Close to 5 million sq. ft. already pledged in Peel to reduce energy use by 10 per cent

On May 28, Peel Region real estate executives will join CivicAction and the region’s political leaders to formally launch the Race to Reduce smart energy office challenge, which aims to reduce office energy consumption by at least 10% by the end of 2014. The event will take place from 5:00 – 7:00 pm as part of the 2012 Energy Matters Summit at the Toronto Congress Centre.

In addition to networking opportunities with senior building owners, managers, and tenants, attendees will hear from Regional Chair of Peel Emil Kolb, Mayor Hazel McCallion, Mayor Marolyn Morrison and Mayor Susan Fennell, and the volunteer Co-Chairs of the CivicAction initiative Linda Mantia, Head, Enterprise Services and Chief Procurement Officer at RBC and Michael Thornburrow, Senior Vice-President of Corporate Real Estate and Strategic Sourcing at BMO Financial Group. Award winning author, speaker, and presenter Alex Steffen will deliver the plenary keynote address at 3:30pm prior to the event launch at 5:00pm. Race to Reduce launch guests, registrants, and media are also invited to attend Mr. Steffen’s address.

As the Toronto region Race nears its first anniversary, Peel already boasts 58 office building landlord and tenant participants – representing over 4.6 million square feet of office space – and this event aims to boost those numbers significantly. Attendees will learn more about the challenge and how it can help green their bottom line.

The Race to Reduce was launched by CivicAction and its Leadership Council of the region’s major office building landlords and tenants on May 19, 2011 as a way to inspire collaboration to reduce operating costs and carbon emissions while improving the quality of the air we breathe. (Office buildings account for close to 20 per cent of the Greater Toronto Area’s carbon emissions, 37 per cent of its electricity use, and 17 per cent of its natural gas use.) The goal of the four-year program is for landlords and tenants to work together to collectively reduce the total energy use in participating office buildings by at least 10%.

Unprecedented Success and Collaboration in Year One

In Year One, 30+ major landlords and 400+ tenants have registered 136 buildings representing 58 million square feet of office space – over 28% per cent of the Toronto region’s office building space. The Peel Region includes Canada’s fifth largest office market in Mississauga, and represents a key opportunity to add to the square footage already registered. Current Peel region participants include tenants RBC, Air Canada, and landlords Bentall Kennedy, GWL Realty Advisors, and Morguard.

The Race to Reduce is open to all sizes of office building landlords and tenants in the Toronto region, and participants may join at any time.

The Race to Reduce is a project of CivicAction’s Greening Greater Toronto and is grateful for the support provided to the Race to Reduce by program sponsors Enbridge Gas Distribution, Toronto Hydro, Cadillac Fairview, Manulife Financial, Oxford Properties Group, CBRE, BLCJ, and Canadian Property Management Magazine.

For more information or to join the challenge, visit http://www.racetoreduce.ca/ or contact Tiffany Vong at tiffany.vong@civicaction.ca or 416-309-4480 x 503.

The next incentive discussed in our series is BC Hydro’s Continuous Optimization Program. This program is a part of BC Hydro’s Power Smart program for commercial buildings.

What is it?

The BC Hydro Continuous Optimization program focuses on operational conservation measures, “low or no-cost” measures that do not require the purchase and installation of new equipment. The program helps commercial building optimize the energy efficiency of their building(s) and sustain these efficiency levels over time.

The program consists of two main components:

1. Assisting commercial building owners in re-commissioning their buildings. Re-commissioning consultants used in this program are Power Smart Alliance members. There are 5 phases in the re-commissioning component:
   • Planning – initial site-walkthrough, review of current operating procedures
   • Investigation – identify findings, prioritize and select operational improvements
   • Implementation – implement selected opportunities
   • Hand Off – training on EMIS and processes
   • Coaching – providing coaching sessions for continuous improvement
2. Helping maintain and continually improve the level of efficiency of building operations through an Energy Management Information System (EMIS). Energy Advantage, in partnership with Energent, is one of three companies listed on BC Hydro’s approved EMIS vendors list.

