Why Sustainability Has Bankers Seeing Green

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Information about Why Sustainability Has Bankers Seeing Green
Finance

Published on July 28, 2009

Author: maggiewebmarketing

Source: slideshare.net

Description

Presenter: on A. Levey, LEED® AP, Co-Founder & Chief Lending Officer, GreenChoice Bank

With an ever increasing focus on "green this", and "sustainability that," why is it that so much of how we traditionally do things is so hard to change? Why not re-engineer the ways we approach business operations to marry our business operations with our collective consciousness towards more values-based products and services?

In this interactive workshop, we will take a look at the financial services industry and specifically, how greener principles can be adopted in the banking industry to leave us with a more sustainable future. We will explore ways in which financial institutions can offer products and services that more closely match their clients' (both consumer and business) desires and needs. In doing so, we will also discuss how some of these practices might not only yield more environmentally friendly results, but could yield greater returns to their stakeholders. Can triple bottom line (people, planet, profits) really work in banking?

Banking on a Greener Future Why Sustainability Has Bankers Seeing Green An Interactive Workshop presented by Jon A. Levey, LEED AP Co-Founder & Chief Lending Officer, GreenChoice Bank (I/O) On Monday, May 4, 2009 at:

Who am I? Jon A. Levey, Co-Founder & Chief Lending Officer LEED® Accredited Professional (LEED® AP) with 18 years of experience in entrepreneurship, real estate development, and finance, including commercial banking, leveraged buy-out financing, and commercial real estate sales and financing. Former LaSalle Banker Real estate Developer, Consultant, Investor & Broker FEEL FREE TO CONTACT ME: Jon A. Levey, LEED® AP Co-Founder & Chief Lending Officer GreenChoice Bank, (I/O) Direct dial: 773.799.9398 JLevey@GreenChoiceBank.com www.GreenChoiceBank.com

Goals for this afternoon This is interactive Spirited discussion vs. lecture Understand current practices Overview of the trends What can be done

Changing Consumer Mindset – Is this a “movement” or have we already “moved?” There has never been greater interest in sustainability and the environment There are approx. 41 million LOHAS (Lifestyles of Health and Sustainability) consumers in the US, though nearly all consumers are changing their behaviorIncreased Environmental Interest Changing Consumer Behavior Increased concern for global warming and use of the world’s finite resources87% of Americans “seriously concerned about the environment”75% will pay more in taxes and other expenses to support local government-led initiatives to reduce global warmingMedia driving consumer awarenessAl Gore’s “An Inconvenient Truth” NBC Universal’s “Green Week” every April and November85% of consumers are willing to change their consumption habits to make tomorrow’s world a better placeSustainable products and services are increasingly relevant to consumersUS consumers spent $104 billion on green goods and services in 2008Wal-Mart sales of energy-efficient light bulbs exceed 100 million unitsHybrid automobile sales up 35% in 2007, will reach nearly a million units per year by 20106,000 new “green” product introductions in 2007, nearly double that of 2006.Source: IBM, Edelman goodpurpose study, Mintel, National Marketing Institute

There are approx. 41 million LOHAS (Lifestyles of Health and Sustainability) consumers in the US, though nearly all consumers are changing their behavior

Increased concern for global warming and use of the world’s finite resources

87% of Americans “seriously concerned about the environment”

75% will pay more in taxes and other expenses to support local government-led initiatives to reduce global warming

Media driving consumer awareness

Al Gore’s “An Inconvenient Truth”

NBC Universal’s “Green Week” every April and November

85% of consumers are willing to change their consumption habits to make tomorrow’s world a better place

Sustainable products and services are increasingly relevant to consumers

US consumers spent $104 billion on green goods and services in 2008

Wal-Mart sales of energy-efficient light bulbs exceed 100 million units

Hybrid automobile sales up 35% in 2007, will reach nearly a million units per year by 2010

6,000 new “green” product introductions in 2007, nearly double that of 2006.

Changing Business Mindset This is translating into an increase in “green” business activity. Green building, in particular, is an area of opportunity. Yet few banks have a strong commitment to this sector and the ability to support the community through environmentally responsible bankingIncreasing Business Activity Green Building Venture capital investment in “cleantech” has more than quadrupled in the past 4 yearsGrowing nationwide sustainable business network, evidenced by Co-Op America’s Green Business ConferenceAlmost 4,000 LEED-certified buildings in the US, up from 700 in 2006 and 400 in 2005Chicago has the most of any cityMembership in the U.S. Green Building Council now exceeds 18,000In July 2008, the US Green Building Council and the Institute of Real Estate Management (with 18,000 members) signed a Memorandum of Intent to promote green building developmentSource: The Cleantech Group

