Green Development From an Owner/Occupant's Perspective Hunter Fleshood Bank of America Corporate...

Green Development From an Owner/Occupant's Perspective

Hunter FleshoodBank of America Corporate WorkplaceNovember 14, 2008

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Sustainable Building

Why is it Important?

What are the Benefits?

Bank of America’s Response

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SustainabilityMeeting the needs of the present without compromising the ability of future generations to meet their own needs

The Brundtland Commission, 1987

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We are at the crossroads of the most significant crisis of modern times. • The rapid depletion of global petroleum and natural gas reserves

• The warming of the earth’s atmosphere by burning fossil fuels

Uncorrected, this will lead to species extinction, intensified weather events, food and water shortages and rising sea levels.

Sustainability: Why is it Important?

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Oil production is slowing as supply becomes

scarce and aggressively protected

Leading to hyper price inflation


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Burning Coal, a more plentiful and cheaper fossil fuel, is the number one emitter of greenhouse gases and the largest

contributor to global climate change


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Annual Renewable Water Supply Per Person - 1975

Water Availability(m3/capita/year)ExtremeScarcity

Scarcity Stress Adequate SurplusAbundant


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Annual Renewable Water Supply Per Person - 2050

Water Availability(m3/capita/year)ExtremeScarcity

Scarcity Stress Adequate SurplusAbundant


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Source: US Green Building Council


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Sustainable Building: What are the Benefits?

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Depends on:• Project type, scope, and location• Which and how many credits are pursued• The experience of the team• When the decision is made to ‘go green’

Average additional construction cost:• LEED “Certified”: less than 1%• LEED “Silver”: 1-2%• LEED “Gold”: 3-4%• LEED “Platinum”: 4-8%


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20%BETTER TEST

PERFORMANCE

SCHOOLS

EARLIERDISCHARGE

HOSPITALS

INCREASEDPRODUCTION

FACTORIES

2-16%PRODUCTIVITY

INCREASE

OFFICES

INCREASEIN SALES PER

SQUARE FOOT

RETAIL

Real Benefits Go Beyond

Property Operation Costs

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• Improved health and well being

• Reduced absenteeism and turnover

• Increased productivity

• Greater employee satisfaction

• Better recruiting and retention

• Improved brand strength

• Positive public goodwill and perception

• Better government relations

EnvironmentallyResponsible

-and-

CommerciallyProfitable


$oft Benefits of Green Building

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Making the Most Bucks

from the Employees in the Building

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Total Cost / Total Return View

Getting the Most Building for the Buck

Traditional View


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Over a building’s 30-year lifespan, employee-related costs account for 92% of the total cost of operations. Increasing employee productivity even slightly has a significant effect on controlling costs over time.

Reduced absenteeism and turnover: provide a healthy workplace to improve employee satisfaction

Reduced liability: improve risk management by controlling indoor air quality issues


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$318

$50

$16$2.35 $1

$0

$50

$100

$150

$200

$250

$300

$350

Salaries &Benfits

Technology Mortgage /Lease

Energy Churn

Cost of Employees = $318 / SF

5% increase in productivity in 250,000 SFAnnual savings = $3,975,000

10% increase in productivity in 250,000 SFAnnual savings = $7,950,000

“Average Operating Costs per Square Foot in American Office Buildings”, Environmental Building News


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$oft Benefits

Productivity and Human Performance

Findings 1. Students• 15 – 26% faster progress on math and reading tests• 7 – 18% higher test scores2. Sales• 40% higher in sky-lit stores3. Call Center and office workers• 6 – 12% faster processing calls• 10 – 25% better on mental and memory tests

Green Elements

Day lighting and Views

Study Hecschong Mahone Group, “Investigation into the Relationship Between Daylight and Human Performance”, 1999 & 2003

1. 21,000 student records; 2,000 classrooms2. 108 Retail Stores w/ and w/o skylights3. Call center and office workers


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$oft Benefits

Productivity

Findings Productivity increase of 5 – 10%

Green Elements

Improved Air Quality; Improved Thermal Comfort; Enhanced Ventilation Rates

Study Bjarne Olsen, "Indoor Environment - Health, Comfort and Productivity," Clima 2005 Lausanne, 8th REHVA World Congress, Switzerland, Oct. 9-12, 2005

International Centre for Indoor Environment and Energy


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$oft Benefits

Reduced absenteeism

Findings Reduced 15% Reduced 40%

Green Elements

• New “green” 540K SF headquarters for ING Bank• New energy efficient, 76K SF Verifone building

Study “Greening the Building and the Bottom Line – Increasing Productivity through Energy-Efficient Design”, Rocky Mountain Institute, J.J. Romm and W. D. BrowningCool Companies -- How the Best Businesses Boost Profits and Productivity by Cutting Greenhouse Gas Emissions, J.J. Romm


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$oft Benefits Reduced Turnover

Findings These two projects saw turnover reductions

Green Elements • Low VOC-emitting materials• Access to daylight, views and operable

windows• Air quality monitoring and ventilation• Lockers and showers for joggers and cyclists• Organic-food served in cafeteria with

outdoor seating and river views

Alberici HQ, St. Louis MO“The Greenest Building” Most LEED points ever received (60 of 69)

PNC Firstside Center, Pittsburgh, PAFirst building ever certified LEED Silver


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$oft Benefits

Brand Strength

Findings • Toyota: A top-ranked Green company is a first mover and sales leader in Hybrid cars. Prius’ are “In”

• WAL*MART: The former bane of the green movement now has one of the most ambitious environmental plans of any U.S. company. Successfully using Green stance to polish a once-tarnished public image.

