Sustainability: FM Practitioner s Guide

Transcription

1 Sustainability: FM Practitioner s Guide Introduction derived from the Latin sustinere (tenere, to hold; sub, up). Sustain can mean maintain", "support", or "endure. Despite the positive progression toward adoption of sustainable practices in the workplace, there is a lingering misconception that becoming sustainable is expensive. Larry Allen Morgan, CFM,SFP,FMP

2 Sustainability: FM Practitioner s Guide Introduction derived from the Latin sustinere (tenere, to hold; sub, up). Sustain can mean maintain", "support", or "endure. Despite the positive progression toward 96% adoption of of CEOs sustainable believe practices in the sustainability workplace, there should is a lingering be integrated misconception into that the becoming strategy sustainable and operations is expensive. of a company (up from 72% in 2007). Larry Allen Morgan, CFM,SFP,FMP

3 1 billion Historical Perspective more in the middle class Between 8,000 and 10,000 years ago, Agrarian communities emerged which depended largely on their environment and the creation of a structure of permanence. The Western industrial revolution of the 18th to 19th centuries tapped Price into the volatility, vast growth potential of the energy in fossil fuels. Coal was used to power ever Growing more public Brand Talent New margin risk efficient engines and later to generate electricity. Modern awareness at risk retention middle class sanitation systems and advances in medicine protected large populations from disease Cost and risk In 1969 National NEW Environmental RISKS Policy AND Act (NEPA) whose of compliance purpose Supply at was risk to "foster and promote the general welfare, to create and maintain OPPORTUNITIES conditions under which man and nature can exist in productive harmony and fulfill the social, economic and other Talent Climate requirements instability, of present and future generations." acquisition pollution The 1973 and 1979 New energy work crises patterns demonstrated Employee the extent to which the global community had become dependent expectations non-renewable energy resources In the 21st century, there is increasing global awareness of the threat 9 posed billion 40% by the human greenhouse effect, produced largely by forest clearing and the burning of fossil fuels people by % more energy needed by 2030 increased price volatility compared to the 90s 3

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5 Eight Major Categories of Sustainability Energy Water Materials and Resources Workplace Management Indoor Environmental Quality Quality of Services Waste Site Impact

6 Sustainability Aspects Social Criteria Environmental Criteria Economic Criteria Socially desirable Culturally acceptable Psychologically nurturing Environmentally robust Generationally sensitive Capable of continuous learning Financially sustainable Technologically feasible Operationally viable

7 The Triple Bottom Line People, Planet, Profit Social Bearable Equitable Sustainable Environment Economic Viable

8 Making Choices Is the initiative that s producing a positive effect from the environmental standpoint having a negative impact on occupant productivity? Bearable Environment Social SUSTAINABLE Viable Equitable Do the social benefits outweigh the cost of the initiative? Economic Can the solution be implemented? Will the benefits likely to be realized outweigh the costs to implement?

9 Social Measures How the facility impacts employees, suppliers and the community at large Aspects important to the FM: Community involvement Occupant well-being Healthier environment Safer environment Bearable Environment Social Sustainable Viable Equitable Economic

10 Environment Measures An organization s ability to avoid harming the environment and preserve scarce resources for future generations Reduce the organization s environmental footprint: Managing the consumption of energy and resources Reducing waste Recycling and reusing Decreasing the organization s carbon footprint Decreasing or eliminating hazardous materials Create building processes that abolish toxic material Bearable Social Equitable Environment Sustainable Viable Economic

11 Economic Measures The value created by the organization after deducting the cost of all inputs Aspects important to the FM: Lower operating cost Increased asset value Higher ROI Higher efficiency Long-term savings Bearable Environment Social Sustainable Viable Equitable Economic

12 Sustainability and Facility Personal Benefits Managers Increased skills and responsibility Greater recognition of the economic significance of facility management Improved status within the organization Increased career mobility and opportunities Improved communication, dialogue and educational opportunities with people inside and outside the building Did you know? In a survey of more than 1,000 CEOs from 43 countries, 79 percent agreed that sustainability is vital to the success of their organization

13 Sustainability and Facility Managers Organizational Benefits Lower utility costs (energy, water, waste) Decreased environmental and emissions impacts Lower operations and maintenance costs Increased productivity of building occupants Improved health of building occupants Positive impacts on the local and global environment Positive image in the community Potential application for public aid/tax benefits

14 The Organization s Sustainability Pulse What the organization says How the organization operates The nature of the business within the facility How sustainability applies to the industry

15 The Role of the FM Champion An individual who is asked to lead an effort by a higher management level Benefits Top management support Budget Access to training Support for setting up measurement Defined goals Authority (by title alone) Access to management Regularly scheduled tasks Risks Unrealistic expectations Risk of losing budget High visibility (all the time) Unrealistic goals Increased workload Misaligned goals Not enough authority to get the job completed

16 The Role of the FM Insurgent A self-appointed leader who has the passion and personal power to start up a program without formal authorization or sponsorship. Benefits Risks Low visibility Low time pressure Get to select team members as opposed to being assigned Selection of relevant targets Difficult to get funding Increased workload Making time for nonwork tasks Target misaligned with existing company goals

17 Get Commitment Without buy-in and support, sustainability initiatives are difficult to impossible to achieve. Evaluate the organization s commitment to sustainable facilities: Formal authority: Decision makers (leadership: CEO, CFO, board) Informal authority: Influencers (employees, community, vendors, competitors)

18 Four Key Tasks Get a management sponsor. Form a cross-functional team. Define the criteria for ideas. Generate potential cost-saving ideas.

