Over the past few years, several startups have released one-off solar-powered concept vehicles, but up until now, we have yet to receive a mass-produced solar-powered car. It looks like that will change soon with the introduction of the Lightyear 0—an electric sedan that gets its power from the sun.
Lightyear is a Dutch startup that has an ambitious goal to start production of the Lightyear 0 this fall with the first deliveries starting in November. The Lightyear 0 features 5 square meters of double-curved solar arrays that can charge the electric vehicle while it’s driving or parked outdoors. The solar panels can add up to 43 miles (70 kilometers) of range a day in addition to its estimated 388 miles (625 kilometers) on Europe’s WLTP cycle.
This means drivers can literally drive for months without having to use an outlet or public charger. Lightyear estimates people who drive an average daily commute of about 22 miles, could go up to seven months between charges. Lightyear estimates the solar panels can add up to 6,835 miles (11,000 kilometers) of range per year.
“Today is the day we’ve all been waiting for since us five co-founders sat in a kitchen sketching out our dream of building the most sustainable car on the planet,” says Lightyear co-founder and CEO Lex Hoefsloot. “In 2016, we only had an idea; three years later, we had a prototype. Now, after six years of testing, iterating, (re)designing, and countless obstacles, Lightyear 0 is proof that the impossible is actually possible.”
In addition to its groundbreaking solar panels, the Lightyear 0 also stands out from current EVs with its four in-wheel motors. The electric motors generate a combined 174 horsepower and 1,269 pound-feet of torque, which can accelerate the Lightyear 0 from 0-62 mph in 10 seconds and a top speed of 100 mph.
With an energy use of 10.5 kWh per 62 miles (100 kilometers), Lightyear says it is the most efficient electric vehicle and its drag coefficient of less than 0.19 makes it the most aerodynamic family car yet. Although the Lightyear 0 is more than 16.4 feet long, it only weighs 3,472 pounds.
Inside the Lightyear 0 focuses on sustainability and minimalism with naturally-sourced and vegan materials, like microfiber suede seats and rattan palm detailing. Its interior also features a 10.1-inch touchscreen infotainment system that runs the Android Auto operating system.
Hoefsloot said in a statement that the Lightyear 0 is unique from electric vehicles: “Electric cars are a step in the right direction, but they have a scaling problem. By 2030, we can expect 84 million electric vehicles (EVs) on roads in Europe alone. There’s no hiding from it, access to charging stations will not keep up with the demand for electric cars. To minimize plug-charging and maximize range, the industry’s strategy, so far, has been to add batteries. That increases the carbon footprint of production and, in turn, boosts weight and the need for high-power charging stations. Our strategy flips that approach. Lightyear 0 delivers more range with less battery, reducing weight and CO₂ emissions per vehicle.”
The company only plans to build 946 Lightyear 0 vehicles a year. It hasn’t announced the market distribution.
The Lightyear 0 is definitely not cheap with a starting price of €250,000 ($263,243 USD), which means accessibility will be a barrier to entry for most consumers. The good news is the company is also working on a second model that will better appeal to the mass market with its €30,000 ($31,589 USD) starting price. Production of its second EV will begin in late 2024 or early 2025.
There’s still much to be seen with the Lightyear 0. While the most sustainable way to view car ownership is to not own a car, the reality is many people need vehicles in their day-to-day lives and Lightyear’s concepts spotlight innovation in the car space.
By Bloomberg Cities Network View the original article here
As gas prices surge past $5 a gallon and the global climate crisis deepens, city leaders stand on the front lines of America’s transition to more sustainable and affordable transportation options.
Cities are taking bold steps to accelerate the changeover to electric vehicles (EVs), using their purchasing power to prime new markets for electrified cars, trucks, buses, and bikes, and making it easier for residents to make the switch. Leading the way are 25 cities who received support and resources from Bloomberg Philanthropies’ network of partners while participating in the American Cities Climate Challenge.
Mayors in these cities increasingly see transforming transportation as critical to delivering results for residents when it comes to sustainability, equity, and public health. The transportation sector is the single largest source of carbon emissions in the United States. It’s also a driver of air pollution and respiratory conditions such as asthma that disproportionately impact people of color and low-income households. On both fronts, electric vehicles offer benefits over models that run on fossil fuels.
“We can’t afford to wait for someone else to take the kind of bold action on climate change we need to protect our community,” Albuquerque, N.M., Mayor Tim Keller said while announcing his city’s first purchase of EVs for the municipal fleet. “Any realistic effort to fight climate change has to include steps to reduce the impact of vehicles on our air quality and public health…and the time has come to turn the page on gas-powered cars and trucks.”
With billions of federal infrastructure dollars available to supercharge this transition, local leaders will have an even bigger role to play in the years ahead. Cities that want help navigating federal infrastructure funding opportunities can sign up for supports through the Local Infrastructure Hub, a new initiative of Bloomberg Philanthropies and its partners.
Here are four ways that the 25 cities that participated in the American Cities Climate Challenge are driving innovation with electric vehicles—using data, resident engagement, and collaboration to make a lasting impact.
1. Establishing community car sharing programs and charging stations
Car-sharing programs have already shown that they can save participating households thousands of dollars and take cars off the street. Now, cities are electrifying these car-sharing programs, expanding access to both EVs and places to charge them, particularly for traditionally underserved communities.
St. Paul, Minn., for example, launched the largest publicly owned, renewably powered, electric car-sharing program in the nation, Evie Carshare, with 100 EVs currently operating and plans to grow the fleet to 173. Equitable access was a major factor in determining the pricing structure and charging locations. The program design was informed by a prototyping process with residents and, to make it affordable to all, Evie Carshare includes a discounted membership rate for people with low incomes. Car-share locations also include spots where anyone with an EV can charge up, effectively boosting the number of public EV charging ports in the city by 70 percent.
An Evie carshare and charging station. (Photo courtesy of St. Paul, Minn.)
Similarly, Boston partnered with E4TheFuture and the Massachusetts Clean Energy Center for the launch of the EV car sharing program Good2Go. It’s an income-tiered service with a focus on equity that enables qualifying residents to pay as little as $5 per hour to use a vehicle. Meanwhile, St. Louis is piloting a program for social services agencies to share EVs in order to shuttle seniors to medical appointments and to deliver meals. The agencies are seeing savings in reduced fuel costs, freeing up resources for other services.
2. Electrifying municipal fleets
City leaders also are looking at their own fleets of vehicles as a big opportunity to reduce carbon emissions, cut fuel and maintenance expenses, and lead by example. Across the American Cities Climate Challenge, 22 cities have already purchased more than 1,300 electric vehicles and have made plans to purchase dramatically more in the years ahead.
St. Louis, for example, started by adding four new EVs to its municipal fleet, and plans to acquire at least eight more in the coming months. Each vehicle is labeled “Zero Emissions 100% Electric” with eye-catching green streaks on the side, to promote the change with residents. For the long term, an executive order requires city agencies to continue prioritizing the purchase of low- and no-emission vehicles to keep the municipal fleet transition going.
Albuquerque has likewise committed to a 100-percent clean light-duty fleet, meaning that any eligible pickup truck and passenger vehicle purchased from now on will be an electric, hybrid, or alternative-fuel vehicle. Meanwhile, Boston added a new kind of vehicle to its municipal fleet: an electric-assist cargo tricycle. City leaders are testing it to see if employees would be willing to use the e-bike for work-related trips instead of a car or truck.
3. Electrifying public transit
City buses are a ripe target for electrification. Compared with existing diesel models, electric buses significantly reduce air pollution, make less noise, lower maintenance and operating expenses, and can deliver a more comfortable experience for passengers.
Honolulu is looking to leverage all of those benefits as part of an effort to make public transit a more attractive option for residents. In addition to building its first dedicated bus lane since 1988, the city has incorporated 17 fully electric buses into its service routes. It’s also installed a charging system to support the process of transitioning 100 percent of the city’s bus fleet to fully electric by 2035. These zero-emission electric buses are not only providing cleaner transportation, but they are notably quieter, to the enjoyment of passengers and residents.
