1. CEEA 2014 Survey: Canadian Business Attitudes on Energy Efficiency

2. Contributors Survey by 2 TABLE OF CONTENTS Introduction, Foreword & Methodology 3 Key Findings6 Concern About Energy Costs9 Views About Energy Efficiency 13 Energy Efficiency: What Companies Are Doing 19 Incentives & Programs 34 Building & Design – The Commercial Market 42 Building & Design – Architects & Builders 46 Appendix62

3. Survey by 3 Contributors CEEA Elizabeth McDonald President and CEO Sylvie Powell Vice President, Member Services and Operations The Gandalf Group David Herle Principal Partner Alexander Swann Vice President Working Committee Steve Clayman, Thermal Insulation Association of Canada Bob Collins, Ontario Power Authority James Grant, Enbridge Jay Nordenstrom, NAIMA Canada About CEEA The Canadian Energy Efficiency Alliance (CEEA) is a leading independent advocate promoting the economic and environmental benefits of energy efficiency. The not-for-profit works with the federal and provincial governments, and stakeholders, to ensure energy efficiency is a priority for all sectors of the economy. Producing studies and surveys as it promotes energy efficient public policy ideas, programs and standards; CEEA is an effective resource for policy makers, businesses, consumers, energy companies and environmental groups. About The Gandalf Group The Gandalf Group is a leading provider of public opinion research, strategic communications advice and issues management. For more information visit www.gandalfgroup.ca Thank You to Our CONTRIBUTORS

4. Contributors Survey by 4 CEO Foreword Do Canadian businesses get energy efficiency? After exploring Canadian consumer attitudes on energy efficiency in last years survey we felt it made sense to turn our attention to the corporate sector. We wanted to find out how important energy savings were to a companys bottom-line, and if it wasnt important why not. Of course this is a huge task, but we are up to the challenge. Working with The Gandalf Group weve collected provincial and national data from detailed phone surveys that will give us a new perspective. Energy costs must be accounted for whether businesses own or rent their space, or are in a high-rise or low-rise. The question is how much are businesses willing to spend in up-front investments to make energy-saving measurements? Businesses are important because they occupy buildings and buildings account for over 30 per cent of global CO2 emissions and 40 per cent of global energy use. Space heating, lighting, and space cooling represent close to half of commercial site energy consumption. Our findings will give members a tool to increase the effectiveness of their efforts with Canadian businesses. The case for getting businesses to invest in energy efficiency lies in delivering a better bottom-line. We need energy efficiency programs to resonate with the business sector and encourage benchmarking. This survey will help us understand how to get them to take action. Elizabeth McDonald President and CEO CEEA

5. Contributors Survey by 5 Methodology The Gandalf Group conducted a survey of n=661 Canadian companies by telephone on behalf of the Canadian Energy Efficiency Alliance, between March 21 st and April 8 th, 2014. The survey was fielded with two main groups of companies and organizations with varying questions depending on type: Building sample: Architecture and Construction firms Business sample: A range of small, medium and large businesses & organizations from the complete range of Canadian NAICS industrial sectors Surveys were conducted with senior company decision-makers at small, medium and large or who oversee or are knowledgeable about their organizations energy costs and energy efficiency practices (& among building sector companies, those who are knowledgeable about energy efficient design or building codes).

6. Contributors Survey by 6 Key Findings Most companies are concerned about energy costs and have made upfront investments in order to become energy efficiency. But there is much more to do: less than half have set targets for reductions in energy consumption and most admit they are not doing all they could do to be more energy efficient. Smaller employers as well as those that rent space for their operations are less concerned about energy costs than others. Companies that are most concerned about energy costs are larger employers as well as those that are using gasoline, diesel or propane in addition to electricity and gas. These types of companies are especially engaged.

