioning energy
loads. Replacing a conventional fume hood with one that meets the specification could save up to 50,000 kWh of energy and $5,000 over
five years, while also reducing space-conditioning energy loads. Nationwide, if all laboratory fume hoods were replaced today with hoods
that meet the specification, commercial building owners would save > 250 TBtu per years.
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Technology Challenges
Challenge specifications encourage
manufacturers to go above and beyond what is
currently available on the market and innovate
new technologies that meet customers’ energy
efficiency needs. DOE has released two challenge
specifications in cooperation with our Better
Buildings Alliance members.
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Low-cost wireless submeter challenge
In 2013, the Better Buildings Alliance launched the wireless submeter challenge with the
support of 18 manufactures to date including BLUEdev, Continental Controls, IE Technologies,
Leviton, Schneider Electric and others. The Wireless Metering Challenge performance
specification challenges manufacturers to develop a wireless metering system that is low cost
(less than $100 per point), meets essential requirements for electrical energy measurement,
and transmits data wirelessly to an onsite collection point.
Sixteen private-sector organizations ranging from grocers to higher education systems have
signed letters of intent to purchase meters that meet the challenge. Electricity sub-meters
provide building operators with the information necessary to make informed decisions about
opportunities to save energy. Nationwide, the Department of Energy conservatively estimates
that if commercial buildings could utilize sub-meters to identify energy savings of just 2
percent, it would represent actual cost savings of $1.7 billion. Learn more at
http://energy.gov/articles/federal-and-industry-partners-issue-challenge-manufacturers.
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RTU Challenge
Rooftop units (RTUs) are used in nearly half of all cooling conditioned
commercial floor space in the United States. RTUs that meet the Better
Buildings Alliance specification are expected to reduce energy use by
30%compared to the current American Society of Heating, Refrigerating and
Air-Conditioning Engineers (ASHRAE) 90.1-2010 standard, depending on
facility location and type.
So far, Carrier and Daikin-Mcquay have been recognized for producing
products that meet the challenge’s IEER requirements.
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Smart Market Report Introduction
The opportunity for improving energy performance in the
United States has never been greater. The
Better Buildings Initiative proposed by the Obama
administration is the latest national effort drawing attention to
our building energy consumption and ways we can help
reduce it—and win at the same time.
The economic downturn shifted the attention of firms and
public owners with large building portfolios toward their
existing buildings. With government and utility incentives, the
time was ripe for focusing
on retrofit and renovation investments that could save energy
and money. However, despite the fact that retrofit activity
remained active during the down economy, only a tiny portion
of the U.S. building stock has been affected. The opportunity
has never been greater. We merely need to help create and
seize those opportunities. In order to do so, it is important to
understand what drives American companies and building
owners to adopt efficiency improvements and sustainability
policies. Understanding those drivers is the first step. Then, it
is about making the business case to those different influence
agents. We were excited that the U.S. Department of Energy’s
Building Technology Program and the Pacific Northwest
National Laboratory
supported this effort because the results show that energy
efficiency is occurring and will continue to occur. The levels of
that activity depend on our ability to convey the full breadth of
benefits that come from sustainable investments, of which
energy efficiency is just the tip of the iceberg.The research in
this report provides new McGraw-Hill Construction and others
on how
to create high-performing buildings. Some
critical results include:
• The commitment of corporate America to sustainability
continues to grow, despite the adverse economy: 42% of the
firms surveyed view sustainability as a business
opportunity or as transformational, up from 37% just a little
over a year ago.
• 92% of companies report being influenced by operational
savings in their decision to pursue energy efficiency
projects, but market differentiation (73%) and employee
satisfaction and productivity (71%) are also important.
• Renewable energy is seen as a potential business
opportunity for some firms.
It is obvious that the business case matters to firms, and energy
efficiency and utility savings are the foundation of that case, but
firms today expect more. Tenants are using their influence in a
high-vacancy commercial
office building market to demand green features (see page 65), and
firms want market differentiation and competitive advantage.