What is the incentive?

Note: the customer is responsible for 100% of the implementation costs for energy efficiency measure identified in the re-commissioning study.

Who can apply for this incentive?

• Buildings that are larger than 50,000 square feet
• Have a building automation system in good working order
• Can provide documentation including mechanical and electrical schematics; control drawings; testing, adjusting and balancing reports; and operation and maintenance reports
• Have no plans to implement energy conservation measures over the next year. These measures include operation, retrofits and behavioural (i.e. Workplace Conservation Awareness)
• Have a building that has been occupied for at least one year of full operations

BC Hydro asks in return for the incentive that customers must commit to implement, at their cost, electricity and fuel (including natural gas, steam, hot water, propane, etc.) measures that when bundled have a two-year simple payback. It’s important to note that some customers may have to implement meters at their cost as well.

The Continuous Optimization Program has been running for over three years and has seen impressive results. On average, buildings that completed the investigation phase show a 10.8% overall cost reduction on average, with a 2.1 year simple payback.

To learn more about the Continuous Optimization Program click here.

There are multiple local distribution company (LDC) across Canada. That also means there are many energy incentive options. If you’ve had experience with energy incentives then you know how complex and daunting understanding and applying for each incentive can be. To help eliminate some of the noise and complications of understanding what incentives are available today, this blog series will outline a number of incentives across Canada.

To get started the first energy incentive discussed is part of the Ontario Power Authority (OPA) saveONenergy program. The saveONenergy program was established in 2011 and is run by over 20 LDC in Ontario. The saveONenergy program provides funding for energy audits, and distributes financial incentives for energy retrofit implementations and new green constructions.

This article will highlight the Audit Funding Program.

What is it?

The Audit Funding Program incentive is intended to cover up to 50% of the cost of an energy audit, based on requirements that take into account the size and complexity of the buildings.

There are two types of audits available for this incentive:

1. Electricity Survey and Analysis: this audit will uncover and study energy efficient opportunities at the building (ASHRAE Level 2 Audit)
2. Detailed Analysis of Capital Intensive Modifications: this audit includes detailed field data combined with rigorous engineering analysis to provide in-depth financial analysis of the project (ASHRAE level 3 Audit). This option is only available to buildings who are over 50,000 sq. ft.

What is the incentive?

For Electricity Survey and Analysis:

For Detailed Analysis of Capital Intensive Modifications:
Incremental funding to the Electricity Survey and Analysis funding for buildings over 50,000 sq. ft.

In addition to the above two incentives there is also an incentive for tenant audits.

Who can apply for this incentive?

• Commercial buildings, such as offices, retail and grocery stores, restaurants, hotels and warehouses
• Institutional buildings, including hospitals, universities, municipal halls and arenas
• Multi-family buildings, such as apartments (including social housing) or condominiums
• Agricultural facilities, including dairy, swine or poultry farms, greenhouses and nurseries

Keep in mind that the energy audit must be completed by a third party who has the following qualifications:

A professional engineer, a certified engineering technologist, a certified energy manager or a certified measurement and verification professional, who has at least three years of relevant experience evaluating energy systems in building.

To learn more about the Audit Funding Program click here.

I recently came across an article on GreenBiz that discusses how to drive greenhouse gas (GHG) reductions in the supply chain and strategies that can help advance companies GHG management goals.  Below I have summarized the key strategies that are discussed in the article.  To read the full article click here.

There are several challenges that companies face when assessing emissions across their value chains.  Most companies are aware that value chains can offer the largest opportunities for emission reductions, but are unsure of where to start.  Assessing GHG emissions across the entire value chain is essential for any business that is serious about reducing its impact on climate change.