The addition of the 1.3-mile bus lane in Honolulus’ busiest downtown corridor is help move more residents throughout the city. (Photo courtesy of Honolulu)
In Charlotte, N.C., the city council approved a groundbreaking approach to overcome initial hesitation about upfront costs of transitioning to electric buses. A pilot program enables the city to try out—and train staff on—18 electric buses and charging infrastructure from various manufacturers in order to collect data on what works. The program is an important first step in the city’s mission to reach net-zero emissions targets and has the potential to be a model for other cities.
4.Requiring new buildings to be ready for EV charging infrastructure
For EV owners, more than 80 percent of their vehicle charging occurs at home. But workplaces are also a popular place to charge. That’s why a number of cities are requiring newly constructed residential and commercial buildings to design-in the ability to scale up future EV charging infrastructure. Doing so up front adds less than 0.2 percent to construction costs, while sparing much higher costs associated with retrofitting buildings later.
Through its new EV Ready code, Orlando, Fla., is now requiring all new buildings and major remodel projects to integrate EV charging infrastructure. Specifically, the ordinance requires 20 percent of multi-family, hotel, and parking structure spaces and 10 percent of non-residential parking spaces to be EV-capable, which requires installing dedicated electrical capacity and conduit to parking spaces. By starting with community engagement workshops and then collaborating with developers and EV-industry stakeholders, city leaders garnered support needed to pass this ordinance, a major milestone in achieving its sustainability goal of reducing greenhouse-gas emissions 90 percent by 2040. Similar EV-readiness ordinances recently passed in Boston, Columbus, Ohio, Charlotte, St. Louis, and Pittsburgh.
Environmental, social and corporate governance (“ESG”) practices are becoming an increasingly significant topic for businesses and a vital investment criterion for real estate capital sources. Increases in the frequency and intensity of severe-weather-related events are forcing companies to assess property vulnerability and resiliency to proactively manage risk and mitigate the effects of climate change. A company’s corporate social responsibility is just as important because it draws attention to community outreach and talent development. Furthermore, with proper governance in place, management can implement and assess its policies, goals and reporting efforts for their ESG initiatives. Due to these compounding matters, real estate companies now have an increasing responsibility to perform climate-risk due diligence; assess its corporate social responsibility initiatives; and develop, implement and govern its ESG policies. As a result, investors and lenders are beginning to factor a company’s ESG policies into their decision-making processes because they want to ensure the business is developing sustainable plans to combat the effects of climate change; reduce costs; attract tenants; create ways to support the community; retain talent; and properly set, monitor and report on the company’s goals. What exactly is ESG, and how does it influence investor and lender decisions within the real estate sector?
Environment
The environmental aspect of ESG represents management’s responsibility to assess each property’s vulnerabilities, resilience and fortification with respect to its climate and to investigate the environmental impact of operating its properties. While reviewing or developing a building portfolio, it is crucial for management to perform an environmental analysis of each property to determine each building’s vulnerability and/or resistance to severe weather (e.g., hurricanes, flooding, extreme heat or cold, wildfires, tornadoes, blizzards) as well as to consider the environmental and community impacts associated with property development.
Using a variety of tools, management can establish and track key environmental factors associated with property development and operations, including the amount of energy used, the usage and/or possible contamination of water, the amount of waste generated and/or avoided in favor of recycling initiatives, and the building’s impact on air quality and the surrounding ecosystem. By evaluating a property’s environmental impacts, companies can be proactive about mitigating risk and assuring proper protocols are in place—not to mention saving money.
Management also should consider weather forecast predictions and climate migration trends in its analysis because climate change poses both physical and transitional risks that can have a substantial financial impact on a real estate business. As outlined in “Climate Risk and Real Estate Investment Decision-Making,” an article published by Urban Land Institute, “Physical risks, such as catastrophes, can lead to increased insurance premiums, higher capital expenditure and operational costs, and a decrease in the liquidity and value of buildings. Transitional risks—which center on the economic, political and societal responses to climate change—can see locations and even entire metropolitan areas become less appealing because of climate-change-related events, leading to the potential for individual assets to become obsolete.” Accordingly, climate migration presents a legitimate concern to real estate investors because climate relocation will lead to significant shifts in demand for real estate as individuals respond to environmental changes.
ESG initiatives are gaining significant attention among regulators and the Biden administration due to a rise in the necessity of, and public interest in, sustainability. In January 2022, the Biden administration launched a coalition of states and local governments to strengthen building performance standards. This partnership, consisting of 33 state and local governments, focuses on providing “cleaner, healthier and more affordable buildings.” The new commitments to design and implement more efficient building performance standards are intended to “accelerate progress toward reducing buildings emissions, advance climate action and environmental justice, create good-paying union jobs, lower energy bills for consumers, keep residents and workers safe from harmful pollution, and cut emissions from the building sector.” Property owners and operators must closely follow the developments of these governmental policies to stay current with their ESG initiatives.
Additionally, as part of the government’s initiative to strengthen building performance standards, the Department of Energy (“DOE”) and the Environmental Protection Agency (“EPA”) announced technical assistance opportunities to design, measure and manage local building-performance policies. For example, the “Biden-Harris Administration Launches Coalition of States and Local Governments to Strengthen Building Performance Standards Whitehouse Statement” outlines the following:
The DOE will share best practices for state and local governments that are adopting building performance standards, including public- and private-sector financing options, and will also provide analytical support to examine how policies targeting emissions reductions in existing buildings can pave the way for minimum new-construction building energy codes.
There will be enhanced support from the EPA Climate Protection Partnerships Division. The EPA will support policy development and implementation, including through analysis and recommendations of metrics and best practice toolkits. The EPA will provide insight into current building energy use data as the foundation for jurisdiction-specific analysis and target setting and will enhance ENERGY STAR Portfolio Manager to provide new policy tracking and reporting capability and will assist jurisdictions in its use. The EPA will also provide new tools that calculate localized greenhouse gas emissions to inform reporting, compliance and assessment.
High-performing buildings are not only good for the environment, but they are also good for the bottom line. Although capital is needed to build or retro fit such properties, companies that invest in ESG initiatives often see a quick return because high-performing buildings attract higher occupancy rates, thereby generating more revenue and decreasing the amount spent on utilities, insurance premiums and repairs due to severe-weather-related events. Additionally, there are incentives available at both the federal and state levels that are issued to businesses to help make the initial investment more attractive. Businesses today should assess their building portfolios, evaluate their alignment with industry benchmarks and leading practices, evaluate future trends and possible policy changes, and identify gaps and opportunities. With a thorough understanding of the company’s current position, its plans and stakeholders’ expectations, management can prioritize goals and set efficient ESG targets.
Businesses can develop appropriate strategic ESG plans by using climate risk scorecards, performing property vulnerability and resilience assessments, mapping physical risk, and evaluating benchmarks established by organizations such as the Sustainability Accounting Standards Board, Global ESG Benchmark for Real Assets or ISO 14001, as well as state and local governmental regulations.
Social
Strong ESG policies and procedures can help build trust, attract and retain employees and tenants, and prevent costly mishaps while meeting community needs. Social initiatives, which are often assessed at the partnership and overall company level, represent the company’s corporate social responsibility. Today, the need for companies to evaluate their social actions is great because employees are demanding ESG services and better working conditions. These include demands for ensuring diversity, equity and inclusion throughout the business and governing board; developing ways to attract, retain and promote employees; and implementing an effective code of conduct. Additionally, businesses could further enhance their social responsibility by ensuring all employees have a safe and clean work environment, requiring all vendors and contractors to follow the company’s code of conduct, hiring contractors and vendors whose social responsibility is in line with their own social efforts, and assigning an internal resource dedicated to the ESG initiatives. Businesses today excel from the use of strong social responsibility practices because they incorporate diversity and inclusion, recruitment, talent development and mentorship programs, health and wellness, and create a conducive work environment for everyone throughout the company.