Whether you are a manufacturer trying to get your energy-efficient
products installed,
a builder or engineer experienced in adding value to projects
through better building practices, or policy makers wanting to lower
the environmental impacts of our buildings, understanding how to
make the right business case to the right person is critical. We hope
the data and market insights in this report help you make that case
and seize
those opportunities.
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Making the Business Case
Importance of the Built Environment
The building sector is the single largest user of energy and emitter of
greenhouse gasses in the U.S. Today’s buildings consume 40% of U.S.
energy, release 30% of U.S. greenhouse gas emissions and 38% of carbon
dioxide emissions, and use nearly 13% of all potable water in the U.S.1
Given that the U.S. is currently the largest global user of energy, it
becomes even more important for the design and construction industry to
take a leadership role in making buildings more efficient in their use of
energy and water. At first glance, designing new buildings and updating
existing ones to achieve greater energy efficiency seems to be a
straightforward and logical first step towards energy independence in the
U.S. To the casual observer, the business case for greater energy
efficiency in buildings is obvious. Using existing off-the-shelf technologies
can yield impressive energy use reductions. However, when examined
more closely with the ultimate goal to achieve net zero energy for all
buildings through the combined strategies of efficiency and renewable
energy, the massive scale of investment required to upgrade the existing
building stock is daunting. In addition, each industry sector has its own
challenges, making it necessary to tailor the business case to each sector.
Building Sectors
This study examines the challenges and opportunities presented by four
industry sectors in particular: office, retail, healthcare and education. One
critical obstacle faced by the office and retail sectors, where buildings are
typically leased to tenants, is that the savings generated by building
operations often do not directly benefit the owner enough to make it easy
to justify an investment. Additionally, tenants are far more conscious of
the bottom line rent figures than of incremental operational cost savings..
The office sector faces an additional challenge because office
buildings as assets see frequent turnover in ownership as well as
tenants, causing the payback period for significant efficiency
investments to be longer than the ownership period Thus, an
investment that seems sound on the surface does not make a
compelling business argument for the level of widespread investment
necessary to achieve a serious reduction in energy use in the building
sector. The healthcare and education sectors face an entirely
different set of issues. Their owners are often nonprofits,
government or for-profit businesses with narrow profit margins
where the battle for investment dollars is challenging. however,
there are unique opportunities in these sectors. Education buildings
are expected to offer cutting-edge facilities. Hospitals, and some
university buildings, are also particularly intensive users of energy, so
decisions that can help them reduce this use can be encouraged with
compelling intelligence.
Finding Opportunity Through Energy Efficiency and Sustainability
and Overcoming Challenges
The fundamentally compelling business case for efficiency provides
far more opportunities than challenges. The ambitious goal of
improving efficiency across the entire built environment is
achievable, but only through a serious recognition and response to
the obstacles faced in these major industry sectors.
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Retrofit and Renovation:
Ripe for Opportunity in Energy Efficiency
Overall, the existing building market is an important untapped area for upgrades and
activity. The U.S. built environment comprises more than 77.9 billion square feet of
commercial building space, and only a small percentage of that is new construction
each year.2 In 2008, new commercial construction only accounted for 1.8% of total
building floor area.
Percentage of Firms Planning Energy Efficiency Upgrades in
the Next Two Years
However, the amount of renovation and retrofit activity remains relatively low. There
are many reasons for this, including access to funding, insufficient incentives and lack
of interest in upgrading those buildings. McGraw-Hill Construction expects continued
growth in major commercial renovation activity over the next five years, with $53
billion anticipated by 2014 for major projects, a large portion of which includes energy
efficiency investments and activities.
Energy-Efficient Retrofit and Renovation Projects Are Occurring—and Planned for the
Future 78% of respondents plan to do energy efficiency upgrade projects in the next
two years.
This is a high commitment to investment, but it is also a slight decline from the level of
activity over the last two years.
