1. The Benefits of “Going Green” for Business
Monica Hale,
Sustainability Director
Energy Solutions Operation, SAIC
Gasket Fabricators Association, September 2008

2. What is Sustainability?
Outline
What is Sustainability?
Recent Sustainability Initiatives Global>Local
Benefits of Sustainability
Developing a Framework
Opportunities to Practice & Promote Sustainability 2

3. What is Sustainability?
"Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs."
From “Our Common Future”, The Brundtland Commission, the World Commission on Environment and Development (WCED) 3

4. The Holistic View of Sustainability4
Source: The Future 500:

5. Sustainability: Now a Mainstream Topic5

6. Sustainability as a Mainstream Business Practice
A recent Conference Board report noted:
“corporate sustainable development practices can facilitate access to (financial) markets”
“sustainable development offers an objective means to identify companies with superior quality of management that thinks long term.”
“strong evidence to support the claim that sustainable development efforts have a positive impact on share price is growing.”

7. Gasket Fabrication Business Environment
Objectives:
Staying ahead of your competitors
Increasing market share
Increasing profitability, reducing costs
Marketplace Trends:
Increasingly finished goods companies want to portray their products as ‘green’
Customers have standards! (ISO series, SA 8000)
Supply chain effects: purchasing companies are scrutinizing their suppliers for the environmental impact of their products – supplier questionnaires
Life-cycle impact assessments – cradle to grave analysis
New Administration will take action on GHG/Carbon 7

8. Benefits of Sustainability: Rationale
Reduce in operating costs (e.g. resource savings)
Improve identification and management of risks
Retain, motivate and develop employees
Attract students
Increase learning and innovation
Improve access to capital
Enhance university/organization image
Improve decision-making
Company sustainability policies
Integrate/mainstream sustainability into operating and capital programs
Convey the vision and goals of the institution
Position universities in the forefront sustainability practices 8

9. The Financial Benefits of Sustainability
Evidence of financial benefits of sustainability
Oekom Research: 2004 study of 602 companies - those with good corporate responsibility programs significantly out-performed those with less emphasis on sustainability.
Morgan Stanley recently stated that companies with a best in class portfolio ranking performed 23.4% higher than companies in the MSCI World Index as a whole (which averaged 3.8%).

10. Sustainability Reporting
KPMG study - Sustainability Reporting:
Over half of Fortune 250 issue standalone Sustainability Reports
Of the top 250 companies in the Fortune 500, the percentage rises to almost two thirds when including annual financial reports that address corporate responsibility.
Global Reporting Initiative (GRI) is the standard to which many corporations follow

11. Areas of Focus (1)
Environment
Impact reduction (noise, pollution, vibration, etc.)
Environmental management (review ISO achievements)
Air quality (EPA regulation compliance)
Environmental Campus initiatives (native planting, avoidance of agri-chemicals, etc.)
Going “beyond compliance”
Social
Community service / impacts
Sustainability Mobility
Employees (H&S, working conditions)
Consumables/Supply-chain Management
Review green purchasing in MTA
Develop supplier questionnaires, expected standards, impacts & assessment
Identify target products/services (e.g. cleaning fluids, VOC’s, etc.)
Facilities
Greening facilities: buildings, sports arenas, 11

12. Areas of Focus (2) Resource Utilization Water Energy Land Use/Campus
Fuel choice / fuel mix / feed stocks (diesel, low sulfur, bio-diesel, CNG)
Renewables (EO 111 target adoption & compliance)
Own generation (wind, PV)
Energy efficiency measures
Campus transportation (hybrid, bio-diesel)
Service provision
Waste
Minimization (reduce, recycle, re-use)
Management
Waste stream analysis
Resource efficiency
Water
Reduction
Recycling/reuse
Conservation
Land Use/Campus
Avoiding the use of chemicals
Native planting
‘Nature’ Areas
Ponds
Compost
GHG/Carbon Emissions
GHG inventory
Climate change applications
Trading credits (CCX) 12