Tenants today are also considering companies’ ESG initiatives as a deciding factor for their tenancy because they want to rent high-performing spaces from a socially responsible company with strong ESG policies. Therefore, it is imperative that management evaluates its social responsibility with respect to the surrounding community. This could include a company publicly displaying its ESG policies, promoting its progress in sustainability efforts, and asking its tenants for feedback. Furthermore, tenants want affordable and accessible space, quality access to/from the property, and equal access to features and amenities within the community including good schools and shopping centers. By management taking into consideration tenants’ desires and opinions, it will help the business improve tenant attraction and retention and, thus, generate more rental income.
Governance
ESG is metrics-based with documented evidence. Consequently, it’s necessary that there are strong governing practices in place to help the company report and oversee its business performance, track progress, and strengthen data management and analytics. Management has a responsibility to implement the ESG policies and procedures as well as maintain and evaluate its progress and standards. Therefore, governing practices need to be in place to enable the company to perform due diligence and collect data and documentation to further improve planning efforts. Investors and lenders expect companies to track their environmental and sustainability metrics at the asset level and provide transparent reports that support the process for making meaningful and effective ESG plans. Through use of effective governing practices, management can perform decisive analytics, track progress, and create accurate and transparent reports on its corporate social responsibility and ESG efforts that showcase sustainability evidence to attract investors, lenders and tenants.
Companies often struggle with collecting data to support their ESG plans. However, data is in high demand because it enables companies to understand where change or innovation is needed. There are a variety of software and tools available that can help management efficiently document, track and assess its ESG progress. New emerging property technology (“proptech”) and proptech companies are designed to help streamline the gathering of data and aid in auditing and reporting for real estate. Using proptech, companies can review real-time data on energy usage, determine if environmental and sustainability opportunities exist, and quantify and standardize resource consumption to maintain safer and more valuable real estate. Through use of proper and effective governing practices, companies will develop a more efficient work environment backed by strong and accurate data, thus fostering a greater likelihood they will successfully achieve their ESG initiatives.
ESG and Investors
ESG is shaping and influencing real estate valuation and, therefore, gaining in importance among capital providers. Investors today use a variety of tools to determine future opportunities, and ESG policies are getting higher on their due diligence checklists. Although not a deciding factor, a business’s ESG plans can significantly impact an investor’s decisions. Through developments in technology and an increased transparency in reporting, investors now have more insight and want to know that businesses are forward looking and have sustainable business practices in place. By assessing a business’s ESG plans, investors can assess the risk versus the rewards as well as potential growth areas. Additionally, investors often believe the more proactive a company is with its ESG initiatives, the more attentive and responsive the company will be in mitigating risks. Accordingly, a strong ESG policy adds value to the investment because it attracts tenants, reduces operating costs and increases capital demand.
Debt and equity capital providers are incorporating the analysis of ESG and climate risk in their transaction due diligence. Recent floods, fires and extreme heat are forcing tenants (and their insurers) to assess property vulnerabilities. As confirmed in EisnerAmper’s article, “Commercial Real Estate 2022 Outlook: Fixing the Horizon to Navigate Through Change,” real estate companies should consider:
Hodes Weill’s 2021 Institutional Real Estate Allocations Monitor indicates that 49% of investors globally consider the ESG policies of the investee.
ULI’s 2022 Emerging Trends in Real Estate indicates that 82% of survey respondents consider ESG elements when making operational or investment decisions.
A recent report by JLL showed that office tenants are considering an owner’s ESG activities when selecting space, focusing particularly on building sustainability and efforts to create a healthy work environment, including quality air flow.
A Cushman & Wakefield study found that sellers are achieving 25% higher prices per square foot in Class A LEED-certified office buildings and 77% higher prices in Class B LEED-certified office buildings versus non-certified buildings.
Real estate companies and their management must develop a plan for prioritizing the implementation of ESG policies and initiatives because capital providers look for climate data and disclosures as well as resiliency, proactiveness and a property’s ability to attract tenants. Furthermore, as governmental policies are being implemented and net zero targets are set for 2050, capital providers need to know real estate companies are forward looking and performing due diligence to assess the impact of net zero goals on its assets to achieve new ESG standards. As a result of a growing trend and strong push for a decrease in the carbon footprint worldwide, there is an increase in investor demand for ESG policies that will significantly impact their decision-making process.
Most businesses today are looking to limit their impact on the environment by following real estate trends, moving away from fossil fuels, using renewable energy and developing net-carbon-zero real estate efforts. For property developers, this formidable endeavor includes management mapping out the ideal location using weather forecast predictions and climate migration trends, while also developing properties with the lowest emissions level possible and then offsetting the emissions created by finding ways to reduce and/or reuse waste and utilize renewable energy sources. Resilience is the key because it generates value. The initial investment will be repaid after these companies attract tenants and capital on the revenue side and reduce operating costs.
The need for socially responsible business practices will continue to grow because there are strong demand indicators for ESG and sustainability services. This, it is imperative that real estate companies continue to be forward looking and implement ESG initiatives to protect their assets. Effective ESG policies are directly correlated with stronger financial performance and better risk management because they provide companies the opportunity to mitigate risks and appease investors. Creating sustainable business practices, while preparing for implementation of future regulations, will help companies be environmentally conscious and socially responsible in conducting their day-to-day business, while simultaneously aide them in mitigating risks associated with climate change, improving relationships with investors and increasing overall long-term financial performance.
The conversation within and beyond the boardroom around environmental, social, and governance (ESG) is rapidly maturing. In recognition of the important role ESG plays in driving long-term value creation, more and more boards are focused on and are disclosing how their governance structure is evolving to consider ESG more intentionally. Having a defined plan for overseeing the integration of ESG and the interconnectedness across the pillars of “E”, “S”, and “G” into strategy and disclosure helps demonstrate the significance and prioritization of ESG efforts from the top, to both investors and broader stakeholders.
Amid this shift in board governance, investors continue to increase expectations on climate and ESG matters, as noted by the number and breadth of shareholder proposals on related issues in the 2021 proxy season. As investors update and finalize their proxy voting guidelines for 2022, there is the potential for more votes to be cast against board directors who do not demonstrate an adequate understanding of ESG and sufficient disclosure.
Change is also coming quickly on the regulatory front. The SEC has disclosed its regulatory agenda and has included four important areas that fall under the ESG umbrella: climate change, cyber risk governance, board diversity, and human capital management; proposed rules are expected in early 2022. The SEC also has begun to focus more on ESG-related comment letters. In late September, the commission issued a “Dear CFO” letter that provided a sampling of the types of comments issued about climate change and sustainability disclosures, with a particular emphasis on the consistency of climate-related risk disclosures and the relevance to financial reporting.
In addition, there has been significant movement toward the global convergence of standards. The IFRS Foundation announced at the UN Climate Change conference in Glasgow in early November the formation of the International Sustainability Standards Board (ISSB), which will consolidate the Climate Disclosure Standards Board and the Value Reporting Foundation (which includes the Integrated Reporting Framework and Sustainability Accounting Standards Board (SASB) Standards) by June 2022. The global ISSB standards are intended to elevate sustainability standard setting to be in line with that of financial reporting and accounting, and will promote transparency and consistency in sustainability disclosures to better inform decision-making for users of general-purpose financial reporting.
Other standard-setting entities enhancing their involvement in ESG include FASB, which has released a staff educational paper on the intersection of ESG matters with financial accounting standards; and the Commodity Futures Trading Commission, which has established a climate risk unit. With the pace of the ESG developments expected to accelerate rapidly in 2022, company management and boards should be focused on enhancing governance structures and the control environment around managing, and overseeing, ESG risks and opportunities and delivering high quality disclosure.
Trends in board governance of ESG
The “G” in ESG pertains to the broader corporate governance policies and practices that a company has put in place, and ESG is a significant area of focus for boards to better understand and oversee. As a starting point, the board should define its governance structure, policies, and practices that provide a framework for overseeing ESG accountability and strategic focus. This includes the structuring of board and committee oversight and the associated delegation of responsibilities.
