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Sustainability Concepts and Opportunities for the Manufacturing Industry.
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Todd D. Holloway RLA, PWSTodd D. Holloway RLA, PWSCivil & Environmental Consultants, Inc.Civil & Environmental Consultants, Inc.
Unites States Green Building CouncilUnites States Green Building Council
Heartland Regional ChaptersHeartland Regional Chapters
NAIOPNAIOP
Facilities, Processes and Image
CompanyCompany
““The ability to provide for the needs of the current generation The ability to provide for the needs of the current generation without compromising the needs of future generations…”without compromising the needs of future generations…”
The Dow Jones Sustainability Index defines The Dow Jones Sustainability Index defines corporate sustainability corporate sustainability as:as:
“ “a business approach that creates long-term shareholder value by a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, embracing opportunities and managing risks deriving from economic,
environmental and social developments.”environmental and social developments.”
““the Triple Bottom Line”the Triple Bottom Line”
Source: www.Sustainability-ed.org
Environmental Impact of Buildings in the USEnvironmental Impact of Buildings in the US
The Average High Performance/Green Building Saves:The Average High Performance/Green Building Saves:
Life Cycle Benefits
LEED® Defined High Performance Building Rating:
Green Facilities and InfrastructureGreen Facilities and Infrastructure
- Advanced Storm Water Management
- Natural Lighting/High Efficiency Lighting
- High Efficiency Roofing
- Native/Low Maintenance Landscaping
- High Efficiency HVAC/R
- Indoor Air Quality-Reduced Emissions
- On-site Renewable Energy
(examples: Ford Motor Rouge Assembly
Proctor and Gamble, Lodz, Poland)
US Citizenship and Immigration Services-Detroit, MISource: Arcus Group, Cleveland Ohio, architects
High Performance Facilities
• Study trends in your industry – target any project to meet future Study trends in your industry – target any project to meet future needsneeds
– Can you serve your customers without an improved Can you serve your customers without an improved process/facility/equipment?process/facility/equipment?
– Can your suppliers meet your needs?Can your suppliers meet your needs?– Does a new standard require a shift in supply chain?Does a new standard require a shift in supply chain?
• Understand terms of any tax incentives (products, process, Understand terms of any tax incentives (products, process, materials, timeframe)materials, timeframe)
• Work with qualified professionals to assess ROI (architects, Work with qualified professionals to assess ROI (architects, contractors, any industrial design experts for a new or renovated contractors, any industrial design experts for a new or renovated
facility)facility)
Green Business ProcessesGreen Business Processes
- Waste Management and Recycling
(shipping and cast off)
- Delivery Methods
-Water Use Efficiency
(water re-use, bio-treatment)
- Supply Chain Requirements
(ISO 14001 and ISO 26000)
- Worker Productivity and Satisfaction
(sick days, health care costs, output, accuracy)
• What materials are you using to transport and ship your products?What materials are you using to transport and ship your products?
• UPSUPS– No left turnsNo left turns– http://www.pressroom.ups.com/mediakits/factsheet/0,1889,1493,00.html
• Fetzer WineFetzer Wine– Lighter wine bottlesLighter wine bottles– http://www.fetzer.com/protect.aspx
• What materials are you using to transport and ship your products?What materials are you using to transport and ship your products?
• UPSUPS– No left turnsNo left turns– http://www.pressroom.ups.com/mediakits/factsheet/0,1889,1493,00.html
• Fetzer WineFetzer Wine– Lighter wine bottlesLighter wine bottles– http://www.fetzer.com/protect.aspx
Sustainable Image and Public RelationsSustainable Image and Public Relations
-Talent Attraction and Retention
(the Millennials)
- Purchase Orders and Consumer Preferences
- Brand Distinction and Differentiation
- Community Stewardship/Good Company Image
(fuels all three above)
• Educate service providersEducate service providers
– AccountantAccountant– BankerBanker
– AppraiserAppraiser– AttorneyAttorney
• They must understand Cost/Benefit and the potential They must understand Cost/Benefit and the potential positive/negative impacts to your businesspositive/negative impacts to your business
• Work with suppliers and customers to ensure costs/incentives are Work with suppliers and customers to ensure costs/incentives are managed across organizationsmanaged across organizations
• Not just for new construction – retrofits can also be “Green” Not just for new construction – retrofits can also be “Green” (Sustainable design improves cost of future retrofits)(Sustainable design improves cost of future retrofits)
• Design costs can be lower - coordinated design effort Design costs can be lower - coordinated design effort (cheaper/easier retrofits in the future)(cheaper/easier retrofits in the future)
• Lower Operating Costs for Facilities Lower Operating Costs for Facilities • Limit financial risk of possible future tax increasesLimit financial risk of possible future tax increases
– Energy costs for the building alone can be reduced Energy costs for the building alone can be reduced (25%-35% on average)(25%-35% on average)
– Greater control over water and energy use, access to power, Greater control over water and energy use, access to power, period controls to limit unproductive useperiod controls to limit unproductive use
• Marginal Cost to “Go Green” Marginal Cost to “Go Green” • cost difference can be negligible (0-5% on average)cost difference can be negligible (0-5% on average)
• Branding/ReputationBranding/Reputation• Complying with tougher customer requirementsComplying with tougher customer requirements
– (ISO, etc.)(ISO, etc.)• Tax IncentivesTax Incentives
– Building materials and systems (new 8 year term on Solar, lots Building materials and systems (new 8 year term on Solar, lots of other state & local incentives – new Federal incentives of other state & local incentives – new Federal incentives
coming)coming)– Equipment –can be utilized to reduce cost of financingEquipment –can be utilized to reduce cost of financing
– EnergyEnergy• Improved worker productivityImproved worker productivity
Todd D. Holloway, RLA, PWSTodd D. Holloway, RLA, PWSPrincipal of Ecology and Landscape ArchitecturePrincipal of Ecology and Landscape Architecture
Civil & Environmental Consultants, Inc. (CEC)Civil & Environmental Consultants, Inc. (CEC)
Detroit Regional OfficeDetroit Regional Office
248.374.8600248.374.8600
This presentation was prepared with This presentation was prepared with content contributions by:content contributions by:
Summer K. Plantz-Summer K. Plantz-Vorys, Sater, Vorys, Sater, Seymour and Pease LLPSeymour and Pease LLP
Gregory Ward-Gregory Ward-Wells Fargo BankWells Fargo Bank