cincinnati mec 2009 presentation: evolving green economy
DESCRIPTION
Presentation at Cincinnati conference re: Evolving Green EconomyTRANSCRIPT
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Evolving Green
Economy … Financing,
Design, Energy & Legal
Implications of
Sustainable Practices
and Their Impacts to
Manufacturing
18th Annual Business & Industry’s
Environmental Health & Safety Symposium
March 25, 2009
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PRESENTERS
Summer J. Koladin PlantzStaff Attorney, Vorys Legal Counsel
Donna RobichaudDuke Energy Corporation
Gregory WardVice President, Wells Fargo Real Estate Group
Todd D. Holloway RLA, PWS
Principal, Civil & Environmental Consultants, Inc.
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Sustainability
Motivation
Objectives
Incentives
Execution
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“The ability to provide for the needs of the current generation
without compromising the needs of future generations…”
The Dow Jones Sustainability Index defines corporate sustainability as:
“a business approach that creates long-term shareholder value by
embracing opportunities and managing risks deriving from economic,
environmental and social developments.”
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MOTIVATION
Summer J. Koladin PlantzVorys Legal Counsel
Legal Issues Associated with
Sustainable Manufacturing
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Company
Lenders Consumers
Regulators
Shareholders/
Investors
Partners
Employees
Competitors
Public/
Community
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When do legal issues arise?
• Components
• Production
• Transportation
• Marketing & Use
• Disposal
• Reuse
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What is in your product?
• Consumer Product
Safety Improvement
Act of 2008
• REACH
• State legislative
proposals
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Transportation and Packaging
• GHS
– Classification
– Labeling
– Packaging
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Transportation and Packaging• What materials are you using to transport
and ship your products?
• UPS
– No left turns– http://www.pressroom.ups.com/mediakits/factsheet/0,1889,1493,00.html
• Fetzer Wine
– Lighter wine bottles– http://www.fetzer.com/protect.aspx
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Advertising• Federal Trade
Commission “Green
Guides”
– No false or misleading
advertising
• What are you using?
– Catalogue, ads
– What are these items
made from?
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Contracting
• Details, details, details
• Environmental Audits
• Component
Parts/Supply Chain
• Manufacturing
Specifications
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Disclosure Obligations• What risks related to sustainability are
associated with your manufacturing
process?
• Are you required to disclose these risks?
– Shareholders, Directors, Partners, Investors,
Lenders may ask
• Emissions Disclosures
• Climate Risk & Emissions Management
• Physical Risks of Climate Change
• Regulatory Risks
– Excel Energy and Dynegy Settlements
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OBJECTIVES
Donna RobichaudDuke Energy Corporation
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INCENTIVES
Gregory WardWells Fargo Real Estate Group
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Operating Incentives – Your
Money!• Retain money for your company from
items you hate spending on in the first
place:
– Taxes
– Utilities (Energy, Water,
Waste/Recycling)
– Financing
– Soft Costs (Design, Renovation,
Changes in Processes)
– Employee Retention
• Comply with ever-increasing standards
from your customers
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Incentives – Real Estate• Not just for new construction – retrofits can also be
“Green” - Sustainable design improves cost of future retrofits, too!
• Design costs can be lower - coordinated design effort, cheaper/easier retrofits in the future
• Lower Operating Costs for Facilities – also limit financial risk of possible future tax increases– Energy costs for the building alone can be reduced
(25%-35% on average)
– Greater control over water and energy use, access to power, period controls to limit unproductive use
• Marginal Cost to “Go Green” - cost difference can be negligible (0-3% on average)
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Types of Incentives
• Branding/Reputation
• Complying with tougher customer requirements– (ISO, etc.)
• Tax Incentives– Building materials and systems (new 8 year term on
Solar, lots of other state & local incentives – new Federal incentives coming)
– Equipment –can be utilized to reduce cost of financing
– Energy
• Improved worker productivity
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How to Get Most Bang for
Incentive Buck
• Study trends in your industry – target any project to meet future needs– Can you serve your customers without an improved
process/facility/equipment?
– Can your suppliers meet your needs?
– Does a new standard require a shift in supply chain?
• Understand terms of any tax incentives (products, process, materials, timeframe)
• Work with qualified professionals to assess ROI (architects, contractors, any industrial design experts for a new or renovated facility)
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Educate Service
Providers/Suppliers
• Educate service providers
– Accountant
– Banker
– Appraiser
– Attorney• They must understand Cost/Benefit and the potential
positive/negative impacts to your business
• Work with suppliers and customers to ensure costs/incentives are managed across organizations
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EXECUTION
Todd D. Holloway RLA, PWS
Civil & Environmental Consultants, Inc.
Unites States Green Building Council
Heartland Regional Chapters
NAIOP
Facilities, Processes and Image
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EXECUTION
“the Triple Bottom Line”
Source: www.Sustainability-ed.org
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EXECUTION
Environmental Impact of Buildings in the US
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EXECUTION
The Average High Performance/Green Building Saves:
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EXECUTION
Life Cycle Benefits
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EXECUTION
LEED® DefinedHigh Performance Building Rating:
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EXECUTION
Green 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, MI
Source: Arcus Group, Cleveland Ohio,
architects
High Performance Facilities
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EXECUTION
Green 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)
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EXECUTION
Sustainable 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)
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QUESTIONS?
Summer J. Koladin Plantz
513.723.4030
Gregory W. Ward
216.344.6945
Donna Robichaud
513.419.5980
Todd Holloway
248.374.8600