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Designing for Sustainability

Heidi McCall. Kevin McVey. Adam Rash. Designing for Sustainability. Houston Dow Center - LEED Gold. About Dow. Largest diversified chemical company in the world Founded in Midland, Michigan in 1897 Supplies more than 5,000 products to customers in 160 countries

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Designing for Sustainability

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  1. Heidi McCall Kevin McVey Adam Rash Designing forSustainability Houston Dow Center - LEED Gold

  2. About Dow • Largest diversified chemical company in the world • Founded in Midland, Michigan in 1897 • Supplies more than 5,000 products to customers in 160 countries • Annual sales of $45 billion • 52,000 employees worldwide • One of the world’s largest industrial energy consumers • Committed to Sustainability

  3. Energy Building & Construction Electronics Salt Gas Agriculture Wire & Cable Oil Coal Coatings Biomass Recycle Automotive The Chemical Industry Turning Feedstocks into Essential Products

  4. CORPORATE STRATEGY Preferentially invest in a portfolio of technology-integrated, market-driven performance businesses that create value for our shareholders and growth for our customers MISSION To passionately innovate what is essential to human progress by providing sustainable solutions to our customers VISION To be the most profitable and respected science-driven chemical company in the world VALUES Integrity Respect for People Protecting Our Planet Corporate Sustainability Sustainability Financial Discipline Strategic Growth Performance Culture

  5. Corporate Commitment & Transparency Corporate Commitment to 2015 Goals • We will further reduce our global energy intensity by 25% from 2005-2015 • We will reduce our greenhouse gas emissions intensity by 2.5% per year through 2015 • By 2025, we aspire to reduce absolute emissions within the company “No one in the world is more intensely aware of the need, ultimately, to reinvent our dependency on oil and natural gas than we are… We will lead the way on energy transformation because we have to. And we have taken important steps already.” Liveris Launches 2015 Sustainability Goals • -- Andrew Liveris • Chairman, CEO & President • The Dow Chemical Company

  6. Corporate Commitment & Transparency Public Commitment • Dow Committed in 1995 to reduce energy intensity by 20% from 1995-2005 (BTU/pound of production) • Realized a reduction in energy intensity of 22% • 1990-2005 – Dow reduced greenhouse gas emissions by 21% • www.dow.com/commitments

  7. Sustainability for Non-Manufacturing • Managed by Lab & Office Facilities Management (LOFM) • More than 14 million sq. feet of laboratory and office space • Facilities spread over six continents and 30 countries • Contributing to Dow’s 2015 Sustainability goals • Expect to reduce energy intensity in BTU/sq. foot by 25% by 2015

  8. Decision Facing Dow • Early 2007:Dow assesses existing Houston Dow Center (built in 1972) • Dow determines replacement facility is necessary • Dow determines criteria for new building • LEED certified • Single building capable of housing 1,200 employees • Energy efficient • Sustainable • Good location close to employees • Cost effective • Project to be started in 2007 and completed by November 2008

  9. Search for a LEED Building • Dow had to decide whether to move into an existing facility or construct a new building (leased) • Search restricted to Houston area • No existing LEED certified buildings were available capable of meeting the criteria • Decision was made to lease a newly constructed building • Developer/owner was seeking LEED Core and Shell • Dow to complement with commercial interior LEED certification

  10. Technical Approach • Key decisions made through front-end loading process • Involve several parties (LOFM Technology Center, Building Ownership, LOFM Leadership, Facility Occupants) • Intent to focus on reduction of electrical and water consumption was clearly defined • Technology Implementation Plan (TIP) required immediate energy savings • Employee engagement throughout process • Rewarded employees with Energy Star compliant flat panel monitors for recycling • Moved using plastic crates (not cardboard boxes)

  11. Technical Approach • Negotiations with suppliers • Required suppliers to recycle materials • Reduced packaging for shipped products • Held remote meetings to reduce travel costs and carbon emissions • Metrics were established early • Intended to track performance • Current usage was set as baseline to measure success • Timeline: 12 months – late 2007 to November 2008

  12. Significance to Dow • First LEED certified building • Dramatic behavioral changes resulted • Recycling became an integral part of daily activities • Employees moved from offices to open space • Energy savings measures are now built into the standards of every LOFM project

