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Presentation at Cincinnati conference re: Evolving Green Economy
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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
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.
Sustainability
Motivation
Objectives
Incentives
Execution
“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.”
MOTIVATION
Summer J. Koladin PlantzVorys Legal Counsel
Legal Issues Associated with
Sustainable Manufacturing
Company
Lenders Consumers
Regulators
Shareholders/
Investors
Partners
Employees
Competitors
Public/
Community
When do legal issues arise?
• Components
• Production
• Transportation
• Marketing & Use
• Disposal
• Reuse
What is in your product?
• Consumer Product
Safety Improvement
Act of 2008
• REACH
• State legislative
proposals
Transportation and Packaging
• GHS
– Classification
– Labeling
– Packaging
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
Advertising• Federal Trade
Commission “Green
Guides”
– No false or misleading
advertising
• What are you using?
– Catalogue, ads
– What are these items
made from?
Contracting
• Details, details, details
• Environmental Audits
• Component
Parts/Supply Chain
• Manufacturing
Specifications
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
OBJECTIVES
Donna RobichaudDuke Energy Corporation
INCENTIVES
Gregory WardWells Fargo Real Estate Group
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
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)
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
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)
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
EXECUTION
Todd D. Holloway RLA, PWS
Civil & Environmental Consultants, Inc.
Unites States Green Building Council
Heartland Regional Chapters
NAIOP
Facilities, Processes and Image
EXECUTION
“the Triple Bottom Line”
Source: www.Sustainability-ed.org
EXECUTION
Environmental Impact of Buildings in the US
EXECUTION
The Average High Performance/Green Building Saves:
EXECUTION
Life Cycle Benefits
EXECUTION
LEED® DefinedHigh Performance Building Rating:
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
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)
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)
QUESTIONS?
Summer J. Koladin Plantz
513.723.4030
Gregory W. Ward
216.344.6945
Donna Robichaud
513.419.5980
Todd Holloway
248.374.8600