Building on our 2020 initial research in this area, as highlighted in figure 3 (see PDF), there was a marked increase in 2021 in the percentage of S&P 500 companies disclosing in their proxies the primary committee(s) overseeing ESG relative to last year (from 72% to 86%). This trend likely is the result of companies progressing along an ESG maturity model (see figure 1 in PDF) that is more integrated into their core business strategy and risk program and defining how the board oversees such ESG efforts.
Notably, the 35 companies newly added to the S&P 500 this past year (see figure 2 in PDF) were more than twice as likely not to have disclosed the committee overseeing ESG, suggesting that company size and market expectations may have an impact on the formalization of an ESG governance framework.
When compared by industry (see figure 4 in PDF), energy, resources, and industrials (ER&I) companies continued to lead, with 94% of ER&I S&P 500 companies disclosing their governance approach in the proxy. This is not unexpected given the industry’s longstanding focus on employee health and safety and environmental matters, coupled with significant regulatory requirements. In the wake of the pandemic, there has also been strong upward movement in life sciences and health care industry proxy disclosure from 63% to 82%, and a similar trajectory has been seen in the technology, media, and telecommunications industry.
Despite the overall increase in proxy disclosure, there continues to be significant variation in the committee(s) that oversee ESG. The percentage of boards utilizing their nominating and governance committee for primary oversight has grown significantly. Not surprisingly, several companies have changed the nominating and governance committee’s name to be more transparent about the broader committee purview. In the callout boxes, within the PDF, we provide a sampling, from S&P 500 proxies, of some of the tailored committee names within the general nominating and governance category as well as some name variations with the ESG/Sustainability category.
Another trend and shift from last year’s research is an increase in the number of companies disclosing that the full board and a committee or multiple committees have a role in overseeing ESG elements (categorized as “multiple”). As ESG programs evolve and specific elements of the “E” and “S” are defined, a shared governance model whereby certain committees are delegated a specific ESG remit evolves. As an example, for many companies, human capital management initiatives, including diversity and inclusion initiatives, may fall under the “S” category and be allocated to the compensation, management development committee, or its equivalent talent committee, while corporate responsibility initiatives may be overseen by the governance committee. The trend for companies to disclose how the full board or committees are delegated certain ESG oversight responsibilities can effectively enable the board to execute on its fiduciary responsibility.
Only 1% of S&P 500 companies reported that the audit committee was the primary committee overseeing ESG for both years. While this is not surprising, following the shared governance model, the audit committee has certain important roles in ESG efforts, including the following:
Audit committees should understand whether there are appropriate internal and disclosure controls and procedures for the metrics disclosed, whether in an SEC filing or a separate sustainability report. This includes working closely with other committees to understand how ESG risks are identified and prioritized and how materiality is defined.
The audit committee should understand the companies’ ESG program—its interconnectedness across the pillars of “E”, “S”, and “G” and the related goals and metrics—and how management considers ESG strategies and the impact they may have on the financial statements.
As the development of companies’ integration of ESG into strategy and disclosure objectives continues to evolve and marketplace standards become more established and authoritative, the role of internal audit and the value of assurance as a tool to drive trust and confidence in ESG performance will become central. Assurance can provide a strong signal to investors and other stakeholders regarding the quality and reliability of disclosures. Audit committees should take the lead in overseeing the assurance engagement. The committee may consider inquiring with management about engaging with public company auditors on how to evolve and mature its ESG programs to meet the increasing demands of the market and regulators.
Conclusion
ESG’s integration into reporting and disclosure continues to proceed rapidly, and having a defined ESG plan and governance structure is increasingly an expectation rather than an exception, particularly for large public companies. Accordingly, boards will likely need to recalibrate their oversight to accommodate these changes and meet the requirements of regulators, investors, and other stakeholders. Given growing scrutiny and market expectations, companies are realizing value and identifying opportunities more quickly and confidently through a more rigorous ESG governance and data measurement and reporting process. Audit committees should consider adding ESG matters as a standing agenda item in 2022, understand the company’s disclosure process, and regularly assess the company’s progress, risk oversight, financial statement implications, and the integration of ESG considerations into the core business strategy.
Social impact and decarbonization strategies will be the pillars of urban development projects in the coming years View the original article here
From revamping disused docklands to rejuvenating rundown neighbourhoods, cities are embarking on urban development projects that put health and sustainability at the heart of placemaking.
These mixed-use schemes increasingly focus on implementing features that support wellbeing, champion strong environmental credentials, build communities and promote equality and inclusion.
The redevelopment of the western edge of Dublin city center aims to bring the concept of the 15-minute city to life while Rotterdam’s M4H project will re-green the site surrounding a manufacturing hub, and add sport facilities, housing, hospitality and cultural space.
Such schemes show how thinking around what makes a successful city is shifting, says Jeremy Kelly, Lead Director, Global Cities Research at JLL.
“City governments are looking beyond traditional metrics like GDP and employment growth and are refocusing on harder-to-measure factors relating to liveability, opportunity and experience,” he explains.
“That has implications for real estate because city governments now expect the industry to deliver developments that have a positive social impact.”
Looking beyond the money
Many of today’s schemes draw from major urban projects of the previous decade – such as Hudson Yards in New York City and London’s King’s Cross.
“These were substantial projects that changed the spatial logic of a city, opening up new areas that were increasingly mixed-use, and cutting-edge when it came to responding to the demands of occupiers and well-off residents,” says Kelly.
One big difference is that urban transformation projects of the 2020s will positively impact surrounding communities, in part by addressing challenges to provide affordable housing.
“That’s where the shift is – thinking about the community impact,” says Kelly. “And for developments to boost or retain their value, they’ll need to be part of neighbourhoods that are also regenerating.”
Health is another key focus for today’s projects, tying into trends such wellness in the workplace and more active lifestyles.
Outdoor access, natural light and green areas – long shown to boost mental health – will be critical features for projects, along with easy access to leisure and healthcare amenities.
“Health and wellbeing concepts are foundational to today’s developments, whatever the size of the project,” says Walid Goudiard, Head of Project and Development Services at JLL. “It’s a matter of placemaking and curating the built environment to provide a healthy, positive experience whether in an office or residential setting.”
The McEwan in Edinburgh, for example, is the first European residential scheme to receive a Fitwel 3-start rating for its focus on health and wellbeing through landscaped gardens and neighbourhood amenities.
And there will be more to come. “The pandemic has accelerated that transition toward creating more human and sustainable places,” says Richa Walia, Director, Work Dynamics Research at JLL. “There’s a genuine desire among companies to act responsibly and their first priority is to create human-centric places.”
Sustainability for social good
Environmental concerns will equally guide urban development, as municipalities develop plans to hit net zero targets and more real estate companies report their environmental impact in line with globally recognized standards.
In Paris, the recently completed regeneration of Clichy-Batignolles is designed as an eco-quarter with low-energy building powered from geothermal and solar sources.
Biodiversity, too, will become a key pillar for transformation projects, with city authorities more likely to greenlight schemes with features such as green roofs, areas given over to rewilding and living walls. Many municipalities now restrict the construction practice of soil sealing to improve carbon capture in buildings and boost biodiversity.
What’s more, plans will need to consider retrofitting and repurposing existing buildings instead of embarking on carbon-intensive new builds. Here, technology and digitisation can offer two vital benefits in optimising resources, says Goudiard.
“Firstly, sensor-enabled smart buildings can automate operations for improved efficiency and reduced emissions,” he explains. “Digitizing spaces also helps with tracking how they’re used and then getting the maximum value from them – especially in dense city centers. The concern is how to embed tech solutions in a way that really benefits users.”
Technology could also boost inclusiveness in urban developments through data analytics that align space design with users’ needs – such as enhancing play areas or accessible walkways – or digital services that offer more equitable access to housing and infrastructure. However, with less defined metrics to track than decarbonisation initiatives, inclusion can be a design challenge in many projects.
“There is a lot of work to be done when it comes to creating inclusive spaces,” says Walia. “The elements that make up diversity and inclusion need to be addressed holistically. Companies are trying to understand how a development can truly create social impact.”
Governance is also moving with the times.Whole of place governance, where authorities collaborate closely with the users of a space, will be the critical difference in urban transformation projects of the coming years.
