david_gottfried by doocter

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									The New World of Green
Led by David Gottfried
What is Green?




50 miles per gallon
      “MPG”
Built-Environment Footprint
Precautionary Principle

"In order to protect the environment, the
precautionary approach shall be widely applied
by States according to their capabilities. Where
there are threats of serious or irreversible
damage, lack of full scientific certainty shall not
be used as a reason for postponing cost-
effective measures to prevent environmental
degradation."

                        Rio Declaration - 1992
Rationale for Going Green
• Improved resource productivity = higher profitability
• Government economic incentives (taxes…)
• Environmental regulations are becoming tougher
• Insurance coverage benefit
• Bank preference - loans, interest rates
• Enhanced company image & brand
• Employee recruitment & retention
• Human health improvement
• Customer attraction & loyalty
Sustainable Report Contents

1. Strategy & Analysis
2. Organizational Profile
3. Report Parameters
4. Governance, Commitments, Engagement
   •   Economic Indicators
   •   Environmental Indicators
   •   Social Indicators
    WHO ARE WE?




USGBC
USGBC’s Mission

 The nation’s foremost coalition of
 leaders from across the building
 industry working to promote buildings
 that are environmentally responsible,
 profitable and healthy places to live
 and work.
                                         STEW
                                               A
                                          mark RD
WHAT IS OUR ROLE?

                                     trans     et
                                           form
                                                ation
                       FOR
                    for in UM
                          dust
                      dialo ry
                           g

                                                         OFFE
                                                        expe R
                                                            rtise
                                    USGBC
                      EDU
                           CA
                       indu TE
                    & the stry
                          publ
                               ic
                                          PRO
                                              VIDE
                                           tools
                   Scores are tallied for
                   different aspects of
                   energy and environmental
                   performance in
LEADERSHIP in      appropriate categories
ENERGY and         including:

ENVIRONMENTAL      1. Site Planning
DESIGN             2. Water Efficiency
                   3. Energy Performance
                   4. Material & Resource Use
A leading-edge
                   5. Indoor Environmental
system for
certifying            Quality
the greenest       6. Innovation &
performing            Design Process
buildings in the
world
LEED-NC® Point Distribution

          Indoor
      Environmental
         Quality                   Sustainable
           23%                        Sites
                                      22%
     Materials &
     Resources
                                       Water
        20%
                                     Efficiency
                       Energy &         8%
                      Atmosphere
                         27%
LEVELS OF LEED RATINGS
                         USGBC has four levels of LEED




                                  PLATINUM




                                     GOLD



                                    SILVER



                                  CERTIFIED
LEED-NC Award Levels
• Total Points (64 Core + 5 Innovation)
• LEED Certified: 26 – 32 Points (38%)
• LEED Silver: 33 – 38 Points (48%)
• LEED Gold: 39 – 51 Points (57%)
• LEED Platinum: 52 – 69 Points (75%)
 CATEGORIES OF LEED RATINGS                new
                              LEED-NC      construction

                                               existing
                              LEED-EB          buildings
FUTURE PROGRAMS


                                          commercial
                              LEED-CI     interiors

                                          core &
                              LEED-CS     shell



                              LEED-HOMES
                                                           • Healthcare
                                           neighborhood    • Laboratories
                              LEED-ND      development     • Schools
                                                           • Retail
                                                           • Multi-building
                                     application
                              LEED   guides
                                                             Campuses
                                                           • Multi-family
                                                             Residential
Continuous
Improvement




 Brengel Technology Center
 Milwaukee WI


 Silver       Gold
 LEED-NC LEED-EB
LEED-NC REGISTERED PROJECTS
   ESTIMATED VALUE OF NEW                                             7.73
                                                                      billion
                                                                       2004


                                                            5.76
                                                            billion
                                                             2003
                                                  3.81
                                                  billion
                                                   2002
                                        3.24
                                        billion
                                         2001
                                                                                The value of
                               792                                              U.S. construction
                              million                                           starts significantly
                               2000                                             declined by
                                                                                almost half from
                                                                                2000 to 2003
USGBC/LEED Statistics

• 5938 members
• 332 certified NC projects
   – 37 million sq. ft.
• 2907 registered NC
  projects
   – 359 million sq. ft.
• 32,000 workshop
  attendees
• 22,624 LEED accredited
  professionals
USGBC Member Index
McGraw Hill Market Report

• 2004
   – Green building = 2% of commercial market
       • $3.3 billion industry

• 2010
   – Green building = 5% to 10%
       • $10 to $20 billion market

• US construction industry
   – 8.3% of GDP
   – 37% of energy consumption (60% electricity)
       • $24 billion per year
Financial Impacts

•   Operating Costs
    – Decrease by 8% to 9%
•   Building Values
    – Increase by 7.5%
•   ROI
    – Improve by 6.6%
•   Occupancy Ratio
    – Increase by 3.5%
•   Rent Ratio
    – Rise by 3%
The “Green” Proforma

• Spreadsheet Components
  – Project Cost
  – Income & Expenses
  – Loan Amount/Valuation
  – Equity Requirement
  – Return on Investment
    Return on Investment
                                   Gold         Market       Difference % Change

Project Cost PSF                      $232.72      $233.32         -$0.60    -0.26%
Construction Cost PSF                 $122.29      $120.71          $1.58     1.30%
Green Adds - Hard & Soft Costs       $112,500        $0.00      $112,500         n/a
Operating Expenses PSF                  $7.36        $8.00         -$0.64    -8.00%
Total Operating Expenses - Yr. 1     $192,160     $208,000      -$15,840     -7.62%
Net Operating Income - Yr. 1         $752,254     $678,250       $74,004     10.91%
Net Cash Flow - Yr. 1                $155,541      $95,131       $60,410     63.50%
Project Valuation                  $9,118,226   $7,979,412    $1,138,814     14.27%
Loan Amount                        $6,800,000   $6,500,000      $300,000      4.62%
Total Project Cost                 $8,145,341   $8,166,333      -$20,991     -0.26%
Equity Requirement                 $1,345,341   $1,666,333     -$320,991    -19.26%
Equity % of TPC                       16.52%       20.40%         -3.89%    -19.06%
Internal Rate of Return               24.40%       18.29%          6.11%     33.40%
Green Products
 Jeff Immelt, President/CEO

     “Increasingly for business,
     ‘green’ is green”


$150bn revenue
300,000 employees
125 year old company
Ecomagination

• 17 “certified” products (eco-scorecards)
   – Solar energy
   – Hybrid locomotives
   – Fuel cells
   – Lower emission aircraft engines
   – Lighter & stronger materials
   – Efficient lighting
   – Water purification technology

                    $10bn to $20bn - 2010
Greening of Retail
LEE Scott, CEO

 “I believe, that being a good steward of
 the environment and in our
 communities, and being an efficient
 and profitable business are not
 mutually exclusive. In fact they are one
 in the same.”


 -- Twenty First Century Leadership Plan - 2005
Environmental Goals

• To be supplied 100% by renewable
  energy.
• To create zero waste.
• To sell products that sustain our
  resources and environment.
One Bryant, NYC

• Bank of America NY HQ
• 2 million s.f., 54 stories
• LEED Platinum
    – Rainwater capture
    – Incredible daylight
    – Recycled content
    – On-site gas plant
        • 70% of energy supply
    – Ice storage
    – Waterless urinals
Greening of Government
The Melbourne Pathway

1. Shift discussion to value not just cost
2. Government leadership by example
3. Boost industry leadership
4. One national rating system = Green Star
5. Incentives for users
6. Make the business case
7. Develop the knowledge base
What Kind of Footprint?

								
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