Tuesday
Aug032010

Builders try to prove green homes can be affordable

 

In a time period when recession is affecting most families around the nation, the housing industry is one of the first to get hit - and hit hard. The notion of innovation in such an industry that is struggling sounds a little farfetched. However, the buzz surrounding green building is spreading like wildfire around the globe. Builders and homebuyers alike are coming to the realization that one day soon, all construction will have to be more environmentally friendly. One of the biggest road blocks these builders are facing is attempting to convince buyers that green structures CAN be affordable. An article found in the Green House Community on USAtoday.com refers to a few different companies that are striving to build affordable green communities for not only the green thumbs, but the less concerned citizens as well:

 

As posted on USAtoday.com (July 29, 2010)

Can green homes really be affordable? To stand out in a still sluggish housing market, more builders are beginning to offer average-priced, ultra-efficient homes. In Beaverton, Ore., Green One Construction Services is building a zero-net-energy development of 18 homes designed to produce at least as much power as they use.

The three-bedroom Sage Green homes, the first five of which are complete, come with superior insulation, triple-glazed windows and solar panels. Prices start at $257,900. (You can see more pictures on Preston Koerner's Jetson Green blog.)

This month in Gilbert, Ariz., a southeast Phoenix suburb, Meritage Homes unveiled a new development -- Lyon's Gate -- that aims to be 80% more efficient than regular, code-compliant homes.

Included in the $174,900 base price are nine-inch thick exterior walls, a thermostat that can be remotely programmed using an iPhone and an ECHO solar electric/thermal system that can produce up to 10 kilowatts of power annually -- about half the amount consumed by a regular house.

"If customers respond to this, this will become the way we build houses," C.R. Herro, Meritage's vice president for environmental affairs, told the
Arizona Republic. "If we built these with $50,000 worth of (green) features and charged $50,000 more, we wouldn't sell one...I'm building these for people who couldn't care less about energy efficiency."

Energy bills are estimated to run about $734 annually for the 1,640- square-foot model and $1,218 per year for the largest, 3,062-square-foot one.

 

Contributing Author: Carly Krei
carly@hhahba.com

Monday
Jul192010

5 Ways to Achieve Top Line Business Value Through Sustainability

As published on greenbiz.com.

 

 

In a comprehensive study released recently by the United Nations Global Compact and Accenture, a survey of 766 CEOs from around the globe indicate that despite the economic downturn, sustainability will be critical to the future success of their companies.  An amazing 93 percent of CEOs indicated that a tipping point could be reached that integrates sustainability with core business processes and systems, and its supply chains. 

So this suggests that triple bottom line (TBL) practices and measurements will become commonplace in business … or will they.  Perhaps there is another way of looking at this trend  given the top-down commitments that CEO’s believe are necessary to create this massive shift in corporate behavior. This point of view is called triple top line, but has generally been trumped by its “bottom line” twin.

Setting the Context

Top-Line Definition 

The total revenues an organization reports on their income statement. While many activities within an organization are focused on reducing costs, initiatives such as innovative product and service development focus on creating more valuable and desirable offerings that increase revenues. Attention to human and natural capital (as well as financial capital) can often increase revenue by differentiating a company and its offerings in a beneficial way to the market. When this is done poorly however, it can be seen as green-washing and results in the opposite effect.

In contrast, bottom-line refers to Net Income (top line revenues -- expense). Bottom-line activities typically focus on cutting expenses in order to improve income. William McDonough also coined this term from a design perspective in his landmark book Cradle to Cradle: Remaking the Way We Make Things (2002, North Point Press).

Triple Top Line Definition

The effect that attention to sustainable management of natural, financial, and human capital has to an organization by increasing revenues (by offering more desirable products and services) and reducing costs and expenses throughout operations (through more streamlined operations. While many of these benefits are measured in terms of triple bottom line accounting, even more valuable are their effects to a company’s top-line financial performance because they require less capital investment and reduce the cost of capital.

In the UN/Accenture report, CEOs cited several barriers to achieving their sustainability goals, including ‘organizational silos’, competing priorities and lack of ‘value recognition’ by investors. To counteract these barriers, several steps were needed, including CEO leadership to create real, value-added and long term change. Specifically, five key areas were mentioned:

  • Shaping consumer preferences for sustainable products.
  • Training, training, training on sustainability issues- not only for the rank and file but managers too.
  • Improved investor communications with investors to create a better value proposition about sustainability.
  • Improved TBL metrics and communication of the value of business in society.
  • Partnering with governments to shape policy and regulation and create a level playing field.

In sustainable terms, both a top-line and bottom-line focus is important.

However, many recent efforts to slash expenses in the short-term can actually hurt long-term sustainable value.

Like the UN/Accenture study suggests, a focus on increasing top-line value through innovation, lean thinking, and smarter brand enhancement can lead to more sustainable and profitable growth.

