Transcript Slide 1

Green Development From an
Owner/Occupant's Perspective
Hunter Fleshood
Bank of America Corporate Workplace
November 14, 2008
Sustainable Building
Why is it Important?
What are the Benefits?
Bank of America’s Response
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Sustainability
Meeting the needs of the present without
compromising the ability of future
generations to meet their own needs
The Brundtland Commission, 1987
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Sustainability: Why is it Important?
We are at the crossroads of the most significant crisis of modern times.
• The rapid depletion of global petroleum and natural gas reserves
• The warming of the earth’s atmosphere by burning fossil fuels
Uncorrected, this will lead to species extinction, intensified weather
events, food and water shortages and rising sea levels.
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Sustainability: Why is it Important?
Oil production is slowing
as supply becomes
scarce and aggressively
protected
Leading to hyper
price inflation
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Sustainability: Why is it Important?
Burning Coal, a more plentiful and cheaper fossil fuel, is the
number one emitter of greenhouse gases and the largest
contributor to global climate change
Atmospheric CO2 Trend
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Sustainability: Why is it Important?
Annual Renewable Water Supply Per Person - 1975
Extreme
Scarcity
Scarcity
Stress
Adequate
Abundant
Water Availability(m3/capita/year)
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Surplus
Sustainability: Why is it Important?
Annual Renewable Water Supply Per Person - 2050
Extreme
Scarcity
Scarcity
Stress
Adequate
Abundant
Water Availability(m3/capita/year)
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Surplus
Sustainability: Why is it Important?
Source: US Green Building Council
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Sustainability: Why is it Important?
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Sustainable Building: What are the Benefits?
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Sustainable Building: What are the Benefits?
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Sustainable Building: What are the Benefits?
Depends on:
• Project type, scope, and location
• Which and how many credits are pursued
• The experience of the team
• When the decision is made to ‘go green’
Average additional construction cost:
• LEED “Certified”: less than 1%
• LEED “Silver”: 1-2%
• LEED “Gold”: 3-4%
• LEED “Platinum”: 4-8%
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Sustainable Building: What are the Benefits?
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HOSPITALS
SCHOOLS
Real Benefits Go
Beyond
Property Operation
Costs
RETAIL
20%
BETTER TEST
PERFORMANCE
OFFICES
FACTORIES
INCREASE
IN SALES PER
SQUARE FOOT
EARLIER
DISCHARGE
INCREASED
PRODUCTION
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2-16%
PRODUCTIVITY
INCREASE
Sustainable Building: What are the Benefits?
$oft Benefits of Green Building
• Improved health and well being
• Reduced absenteeism and turnover
• Increased productivity
• Greater employee satisfaction
• Better recruiting and retention
• Improved brand strength
• Positive public goodwill and perception
• Better government relations
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Environmentally
Responsible
-andCommercially
Profitable
Sustainable Building: What are the Benefits?
Traditional View
Getting the
Most Building
for the Buck
+
Making the
Most Bucks
from the
Employees in
the Building
Total Cost / Total Return View
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Sustainable Building: What are the Benefits?
Over a building’s 30-year lifespan, employee-related
costs account for 92% of the total cost of operations.
Increasing employee productivity even slightly has a
significant effect on controlling costs over time.
Reduced absenteeism and turnover: provide a healthy
workplace to improve employee satisfaction
Reduced liability: improve risk management by
controlling indoor air quality issues
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Sustainable Building: What are the Benefits?
$350
$318
Cost of Employees = $318 / SF
$300
$250
$200
$150
$100
$50
$50
$16
$2.35
$1
Energy
Churn
$0
Salaries &
Benfits
Technology
Mortgage /
Lease
5% increase in productivity in 250,000 SF
Annual savings = $3,975,000
10% increase in productivity in 250,000 SF
Annual savings = $7,950,000
“Average Operating Costs per Square Foot in American Office Buildings”, Environmental Building News
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Sustainable Building: What are the Benefits?
$oft
Benefits
Productivity and Human Performance
Findings
1. Students
• 15 – 26% faster progress on math and reading tests
• 7 – 18% higher test scores
2. Sales
• 40% higher in sky-lit stores
3. Call Center and office workers
• 6 – 12% faster processing calls
• 10 – 25% better on mental and memory tests
Green
Elements
Day lighting and Views
Study
Hecschong Mahone Group, “Investigation into the
Relationship Between Daylight and Human
Performance”, 1999 & 2003
1. 21,000 student records; 2,000 classrooms
2. 108 Retail Stores w/ and w/o skylights
3. Call center and office workers
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Sustainable Building: What are the Benefits?
$oft
Benefits
Productivity
Findings
Productivity increase of 5 – 10%
Green
Elements
Improved Air Quality; Improved Thermal Comfort;
Enhanced Ventilation Rates
Study
Bjarne Olsen, "Indoor Environment - Health, Comfort
and Productivity," Clima 2005 Lausanne, 8th REHVA
World Congress, Switzerland, Oct. 9-12, 2005
International Centre for Indoor Environment and Energy
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Sustainable Building: What are the Benefits?