Yet few banks have a strong commitment to this sector and the ability to support the community through environmentally responsible banking

Venture capital investment in “cleantech” has more than quadrupled in the past 4 years

Growing nationwide sustainable business network, evidenced by Co-Op America’s Green Business Conference

Almost 4,000 LEED-certified buildings in the US, up from 700 in 2006 and 400 in 2005

Chicago has the most of any city

Membership in the U.S. Green Building Council now exceeds 18,000

In July 2008, the US Green Building Council and the Institute of Real Estate Management (with 18,000 members) signed a Memorandum of Intent to promote green building development

Growth of Green Building The U.S. green building market is accelerating at a dramatic rate Green building construction starts have exploded from a negligible amount 10 years ago, and are expected to rise to up to $140 billion by 201370% of buyers are either more or much more inclined to purchase a green home over a conventional home in down housing market.Source: McGraw-Hill

Green building construction starts have exploded from a negligible amount 10 years ago, and are expected to rise to up to $140 billion by 2013

70% of buyers are either more or much more inclined to purchase a green home over a conventional home in down housing market.

In the US, alone, buildings account for: ・ 71% of electricity consumption, ・ 39% of energy use, ・ 39% of all carbon dioxide (CO2) emissions, ・ 40% of raw materials use, ・ 12% of potable water consumption. Source: USGBC

Green Building LEED (Leadership in Energy & Environmental Design) LEED is an internationally recognized certification system that measures how well a building or community performs across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts. - LEED points are awarded on a 100-point scale, and credits are weighted to reflect their potential environmental impacts. Additionally, 10 bonus credits are available, four of which address regionally specific environmental issues. A project must satisfy all prerequisites and earn a minimum number of points to be certified.Certified Silver Gold Platinum THERE ARE SEVERAL MEASUREMENT CRITERIA USED IN GREEN BUILDING

LEED is an internationally recognized certification system that measures how well a building or community performs across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts. - LEED points are awarded on a 100-point scale, and credits are weighted to reflect their potential environmental impacts. Additionally, 10 bonus credits are available, four of which address regionally specific environmental issues. A project must satisfy all prerequisites and earn a minimum number of points to be certified.

Source: USGBC

Green Building Energy Star ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy An ENERGY STAR qualified facility meets strict energy performance standards set by EPA and uses less energy, is less expensive to operate, and causes fewer greenhouse gas emissions than its peers. Energy use in commercial buildings and manufacturing plants accounts for nearly half of all energy consumption in the U.S. at a cost of over $200 billion per year, more than any other sector of the economy. Commercial and industrial facilities are also responsible for nearly half of U.S. greenhouse gas emissions which contribute to global warming. THERE ARE SEVERAL MEASUREMENT CRITERIA USED IN GREEN BUILDING

Living Building Challenge The Living Building Challenge is attempting to raise the bar and define a closer measure of true sustainability in the built environment, at least as far as what is currently possible and given the best knowledge available today. Projects that achieve this level of performance can claim to be the ‘greenest’ in North America and as close to true sustainability as currently possible. Summary of Prerequisites NumberCategoryPrerequisite One Site Design Responsible Site Selection Two Site Design Limits to Growth Three Site Design Habitat Exchange Four Energy Net Zero Energy Five Materials Materials Red List Six Materials Carbon Footprint Seven Materials Responsible Industry Eight Materials Appropriate Materials Radius Nine Materials Construction Waste Ten Water Net Zero Water Eleven Water Sustainable Water Discharge Twelve Indoor Environmental Quality Civilized Work Thirteen Indoor Environmental Quality Source Control Fourteen Indoor Environmental Quality Ventilation Fifteen Beauty & Inspiration Design for Spirit Sixteen Beauty & Inspiration Inspiration and Education

GREATER PRODUCTIVITY & QUALITY OF LIFE + GREATER VALUE

Does building green have to be expensive? Greening Buildings and Communities: Costs and Benefits

Chicago: One of The Greenest Cities Chicago is positioning itself as an epicenter of environmental responsibility, as evidenced by local developments “The Greenest Cityin America” Green Exchange Other GreenChicago Initiatives Mayor Daley initiated government initiatives:Chicago Climate ActionGreen Permits program Chief Environmental OfficerChicago is at the forefrontOver 4 million SF of green roofsMost LEED-registered developments in the countryBilled as “the country’s first green business community.” LEED Platinum certification and various other green features. 272,000 SF of space marketed to companies that offer sustainable products and servicesChicago Climate ExchangeGrowing “Green” network — Chicago Sustainable Business AllianceEmphasis by Chicago area developers on green building techniques and products—used as a point of differentiationChicago is an ideal market in which to launch a “green” bank

Mayor Daley initiated government initiatives:

Chicago Climate Action

Green Permits program

Chief Environmental Officer

Chicago is at the forefront

Over 4 million SF of green roofs

Most LEED-registered developments in the country

Billed as “the country’s first green business community.”