19 Get Alignment Alignment is the process of getting all aspects of the organization moving in the same direction. That direction is toward meeting the organization s sustainability goals.

20 Aligning Plans Benefits: The logic behind the plan is transparent in how it supports the entire organization s requirements. The requirements to execute the plan are seen as appropriate. The facility s success measures are linked to satisfying the entire organization s requirements. The methods proposed to execute the plan support the entire organization s goals, and objectives are seen as appropriate.

21 Sustainability Assessment Energy What are we doing that is climate neutral or increases our use of renewable energy? Industry How are we influencing others in our supply chain and/or industry? Product or Service What are we offering that is benign or has sustainability value? Water What are we doing that is water neutral or decreases our use of water? Our Core Processes or Activities How have we modified our core processes or activities? Quality What are we doing to reduce our impact on the quality of the environment? Inputs Outputs Materials What are we using from sustainable sources? Community How do we contribute to solving local problems? Waste What are we doing to get closer to zero waste?

22 Savings Initial Evaluation Matrix for Sustainability Initiatives High Implement immediately Consider for future implementation Not worth the effort Forget about it Low High Effort to implement

23 Plan, Do, Check, Act Model (Iterative Model) Define The customer and project manager mutually define the project in terms of the following: The problem or opportunity Parameters: assumptions, risks and constraints The project purpose Objectives needed to meet the purpose Project success criteria Act The project manager corrects the project course as needed and incorporates approved project changes into the active project plan. Check The project manager controls the coordination of tasks, scope, schedule, costs, quality, teams, communications, risks and changes. Plan Project planning generates indispensable project decision tools that reduce uncertainty and increase efficiency and understanding for the chosen team and all stakeholders. Do Team members execute assigned activities based on scheduled start and end dates, applying specified funds, materials and quality workmanship to produce deliverables. Close The project manager formally closes the project and gets sign-off after determining: That deliverables meet requirements. That contracts are fulfilled. The variance from the project plan. Lessons learned and necessary updates to project processes and databases.

24 Build A Business Case A business case is a tool to support planning and decision making for a change within an organization. It provides the reasoning for initiating the project. It demonstrates how the project supports the organization s strategy and goals. It demonstrates how the project will drive results.

25 Why a business case? Strategic focus Performance based Connectivity of information Exposes stakeholder relationships Materiality Concise Reliable and complete Consistent Comparable SMART tool Engage, Evolve and Execute

26 Global Facilities Management North America Palo Alto Campus Electric Vehicle Charging Stations (EV ARC) Request Request approval of 500kUSD capital to purchase and install 9 Envision EV ARC 3.3kw DC charging locations including 18 charging heads. Context Support increased customer demand: Current EV charging station capacity across Palo Alto campus is insufficient to meet current and future demands. Current and growing demand exceeds supply. (14 charging units, 80 vehicles registered, not including visitors). EV ARC install (9ea x 3 spots) will provide additional 27 charging locations for a total of 41 charging stations. Simplicity: Proposed traditional disruptive install is projected at 300k for 12 stations. Purchase and install of EV ARC (solar solution) accelerates on line time by an estimated 3-4 months by eliminating need for permits, engineering or civil work. Both options have bids to support decision. Social Impact: Increased attraction and retention as SAP Employer of Choice. Energy reduction: Installation of solar powered EV stations (grid disconnected) will support energy reduction initiatives. Annualized consumption specific to grid connected EV charging is 71,739 kwh (8.6 USD). Additional 24 grid connected stations would increase electrical consumption by approximately 138k kwh (20k USD) annually. Federal investment tax credit (ITC): Section 48 of the Code provides an ITC for certain types of energy projects, including equipment which uses solar energy to generate electricity. to 30% of material purchase price. Tax Depreciation: Follow 12 year manufacture projected life cycle costing. (LCC) Mobile asset: EV ARC s are self contained portable units that provide their own energy through the solar panels. No external grid connect power requirement. This provides energy security resiliency, location flexibility and maximum scalability. Additional information: Supporters Financial Impact/ROI Tradeoffs/ Risks to SAP Gross project request: 500kUSD Federal Tax Credits: 135kUSD (EV ARC) Net project cost: 365USD Annual operations and maintenance: 1k USD Potential energy cost avoidance: 20k USD annual. 240k using 12 year LCC Annual depreciation: 42K USD (LCC) Customer support risk: Do nothing and continue current charging station availability issue. Attraction retention but unable to accurately/quantify

27 Call to Action Do something other than watching and waiting. Decide if its important to you. Decide if its important to your organization. Decide if its important to the company. Can you make a business case? Be patient!

28 Quote to ponder There are risks and costs to a program of action. But they are far less than the long range risks of comfortable inaction John Fitzgerald Kennedy