City planning in Paris, for example, now calls for developers to run consultations where local communities provide feedback to design teams and investors on major projects, helping to improve inclusiveness.
“It’s a more holistic view that’s not just based on the economic output of that district,” says Kelly. “It’s about value creation and improving quality of life for the whole neighborhood.”
Exterior in the evening of the building. Leaside Innovation Centre
The future of the office post-pandemic has been a subject of many posts in the last few years. I have written that we will be living in a hybrid world, with “one foot in the real world, one foot in the virtual, and everything will be flexible and adaptable.” I have suggested that we will see the return of the satellite office in the 15-minute city, in a new hub-and-spoke world. Oh, and the new office buildings will be made from low-carbon materials and nobody is going to want to work in a building without seriously good ventilation.
That’s why I was so intrigued by a new office building proposed for Leaside, in a former industrial area of Toronto that first transitioned to big box stores but now appears to be evolving again. The Leaside Innovation Centre (LIC) is being developed by Charles Goldsmith, designed by Greg Latimer of Studio CANOO, and engineered by David Moses, who is known for his expertise in mass timber construction.
The LIC is a five-minute walk to a new transit line and is surrounded by very expensive homes in desirable residential areas. Basically, it’s what could be ground zero in a Leaside 15-minute city, and may well attract tenants and buyers from the immediate area.
Leaside Innovation Centre
Like many new office buildings, it is built of mass timber. On their website, they list the benefits:
“Mass timber structure is the contemporary equivalent of the beloved industrial warehouse structures that have populated the downtown core for well over a century and are now being repurposed for housing and office space to meet the needs of the 21st century. The mass timber structure (comprised of Cross-Laminated Timber (CLT) floor plates and glulam beams and columns) is substantially lower in its carbon footprint than steel or concrete. The harvesting of renewable forest products to fabricate CLT captures atmospheric carbon helping to mitigate the impact of climate change by storing the embodied carbon in the finished product. In addition, the CLT structure weighs approximately 25% less than a comparable concrete structure reducing the load on the foundation and allowing for reduced concrete use in the foundations.”
Leaside Innovation Centre
What Is CLT?
It’s an acronym for Cross-Laminated Timber, a form of Mass Timber developed in Austria in the 1990s. It’s made of several layers of solid dimension lumber such as 2X4s laid flat and glued together in layers in alternating directions.
CLT can work as a two-way slab, and when you have beams it can often be less expensive to use Nail-Laminated Timber (NLT)—learn about the different LTs here—but Latimer of Studio CANOO tells Treehugger they wanted longer spans matching those in the parking garage for maximum material efficiency. They are also getting their CLT from Element 5, the new supplier in St. Thomas, Ontario (on Treehugger here). Latimer tells Treehugger the finish on their CLT is far better than you can get from NLT or from other suppliers.
There’s still lots of glass! Leaside Innovation Centre
Many office buildings are clad in floor-to-ceiling glass, including mass timber structures where the developers want to show off the beauty of the wood. Unusually, the Leaside Innovation Centre is clad in prefabricated thin brick panels with only a 40% glass-to-wall ratio. They note this allows for much more insulation, reducing the size of the mechanical systems. Latimer tells Treehugger they are looking at triple-glazing the windows as well, but he also notes that it is much easier to furnish the building when the walls are not all glass, and you get much more efficient office layouts.
Building science expert Monte Paulsen has discussed this many times: all-glass buildings are not sustainable even if they are made of wood. In our coverage of the building that Paulsen is criticizing I mentioned those in passing, but it should be taken far more seriously. It is good to see that Latimer and Studio CANOO are doing exactly that.
In my now-archived review of Joseph Allen’s book “Healthy Buildings,” I noted that after the pandemic, tenants and buyers will have lots of options and will be demanding more fresh air, more filters, more air changes.
“The dramatic drop in the demand side of the office market means that tenants will get to be picky, and they are going to go for the buildings that have the best ventilation; developers will be competing to offer the most and cleanest fresh air, the biggest heat recovery ventilators (so that you get lots of air without lots of heating and cooling costs). Any office building that doesn’t offer this stuff is going to be a see-through (a building with no tenants where you can look in one side and see right through to the other) in short order.”
The LIC is doing exactly that: “Mechanical ventilation air supply will be treated with Ultraviolet Germicidal Irradiation (UVGI) and MERV 13 filters to improve indoor air quality, and minimize the amount of airborne contaminants, germs, bacteria and viruses entering the building.”
Latimer explains that the UVGI “explodes the RNA of the virus” and that the system is the same as being done in the fanciest buildings by engineers like ARUP.
Ground Floor Plan. Leaside Innovation Centre
Latimer also tells Treehugger the building is designed with active transportation in mind: There is currently parking for 30 bicycles and it is not stuck down the ramp in the parking garage, but conveniently sits on the ground floor space smack beside the main entrance, along with two showers. That’s very impressive. When I asked if 30 bikes were enough, Latimer noted they are looking at stacking systems to get in more.
Leaside Innovation Centre
It is a tribute to the success of the mass timber industry that small buildings are getting almost too common to cover anymore. As Monte Paulsen demonstrates, people are also getting a lot more critical. It’s like judging the freestyle skiing and snowboarding at the Olympics; you’ve got to really perform, and you have to have more than one trick.
The Leaside Innovation Centre has lots of moves that make it interesting, not just the relatively locally sourced mass timber but the location, the mechanical systems, the cladding, and yes, the bike room. If people are going to get dragged back to the office, this is where they will want to go—close to home, lots of light and fresh well-filtered air, a little biophilic goodness from all the wood, nice amenities, and a glorious bike locker.
It well may be the model of a speculative office project in the post-pandemic world.
Architects are working with manufacturers to source new materials that improve health, lower costs, and reduce environmental impact. View the original article here
Building materials—and what’s in them—have been making headlines, and for good reason. As The American Institute of Architects (AIA) raises the bar in response to climate change, architects and design professionals are partnering with clients, contractors, and manufacturers to source materials that meet new environmental goals, part of a larger effort to improve resiliency for the future.
“Historically, architects haven’t asked what goes into building materials,” says Lona Rerick, AIA, an associate principal at ZGF Architects in Portland, Oregon. “We used to just look at aesthetics, performance, and durability. But in the past decade, there’s been a shift to thinking more holistically about sustainable design and better building materials. Now we’re collaborating with clients to improve embodied carbon and health.”
Greener building materials are key to halting climate change. Currently, buildings produce about 40% of the world’s fossil-fuel carbon-dioxide emissions (CO2). In fact, the United States’ building stock produces more than two billion tons of greenhouse gases per year. But that number can be greatly reduced by limiting the embodied carbon of our building materials. Embodied carbon—the CO2 released during material extraction, manufacture, and transport, combined with construction emissions—will be responsible for 74% of all CO2 emissions of new buildings in the next 10 years. And unlike operational carbon, which can be reduced during a building’s lifetime, embodied carbon is locked in as soon as a building is completed and can never be decreased.
The good news? People want change. According to a 2019 survey by the Morgan Stanley Institute for Sustainable Investing, 85% of U.S. investors now express interest in sustainable investing, while half have factored attributes such as the sustainability of a business into their decision to buy. Overall this shows that people want to improve the environmental and social impact of their investments.
To help clients address climate change, architects need to prioritize lowering the embodied carbon of the materials that produce it most. It all starts with a discussion at the outset. “As the design team, we need to have early conversations with clients about the importance of building materials,” says Frances Yang, AIA, the structures and sustainability specialist at Arup in San Francisco. “We need to show them that materials made with little or net zero embodied carbon can be healthier and sometimes cheaper than traditional products. Once clients are on board, contractors and suppliers will support it, and more people will start to realize that they need to come up with greener strategies.”
Architects can minimize embodied carbon by focusing their efforts on the top three worst offenders—concrete, steel, and aluminum, which account for 22% of all embodied CO2.