Expected Business Benefits from
Sustainability Adoption
Business Benefits Are Expected and Can Be Used to Make the Business Case
Firms have high expectations about the benefits coming from sustainability initiatives,
including investments in energy efficiency and other green building efforts. In fact,
these expectations are increasing over time, only placing more burden on internal staff
at these organizations who are responsible for making the business case.It is
incumbent upon the industry to recognize these needs when trying to influence these
levels of investment.
Financing: Current Energy-Efficient Retrofit and Renovation Projects Use Internal
Resources, Not Outside Funds 85% of the energy efficiency projects were funded
through capital budgets and company profits.
Only 16% were financed from performance contracting and 6% from bank loans.
Relying on capital budgets and company profits is ultimately a limiting factor for the
efficiency market, and financing needs to be made more available and more attractive
to help the market grow.
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Influencing Energy Efficiency Retrofits:
Utility Savings Lead, But Other Factors Also Significant Businesses recognize a
broad range of incentives for investing in efficiency.
• Utility cost savings is by far the most important factor; it is selected as a
major influence by 43% of respondents, compared to 17% or less for all
other factors.
Influence Factors Behind the Business Case for PAST Energy
Efficiency Retrofit Activities
• Other factors with larger profit margins, including employee/occupant
satisfaction and productivity and improved asset value, can drive the
market, but better benchmarks and data are required to make these
elements stronger aspects of the business case.
Creating Business Value: Renewables and Net-Zero Energy Buildings Offer
Opportunity for Product and Service Companies
The industry sees strong opportunities in investing in renewables and net zero
to help grow their businesses. Almost half (42%) of the businesses see an
opportunity in buildings achieving net zero and two thirds (66%) regard
increasing the percentage of their energy from renewable sources as
important for their companies.
Corporate America regards investment in these resources as important for
their bottom line, and they express interest in public investment to develop
new technologies.
The Shift to Net Zero Provides Opportunity for Our Company
in the Market
Increasing the Percentage of Our Energy from Renewable Sources Is
Important for Our Company
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Construction Activity at Large:
Renovations versus New Construction
Construction is a critical part of the U.S. economy. At 6.5% of GD P, it is the
second largest contributor to U.S. GD P behind healthcare. However, the
composition of that activity has changed since the recession—with more
emphasis on existing buildings versus new construction.
Commercial Construction Based on Number of Projects Started (2005–2010)
Construction Activity to Date
In 2010, the value of new U.S. construction starts totaled $431.6 billion, down
from $670 billion in 2005. New commercial construction activity ended 2010
at $147 billion, while the value of major commercial retrofit and renovation
projects grew from $31.4 billion to $41 billion over the same period.4 In 2010,
major retrofit and renovation comprised 64% of all construction projects, up
from 60% in 2009, with a steady increase since 2006. A primary reason for this
shift may be credit availability during the economic downturn, with less
capital available for new construction projects. The result has been an
increased emphasis on retrofit and renovation projects.
Commercial Renovation Activity Going Forward
McGraw-Hill Construction expects continued growth in major commercial
renovation activity over the next five years, with $53 billion anticipated by
2014 for major projects. Overall, the existing building market is an important
untapped area for upgrades and activity. The U.S. built environment covers
more than 77.9 billion square feet of commercial building space, and only a
small percentage of that is new construction each year.5 In 2008, new
commercial construction only accounted for 1.8% of total building floor area.6
However, the amount of renovation and retrofit activity remains relatively
low. There are many reasons for this, including access to funding, insufficient
incentives and lack of interest in upgrading those buildings. There are shifts
that may increase energy efficiency activity:
• Concerns about energy consumption, costs and climate change continue
to encourage support for increases in the energy efficiency of existing
buildings.
• Energy efficiency is perceived as affordable and achievable with
technologies currently available.
Energy-Efficient Building Share of Retrofit Market (In Billions of Dollars)
As a result of the above factors, most retrofit and renovation activity that is
occurring includes an energy efficiency element such as lighting or HVA C upgrades
(see page 18). Rebates for efficient lighting and mechanical products have
encouraged these investments. In 2010, energy-efficient building retrofits
comprised 66%–75% of $41 billion of total major retrofit and renovation spending.