LEED Platinum certification and various other green features.

272,000 SF of space marketed to companies that offer sustainable products and services

Chicago Climate Exchange

Growing “Green” network — Chicago Sustainable Business Alliance

Emphasis by Chicago area developers on green building techniques and products—used as a point of differentiation

What does it mean to be green? Recycling & waste management? Energy efficiency? Renewable resources? Local? Triple Bottom Line (people, planet, profits)?

What does it mean to be green? Recycling & waste management? Energy efficiency? Renewable resources? Local? Triple Bottom Line (people, planet, profits)?

The 3 R’s ©2007 Sandia Corporation

What does it mean to be green? Recycling & waste management? Energy efficiency? Renewable resources? Local? Triple Bottom Line (people, planet, profits)?

What does it mean to be green? Recycling & waste management? Energy efficiency? Renewable resources? Local? Triple Bottom Line (people, planet, profits)?

What does it mean to be green? Recycling & waste management? Energy efficiency? Renewable resources? Local? Triple Bottom Line (people, planet, profits)?

What does it mean to be green? Recycling & waste management? Energy efficiency? Renewable resources? Local? Triple Bottom Line (people, planet, profits)?

What does it mean to be green? What else?

What’s NOT green about banking? Back office Physical plant Internal processes Customer communication Waste management Products and Services And, how could it be changed?

What’s NOT green about banking? Back office Physical plant Internal processes Customer communication Waste management Products and Services And, how could it be changed?

What’s NOT green about banking? Back office Physical plant Internal processes Customer communication Waste management Products and Services And, how could it be changed?

What’s NOT green about banking? Back office Physical plant Internal processes Customer communication Waste management Products and Services And, how could it be changed?

What’s NOT green about banking? Back office Physical plant Internal processes Customer communication Waste management Products and Services And, how could it be changed?

What’s NOT green about banking? Back office Physical plant Internal processes Customer communication Waste management Products and Services And, how could it be changed?

What’s NOT green about banking? Back office Physical plant Internal processes Customer communication Waste management Products and Services And, how could it be changed?

What’s NOT green about banking? Anything Else? And, how could it be changed?

What is a green bank? Built from the ground up with sustainability in mind. --- According to Javelin Research, one out of five consumers said green initiatives cement the bond they have with their bank Located in environmentally responsible buildings that take advantage of all the latest green technologies and features to improve performance.Visually illustrating green technology for visitors to “take away.”Branch Back Office/Operations Incorporate the latest technology to minimize paper waste, including electronic documents and statements, image check processing, etc.Better pricing/terms for real estate construction and mortgage loans that meet certain environmental hurdles or businesses that help further the cause of environmental sustainability These incentives will be based on consistently applied criteria and will continue to employ sound credit risk management principles.Paperless depository accounts with e-billing and e-statements.Loan andDepositProducts Operating as an environmentally responsible business through choices such as recycling and employee incentives to use public transportation and hybrid vehicles. Walking the walk as well as talking the talk. Employees who understand “green” (LEED APs)Values-BasedGreenChoices

Located in environmentally responsible buildings that take advantage of all the latest green technologies and features to improve performance.

Visually illustrating green technology for visitors to “take away.”

Incorporate the latest technology to minimize paper waste, including electronic documents and statements, image check processing, etc.

Better pricing/terms for real estate construction and mortgage loans that meet certain environmental hurdles or businesses that help further the cause of environmental sustainability

These incentives will be based on consistently applied criteria and will continue to employ sound credit risk management principles.

Paperless depository accounts with e-billing and e-statements.

Operating as an environmentally responsible business through choices such as recycling and employee incentives to use public transportation and hybrid vehicles. Walking the walk as well as talking the talk. Employees who understand “green” (LEED APs)

Why haven’t all banks moved in this direction? Cost Legacies Culture Internal within the financial institution External within regulatory environment Understanding of the risks/rewards & technology Internal within the financial Institution External within the regulatory environment

A few shining examples



DISCUSSION AND Q & A Thanks for having me FEEL FREE TO CONTACT ME: Jon A. Levey, LEED® AP Co-Founder & Chief Lending Officer GreenChoice Bank, (I/O) Direct dial: 773.799.9398 JLevey@GreenChoiceBank.com www.GreenChoiceBank.com

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