Here are four strategies that can help advance companies’ GHG management goals:

1. Assess the entire value chain- Although companies are becoming aware that their emissions go well beyond their own operations, measuring those emissions across the value chain is still new territory.    In October 2011, the Greenhouse gas protocol launched their corporate value chain (scope 3) standard, which was the first comprehensive standard for measuring and reporting emissions for an entire corporate value chain.  The new standard separates emissions into 15 categories which provide a helpful framework for companies to engage suppliers, manage emissions and communicate results.  Categorizing emissions in this way enables companies to focus on the activities in the value chain that offer the biggest opportunities for GHG reductions.  On average, scope 3 emissions account for 80% of a company’s total emissions.
2. Move beyond disclosure to set targets and achieve GHG reductions- The crucial first step in reducing your emissions is to conduct a full assessment of your companies’ value chain, as it identifies areas with the greatest emissions and enables a company to focus their resources in areas with greater opportunity for reductions.  Next, companies should use this information to set targets and realize actual reductions in their GHG emissions.  This can be very difficult and there’s no single solution or guide on how to set your targets, but the scope 3 standards can be used to help generate more ideas, and disclosure programs can begin to push members in the right direction.
3. Increase supply chain engagement and cooperation- Engaging with suppliers is one of the best ways to achieve GHG emission reductions.  Companies in the early stages of engaging with suppliers are already seeing benefits.  In 2011, the Carbon Disclosure project (CDP) supply chain program collected data from 1,864 suppliers. A third of respondents said they have benefited from new revenue streams and financial savings as a result of their suppliers carbon reduction activities.  Some of the benefits that are being achieved from effectively engaging with suppliers include new revenue streams, improved supply chain efficiency, reduced risk of suppliers increasing costs, reduced risk of supply chain business interruption and improved relationships with suppliers. To see the main results of the CDP’s 2012 supply chain survey click here.
4. Innovation- Taking that next step beyond best practice involves innovation.  As companies begin to understand the importance of greenhouse gas emissions and their relevance for the whole value chain, there will be opportunities for creative thinking around the best ways to realign business models to a low-carbon economy.

Leadership and innovation is crucial to make real progress on combating climate change.  Corporate action is this arena makes good business sense as it often leads to opportunities to bolster your bottom line, reduce your risk, and discover competitive advantages.

Source: GreenBiz

Now that you’ve identified, analyzed and implemented certain measures the last step is to measure, verify and report the performance of the program. The purpose of a performance measurement plan is to provide ongoing accountability, to identify proper savings and measure goal and/or target achievements.

There are best practice documents available for different types of program results. An example in the field of energy reduction is the Efficiency Valuation Organization’s International Performance Measurement and Verification Protocol (IPMVP). The IPMVP offers best practices and procedures for measuring and verifying energy savings in a program. The IPMVP approach is focused on confirming reductions of energy and water use but its framework can be extended to other disciplines, such as verifying emission reductions associated with energy efficiency projects.

The IPMVP offers four approaches to measuring and verifying savings:

Retrofit Isolation: Key Parameter Measurement. Savings are determined by field measurement of the key performance parameter(s) which define the energy use of the energy conservation measure’s affected system(s) and/or the success of the project. Measurement frequency ranges from short-term to continuous, depending on the expected variations in the measured parameter and the length of the reporting period. Example: measuring the electrical demand of a retrofitted lighting system.

Retrofit Isolation: All Parameter Measurement. Savings are determined by field measurement of the energy use of the energy conservation measure-affected system. Measurement frequency ranges from short-term to continuous, depending on the expected variations in the savings and the length of the reporting period. Example: electrical sub-metering of retrofitted manufacturing equipment.

Whole Facility. Savings are determined by measuring energy use at the whole facility or sub-facility level. Continuous measurements of the entire facility’s energy use are taken throughout the reporting period. Example: examining the total annual natural gas consumption before and after an HVAC retrofit, using utility bills.

Calibrated Simulation. Savings are determined through simulation of the energy use of the whole facility or of a sub-facility. Simulation routines are demonstrated to model actual energy performance measured in the facility adequately. (This option usually requires considerable skill in calibrated simulation.) Example: creating a building simulation in Natural Resources Canada’s EE4 software, to model the effects of multiple retrofitted systems.