I offer a simple framework to start down the path of sustainability from a top line perspective that recognizes human and natural capital as well as financial aspects of business.

 

 

1. Understand the current situation.

Gain awareness of the context in which environmental top line value can be realized.

  • Take stock of the organization’s core business strengths / strategies.
  • Identify the environmental aspects of the organization’s processes and services in each link of the organization’s value chain.
  • Identify customer environmental challenges and how the processes and services relate to customer needs.
  • Develop a business case for moving forward.

 

2. Develop a strategy.

Decide upon a strategy for creating environmental top line value that supports the organizations business strategy and takes advantage of the organization’s strengths.

  • Develop a top line strategy that will be a best fit for the organization.
  • Consider how the strategy will address sustainable business practices.
  • Determine whether any changes are needed to the existing business model or strategic plan to realize the strategy.
  • Develop an action plan to implement the strategy.

 

3. Choose initiatives and measure progress.

Develop and implement initiatives that will bring the strategy to life.

  • Consider how the organization’s existing processes and services can be positioned to address the chosen strategy, using the case studies for inspiration.
  • Examine each link of the product value chain to identify potential initiatives, such as reuse of recycled materials, resource optimization, reduced energy or water consumption, all of which can create top line value.
  • Measure your efforts by establishing meaningful and measurable key environmental, social and financial performance indicators
  • Be realistic about how process changes that can have direct environmental benefits fit into the overall set of differentiating features and benefits of the process. Do not assume that consumers will be willing to pay a price premium or accept performance or quality trade-offs.
  • Examine customers’ value chains to identify top line opportunities to meet customer expectations and support their sustainability initiatives.
  • Identify potential partnerships with stakeholders that will lead to top line value by promoting collaborative supply chain management.

 

4. Gain internal alignment.

 The process of aligning an organization around the importance of taking action begins at the time an organization first develops an awareness of the context in which environmental top line value can be realized, and carries all the way through implementation of the top line strategy.

  • Gain buy-in from top management.
  • Communicate the business case for moving forward.
  • Identify internal champions within the organization who will move the top line initiative forward.
  • Start with pilot efforts to test the waters and generate early successes.
  • Communicate early successes.

 

5. Maintain the momentum.

 Develop processes for maintaining the momentum of the top line initiatives.

  • Create a change management process to build environmental factors into new or modified processes or activities.
  • Develop business-based metrics of environmental and management and top line success.
  • Develop an award and recognition program for ideas or projects that result in environmental and/or management top line value.
  • Integrate environmental stewardship and associated activities with all Water Operations.
  • Raise the capabilities of the customer service function to probe for and address customer-specific environmental or social responsibility issues/ concerns.

By following this simple plan-do-check-act process, companies (large and small) can create upstream supplier alignment, downstream value for their customers and maintain a more secure competitive financial position in the global marketplace.

 

Contributing Author: Carly Krei
carly@hhahba.com

Tuesday
Jul062010

Obama announces nearly $2 billion in solar energy grants

 
As published in USA Today, July 3, 2010

 

President Obama announced nearly $2 billion today in conditional grants for two solar energy companies that have pledged to build plants in the United States.

 

Obama, in his weekly Saturday radio address, said the companies will provide clean energy and needed jobs. You can watch him speak or read the text on the White House website.

 

"But the truth is," he said, "the recession from which we're emerging has left us in a hole that's about 8 million jobs deep. And as I've said from the day I took office,It's going to take months, even years, to dig our way out -- and it's going to require an all-hands-on-deck effort."

 

Obama said the grants are just two of the many in the three-year Recovery Act that are aimed at developing a clean energy economy. Others promote nuclear power plants, carbon capture technology, biofuels and wind turbines. He described the two solar companies:

 

The first is Abengoa Solar, a company that has agreed to build one of the largest solar plants in the world right here in the United States. After years of watching companies build things and create jobs overseas, it's good news that we've attracted a company to our shores to build a plant and create jobs right here in America. In the short term, construction will create approximately 1,600 jobs in Arizona. What's more, over 70 percent of the components and products used in construction will be manufactured in the USA, boosting jobs and communities in states up and down the supply chain. Once completed, this plant will be the first large-scale solar plant in the U.S. to actually store the energy it generates for later use -- even at night. And it will generate enough clean, renewable energy to power 70,000 homes.

 

The second company is Abound Solar Manufacturing, which will manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs. A Colorado plant is already underway, and an Indiana plant will be built in what's now an empty Chrysler factory. When fully operational, these plants will produce millions of state-of-the-art solar panels each year.

 

These are just two of the many clean energy investments in the Recovery Act. Already, I've seen the payoff from these investments. I've seen once-shuttered factories humming with new workers who are building solar panels and wind turbines; rolling up their sleeves to help America win the race for the clean energy economy.


