Presentation at Cincinnati conference re: Evolving Green Economy

1. 18th Annual Business & Industry’s
Environmental Health & Safety Symposium
March 25, 2009
Evolving Green
Economy … Financing,
Design, Energy & Legal
Implications of
Sustainable Practices
and Their Impacts to
Manufacturing

2. PRESENTERS
Summer J. Koladin Plantz
Staff Attorney, Vorys Legal Counsel
Donna Robichaud
Duke Energy Corporation
Gregory Ward
Vice President, Wells Fargo Real Estate Group
Todd D. Holloway RLA, PWS
Principal, Civil & Environmental Consultants, Inc.

3. Motivation
Sustainability
Execution Objectives
Incentives

4. “The ability to provide for the needs of the current generation
without compromising the needs of future generations…”
The Dow Jones Sustainability Index defines corporate sustainability as:
“a business approach that creates long-term shareholder value by
embracing opportunities and managing risks deriving from economic,
environmental and social developments.”

5. Summer J. Koladin Plantz
Vorys Legal Counsel
MOTIVATION
Legal Issues Associated with
Sustainable Manufacturing

6. Regulators
Lenders Consumers
Shareholders/
Company
Competitors
Investors
Public/
Employees
Community
Partners

7. When do legal issues arise?
• Components
• Production
• Transportation
• Marketing & Use
• Disposal
• Reuse

8. What is in your product?
• Consumer Product
Safety Improvement
Act of 2008
• REACH
• State legislative
proposals

9. Transportation and Packaging
• GHS
– Classification
– Labeling
– Packaging

10. Transportation and Packaging
• What materials are you using to transport
and ship your products?
• UPS
– No left turns
– http://www.pressroom.ups.com/mediakits/factsheet/0,1889,1493,00.html
• Fetzer Wine
– Lighter wine bottles
– http://www.fetzer.com/protect.aspx

12. Advertising
• Federal Trade
Commission “Green
Guides”
– No false or misleading
advertising
• What are you using?
– Catalogue, ads
– What are these items
made from?

13. Contracting
• Details, details, details
• Environmental Audits
• Component
Parts/Supply Chain
• Manufacturing
Specifications

14. Disclosure Obligations
• What risks related to sustainability are
associated with your manufacturing
process?
• Are you required to disclose these risks?
– Shareholders, Directors, Partners, Investors,
Lenders may ask
• Emissions Disclosures
• Climate Risk & Emissions Management
• Physical Risks of Climate Change
• Regulatory Risks
– Excel Energy and Dynegy Settlements

15. Donna Robichaud
Duke Energy Corporation
OBJECTIVES

16. Gregory Ward
Wells Fargo Real Estate Group
INCENTIVES

17. Operating Incentives – Your
Money!
• Retain money for your company from
items you hate spending on in the first
place:
– Taxes
– Utilities (Energy, Water,
Waste/Recycling)
– Financing
– Soft Costs (Design, Renovation,
Changes in Processes)
– Employee Retention
• Comply with ever-increasing standards
from your customers

18. Incentives – Real Estate
• Not just for new construction – retrofits can also be
“Green” - Sustainable design improves cost of
future retrofits, too!
• Design costs can be lower - coordinated design
effort, cheaper/easier retrofits in the future
• Lower Operating Costs for Facilities – also limit
financial risk of possible future tax increases
– Energy costs for the building alone can be reduced
(25%-35% on average)
– Greater control over water and energy use, access to
power, period controls to limit unproductive use
• Marginal Cost to “Go Green” - cost difference can
be negligible (0-3% on average)

19. Types of Incentives
• Branding/Reputation
• Complying with tougher customer
requirements
– (ISO, etc.)
• Tax Incentives
– Building materials and systems (new 8 year term on
Solar, lots of other state & local incentives – new
Federal incentives coming)
– Equipment –can be utilized to reduce cost of financing
– Energy
• Improved worker productivity

20. How to Get Most Bang for
Incentive Buck
• Study trends in your industry – target any project
to meet future needs
– Can you serve your customers without an improved
process/facility/equipment?
– Can your suppliers meet your needs?
– Does a new standard require a shift in supply chain?
• Understand terms of any tax incentives (products,
process, materials, timeframe)
• Work with qualified professionals to assess ROI
(architects, contractors, any industrial design
experts for a new or renovated facility)

21. Educate Service
Providers/Suppliers
• Educate service providers
– Accountant
– Banker
– Appraiser
– Attorney
• They must understand Cost/Benefit and the potential
positive/negative impacts to your business
• Work with suppliers and customers to
ensure costs/incentives are managed
across organizations

22. Todd D. Holloway RLA, PWS
Civil & Environmental Consultants, Inc.
Unites States Green Building Council
Heartland Regional Chapters
NAIOP
EXECUTION
Facilities, Processes and Image

23. “the Triple Bottom Line”
Source: www.Sustainability-ed.org
EXECUTION

24. Environmental Impact of Buildings in the US
EXECUTION

25. The Average High Performance/Green Building Saves:
EXECUTION

26. Life Cycle Benefits
EXECUTION

27. LEED® Defined
High Performance Building Rating:
EXECUTION

28. Green Facilities and Infrastructure
- Advanced Storm Water Management
- Natural Lighting/High Efficiency Lighting
- High Efficiency Roofing
- Native/Low Maintenance Landscaping
- High Efficiency HVAC/R
- Indoor Air Quality
US Citizenship and Immigration
Services-Detroit, MI
-Reduced Emissions
Source: Arcus Group, Cleveland Ohio,
architects
- On-site Renewable Energy
High Performance Facilities
(examples: Ford Motor Rouge Assembly
Proctor and Gamble, Lodz, Poland)
EXECUTION

29. Green Business Processes
- Waste Management and Recycling
(shipping and cast off)
- Delivery Methods
-Water Use Efficiency
(water re-use, bio-treatment)
- Supply Chain Requirements
(ISO 14001 and ISO 26000)
- Worker Productivity and Satisfaction
(sick days, health care costs, output, accuracy)
EXECUTION

30. Sustainable Image and Public Relations
-Talent Attraction and Retention
(the Millennials)
- Purchase Orders and Consumer Preferences
- Brand Distinction and Differentiation
- Community Stewardship/Good Company Image
(fuels all three above)
EXECUTION

31. QUESTIONS?
Summer J. Koladin Plantz
513.723.4030
skplantz@vorys.com
Gregory W. Ward
216.344.6945
Greg.W.Ward@wellsfargo.com
Donna Robichaud
513.419.5980
Donna.Robichaud@duke-energy.com
Todd Holloway
248.374.8600
tholloway@cecinc.com