The Economics of Going Green Saving Money while Supporting the Earth

Transcription

1 The Economics of Going Green Saving Money while Supporting the Earth August 29 th,

2 Introduction Making sound consumer decisions that make both ECO-nomic sense and ECO-logical sense Options and resources for making green decisions Where to find Government and Utility Incentives How to invest for good 2

3 Conservation Economics Ecologically responsible solutions for individual, corporate, and government landowners who seek to financially expand upon the value of their resources. Our full suite of services is a comprehensive approach that offers asset evaluation, business model recommendations and implementation. 3

4 Team The principals of Conservation Economics have spent over 40 years in the conservation, land management, and business arenas. As a result of their extensive project management experience, they identified a need in the marketplace for a single source expert connected to all phases of the process, from asset evaluation to implementation. Clifford C. David Jr. President + CEO Clifford David has built his career as an innovator, combining non-profit mission with for-profit financial incentives to transform land management through conservation. His distinguished and groundbreaking work as a senior leader of a regional land trust and other nonprofit and for-profit organizations has advanced the cause of natural resource conservation and historic building preservation. Mr. David has developed breakthrough revenue generating concepts while utilizing collaboration with best-in-class partners to take each project to a positive revenue execution. Mr. David s repeated successes in adaptive reuse of underperforming real estate assets combined with his experience turning around struggling organizations create a unique set of skills to lead Conservation Economics. Mr. David is gifted at identifying emerging opportunities not seen by others and systematically converting them into successful organizational initiatives and projects. Mr. David holds a BA in Psychology, BS in Botany, and an MS in Organization and Management. Christopher Bentley VP of Finance and Development Christopher Bentley is an operational and financial management professional with withexpertise in financial analysis, due diligence, business plan development, and strategic management consulting services. He has focused experience working in the green-technology, social finance, and job development sectors with experience advising both for-profit and non-profit entities. Mr. Bentley is also Co-Founder & Director of Finance of GoodCompany Ventures, a business incubator targeting entrepreneurs with innovative solutions to unmet social needsthat offer investors financial return and social impact. Mr. Bentley is a part-time adjunct instructor for the MBA program at Temple University s Fox School of Business. He has an MBA from Temple University and a BS in Engineering from Northeastern University. 4

5 Making Green Decisions When we waste energy in our homes, we are throwing away money that we could use for other things. 5

6 Making Green Decisions The typical US family spends at least $2,000 per year on home utility bills. Source: Department of Energy 6

7 Making Green Decisions Make it Economic It does seem really hard to get consumers to do the right thing. It is stupid that we use two tons of steel, glass, and plastic to haul our sorry selves to the shopping mall. It s stupid that we put water in plastic bottles in Fiji and ship it here.. We ve got to make this economic, so that all people and all nations make the right outcome, the profitable outcome, and therefore the likely outcome. John Doerr, Kliener Perkins TED2007 7

8 Making Green Decisions No / Low Cost Solutions Install programmable thermostat Air dry dishes instead of using the drying cycle Turn things off when not in use Wash only full loads of dishes and clothes Drink filtered water instead of bottled water Bring reusable bags to the grocery store Turn your computer off at night Before buying new, check craigslist or freecycle Use cloth napkins instead of paper 8

9 Making Green Decisions Space Heating: Accounts for 45% of your homes energy use. Improving you home s insulation and sealing air leaks are two of the fastest and most cost-effective ways to reduce energy costs. Source: Department of Energy 9

10 Making Green Decisions Tips for sealing air leaks Check for leaks with a smoke pen next to windows, doors, electrical boxes, plumbing fixtures, outlets, and ceiling fixtures Caulk and weatherstrip doors and windows Caulk and seal where plumbing, ducting, or electrical wiring passes through walls Source: Department of Energy 10

11 Making Green Decisions Tips for sealing air leaks (Continued) Install foam gaskets behind outlets and switch plates on walls Cover single-pane windows with storm windows or replace them with more efficient windows Keep fireplace damper closed when not in use Replace door bottoms and thresholds with ones that have pliable sealing gaskets Source: Department of Energy 11

12 Making Green Decisions Lighting: On average, households dedicate 6% of energy dollars to lighting Switching to energy-efficient lighting is one of the fastest ways to cut energy bills. Source: Department of Energy 12

13 Making Green Decisions Lighting Timers and motion sensors save reduce the amount of time lights are on but not being used Replacing inefficient incandescent bulbs in your home with energy-saving bulbs could save you as much as $50 per year. CFL bulbs use about 75% less energy and last up to 10 times longer than traditional bulbs LED bulbs offer similar light quality to traditional incandescent bulbs, last up to 25 times as long, and use even less energy than CFL s Keep curtains or shades open to use daylighting instead of turning lights on. Source: Department of Energy 13

14 Making Green Decisions CFL s and the environment Many have raised concerns about mercury in CFL bulbs. CFL s contain, on average about 5 milligrams of mercury Older home thermometers contain 500 mg Many manual thermostats contain as much as 3,000 mg CFL s reduce the amount of mercury released into the environment. A coal burning power plant will emit 10 mg of mercury into the air to produce enough energy to run an incandescent bulb for its lifetime Compared to only 2.4 mg for a CFL. If a CFL is disposed of correctly, the mercury inside of a CFL bulb will never reach the environment. Source: 14

