Designing for Sustainability

Designing for Sustainability

Houston Dow Center - LEED Gold

Heidi McCall Kevin McVey Adam Rash

Designing for Sustainability Houston Dow Center

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


The Chemical Industry

Electronics

Wire & Cable

Coatings

Automotive

Building &

Construction

Agriculture

Turning Feedstocks into Essential Products

Salt Gas

Oil

Biomass

Coal

Recycle

Energy


Corporate Sustainability

Financial Discipline Sustainability

Performance CultureStrategic Growth

MISSION To passionately innovate what is essential to human progress by

providing sustainable solutions to our customersVISION

To be the most profitable and respected science-driven chemical

company in the world

VALUESIntegrity

Respect for PeopleProtecting Our Planet

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


Corporate Commitment to 2015 Goals

Corporate Commitment & Transparency

“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.”

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

-- Andrew Liveris

Chairman, CEO & President

The Dow Chemical Company

Liveris Launches 2015 Sustainability Goals


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


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


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


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


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)


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


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


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


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%)


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


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


Lab & Office FacilitiesManagement

TechnologyCenter

Front-end Loading

Energy Reporting

Implementation Methodology

Goals & Technology

Senior LeadershipSupport

Key Elements of HDC’s LEED Gold Construction and Commissioning

Change ManagementCommunications

Energy


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

TechnologyCenter


Energy

Driving Energy Efficiency at Dow


Senior Leadership Support


Energy

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



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


Front-endLoading


Energy


Energy Reporting: Utility bills from Old Houston Dow Center were

collected and compared to the bills from the New Houston Dow Center

– ElectricEquated to standard energy reporting units: kBTU/gross square footConverted to carbon dioxide emissions

– WaterAlso converted to carbon dioxide emissions

Statistics were made public to employees through the company intranet


EnergyReporting


Energy



ImplementationMethodology


Energy

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


Change ManagementCommunications


Energy

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



Goals & Technology


Energy

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



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

Dow Progress in Recent Years


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

Thank you for attending!

Questions?

Kevin [email protected]

Heidi [email protected]

Adam [email protected]

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Designing for Sustainability

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