• Conversely, appearing on any “World’s worst environmental companies” lists or being accused of “Green-washing” (all talk, no action) can have significant negative damage to brand

Green Element

Green Corporate Message and Position

Study “Best Global Brands: How Valuable is Green?” Robin Rusch, CEO of BrandWizard and founder of brandchannel.com


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Green 11

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• We generate over 7,000 metric tons of greenhouse gas emissions (GHG):

– We spend $1 MM on utilities, generating 5,000 metric tons of GHG

– Our associates commute 4.2 million miles, spending $800,000 on gasoline and generating 1,600 metric tons of GHG

– Our associates fly 1.8 million miles, generating 450 metric tons of GHG

• We use 10 million gallons of water

• We use 700,000 pounds of paper

Every single business day at Bank of America…

Sustainability: Bank of America’s Response

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• Green Building and LEED certification¹• Hybrid Vehicle Reimbursement Program

Bank of America Corporate WorkplaceChanging the way we design, build and operate the workplace

• EPA Climate Leaders GHG emission reduction commitment (9x9)• Leading-edge, centralized energy management platform (iC3)• Renewable energy• Water conservation• Green cleaning• Recycling• Transportation

planning

¹ Developed by the US Green Building Council, Leadership in Energy and Environmental Design (LEED) is a certification program and the nationally accepted benchmark for the design, construction and operation of high performance green buildings.


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City St Location

Building

Type

LEED Level &

Standard

New York NY 50 Rockefeller Plaza Office Silver - CI

Charlotte NC Ballantyne - Sherrill Building Floor 3 Office Gold - CI

Charlotte NC Ballantyne - Sherrill Building Floor 4 Office Gold - CI

Charlotte NC 525 N. Tryon St. - Floors 11 & 12 Office Silver - CI

San Antonio TX Military Bank – Crosswinds Office Silver - CI

Charlotte NC Ballantyne - Sherrill Building Office Gold - CI

Huntersville NC Huntersville - Kenton Place - My Work Office Certified - CI

Austin TX Circle C Bkg Ctr Certified - CI

Charlotte NC Corporate Center - Floors 19 & 21 Office Gold - CI

City St Location

Building

Type

LEED Level &

Standard

Adelanto CA Adelanto - Adelanto Marketplace Bkg Ctr Platinum - NC

Huntington CA Huntington - La Alameda Bkg Ctr Silver - CI

Chicago IL Chicago - Roosevelt and Canal Bkg Ctr Certified - NC

New York NY New York City - Broadway and 87th Street Bkg Ctr Gold - NC

New York NY Bank of America Tower at One Bryant Park Office Platinum - CS

New York NY Bank of America Tower at One Bryant Park Office Gold - CI

Centreville VA Centreville Bkg Ctr Certified - NC

LEED Certified Projects

Properties Pursuing LEED Certification


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LEED Certified

LEED Registered

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Bank of America Tower at One Bryant ParkThe World’s Most Environmentally Responsible Skyscraper

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Sustainability: Our Current ResponseBank of America Tower at One Bryant Park

The World’s Most Environmentally Responsible Skyscraper

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Sustainability: Our Current ResponseBank of America Tower at One Bryant Park

The World’s Most Environmentally Responsible Skyscraper

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Sustainability: Our Current Response

Bank of America Tower at One Bryant ParkThe World’s Most Environmentally Responsible Skyscraper

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1 Bank of America Center & Ritz Carlton Hotel

Sky Garden crossing College Street

Founder’s Hall view from Epicentre

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BANK OF AMERICA OPENS FIRST BANKING CENTER BUILT TO MEET HIGHEST LEED GREEN BUILDING STANDARDS(Los Angeles, CA) – As part of its $20 billion environmental commitment, Bank of America has opened one of the most environmentally-responsible bank branches in the nation, featuring a solar paneled roof, insulation made of recycled blue jeans and counters comprised of pressed wheat.

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Conclusion

• Environmental problems are real and are seriouso Climate Changeo Fossil Fuel Depletiono Fresh Water Shortage

• Green Building practices mitigate these problems

• Green Building is environmentally responsible, but also can be commercially profitable.

• For owner / occupants, the $oft benefits (people-oriented benefits) far outweigh the property operating benefits from Green Buildings

• Bank of America will continue to invest in being a leader in green building and environmentally sustainable business practices

Green Development From an Owner/Occupant's Perspective Hunter Fleshood Bank of America Corporate...

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