Prioritize building materials that reduce carbon
The easiest way to reduce embodied carbon is through reuse—not just of existing building materials, but of existing structures, too. For renovation projects, architects can draft efficient designs that make the most of the current footprint. For new projects, architects can bring in salvaged materials sourced from deconstructed buildings. Most of all, when considering new materials, architects can minimize embodied carbon by focusing their efforts on the top three worst offenders—concrete, steel, and aluminum, which account for 22% of all embodied CO2.
Recently, Yang and her colleagues at Arup designed a project for a Bay Area client that required large amounts of concrete. The client was considering purchasing carbon offsets. But the low-carbon-concrete options Yang researched were cheaper than the offsets and could reduce a greater amount of embodied carbon. By choosing concrete made from granulated blast-furnace slag, a byproduct of steel manufacturing, Yang helped the client reduce both the cost of the project and its impact on the environment.
“Teamwork was key,” Yang says. “At the beginning, we worked with the sustainability and engineering teams to share the benefits of slag cement with the client and get them on board, which then persuaded the contractor to also get behind it. The main thing is to start the conversation early and get everyone’s support. In that instance, we were able to help the client cut 12,000 tons of embodied carbon—making everyone really happy with the outcome.”
Manufacturers agree. “Collaboration and communication between architects and concrete suppliers provides many benefits,” says Alana Guzzetta, the laboratory manager at the U.S. Concrete National Research Laboratory in San Jose, California, which has partnered with Yang on projects over the years. “Communication allows architects to be familiar with the cement substitutions and low-carbon-concrete options available in specific markets, which can be helpful in writing specifications. Additionally, when an architectural aesthetic is required for the concrete, the supplier needs to understand those needs to provide the correct mix. Overall, collaboration between designers, contractors, and suppliers is important for implementing the lowest-carbon mixes that meet performance and schedule requirements.”
The 7 steps to adopting better building materials
Creating a plan to build with healthier resources
Establish the goal and scope: Turn values related to health and transparency into clearly written goals and a scope of work, approachable targets, and roles and responsibilities for the project.
Set priorities within budget: Most projects are constrained by cost, and healthier materials are too often abandoned when an all-or-nothing mentality is adopted. Instead, allow projects to achieve incremental improvements. Some improvement is better than none at all.
Develop measurable targets: This step establishes measurable criteria that define success for the project. The target should reinforce the goals and priorities described in the previous steps. Some rating-systems criteria have targets already defined. For example, LEED requires that a minimum of 20 products used on a project meet the disclosure requirements to achieve one point in the Building Product Disclosure and Optimization credit related to healthier materials.
Define methods and metrics: Once targets for healthier materials—which are less toxic for human or environmental health—are established, the next step is to select tools to measure progress. A wide variety of resources are available. Choosing the right one requires matching the information it provides with the goal and scope of the project. For example, if the objective is to avoid certain harmful substances, a list of materials not to be used in the project (and conversely, ones that can be used) should be the primary reference guide.
Outline roles and responsibilities: Determine who will fulfill the essential roles among the primary parties on the project, including the owner, designer or specifier, builder, and operator. Responsibilities include materials research, selection and specification, tracking progress, procurement, and reviewing contractor submissions.
Ongoing review and documentation: During the design phase, tracking gives everyone the ability to see progress toward the project’s targets and also serves as a useful tool to ensure goals will be met.
Develop a materials manual: A manual of building materials is intended to pull together essential information for the facilities operations team. It should address maintenance, warranties, repair, replacement, cleaning, and general care that may be specific to the products installed on the project. Owners who manage their own buildings may wish to use this as the starting point for a continual feedback loop with the building management team. Overall, this can be a great opportunity for architects to develop a closer working relationship with a project manager—a key factor in reducing embodied carbon.
Help clients source better building materials
Another way architects can help reduce embodied carbon is to source materials that have been verified with environmental product declarations (EPDs). Similar to nutrition labels, EPDs are documents that communicate the environmental impact of a product over its entire life cycle, conveying the carbon footprint of materials at a glance. Today, architects can easily check the EPDs of products by using the EC3 Embodied Carbon in Construction Calculator (EC3). Created by the Carbon Leadership Forum, the EC3 is a free, open-access application that helps architects and contrators source sustainable materials in categories like concrete, insulation, gypsum board, and carpet. “Increasingly, we’re writing into our specifications that suppliers must have an EPD if they’re providing a product,” Rerick says. “We need to see that to prove that the builder has lowered the global-warming potential of that product below a certain baseline.”
Recently, Rerick and her colleagues at ZGF Architects were hired by a major tech company to design a new campus in the Pacific Northwest. The tech company is working to become carbon-negative—removing more emissions from the environment than it contributes—and is starting by focusing on construction materials. Using the EC3 tool, ZGF and the other project teams helped the company reduce its carbon footprint while also enriching the EC3 database with additional EPD-approved materials. The size of the project greatly increased the data available to architects everywhere. “The EC3 database is now even more of a game changer, because we have a deeper resource to compare all these different EPDs,” Rerick says. “It enables us to set better targets for lower embodied carbon and then reach them.”
In addition to the EC3 tool, ZGF uses a digital calculator of its own design to further reduce the embodied carbon of projects. Available for free online, the Life Cycle Analysis tool enables architects to enter the ingredients of concrete mixes and quickly see the carbon impact—an innovation that should help improve the industry for years to come. “By creating a database and material-specific baselines to target for products with EPDs, the Carbon Leadership Forum is reducing uncertainty about them,” Rerick says. “This project is helping to accelerate the demand for EPDs among both clients and manufacturers.”
The 5 Key Takeaways of the AIA Materials Pledge
Guidelines for selecting sustainable materials:
Support Human Health by preferring products which support and foster life throughout their life cycles and seek to eliminate the use of substances that are hazardous.
Support Social Health and Equity by preferring products from manufacturers who secure human rights in their own operations and in their supply chains, and which provide positive impacts for their workers and the communities where they operate.
Support Ecosystem Health by preferring products which support and regenerate the natural air, water, and biological cycles of life through thoughtful supply chain management and restorative company practices.
Support Climate Health by preferring products which reduce carbon emissions and ultimately sequester more carbon than emitted.
Support a Circular Economy by reusing and improving buildings and by designing for resiliency, adaptability, disassembly and reuse aspiring to a zero-waste goal for global construction activities.
Advocate for Local Legislation
Going forward, one of the most important ways architects can increase the use of greener building materials is to advocate for local legislation to lower emissions. In 2019, New York City passed the Climate Mobilization Act, which set emissions caps for buildings, with the goal of reducing output levels 40% by 2030. Nearly 70% of New York City’s emissions come from buildings. As part of the legislation, owners of structures 25,000 square feet or larger must reduce emissions or pay a substantial fine, an initiative that’s sparking massive change.
Todd Kimmel, the New York City architectural manager for insulation manufacturer Rockwool and a Certified Passive House Designer, is working with architects to design green projects that include large-scale passive buildings such as the House at Cornell Tech Campus and Sendero Verde, a three-building, 752,000-square-foot complex in East Harlem that will be a model of low-energy construction. In the past, Kimmel focused on passive design and reducing operational carbon, figuring out how projects can utilize Rockwool insulation, a stone wool that retains heat while minimizing negative health impacts. (Unlike rigid or spray-foam insulation, mineral wool has no plastics that can be released into the air during installation or a fire.) But lately, thanks in part to the city’s Climate Mobilization Act, Kimmel has seen an increase in the number of architects working with contractors and manufacturers to source materials made with less embodied carbon—a trend he attributes to spillover from legislation that addresses operational carbon.
“Architects used to consider materials primarily from a performance standpoint,” Kimmel says. “Now we’re seeing clients invest in greener building materials and operations that exceed the code requirements, because they need to build for the future, to ensure they don’t get hit with penalties. As a result, that way of designing, which creates a healthier environment anyway, is becoming the new norm.”
Build Consensus
The key to building with more sustainable materials is to create consensus, from clients to contractors to manufacturers. Change isn’t easy. For manufacturers in particular, research and development can be costly and time-consuming. But innovation is leading to better options, including wooden materials that capture carbon and concrete materials that sequester it. In turn, these materials are becoming more available, giving architects an extraordinary opportunity for change.