  13. Project Savings Achieved • 47.7% energy savings from 2008 to 2009 • 70% water savings from 2008 to 2009 • Cut indirect carbon emissions by nearly 2 million kg in one year • Saved 42 billion BTU from 2008 to 2009

  14. Application of Methods in Houston Dow Center • Other new facilities have followed the example of the Houston Dow Center • Shanghai Dow Center • Sao Paulo facility • Modification of Dow Office Space Standards • LED task lighting in cubicles • Light sensors in cubicles • Other chemical companies • Light sensors in work areas and computer rooms • Recycling of construction materials (over 90%)

  15. Community Outreach • Old furniture/office supplies provided to local schools and non-profit organizations • “Trash for Treasure Day”: Employees were able to donate unwanted items and take items left by others

  16. Dow Products Dow products were used in… • Manufacturer's insulation materials • Epoxies • Grout • A portion of the basic products used to make plastics • Shaw (carpet customer of Dow) used Dow backing material

  17. Key Elements of HDC’s LEED Gold Construction and Commissioning Technology Center Goals & Technology Senior Leadership Support Energy Change Management Communications Front-end Loading Lab & Office Facilities Management Energy Reporting Implementation Methodology

  18. Driving Energy Efficiency at Dow Technology Center Technology Center: • Incorporated sustainable technology in the project • Established sustainable goals at the onset of the project • Assisted leadership with change management • Benchmarked and tracked energy management goals throughout the project • Managed scope creep that could impact energy use Energy Lab & Office Facilities Management

  19. Driving Energy Efficiency at Dow Senior Leadership Support Senior Leadership Support: • Established LOFM organization to provide sustainable solutions • Committed to being a sustainable company by setting aggressive goals • Provided resources and funded the project • Actively supported decision to move into a LEED certified building Energy Lab & Office Facilities Management

  20. Front-end Loading Energy Lab & Office Facilities Management Driving Energy Efficiency at Dow Front-end Loading: • Support and goals were clearly stated from the beginning of the project • Key decisions were made at the start of the project • Parties involved: LOFM Technology Center, Leadership, Building Ownership, Occupants

  21. Driving Energy Efficiency at Dow Energy Reporting Energy Reporting: • Utility bills from Old Houston Dow Center were collected and compared to the bills from the New Houston Dow Center • Electric • Equated to standard energy reporting units: kBTU/gross square foot • Converted to carbon dioxide emissions • Water • Also converted to carbon dioxide emissions • Statistics were made public to employees through the company intranet Energy Lab & Office Facilities Management

  22. Driving Energy Efficiency at Dow Implementation Methodology Implementation Methodology: • Project Execution Plan (managed by Project Team) • Front-end loading • Stakeholder communications • Milestones and goals were set and achieved • Technology Implementation Plan • LEED certification • Energy efficiency/savings • Management of sustainability Energy Lab & Office Facilities Management

  23. Change Management Communications Energy Lab & Office Facilities Management Driving Energy Efficiency at Dow Change Management Communications: • Essential to explain responsibility to clients early • Increases client support of effort • Encourages client participation • Clients understand what is expected of them throughout the process • Driven by project management and facility leader team • Communicating early allows for a smoother project process

  24. Driving Energy Efficiency at Dow Goals & Technology Goals & Technology: • Primary Goal: To construct a LEED certified building • Technology used to achieve goal • 90% Recycled construction materials • Plastic moving crates in place of cardboard boxes • Energy Star rated appliances • Secondary Goals • Building operating cost savings • Community outreach Energy Lab & Office Facilities Management

  25. Dow Progress in Recent Years • Sustained drive in Energy Intensity reduction • Since 1990, more than 38% reduction in EI worldwide • Since 1994: • Cumulative Energy Savings = Approx 1,700 Trillion BTU • Cost Savings (avoided fuel) = Over $9 Billion • Cumulative avoided CO2 emissions of ~ 90 Million Metric Tons • Demonstrated long-term effectiveness of our program • Enhanced Corporate Reputation

  26. Efficiency and The Triple Bottom Line • Good for Business: • Saves money, enhances global • competitiveness, preserves jobs, • creates prosperity for shareholders • Good for the Environment: • Fewer GHG emissions, part of the solution to global climate change • Good for Society:Reduces demand, lowers energy bills, promotes energy security

  27. Heidi McCall Kevin McVey Adam Rash htmccall@dow.com kjmcvey@dow.com arash@dow.com Thank you for attending! Questions?

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