By 2014 that share is expected to rise to 85%–95% of $53 billion of total major
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retrofit and renovation spending.
Retrofit and Renovation Regional Activity:
Non-Green versus Green
Total Value and Number of Renovation Projects by Region (2005–2010)
Non-Green (Including Projects That Are Only Energy
Efficient)
• Value of Project s: Retrofit and renovation projects in the
Mid-Atlantic region are the highest in value, followed by
the South Atlantic and Pacific regions. This difference may
be attributed to the growth in public retrofit and
renovation projects encouraged by the provisions of ARRA
and other federal government policies. (See page 25 for
more on government policies.)
• Number of Project s: The South Atlantic region has the
highest number of retrofit and renovation projects
followed by the East North Central and West South
Central regions.
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Data: Business Case for Green and
Energy Efficiency Upgrades
Current and Future Levels of Energy Efficiency Activities
Percentage of Firms Who Have Engaged in Energy Efficiency Activities
The last two years have seen strong energy efficiency activity.
Percentage of Firms Who Conducted Energy Efficiency Upgrades in
the Last Two Years
• Nearly all (91%) of the firms surveyed have undertaken energy
efficiency upgrades on buildings in their portfolio in the last two
years.
• 42% report that more than 30% of their building portfolio is
green or high performing.
These results demonstrate that nearly all of the firms surveyed are
familiar with the benefits of energy efficiency. They also reinforce the
impact of government incentives for energy efficiency, including
rebates and tax credits, from the Energy Independence and Security
Act an
Percentage of Firms Planning Energy Efficiency Upgrades in
the Next Two Years
Percentage of Firms Planning Energy Efficiency Upgrades in the
Next Two Years
78% of respondents plan to do energy efficiency upgrades on
buildings in their portfolio in the next two years. While this indicates
a relatively robust market, it also suggests a slight decline expected in
overall energy efficiency projects compared to the past two years,
when 91% reported doing efficiency projects.
34
Business Case for Green & Energy Efficiency
Upgrades
Influence Factors on Efficiency Projects in the Last Two Years
Utility cost savings are the strongest influence factor by far,
with at least some influence on 92% of the respondents.
Influence Factors Behind the Business Case for PAST Energy Efficiency Retrofit
Activities
Even more striking, though, is the fact that 43% select utility
cost savings as a major influence—two to four times more
than any other factor. Utility cost savings can be more easily
measured and reported than ROI, and they are directly
attributable to energy efficiency improvements.
Other Measures Selected by More Than 70% of Respondents.
• Market Differentiators: The factor is perceived to be a
major influence by 17% of firms surveyed
• Employee/occupants satisfaction and productivity
improvements: Even though only 8% select
employee/occupant satisfaction as a major influence, 33%
report that these factors have a good deal of Influence.
These results indicate that making a strong business case for
energy efficiency involves promoting several different factors
simultaneously. All but one of the categories are selected as
influential by over 50% of the respondents, which indicates
that multiple factors, rather than just one, are considered in
energy efficiency investment decisions.
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Drivers and Obstacles to Corporate Sustainability
Challenges to Corporate Sustainability
Challenges to Implementing Sustainability
The obstacles noted in the 2006 and 2009 studies of these same
corporate leaders continue to be challenges today. More firms cite
most of the categories, which suggests that, as more companies
actively pursue sustainability, awareness of the challenges is
becoming heightened
 Budget (Capital and/or Operational) By far the greatest challenge
is budget (capital and/or operational),cited by 77%.
 Measuring ROI: An increasing percentage of firms report concern
about measuring ROI associated with sustainability as an
obstacle, with 45% of the firms citing it in the current survey
compared with 31% in 2009
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Business Case for Energy Efficient Building Retrofit
and Renovation
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Berkeley FLEXLAB
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FLEX LAB Virtual Design Testbed Factsheet
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