7. Contributors Survey by 7 Key Findings The institutional/public sector is somewhat further ahead of the other sectors in implementing energy efficiency measures. Industrial, construction, retail, accommodation and other sectors are mostly engaged. Sectors that are less energy intensive are less likely to have made energy efficiency as high a priority – i.e. real estate/property owners and other services sector companies have not made this as high a priority as other sectors. Companies are primarily focused on improving lighting efficiency and secondarily heating and air conditioning efficiency. Cost is an important barrier to doing more and so incentives are top of mind in terms of what would help these companies make further improvement.

8. Contributors Survey by 8 Key Findings Most company representatives said they would support moving ahead with stricter building codes, even if it raised the cost of real estate, if it improved energy efficiency. Builders and architects see a growing market in energy efficient building design and construction. Most architects are familiar with green-certification programs. Yet only a minority of builders and designers feel they will be able to participate in this growth market unless or until building codes are amended to put all businesses on an even playing field with higher energy efficiency standards.

9. Contributors Survey by 9 Concern About Energy Costs Energy costs are a concern for most Canadian companies. This is the case for most in every industrial sector surveyed. Concern is especially high among larger companies and those that consume gasoline, diesel & propane in addition to electricity and gas. Smaller companies are less concerned as are those that rent (60% very concerned) compared to those that own property they use for their for their operations (81%). While most in the real estate & services sector (excluding retail & hospitality) are concerned about energy costs they are less concerned than others. Most (61%) have seen their energy costs increase in the last year.

10. Contributors Survey by Thinking about all the ways that your business uses energy, how much of a concern are energy costs to your business? 10 Business sample; n=475

11. Contributors Survey by Thinking about all the ways that your business uses energy, how much of a concern are energy costs to your business? 11 Business sample; n=475

12. Contributors Survey by Have your energy costs decreased in the last year, or have they increased in the last year or have they stayed unchanged? 12 Business sample; n=475

13. Contributors Survey by 13 Views About Energy Efficiency The majority of companies want to make improvements when it comes to energy efficiency 73% of the business sample said energy efficiency was a high priority for their organizations. 76% of builders and architects share this view. The motivation to do so is higher among those with a higher concern about energy costs. Companies perceive cost savings or greater efficiency in operations or production as the most important benefit to them from undertaking energy efficiency measures. The benefit to the environment or their environmental record is secondary.

14. Contributors Survey by To what extent is improving energy efficiency a priority for your business? 14 Business sample; n=475

15. Contributors Survey by To what extent is improving energy efficiency a priority for your business? 15 Total sample; n=661

16. Contributors Survey by To what extent is improving energy efficiency a priority for your business? 16 Business sample; n=475

17. Contributors Survey by To what extent is improving energy efficiency a priority for your business? 17 Business sample; n=475

18. Contributors Survey by What would the benefits be to your company if it did all that it could to incorporate energy efficiency measures? 18 Business sample; (Multiple Mention) n=475

19. Contributors Survey by 19 What Companies Are Doing Despite the overwhelming concern and interest, there is much more companies can do when it comes to energy efficiency. Only 27% believe they are doing all they can Most (56%) have done or are doing some things. Smaller employers and those with the least operating space tend to be those who have yet to undertake any energy efficiency measures (14%) Less than half (38%) have set targets for energy efficiency and cost savings One third of renters said they leave most decision-making regarding energy efficiency and related initiatives to their landlord.

20. Contributors Survey by Which of the following statements best describes your company? 20 Business sample; n=475

21. Contributors Survey by Which of the following statements best describes your company? 21 Business sample; n=475

22. Contributors Survey by Which of the following statements best describes your company? 22 Business sample; n=475

23. Contributors Survey by Has your company set targets for energy efficiency savings or energy cost reductions? 23 Business sample; (Multiple Mention) n=475

24. Contributors Survey by Do you… 24 Business sample, those that are renters: n=114

25. Contributors Survey by 25 What Companies Are Doing Among those who have not done all that they can, the initial cost of implementation was the most common (41%) reason why they have not done more to boost their organizations energy efficiency. Lack of time (16%) and knowledgeable personnel (9%) were secondary reasons.