13. Making the Connections
Improving Performance
Reducing Ecological Footprint
Energy & Conservation
System Energy
Energy for Buildings
Non-revenue Uses
Waste
Water
Resource Consumption
Facilities Management
Transport Operations
Demographics
Strategies
CO2 emissions reductions
Methane gas cuts
Alternative fuels, solar, wind, fuel cells
Distributed generation
CO2 credits, CO2 taxes
CO2 Measurement & Verification
Conservation, ‘Negawatts’
Continuous Commissioning
Sustainable Design
Network Enhancement
Storm water management
Health & Epidemiology
IT/Smart Systems
Greening 13

14. Sustainability: Taking Action
Planning Framework and Process
Developing an action plan to promote energy/resource efficiency, pollution reduction, & sustainable mobility into design, construction, operations, & maintenance
Main elements:
Priorities areas for action / phasing
Time scales (long term and short term initiatives)
Budget
Monitoring and measurement
Benchmarks
Engagement across whole organization at every level
Communications Plan
Reporting 14

15. Sustainability Assessment Framework15

16. Energy Managers and Sustainability
Source: Levin, H. Systematic Evaluation and Assessment of Building Environmental Performance (SEABEP), presentation to "Buildings & Environment“ Conference 16

17. Buildings: LEED Standard
USGBC Leadership in Energy and Environmental Design
A nationally recognized standard Green Building Rating System, known as LEED (Leadership in Energy and Environmental Design), for design, construction, & operation of high performance green buildings.
LEED promotes a whole-building approach by recognizing performance in five key areas of human and environmental health:
Sustainable site development
Water efficiency
Energy efficiency and Atmosphere
Materials and Resources
Indoor environmental quality
LEED Standards – Platinum, Gold, Silver, Bronze
LEED categories: EB, ND, etc.
Focus on a subset of key LEED factors that have the greatest immediate impact on approximately a company’s total space.

18. LEED Self-Assessment Check List
Facilities-related actions based on LEED-EB (existing buildings) program
Legend: C = Currently Implemented W = Working = Future Implementation 9

19. LEED Self-Assessment Check List
Facilities-related LEED-EB actions (continued)
Legend: C = Currently Implemented W = Working = Future Implementation 10

20. Sustainability Cost-Benefit Example
Cost-benefit analysis of Actions from UCSB Campus Sustainability Plan, 2006 20

21. Costs: rising (gasoline, natural gas, electricity)
Energy Issues
Costs: rising (gasoline, natural gas, electricity)
Consumption: energy efficiency – using less pays off
Renewables – wind, biofuel, geothermal, hydro, photovoltaics/solar: benefits:
Costs decreasing
Potential to sell into the grid
energy independence
Low/no carbon/GHG emissions
Market for renewables products increasing (e.g. wind turbines)

22. Carbon and Energy Questions
How, & over what time period, can organizations become wholly sustainable?
How much of the strategy for operations and the capital budget needs to be devoted to sustainability & carbon reduction projects?
What are organizations opportunities to reduce GHGs and create green energy from alternative fuels (solar, wind, fuel cells, wave and tidal power, anaerobic digesters)?
Which distributed generation projects should generate green power for organizations and which green projects might provide green energy for organizations in the region?
What kinds of goals and technology should the organization pursue to create a comprehensive ‘negawatts’ program, other conservation strategies and continuous commissioning? 22

23. O Wedges Seven “wedges” Billion of Tons of Carbon Emitted per Year14
Billion of Tons of Carbon Emitted per Year
14 GtC/y
Currently projected path
Seven “wedges” O 7
Historical
emissions
7 GtC/y
Flat path
1.9 
1955
2005
2055
2105
Source: Stephen Pacala and Robert Socolow, Science, 305 (5686), pp , and its Supporting Online Material, available at

24. Fill the Stabilization Triangle with Seven Wedges
Methane Management
Energy Efficiency
Forests & Soils
14 GtC/y
Fuel Displacement by
Low-Carbon Electricity
Stabilization
Decarbonized
Electricity
Triangle
7 GtC/y
2004
2054
Decarbonized Fuels

25. Developing a Strategy
Appendix 2