Contributing Author Carly Krei
carly@hhahba.com 

Tuesday
Jun152010

U.S. Department of Energy Announces Student Teams to Compete in 2011 Solar Decathlon

  

 

Twenty Teams Representing Five Countries and Four Continents to Compete in 2011 Competition

WASHINGTON, April 15, 2010 - U.S. Department of Energy Secretary Steven Chu today announced the 20 collegiate teams selected to compete in the next U.S. Department of Energy Solar Decathlon which will be held on the National Mall in Washington, DC in the Fall 2011. For two weeks, teams of college and university students from across the United States and the world will compete to design, build, and operate the most affordable, attractive, effective, and energy-efficient solar-powered house. Hosted by the U.S. Department of Energy, the competition will highlight affordable homes that combine energy-efficient construction and appliances with renewable energy systems that are available today.  The competition also supports the Administration's goal of creating a clean energy economy, while saving American families and businesses money and reducing our dependence on fossil fuels.

"These students are tomorrow's leaders in helping develop a clean energy economy," said Energy Secretary Steven Chu. "Their innovative projects will help raise public awareness about energy efficiency, help save consumers money and reduce carbon pollution."

 

The selected teams and their projects represent a diverse range of design approaches, building technologies, and geographic locations, climates and regions - including urban, suburban and rural settings.  They also aim to reach a broad range of target housing markets, including low-income, disaster relief, retirement, and more.  

 

Selected 2011 Solar Decathlon Teams:

Appalachian State University - Boone, North Carolina
City College of New York - New York, New York
Florida State University, The University of Central Florida, The University of Florida, and The University of South Florida - Tallahassee, Orlando, Gainesville and Tampa, Florida
Stevens Institute of Technology and The New School - Hoboken, New Jersey, and New York, New York
Ghent University - Ghent, Belgium 
Tongji University -  Shanghai, China
Massachusetts College of Art and Design and University of Massachusetts at Lowell - Boston and Lowell, Massachusetts
Rutgers the State University of New Jersey and New Jersey Institute of Technology - New Brunswick and Newark,  New Jersey
Middlebury College - Middlebury, Vermont 
Florida International University - Miami, Florida
The Ohio State University - Columbus, Ohio
University of Illinois at Urbana-Champaign - Champaign, Illinois
Old Dominion University and Hampton University - Norfolk and Hampton, Virginia 
University of Maryland - College Park, Maryland
Purdue University - West Lafayette, Indiana 
University of Calgary - Calgary, Alberta, Canada
The  University of Tennessee - Knoxville, Tennessee
University of Hawaii - Honolulu, Hawaii
The Southern California Institute of Architecture and California Institute of Technology - Los Angeles and Pasadena, California
Victoria University of Wellington - Wellington, New Zealand

Applications for the 2011 competition were evaluated by a panel of engineers, scientists, and experts from DOE's National Renewable Energy Laboratory. Teams were required to meet specific criteria to demonstrate their viability, including their ability to design and build an innovative, entirely solar-powered house, to raise additional funds, to support the project through a well-integrated curriculum, and to assemble a team necessary to carry the project through to completion.  In addition, a panel of professionals from American Institute of Architects, National Association of Home Builders, the U.S. Green Building Council, building industry media, and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers evaluated conceptual designs from prospective teams. The results of their evaluations, combined with scores based on the four criteria listed above, determined the 2011 Solar Decathlon teams.

Read more information on the 2011 Solar Decathlon.

Contributing Author: Carly Krei

Wednesday
Mar032010

Lumber and Homes in American (Part 2)

Lumber prices have climbed 32% on the futures market this year, a sudden and unexpected surge that could raise construction costs or force builders to swallow an added expense.

"That's the last thing we need right now," Stephen Melman, director of economic services at the National Association of Home Builders, said of the recent price hike.

Lumber's price rise contrasts with a decline in most other commodities, such as fossil fuels and industrial metals. Those are dragging due to fears of weaker demand amid a fragile recovery from the financial crisis.

But lumber prices shot up because of a shortage of supply. When the housing market cratered, mills in the U.S. and Canada slashed production; output plummeted about 45% between 2005 and 2009, according to Random Lengths, an industry data provider.

Wholesalers shrank their own inventories and had little incentive to build them back up last year. Housing is the largest single source of demand for lumber, and new-home sales fell 7.6% in December from the prior month, to 342,000 units.

So when builders began their annual re-stocking for the spring construction season, there was little slack in the supply chain, causing a squeeze on prices. Some firms also stepped up speculative construction in the hope that an expiring federal tax credit would boost the market.

"Any increase in demand is going to allow the mills to raise their prices," said Gary Vitale, president of the North American Wholesale Lumber Association.

(excerpt from Wall Street Journal) Continue Reading

 

Contributing author: Clayton Colleran