26. Contributors Survey by What has held you back from doing more to increase your operation's energy efficiency? 26 Business sample, those that have not done all they can (Multiple Mention) n=333

27. Contributors Survey by 27 What Companies Are Doing 79% have invested in energy saving measures with upfront financial investments. Those in the institutional/public sector are particularly likely (89%) to have invested in energy saving measures. Those that have implemented energy saving measures say on average they have reduced energy costs by 10% on average, although a substantial number were unable to say how much they had saved. Many of those who dont know may have saved a negligible or imperceptible amount or have seen savings eaten up by increases, or they may simply not be tracking energy costs with a view to energy used and targets for savings.

28. Contributors Survey by Has your company invested in energy savings measures, with upfront financial investments such as new equipment or technology or audits or renovations with a view to reducing energy use? 28 Business sample, those that have done something or all they can n=398

29. Contributors Survey by By roughly what percent has your company reduced energy costs in the last year based on energy saving initiatives? 29 Business sample, those that have done something or all they can; n=398

30. Contributors Survey by 30 What Companies Are Doing Those that have invested in energy savings with upfront costs have: Mostly invested in lighting & improved heating & air 26% replaced or upgraded equipment, appliances or trucks 14% engaged in building renovations 13% installed vehicle or equipment trackers and usage meters Very few have conducted energy efficiency audits, with the exception of the institutional/public sector (12% among them) As with upfront investments, initiatives that required no investment most commonly include lighting and heating or air; employee/customer engagement as another albeit secondary component for many. Despite the preference to deal with heating, air conditioning or lighting, the building sector (construction & architects) believes the market places about the same importance on efficient heating and air as they do on building design efficiency.

31. Contributors Survey by What are the 2 most significant energy efficiency measures your company has taken that required upfront investment? 31 Business sample, those that have taken energy savings measure with upfront costs; (Multiple Mention) n=316 Other mentions <5%: Solar, Employee/ client awareness, flux drives, other. DK: 4% N/A: 1%

32. Contributors Survey by What else has your company done to increase energy efficiency that did not require upfront investment? 32 Business sample, those that have done something or all they can; n=398 Other mentions <5%: Mgmt commitment, Bldg upkeep, other. Nothing: 6% DK: 26% N/A: 8%

33. Contributors Survey by What is more important to customers:… 33 Among Building Sample; n=169

34. Contributors Survey by 34 Incentives & Programs Many companies said they would benefit from incentives in terms of what could help them improve energy efficiency in their operations. However, many others were uncertain of what would help – 23%. Some said information (13%) and others said government support or regulations (13%).

35. Contributors Survey by What would help you to overcome obstacles to doing more to conserve energy? 35 Business sample, those that have not done all they can; (Multiple Mention) n=333 Other mentions <5%: Support from mgmt, utility incentives, more staff DK: 23% N/A: 9%

36. Contributors Survey by What two things do you believe governments or utilities should do to help companies such as yours adopt more energy efficiency measures in operations or in building structures? 36 Other mentions <5%: Reduce red tape, stricter regs and monitoring, long-term planning, DK: 25% N/A: 3% Business sample; n=475

37. Contributors Survey by 37 Incentives & Programs Most companies are not familiar with programs offered by utilities and governments to help with energy efficiency & conservation. And 38% have taken advantage of such programs. Familiarity is slightly higher in the building sector.