In the table below are some further examples of verification methods used in other areas of sustainability.

Identified in step one and reiterated here is the importance in having a solid reporting framework in place at your company. Data that is transparent, complete and accurate is crucial to effectively measure and verify program results.

Once data is available you can track and report against applicable key performance indicators and any additional metrics that your company deems relevant. It will be important to determine what to do in the instance that a target or goal is not achieved. You might consider a grace period, additional assistance or applying consequences to the business unit or facility that is out of compliance.

When establishing reporting you will need to contemplate the following:

• Frequency of Reporting. Will reporting be done monthly, quarterly or annually? You might consider a combination such as full annual reports with quarterly updates. There is a trend toward more frequent reporting to enhance transparency.
• Target Audience for Reporting. Which stakeholders are you reporting to? Possible audiences include shareholders, regulators, employees, customers and the community at large. Do you need to generate different reports for different audiences?

Running a successfully sustainability program is an on-going effort and does not end after completing monitoring and verification activities. Expect changes to happen, on-going updates and continuous reporting to ensure your company is meeting set goals and/or targets. It’s recommended to annually review and update the program depending on changes within your company, developments in the market place and evaluation of program success from the previous year.

Articles about energy and environmental matters happening around the world.

‘Low-Carbon Economy’ Presents Early Escape from Darker Future 
A switch to a low carbon economy could help avoid a future of water scarcity, flooding, and desertification, especially in the already vulnerable Middle East and North Africa regions.  Continuing with business as usual does not guarantee a safe future.  Economist Dirk Messner warns that if the global community doesn’t react within one or two decades, it will run into irreversible dynamics.

Bill Gates on the Five Miracles Needed for Energy and Climate Challenges
Bill Gates recently spoke with several CEO’s and corporate leaders about how he has accelerated his involvement in clean energy solutions.  He is dedicating significant amounts of time and resources to pursue clean energy solutions.  Bill Gates’ goal is to get the world’s emissions to Zero within 75 years.  In order to make this happen, we need to focus on five areas: carbon capture, nuclear, solar, wind and bio fuels.

Want a ‘Green’ Building? Build it for Disasters
A growing number of architects and planners are making the case that a green building should be defined as one that doesn’t need to be rebuilt after disaster strikes.  The US Green Building Council’s LEED system rewards builders for installing energy-efficient lighting and gray water capture systems, but doesn’t give incentives for building structures that can withstand earthquakes or hurricanes; at least, not yet.

Is this the Dawn of Dark Days for Solar Power?
One of the world’s leading markets for solar power, Germany, is pulling back its subsidies.  What does this tell the rest of us?  It should tell us that we need to get serious about energy and climate policy.

Ontario Energy Sector Changes Coming Soon
The province of Ontario has been looking into merging certain agencies and to find ways to dial back costs, and changes could begin to the energy sector as early as this summer.  The Liberals have promised a review of the sector in their budget.

By: Tiffany Richmond

Today climate change, sustainability and the related governance of these areas are high on the agenda of many global companies’ boards and management teams. Leading organizations recognize the risks and opportunities associated with this these topics considering their direct impact on costs, reputation and regulatory requirements. Along with this focus on sustainability organizations are seeing the value of regular public disclosure of their sustainability initiatives. Research has demonstrated that companies that disclose the results of their sustainability initiatives, particularly those programs focused on energy efficiency and environmental reduction actions, have achieved a higher performance in terms of bottom-line results from their sustainability programs.

While there are many avenues for public disclosure increasingly companies are reporting their results on the various public financial indexes that have emerged across the globe, such as the Dow Jones Sustainability Indexes (DJSI) and the Financial Times and the London Stock Exchange4Good Indexes (FTSE 4Good Indexes). The use of a public index allows the company to post its results within a trusted and respected source and compare their performance to their peers an “apples to apples” comparison.