15 Making Green Decisions Appliances Appliances account for about 13% of your households energy costs Source: Department of Energy 15

16 Making Green Decisions Appliances When shopping for new appliances, look for the Energy Star label. Energy Star appliances exceed the minimum federal standards for efficiency and quality. To help compare appliances, look for the Energy Guide Label Source: Department of Energy 16

17 Making Green Decisions Water Heating Water heating is the second largest energy expense in your home Typically 18% of your utility bill Source: Department of Energy 17

18 Making Green Decisions Water Heating Install low-flow faucets and showerheads Set the thermostat to 120 F. Insulate electric hot-water storage tank (Do not cover the thermostat) Insulate the first 6 feet of hot and cold water pipes connected to the water heater Drain a quart of water from your water tank every 3 months to remove sediment that impedes heat transfer Source: Department of Energy 18

19 Making Green Decisions Water Heating When replacing water heaters, look for Energy Star products and consider an on-demand water heater Consider solar water heaters Source: Department of Energy 19

20 Making Green Decisions Transportation In 2010, Americans traveled a total of 3 trillion miles the equivalent of 6.5 million round-trips to the moon. Transportation accounts for 72% of U.S. oil use, mostly for gas. Source: Department of Energy 20

21 Making Green Decisions Transportation Use public transportation, carpool, or ride your bike Avoid idling Avoid aggressive driving Avoid high speeds Above 60mph, gas mileage drops rapidly, for every additional 5mph, its like paying an additional $0.30 per gallon of gasoline Don t keep heavy items in your car Get regular maintenance, change oil, check tire pressure Source: Department of Energy 21

22 Help Going Green Incentives and Support Consumers can receive financial assistance for energy efficiency improvements in many forms: Tax Credit Low or zero interest loans Rebates for qualified purchases Source: 22

23 Help Going Green Incentives and Support Programs are managed at many levels State Government Programs Federal Government Programs Utility Rebates Database of State Incentives for Renewables and Efficiency Check your utility websites for rebate programs Source: 23

24 Help Going Green Examples New Jersey Energy Star Product Rebate: $50 Rebate on purchase of qualified Clothes Washers Receive $50 for recycling your refrigerator, pick up free NJCleanEnergy.com/shopnow Discounted lighting products (40-70% savings) Home Performance with Energy Star Program Program set up to provide incentives that lower the ultimate cost to consumers for the installation of energy efficiency improvements identified in a comprehensive home assessment 0% loans and rebates up to 50% of total cost Source: 24

25 Help Going Green Examples PSE&G Residential Whole House Efficiency Program In-home energy audit (free to eligible homeowners) Air leakage Testing and Sealing (Discounted price) Programmable thermostat (free) Up to $1,000 in weatherization services Federal Tax Credits Geothermal Heat Pump 30% of total cost, no upper limit Solar Energy Systems 30% of total cost, no upper limit Plug in Electric Vehicle Up to $7,500, based on battery capacity Source: 25

26 Green Investing Which improvements make economic sense Many online tools & calculators PSE&G Home Energy Tool Kit Appliance calculator Lighting calculator Energy Calculator Source: 26

27 Green Investing Which improvements make economic sense Many online tools & calculators Home Energy Saver Created for the Dept. of Energy Recommends energy saving upgrades Source: hes.lbl.gov/consumer/ 27

28 Green Investing Which improvements make economic sense Key factors in valuing a transaction Total cost Less rebates and incentives Monthly savings Time value of money (what else could you be doing with that money) Same methods can be used to justify a car purchase for fuel efficiency, a new refrigerator, or a light bulb 28

29 Green Investing Change the world one investment at a time Socially Responsible Investing (SRI): Exclusionary Not investing in companies that engage in undesirable social or ethical practices Inclusionary Investing in companies that are in line with your social goals 29

30 Green Investing Change the world one investment at a time SRI Goals Charity Patient Capital Impact Investing (Negative Return) (Below Market Return) (Market Rate Return) United Way Tom s Shoes Zip Car 30

31 Green Investing Changing the world one investment at a time Calvert Investments (Established in 1976) One of the largest SRI companies in the US Offers a range of equity, bond, cash, and asset allocation products which feature environmental, social, and corporate governance research. Calvert Social Index (Used by many as a benchmark for SRI performance) Socially Responsible Mutual Funds The Forum for Sustainable and Responsible Investment (USSIF) Performance Charts 31

32 Green Investing Changing the world one investment at a time Crowd Funding 32

33 Green Investing Changing the world one investment at a time Crowd Funding New Regulations Impact Investing is growing Crowd Funding is inherently social Source: Fobes.com 33

34 Final Thought Thousands of starfish washed ashore. A little girl began throwing them back in the water so they wouldn t die. Don t bother dear, her mother said, it won t make a difference. The girl stopped for a moment and looked at the starfish in her hand. It will make a difference to this one. Domini Social Investments 34

35 Thank You! Questions 35