38. Contributors Survey by How familiar are you with programs offered by utilities & governments to help businesses become energy efficient & conserve? 38 Business sample; n=475

39. Contributors Survey by How familiar are you with programs offered by utilities & governments to help businesses become energy efficient & conserve? 39 Among Building Sample; n=186

40. Contributors Survey by Has your business ever taken advantage of one of these programs? 40 Business sample; n=475

41. Contributors Survey by Has your business ever taken advantage of one of these programs? 41 Among Building Sample; n=186

42. Contributors Survey by 42 Building & Design Most (68%) would support more stringent energy efficiency standards in building codes even if they raised the cost of real estate. A minority said they were very or somewhat interested in owning or renting LEED or BOMA Best certified space. Few are very familiar with these certifications.

43. Contributors Survey by Would you strongly/somewhat support/oppose improved building codes that would require better energy efficiency even if this raised the costs of commercial real estate? 43 Business sample; n=475

44. Contributors Survey by How interested would you be in renting or owning space that met LEED or BOMA best certification …or do you rent LEED or BOMA Best compliant space now? 44 Business sample; n=475

45. Contributors Survey by How interested would your company be in having a system of EnerGuide labeling for commercial real estate you occupy so businesses are aware of the efficiency of the commercial space they own, rent or are interested in buying? 45 Business sample; n=475

46. Contributors Survey by 46 Building & Design: Architects & Builders There is a moderate level of interest in EnerGuide labeling in the building sector Architects are especially interested: 61% very or somewhat interested. Among builders as among the range of other companies surveyed few (12%) are very interested: 39% are very or somewhat interested overall.

47. Contributors Survey by How interested would your company be in having a system of EnerGuide labeling for commercial real estate you occupy so businesses are aware of the efficiency of the commercial space they own, rent or are interested in buying? 47 Among Building Sample; n=186

48. Contributors Survey by 48 Building & Design: Architects & Builders Familiarity with the LEED & BOMA Best certifications is higher in the building sector than among the cross section of businesses and commercial clients surveyed. Familiarity is higher among architects than builders Most architects have been involved in a LEED or BOMA certified project as have 42% of builders. These are typically in residential design. Those who work solely in commercial work were less likely to say they had been involved in a green certified project such as those.

49. Contributors Survey by The LEED green building rating system provides a standard to assess the environmental sustainability of building designs. How familiar are you with LEED certification? 49 Among Building Sample; n=186

50. Contributors Survey by BOMA Best is an environmental certification program for existing buildings in Canada. How familiar are you with BOMA Best certification? 50 Among Building Sample; n=186

51. Contributors Survey by Has your company been involved in projects that met LEED or BOMA Best certification? 51 Among Building Sample; n=169

52. Contributors Survey by 52 Building & Design: Architects & Builders The building sector expects increased demand for projects meeting LEED or BOMA standards and many are interested in this line of work Most architects expect increased demand in the next five years Most architects are very or somewhat interested in being involved in building LEED or BOMA certified buildings About half of builders are interested Most agree there is a growing market for businesses that want to own or lease energy efficient commercial space

53. Contributors Survey by Do you believe that your business will see increased demand in the next five years for projects that meet LEED or BOMA best certification? 53 Among Building Sample; n=169

54. Contributors Survey by How interested would you be in building or managing space that met LEED or BOMA best certification? 54 Among Building Sample; n=169

55. Contributors Survey by Agree/Disagree: There is a growing market for businesses that want to own or lease energy efficient commercial space. 55 Among Building Sample; n=169

56. Contributors Survey by 56 Building & Design: Architects & Builders What holds builders and architects back from building or designing more new energy efficient building stock? Cost, primarily Customers preferences or demands did not allow it Or that the customer had declined improvements; There is not a lack of awareness among builders and architects so much as its the role of the market and that clients needs or preferences play that is critical. only 5% said lack of awareness or knowledge and expertise 4% cited complexity of regulations or certification. Indeed most agreed that they would be unlikely to be involved in more energy efficient building construction if codes didnt change along with increased demand.