In addition to these indexes organizations voluntarily report their sustainability performance and progress through regional or global programs, such as the Carbon Disclosure Project (CDP).

So what exactly is corporate sustainability and why are sustainability indexes gaining popularity? Are organizations disclosing their data to showcase their commitment to reduce their carbon footprint? Is it to increase the valuation of the company to investors? Or is it to show the investor community they have a sustainable business model?

To continue reading and learn how tracking and publicly disclosing your sustainability performance can positively impact your bottom line and the valuation of your business, download the full Corporate Sustainability paper here.

Employees of Energy Advantage will be turning off their lights for one hour on Saturday March 31, 2012 at 8:30 PM to support Earth Hour 2012. Are you?

Energy Advantage recently launched a company Facebook Page to educate and encourage conversations about energy and sustainability matters and to provide a more powerful way for you to connect with us.  We encourage you to join in on the conversation about the ongoing trends and changes in the energy and environmental management industry.

Through connecting with us on Facebook, you can expect to find the following:

• Recent energy exchange blog articles posted weekly
• Topical and news worthy information related to energy and sustainability management
• You’ll be able to start and join discussions on a variety of topics
• And finally, you’ll join a community to share experiences and best practices

So please join us on Facebook and invite your friends to join along too!

Every two years, thousands of people from around the world interested in advancing sustainability come together in Vancouver for three intense days of learning and networking. Since 1990, the GLOBE biennial conference has served as a major world platform to transform environmental challenges into business opportunities. It’s like the Grammy’s for thought leaders, but with less red carpet and gowns.

This year, the discussion themes were selected in a context of turbulent economic times. Unstable capital markets coupled with recessionary forces and spending restraint are putting huge pressures on governments and corporations across the globe. The GLOBE organizers added some cultural wisdom to the event by sharing that the Chinese character for ‘crisis’ amalgamates two symbols: one represents risk, the other opportunity. This leads me to wonder: How can we as a society find the silver lining to our global crises and advance corporate social responsibility? What can we do to build a sustainable economy through innovation?

Perhaps the opportunity for change lies with collaboration between leaders from academic, commercial, and political spheres around the world. GLOBE has a major emphasis on meaningful interaction between businesses, municipalities, technology leaders, and public policy decision-makers. To support this philosophy, Energy Advantage hosted an event at GLOBE with the sole purpose of creating connections to accelerate the development of a more sustainable economy. Over an informal dinner in historic Gastown, leaders in the real estate industry from across Canada joined Peter Robinson, the CEO of the David Suzuki Foundation, to ponder their role in promoting social and economic innovation.

It’s interesting that GLOBE included the Chinese interpretation of crisis as a crossroads for society; this cultural image aligns well with one of David Suzuki’s most profound insights about the evolution of humanity. Dr. Suzuki has spoken for decades about the assets of our earliest ancestors being our brains rather than our bodies. It wasn’t our speed on land or in water that allowed us to dominate the planet – it was our ability to look ahead, predict danger, and change course accordingly. Foresight – the uniquely human capability to adapt plans for the future based on our experiences of the past – was the basis of our success.

But I don’t think that GLOBE got everything right. I can’t help but pause when I read the theme for day three was around managing change. For a number of reasons, I take issue with framing sustainability to be about directing a clear outcome. Sustainability is by its very nature emergent; it is the combination of many social, economic, and ecological factors that can’t – and shouldn’t – be controlled. Beyond semantics, it simply doesn’t advance social innovation to talk about the need for change or how to manage it. From a psychological perspective, people have a visceral reaction to “change.” It’s threatening, and most of us try to avoid it as much as possible (don’t believe me? Ask yourself when you last chose a different brand of toothpaste). I think it’s far more useful to place innovation at the heart of sustainability, and to provide positive illustrations from the public and private sector that clearly illustrate the benefits of an ever-evolving and improving practice.

Lucky for us, we don’t have to look far. Energy Advantage is fortunate to be working with corporate and municipal leaders across the country. Want to join the party? The red carpet is waiting for you.