February 4, 2015 National 8(a) Association Winter Conference Orlando, FL Sustainability for Small Business

Safety Share (Zero Harm)

Susie Westrup Corporate Sustainability Manager Meet the Team Layli Pietri Small Business Manager

 Sustainability and the Marketplace  Green Building Practices  Balfour Beatty Construction’s (BBC) Approach to Sustainability  Benefits for your Business  What Large General Contractors are Seeking  Next Steps Agenda

 Sustainability Defined: -The capacity to endure (Business) -Meeting the needs of the present without compromising the ability of future generations to meet their own needs (Personal) Sustainability Share

 Engine of our economy  28 million small businesses in U.S.  Employ 60 million Americans (half of the private sector workforce) Small Business – Taking Us to the Next Level

 Fortune 500 -Chief Supplier Diversity Officer -Supplier Diversity Programs  Corporate Social Responsibility Reports  Drivers -Continuous innovations -Increased sales and market share Corporate America

 U.S. population = 5% of world’s population.  U.S. uses 40% of world’s resources. If everyone on earth lived like the average American, we’d need at least 5 planets! Why Sustainability?

 President Obama Executive Order Achieve 50% recycling and waste diversion Improve water efficiency 26% -Meet sustainability requirements across 95% of all applicable contracts Implement net-zero-energy building requirement  GSA reduce overall greenhouse gas emissions (GHG) by 30% by Long-term goal of zero environmental footprint Federal Government

 Corporate Sustainability rankings: -Global 100: Most Sustainable Corporations in the World (Annual Project by Corporate Knights) -Newsweek – Green Company Rankings  Chief Sustainability Officers exist alongside COOs and CFOs -E.g. Heinz; Lucent Technologies; Chevron  Dow Jones - Sustainability Index  Benefit Corporation – B-Corp -Corporate structure obligates “triple bottom line” Marketplace

 Walmart, Bank of America, Google, Ford Motor Company -Over 80% of the Global 500 report to CDP -Climate Change -Water -Supply Chain -Supplier Sustainability Scorecard -Sustainable Procurement Policies -Supply chain engagement and reporting requests Marketplace

 Also known as sustainable or high- performance building  Refers to a structure and using process that is environmentally/ socially responsible and resource- efficient throughout a building's life-cycle  Requires close cooperation of all team members: design team, general contractor, engineers, and client  Occurs throughout the life-cycle of the project (every stage) Green Building

 According to the U.S. Green Building Council, total revenue across the industry should grow to $245 billion by  Leadership in Energy and Environmental Design (LEED) Green Building

Living Building Challenge

Balfour Beatty’s Approach to Sustainability

 Client service program  Charitable fundraising  Projects to Program - (schedule compliance)  Projects to Bid Margin (profit margin)  Overhead  Ethics and compliance  Profit  Margin in the order book Economic

 Client satisfaction  Community engagement  Supply chain engagement  Health and safety  Diversity  Staff satisfaction Social CANstruction Annual Charity Event Total 2014 Diverse Spend: $ 716,774,039

 Ecology  Scope 1 and 2 GHG Emissions  Waste generated  Waste to Landfill  Water  Responsible sourcing of major materials  Environmental compliance  CDP Score Environmental

Innovation

 Affects your bottom-line – saves you money  Generates new sources of income  Retains employees and adds new employees  Improves processes, enhances efficiency, and increases productivity  Ensures longevity and sustainability in the marketplace  Niche in the Marketplace- opportunities for innovation Benefits for your Business

 Efficiency  Waste reduction  Life Cycle Cost Analysis  Employee engagement  Innovation Ways to Save Money!

Efficiency  Energy  Workers  Spending Efficiency

 Ways to engage staff: -Staff meetings -Project meetings -Green team -Competitions -Celebrate it! -Prizes Culture

 Total cost of ownership over the life of an asset  Also commonly referred to as "cradle to grave" or "womb to tomb" costs  Whole-life cost including planning, design, construction and acquisition, operations, maintenance, renewal and rehabilitation, depreciation, and cost of finance and replacement or disposal Life-Cycle Cost Analysis (LCCA) Preventative Maintenance Costs Operating Costs Disposal Costs Initial Cost Service Costs

 Integration/Synergy  Focus on Quality  Expertise  Innovation What Large General Contractors are Seeking in Partners

 Internal business practices  Delivery of goods and services  Sustainability Plan  Sustainability Scorecard  Innovation and niche in the marketplace Next Steps

Contact Information: Susie Westrup, Corporate Sustainability Manager (704) Layli Pietri (703)