$oft
Benefits
Reduced absenteeism
Findings
Reduced 15%
Green
Elements
• New “green” 540K SF headquarters for ING Bank
• New energy efficient, 76K SF Verifone building
Study
Reduced 40%
“Greening the Building and the Bottom Line – Increasing Productivity
through Energy-Efficient Design”, Rocky Mountain Institute, J.J. Romm
and W. D. Browning
Cool Companies -- How the Best Businesses Boost Profits and
Productivity by Cutting Greenhouse Gas Emissions, J.J. Romm
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Sustainable Building: What are the Benefits?
$oft Benefits
Findings
Green Elements
Alberici HQ, St. Louis MO
“The Greenest Building”
Most LEED points ever
received (60 of 69)
Reduced Turnover
These two projects saw turnover reductions
• Low VOC-emitting materials
• Access to daylight, views and operable
windows
• Air quality monitoring and ventilation
• Lockers and showers for joggers and cyclists
• Organic-food served in cafeteria with
outdoor seating and river views
PNC Firstside Center, Pittsburgh, PA
First building ever certified LEED Silver
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Sustainable Building: What are the Benefits?
$oft
Benefits
Brand Strength
Findings
• Toyota: A top-ranked Green company is a first mover
and sales leader in Hybrid cars. Prius’ are “In”
• WAL*MART: The former bane of the green
movement now has one of the most ambitious
environmental plans of any U.S. company.
Successfully using Green stance to polish a oncetarnished public image.
• Conversely, appearing on any “World’s worst
environmental companies” lists or being accused of
“Green-washing” (all talk, no action) can have
significant negative damage to brand
Green
Element
Green Corporate Message and Position
Study
“Best Global Brands: How Valuable is Green?” Robin
Rusch, CEO of BrandWizard and founder of
brandchannel.com
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Sustainable Building: What are the Benefits?
Green 11
6.
1.
7.
2.
8.
3.
9.
4.
10.
5.
11.
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Sustainability: Bank of America’s Response
Every single business day at Bank of America…
• We generate over 7,000 metric tons of greenhouse gas
emissions (GHG):
– We spend $1 MM on utilities, generating 5,000 metric tons of
GHG
– Our associates commute 4.2 million miles, spending $800,000
on gasoline and generating 1,600 metric tons of GHG
– Our associates fly 1.8 million miles, generating 450 metric
tons of GHG
• We use 10 million gallons of water
• We use 700,000 pounds of paper
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Sustainability: Bank of America’s Response
Bank of America Corporate Workplace
Changing the way we design, build and operate the workplace
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Green Building and LEED certification¹
Hybrid Vehicle Reimbursement Program
EPA Climate Leaders GHG emission reduction commitment (9x9)
Leading-edge, centralized energy management platform (iC3)
Renewable energy
Water conservation
Green cleaning
Recycling
Transportation
planning
¹ Developed by the US Green Building Council, Leadership in Energy and Environmental Design (LEED) is a
certification program and the nationally accepted benchmark for the design, construction and operation of
high performance green buildings.
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Sustainability: Bank of America’s Response
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Sustainability: Bank of America’s Response
LEED Certified
LEED Registered
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Bank of America Tower at One Bryant Park
The World’s Most Environmentally Responsible Skyscraper
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Sustainability: Our Current Response
Bank of America Tower at One Bryant Park
The World’s Most Environmentally Responsible Skyscraper
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Sustainability: Our Current Response
Bank of America Tower at One Bryant Park
The World’s Most Environmentally Responsible Skyscraper
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Sustainability: Our Current Response
Bank of America Tower at One Bryant Park
The World’s Most Environmentally Responsible Skyscraper
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Sustainability: Bank of America’s Response
1 Bank of America Center & Ritz Carlton Hotel
Sky Garden crossing
College Street
Founder’s Hall view
from Epicentre
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Sustainability: Our Current Response
BANK OF AMERICA OPENS FIRST BANKING CENTER BUILT TO MEET HIGHEST
LEED GREEN BUILDING STANDARDS
(Los Angeles, CA) – As part of its $20 billion environmental commitment,
Bank of America has opened one of the most environmentally-responsible
bank branches in the nation, featuring a solar paneled roof, insulation made
of recycled blue jeans and counters comprised of pressed wheat.
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Sustainability: Our Current Response
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Sustainability: Our Current Response
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Sustainability: Our Current Response
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Conclusion
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Environmental problems are real and are serious
o Climate Change
o Fossil Fuel Depletion
o Fresh Water Shortage
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Green Building practices mitigate these problems
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Green Building is environmentally responsible, but also can be
commercially profitable.
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For owner / occupants, the $oft benefits (people-oriented
benefits) far outweigh the property operating benefits from
Green Buildings
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Bank of America will continue to invest in being a leader in green
building and environmentally sustainable business practices
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