“Manufacturing today requires investing in innovation,” says Cassandra Mellon, the director of architectural sales at Rockwool. “We’re a net carbon-negative company, and want to lower the embodied carbon of stone wool even more, because we believe that’s important. Part of what helped inspire us were initiatives like the AIA materials pledge, which showed that this movement was gaining momentum. If architects ask about things, we listen. Ultimately, the materials pledge creates the foundation for a collaborative approach between architects and manufacturers as we all strive for sustainable materials, and I think we’re going to see more of these types of products across the industry in the future.”
The Blueprint for Better campaign is a call to action. AIA is asking architects, design professionals, civic leaders, and the public in every community to join our efforts. Help us transform the day-to-day practice of architecture to achieve a zero-carbon, resilient, healthy, just, and equitable built environment.
As contractors begin to plan future projects, be on the lookout for these seven sustainable building materials in 2021 and beyond View the original article here
With society becoming increasingly environmentally conscious, more and more project owners are looking for sustainable building materials to include in their properties. Not only do eco-friendly buildings substantially increase the resale value of a property in a forward-thinking market, but they can help save on utility and maintenance costs as well.
As contractors begin to plan future projects, be on the lookout for these six sustainable building materials in 2021 and beyond.
1. Composite Roofing Shingles
When people think of sustainability, they often think about materials that produce their own energy or help eliminate the need for energy. However, one aspect that is often overlooked is materials that are long-lasting.
Continually having to repair, manage, and replace building materials is a major drain on resources. As such, common roof tile types like asphalt shingles and wood shakes that frequently raise, crack, and fade can become energy pits not only from the perspective of allowing air and moisture to be transferred into and out of the house, but simply because they require so much attention to maintain.
A better alternative would be composite roofing shingles that stay true to the natural aspect of traditional materials while requiring a fraction of the maintenance resources.
2. Smart Glass Windows
A major trend in sustainability in recent years has been the use of large windows to allow more natural light flow and reduce the need for electric light consumption.
While the merits of this building practice cannot be understated, the benefits can be compounded by using smart glass as the window material of choice. Smart glass is an innovative material that changes its heating properties based on how heat and air conditioning is applied in the house. For example, during the summer months, the glass turns translucent to block any heating wavelengths that may require your air conditioning to work overtime while in the winter, the glass becomes transparent to allow the sunlight to aid in heating efforts.
3. Bamboo Floors
If you are looking for a very bold option for sustainable living, consider using bamboo flooring. While you may not want to take the step of flooring your entire house in bamboo, it makes for a great option for add-ons, antechambers, and mudrooms.
Bamboo has a strikingly similar appearance to traditional wood while having a harvest cycle of a mere three years, compared to roughly 25 years for a normal tree. By choosing bamboo, you can slow the rate of deforestation by giving trees a chance to grow back.
4. Insulated Concrete Framing
Not only does framing help determine what kind of renovations your home can withstand, but it is a fundamental element in controlling heating and cooling costs.
While prefabricated wood panels will come with small cracks and crevices that allow for the transfer of air and moisture into and out of your home, those using an ICF construction (insulated concrete forms) will provide an airtight barrier that prevents unwanted energy transfers while also providing elite thermal mass to help maintain a consistent interior temperature.
5. Solar Panels
The inclusion of solar panels on the roof and in the yard is increasing in prevalence as technology improves and designs become more aesthetically pleasing. Both solar panel tiles and mounted structures are effective ways to reduce a home’s dependence on nonrenewable energy.
6. Eco-Friendly Insulation
Any type of insulation will theoretically be eco-friendly if it sufficiently cuts down on energy used for heating and cooling. However, some of this saving is negated if batts, fillers, and/or sprays used for insulation are not sustainably sourced or use toxic chemicals to help in binding and fire resistance.
As such, an increasingly popular alternative is hemp insulation. This sustainable product of up to 92% natural hemp maintains all of the same insulative properties of more traditional fiberglass or cellulose. In fact, with its ability to be compressed, hemp can even provide superior insulation for homes that are willing to pay a little extra.
Conclusion
The trend of eco-friendly homes is only set to strengthen in 2021 and beyond. Therefore, if you are in the market for a home, or are considering a renovation, take a look at one of the six sustainable listed above for some environmentally-friendly inspiration.
Matt Lee is the owner of the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.
Written By: Benjamin Laker View the original article here
For decades,the idea that sustainable business practices could lead to profitability has been dismissed. However, with increased pressure from stakeholders and government legislation in recent years, companies are compelled to find ways to reduce their environmental impact while maintaining economic competitiveness.Right now, sustainability is quite rightly top of the agenda, amid the backdrop of the 2021 United Nations Climate Change Conference, more commonly referred to as COP26.
Most people don’t realize that waste is a resource with an economic value and recycling can be a profitable practice say experts.
The environmental impact of organizations and the states they reside in are scrutinized more strongly than ever, ensuring customers and employees do not compromise the ability of future generations to meet their own needs and consequently design a world without waste. At present, nearly 65% of greenhouse gas emissions arise just from handling materials’ production, transportation, and disposal. But a circular economy may significantly reduce 90% of the emissions, thus departing from a linear economy to one that builds circularity into products from the outset is paramount.
ReCyrcle specializes in this area. Designed to support a waste-free world aligned with the “shared blueprint for peace and prosperity” from the UN Sustainable Development Goals, the innovative tech startup offers a revolutionary recycling system that follows a circular economy approach. “We want to prevent and reduce the waste accumulation of recyclable materials in landfills and change society’s mindset towards waste,” Samreen Nurullah, cofounder and director, told me.
ReCyrcle offers a revolutionary recycling system that follows a circular economy approach
She continued, “collection of the materials directly from the consumers through our app allows us to track the entire process and ensure that these materials do not leak into the environment.” Nurullah’s business partner, Sharaf Rahman, added, “We recycle materials and process them into a usable and manufacturable form reducing the demand and need for virgin materials being extracted from the Earth’s crust.” In doing so, the organization is attempting to digitize the reverse supply chain of waste to make the process more efficient, transparent, and accountable.
ReCyrcle makes a critical assertion – they don’t believe that poor recycling rate isn’t a habit problem but is instead a perception problem. “Most people don’t realize that waste is a resource with an economic value and recycling can be a profitable practice,” observes Rahman. “Our app encourages people to recycle by offering rewards and incentives for recycling in the form of digital tokens.”
The mobile app shows the journey of a plastic bottle and post-consumer packaging waste from the point of collection to being processed into new products so a user can track their recycling habits and buy products made from their recycled packaging waste. This could well be a watershed moment for the future of corporate sustainability, particularly because within countries such as the UK, where the government has delayed plans to implement the Deposit Return Scheme for recycling until late 2024. “We understand the climate emergency and have come up with our private digital deposit return scheme, which can be claimed through our app,” concludes Rahman.
ReCyrcle reprocesses 3D printer waste into recycled filaments to be reused in 3D printing again
Companies like to bucket. Purpose belongs to corporate social responsibility, while the customer belongs to the brand. But here’s the problem with those buckets, concludes Nurullah. Your customers are whole people seeking mission and brand engagement. They expect you to deliver what matters most to them. “Embrace your customer’s mindset, the holistic understanding of their heads and hearts, to deliver on brand and purpose,” recommends Nurullah. Because as companies embrace stakeholder capitalism, they risk subjecting themselves to what besets the nonprofit sector—the tendency to think every stakeholder is a customer, which confuses their strategic aim. Therefore, understanding if your organization is substantially differentiated or even relevant is mission-critical – and the key to entrepreneurial performance, which in the case of ReCyrcle, is impressive.
That’s not to say they haven’t had help along the way, of course. For example, Rahman explained at length the impact of support that Brunel University’s Bridging the Gap program has had on the organization. “They’ve aided us throughout our journey, and we have recently started collecting 3D printing waste from their design facilities as the curbside municipal recycling programs do not recycle 3D printing waste,” he said. ReCyrcle reprocesses this waste into recycled filaments to be reused in 3D printing again.
