Introduction to Sustainable Solutions Be a leader. Use less energy. Use smart energy. Introduction to Sustainable Solutions Johnson Controls, Inc.
Our Vision: A more comfortable, safe, and sustainable world. Our Values Integrity Customer Satisfaction Employee Engagement Innovation Sustainability
… we want to know what concerns you Our business approach: We start by listening… … we want to know what concerns you Our Values Integrity Customer Satisfaction Employee Engagement Innovation Sustainability
How do you address these concerns and opportunities? What’s on your mind? Energy prices, global economy, water, emissions, green public pressure… “high energy costs alone can be a competititve disadvantage in today’s high-price environment and sufficient motivation to focus senior management attention on energy efficiency.” ‘McKinsey Global Institute How do you address these concerns and opportunities? Every business is faced with challenges today – from energy and water prices or GHG emissions to finding a way to appeal to new employees and new customers through the promise of green products and green workspaces. So how does one address these concerns? How do you get started? It is important that you start with someone experienced. “the brand value from being ‘green’ is increasingly valuable among environmentally conscious consumers” -McKinsey Global Institute
Challenging Global Economy Commodity Prices Water Contaminants Challenging Global Economy GHG Emissions Water Scarcity Climate Change “Perfect Storm” Your Concerns Energy Prices Increasing Water Rates Increasing Demand for “Green” Increasing Our Value Proposition Water Efficiency Energy Efficiency Renewable Energy Asset Renewal Your Benefits SAVE Money SAVE Resources Sustainable, Green Environment
Start with sustainability You may have heard of the triple bottom line of sustainability – one needs to manage with considerations concerning all 3 elements – the environmental impact of a decision, the community benefit of a decision and the economic benefit of the decision. It doesn’t require sacrifice; it requires a new mindset, a new approach. Sustainability doesn’t require sacrifice; it requires a new frame of mind
Sustainability and green are competitive drivers… Recent global survey of CEOs on the topic of sustainability: 75% said sustainability is either an important part of corporate strategy or expect it to be important in the future Why have a sustainability strategy? To have a competitive advantage To be seen as leaders Public interest in the environment Whether you want to be re-elected, drive new business or drive higher margins, green can have an impact. Source: Vandiver Group and Pinnacle Worldwide, 2008
We provide SOLUTIONS to help you on the path to sustainability… asset renewal energy and water efficiency community engagement
Path to Sustainability Economic Benefits + Environmental Impacts + Social Responsibility Economic Benefits Energy savings Water savings Operations & Maintenance (O&M) savings Improved occupant productivity Environmental Stewardship Greenhouse Gas reduction Lower water and fossil fuel consumption Social Responsibility Job creation Local MBE participation Economic development Community education and public awareness
Water Conservation and Efficiency Efficiency Now – it’s never been more important! Water Conservation and Efficiency Water Solutions Renewable Energy Community Engagement Energy Efficiency What does Johnson Controls do to help drive sustainability? A series of services and products, including a broad scope of energy efficiency and water efficiency measures. Government Green Buildings
Efficiency Now – It’s never been more important THE PROBLEM: People who own and manage buildings are under intense pressure to: Manage higher energy and operating costs Reduce the environmental impact of their building and operations Improve comfort and productivity of their occupants THE SOLUTION: We believe improving efficiency in buildings is the first and more important step to relieve the pressure. We’ve invested in the people and technologies to maximize efficiency. We deliver efficiency with ingenuity and integrity.
A lot of companies can help you be “green”… A lot of companies can help you be “green”… What makes Johnson Controls unique? Leadership and Experience Leading Technology Renewable energy Wireless environments and tools Modular central utility plants Carbon and water footprinting Proprietary tools to do an in-depth analysis of your facilities Huge database of water and energy improvement options for your environment Custom modeling tools Industry Experience Over $4.6 billion in energy and water efficiency savings guarantees We have helped our customers save 10 million metric tons of carbon dioxide since 2000 Largest performance contractor in North America 2/3 of our project development teams have Master’s degrees or higher 2/3 of our project development teams are Certified Energy Managers (CEM) Extending the Savings We’ll help you extend your savings by educating employees and other occupants Technology Tools Experience End users
Behind every one of our employees are significant resources… Water Conservation Green Buildings Service and Maintenance Energy Efficiency Municipal Utility Solutions Renewable Energy Energy Plants Wastewater verizon slide Renewable Energy Green Buildings Water Conservation Service and Maintenance Municipal Utility Solutions Wastewater Energy Plants Wireless Applications Wireless Applications Facilities Management
In a nutshell, we can help you… CREATE a healthy environment SAVE ENERGY AND WATER (through environment retrofits and other strategic tools) USE SMART energy (through renewable energy)
Learn More About Johnson Controls Markets and Services Learn More About Johnson Controls Markets We Serve Services We Provide Energy Performance Contracting K-12 Education Local Government Renewable Energy Solutions Higher Education State Government Water Solutions Health Care We’d like to begin this morning with a brief executive review of our proposed solution. Doug is then going to share with you how we plan to implement our project. We will then turn the floor over to Dean to review our Monitoring and Verification approach. I will then cover a few wrap up items and our team will then be prepared to answer your questions. Green Buildings Public Housing Innovation Services Summary
Energy Performance Contracting “Energy efficiency is the greatest form of new energy we have.” Fortune magazine, 2008 Back
Energy Performance Contracting Reduce energy usage Reduce water usage Reduce operating and maintenance costs Reduce emissions Reduce waste In short, Performance Contracting is a procurement tool that allows you to leverage the savings you get from making building improvements in order to pay for the improvements. How does it work? EPC allows you to realize all of these reductions – energy, water, operating costs, emissions, waste… In short, PC is a procurement tool that allows you to leverage your future savings to pay for building improvements today.
Customer Discussion to Identify Goals: energy efficiency, emissions reduction, operational savings, water savings, etc. Preliminary audit/Site visit Customer commitment Detailed audit Sophisticated analysis tools used to gather data and develop customized solution Energy Performance Contract with Savings Guarantee Improvements such as: walk customer through very simplified outline of PC process Lighting, water, HVAC, renewable energy, building upgrades, wireless, meters/controls Lower Water Use Lower Utility Use Reduce Waste Reduce Emissions Reduce Ops Budget Reduce Maintenance Meet Customer Goals
How do we reduce energy and water use? We use a host of products and services: Lighting upgrades Building management systems Water conservation measures Temperature controls Chiller and boiler upgrades Facility repairs and upgrades Renewable energy (solar PV electricity, solar thermal heating, geothermal, etc.) Green building solutions Wireless infrastructure Others
How are your costs impacted with Performance Contracting?
Performance Contracting – your costs today Your Utility Bill Before Note: this is for illustrative purposes
Performance Contracting – during the term of the contract Immediately begin to enjoy the savings Your Utility Bill Payment for Efficiency Upgrades Your Savings Before During Note: this is for illustrative purposes
Performance Contracting – enjoying the full savings Enjoy the full savings Your Utility Bill Payment for Efficiency Upgrades Your Savings Before During After Note: this is for illustrative purposes
Energy Performance Contracting – Things to Know Energy and water savings are largely guaranteed by us: our engineers can determine the impact the building improvements will have on your utility bills so we guarantee those elements of our work We are experts in energy and water efficiency and the solutions required to maintain your facility’s peak performance We can include renewable energy in the collection of environment enhancements we perform Your operating costs can be reduced without capital expenditures Your environment is healthier and more productive Johnson Controls is the largest supplier of performance contracting guarantees in the U.S.