57. Contributors Survey by What are two barriers to adoption of more energy efficient improvements into commercial or residential real estate design and construction? 57 Among Building Sample; n=169

58. Contributors Survey by Agree/Disagreed: We would be unlikely to design or build more energy efficient space unless it was required by more stringent building codes. 58 Among Building Sample; n=169

59. Contributors Survey by 59 Building & Design: Architects & Builders There is majority support in the building sector for stricter energy standards in building codes even if it raises cost of commercial real estate, especially among architects. And builders and architects suggested a range of measures to help overcome barriers: 21% said reduced costs or incentives 14% said codes and standards or regulations 17% said public awareness or education and 2% said awareness of financial benefits 6% said knowledge, expertise or education for the sector

60. Contributors Survey by Would you strongly/somewhat support/oppose improved building codes that would require better energy efficiency even if this raised the costs of commercial real estate? 60 Among Building Sample; n=186

61. Contributors Survey by What do you think would be most effective to help overcome some of those barriers to adopting more energy efficient design into new real estate? 61 Among Building Sample; n=169

62. Contributors Survey by 62 APPENDIX

63. Contributors Survey by 63 NAICS Sectors Represented Sectorn=Sectorn=Sectorn= Accommodation and food services 22 Information, communications 9 Real estate development 12 Administrative and support, waste management and remediation services 14Manufacturing41 Real estate management 35 Agriculture, forestry, fishing and hunting 26 Mining, quarrying, oil & gas extraction 28Retail trade22 Architecture64 Service (general mention) 8 Arts, culture, recreation/sport, entertainment 32Other services9 Transportation and warehousing 31 Construction of commercial buildings and residential construction 98 Professional, scientific, technical services 8Utilities18 Education30Property owner12Other sectors (specify)30 Finance, insurance20 Public administration, public sector, government services 35Don't Know1 Health care and social services 49 Real estate (unspecified) 5Not applicable2

64. Contributors Survey by Has your company set targets for energy efficiency savings or energy cost reductions? 64 Business sample; (Multiple Mention) n=475

65. Contributors Survey by The LEED green building rating system provides a standard for the construction industry to assess the environmental sustainability of building designs. How familiar are you with LEED certification? 65 Business sample; n=475

66. Contributors Survey by BOMA Best is an environmental certification program for existing buildings in Canada. How familiar are you with BOMA Best certification? 66 Business sample; n=475

67. Contributors Survey by 67 Incentives The majority would be willing to consider an investment in something like an energy efficiency retrofit if they knew they could make their money back in 2 years. Interest drops significantly if they made their investment back in 5 years. These findings almost perfectly resemble the CEEAs 2013 public opinion/general population survey findings.

68. Contributors Survey by How interested would you be in investing in a full energy efficiency retrofit if you knew you would make your money back in about two years? 68 Business sample, those that own their building(s); n=346

69. Contributors Survey by And if you were told it would in fact take five years? (To make your money back in a full energy retrofit) 69 Business sample, those that own their building(s); n=346

70. Contributors Survey by Does energy efficiency influence your approach to operations & maintenance? 70 Real estate and property businesses; n=29

71. Contributors Survey by 71 The vast majority of the building sector agrees that energy usage of separate tenant areas in commercial buildings should be individually metered – 82% agree – 9% disagree. 75% agreed that compliance paths in national energy codes should result in comparable energy usages and efficiencies Those in the building sector were less likely to agree that window area in designs should be limited in codes that which is needed for good day-lighting 41% agree and 51% disagree (27% strongly disagree) OTHER FINDINGS

72. Contributors Survey by Agree/Disagree: The energy usage of separate tenant areas in commercial buildings should be individually metered 72 Among Building Sample; n=169

73. Contributors Survey by Agree/Disagree: Compliance paths in national energy codes should result in comparable energy usages and energy efficiencies 73 Among Building Sample; n=169

74. Contributors Survey by Agree/Disagree: Given that windows typically lose far more heat than a wall, the total window area should be limited in buildings codes to that which is needed for good day-lighting 74 Among Building Sample; n=169