This is a key component when thinking about starting a business, says Dr. Marrisa Joseph, Lecturer in Entrepreneurship at Henley Business School. Startups and increasingly established companies have moved away from thinking about what product or service I could offer. Instead, thinking has evolved to what I could create that my potential customer would want, or even better, what they need and how it will impact the planet.
The triple bottom line concept- people, planet, profit- has become an increasingly sought-after value proposition as businesses thrive when they have a greater purpose. That unique nexus is the source of differentiation and the cornerstone of your differentiation strategy. Embracing it requires that you appreciate them as whole people. What matters the most to your customer is what matters the most to you too. Watch out for the zone of indifference, and don’t build your strategy around it.
Every company has attributes and features near and dear to its hearts. Perhaps it’s the origin story, the internal rally cry, or their hometown. Be forewarned. You cannot compete on differentiation by claiming unimportant attributes to your customer. Your customer’s tell-tale shrug is the evidence that what you hold dear can’t deliver a differentiated advantage. And with the case of ReCyrcle, they certainly have it.
As the push to become carbon neutral accelerates globally, there is increasing pressure on office building owners to implement changes to accommodate those goals, including by making their buildings more energy efficient, using sustainable building materials, reducing waste and improving water systems. Some 105 big companies, including Amazon, Microsoft, Unilever, and BlackRock among others, have pledged to be carbon neutral by 2040, with additional firms promising to reduce carbon emissions by 2030. More than 100 countries, including the U.S., have pledged to become carbon neutral by 2050.
“A future where businesses are taxed on their carbon emissions could be close at hand,” said Drew Shula, founder and CEO of The Verdical Group, a Los Angeles-based green-building consulting firm.
California has already passed legislation requiring new and significantly renovated commercial buildings to be carbon neutral by 2030. Additionally, New York City’s Climate Mobilization Act (CMA) includes Local Law 97, which impacts all buildings over 25,000 sq. ft. and calculates carbon intensity for buildings on a per square foot basis, assigning limits to intensity beginning in 2024. Buildings that exceed that limit will be fined $268 per ton of carbon, notes Meadow Hackett, manager for sustainability and KPI services at consulting firm Deloitte.
She notes that many office REITs are planning carbon neutrality strategies to avoid penalties at their New York City properties, and companies are making capital allocation decisions around energy efficiency based on penalty avoidance.
Green building experts acknowledge that a net zero mandate would present a challenge for office building owners/investors, but note that it may not be as daunting as they might perceive.
“Any existing building’s carbon emissions can be reduced, and the first step is to understand its current level of performance,” says Elizabeth Beardsley, senior policy counsel for the U.S. Green Building Council (USGBC). She adds that this requires metering and reviewing utility bills and any other available building performance data that can help identify areas in need of increased operational efficiency and performance.
Once this assessment is completed, existing building owners and operators should develop a strategic action plan aimed at reducing annual building greenhouse gas emissions, Beardsley says. “The action plan can help owners to develop an ‘optimal path’ forward via the evaluation of alternative scenarios to assess opportunities for system upgrades, efficiency improvements, renewable energy generation and/or procurement, and calculate associated costs for each scenario.”
According to Rielle Green, manager of energy & sustainability with CBRE Property Management, which manages 2.7 billion sq. ft. of commercial real estate globally, there is no one-size-fits-all solution for getting to net zero. “Every property is uniquely built with different operating systems and located in different areas with different climates.”
CBRE property managers work with clients to determine which solutions make sense, which may include installing solar panels to reduce carbon dioxide emissions and energy consumption, smart building technology to monitor energy usage, LED lighting or green roofs.
Beardsley adds that owners could lower a building’s carbon footprint by encouraging tenants to commute by walking, biking, public transport, ride-sharing and carpools. This might involve providing a shared bicycle system or membership in a micro-mobility fleet; contributions for public transportation passes; car-sharing memberships; and on-site electric vehicle (EV) charging stations.
Beardsley also notes that conservation and recycling are other important elements for reducing a building’s carbon footprint. “Reducing a building’s water consumption reduces associated energy loads for water provision and wastewater management, as potable water treatment, distribution and use are highly energy-intensive,” she says.
She offers case studies to illustrate how existing buildings achieved LEED Zero certifications.
The Los Angeles Department of Water & Power, for example, began reducing the footprint of its 17-story, 55-year-old, all-electric John Ferro Building in 2013 with a suite of energy efficiency measures, including lighting retrofits, chiller and fan system upgrades that earned the building’s initial LEED certification in 2015. The following year, the building, which houses LADWP’s 11,000 employees, recertified LEED Gold and in September 2019, it became the first building in California to achieve LEED Net Zero Energy.
Another example is the historic headquarters of Entegrity Partners, a sustainability and energy services company specializing in the implementation of energy conservation and renewable energy projects, which became the first LEED Zero-certified project in the U.S. in 2019 and the second in the world. The building, which achieved LEED Platinum for New Construction, was also awarded Zero Energy certification by the International Living Future Institute.
Entegrity began devising a plan to retrofit its 13,342-sq. ft. Darragh Building to net zero energy in 2016. Initial strategies employed included all-LED lighting, dynamic self-tinting glass, operable windows and doors for natural ventilation in the summertime, and occupancy sensors. The renovation also used locally-sourced materials when possible; preserved daylighting; and installed lighting controls, high-efficiency plumbing fixtures, and native landscaping.
Office buildings with high performing environmental improvements also command a rent premium, according to Beardsley, and trade at higher values than traditional buildings because they offer savings in operational costs. She cites research that indicates tenant were willing to pay $0.75 per sq. ft. for space in a LEED-certified office building compared to a non-LEED certified one.
Additionally, the U.S General Services Administration (GSA) released a 2018 study on the impact of high-performance buildings that quantified their benefits compared to their legacy building counterparts in the GSA’s portfolio. The study found that the upgraded buildings delivered greater cost savings and tenant satisfaction were deemed, therefore, a less risky investment than traditional buildings.
Shula suggests that Blackrock, the world’s largest asset manager, is a great example of this preference for more environmentally sustainable building. The firm committed to net zero for its own operations and is making being carbon neutral the central focus for its more than $8 trillion in assets under management.
Hackett, notes that sustainable swaps and building retrofits are already common in existing buildings to meet carbon neutrality goals. Landlords are deploying more efficient technology, such as occupancy light sensors, LED lighting, and power management software to control HVAC systems.
“Investors are more in tune with how their buildings are performing when it comes to sustainability and ESG today than a decade ago,” adds Green. She notes that sustainability has definitely become a selling point because potential tenants want to know how their buildings are performing in comparison to other buildings in the market.
Meanwhile, “[Institutional] investors are placing ESG, and climate change in particular, central to their investment strategies.”
Hackett notes, for example, that members of Net Zero Asset Owner Alliance, which represent roughly $5 trillion in assets under management, have pledged to transition their investment portfolios to net zero emissions by 2050.
The cost for upgrading existing buildings to achieve net zero depends on many factors, but the building’s age and relative inefficiency are key determinants, Beardsley says. She also notes that the building’s size, shape, and location may limit its capacity to generate on-site renewable energy.
However, “You don’t need to get to zero carbon all at once,” says Shula. “Create a plan to achieve carbon neutrality by 2030, then work backward to today to determine what steps to take first.”
For example, as building equipment reaches end-of-life, it should be replaced with more efficient, all-electric equipment and appliances to enable the reduction of the carbon footprint, he notes.
Getting ground-up buildings to net zero, on the other hand, adds a cost premium of zero to 1 percent when designed and developed as a high-performance building from the start, according to a 2019 USGBC report, The study also noted that operational savings recoup any incremental costs for getting to net zero in a relatively short time, with return on investment for both existing and new office buildings beginning in as little as a year.
Emma Hughes, a LEED project manager with USGBC, notes that with today’s tools, technology and knowledge all new buildings can be designed and constructed to highly efficient standards and achieve net zero energy during the construction process via integration of renewable energy generation and/or procurement.
