Corporate Sustainability Report POSITIVENERGY PRACTICE

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Corporate Sustainability Report

POSITIV

ENERGY

PRACTICE

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corporate sustainability report

Introduction

Our Identity

Environment

Workforce & Culture

3

5

11

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introduction

our identity

environment

workforce + culture

Welcome to PostivEnergy Practice’s Corporate Sustainability Report (CSR) for 2013. This is our third annual report and we are continually identifying areas of improvement for our sustainability approach and commitment to the responsible operation of our firm. In the process we look forward to sharing lessons learned with our clients and the greater design and engineering community.

PositivEnergy Practice, LLC (PEP) was formed in 2010 based on a vision for a sustainable future and a commitment to environmentally responsible design for new and existing buildings and human environments. We strongly believe that carbon reduction is a goal we can approach by applying what we call the four ‘pillars’ of our practice: Energy, Ecology, Education, and Economics. We welcome the challenge to design smarter systems, higher performing buildings and greener infrastructure that are efficient, environmentally sensitive, and financially sound.

This report is our attempt to engage others in our pursuit of sustainable practices. At the same time, it provides goals to inspire conscious decisions about our path moving forward and establishes a benchmark against which we can measure improvements as our firm grows. PEP believes consistent CSR reporting is valuable for businesses worldwide, and we have adopted the Global Reporting Initiative (GRI) methodology. We look forward to lively discussion on this insight into our operations and commitment to sustainability.

Sincerely,

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PositivEnergy Practice corporate sustainability report

Headquartered in

Chicago, Illinois, the firm

is a high-performance

consulting engineering firm

providing a broad range of

professional services and

sustainability planning.

PEP is led by highly skilled

engineering team leaders

who bring expertise in best

practices for a broad range

of engineering challenges

in the U.S. and overseas.

From supertall buildings

and expansion master plans

to existing commercial

building energy audits and

retrofits, PEP’s collective

portfolio illustrates our

team’s versatility and

professional leadership.

We aspire to change how

our communities look and

how they work. We have

developed

three primary

steps

for a sustainable

future:

1. Make existing buildings

better

2. Deliver responsible new

buildings

3. Decarbonize existing

urban infrastructure

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7

PositivEnergy Practice

introduction

our identity

environment

workforce + culture

introduction

our identity

environment

workforce + culture

A diverse client base has included private and public sector building owners, universities, corporations, cities, states, regions and countries. We also work in a diverse range of places from local projects in Chicago, to projects in Asia and Kazakhstan. For a full list of 2013 project locations see page 9.

PositivEnergy Practice is a new kind of urban engineering consultancy focused on buildings and cities. Our approach marries clean technologies, sustainable practices, high performance systems, data-informed design, and a multidisciplinary team to make smart cities a reality.

PEP delivers professional services in Mechanical, Electrical, Plumbing, Fire Protection, Building Technology Systems, and Performance Simulation as well as a full suite of Sustainability Services (Clean Technology). Led by industry professionals with extensive collective experience in best practices for a broad range of project types, our practice is a collaborative team of innovative problem-solvers.

What We Do Who We Are

PositivEnergy Practice LLC (PEP) was founded in 2010 by Adrian Smith, Gordon Gill, and Robert Forest. The firm was founded on the ideals of using a multidisciplinary consulting focus to make sustainable, smart urban environments. The merging of fields - engineering, data science, and environmental science - creates a holistic practice. As Gordon Gill has said,“ The result is increased energy efficiency, decreased waste, and an overall operational efficiency of major urban centers. The principle is to understand the urban built and open environment as a balanced system of built and natural assets ,which together are re-assessed in order to achieve a vastly improved urban environment.”

President John Tolva joined the firm in January of 2014, with Director Tom Voltaggio acting as Interim President during 2013. The firm’s integrated design process draws upon professional disciplines in MEP/FP Engineering, Building Automation Systems, Sustainability

Consulting, and Computational Sciences.

Headquartered in Chicago, Illinois, the firm

had 20 full time employees as of December 31, 2013. All employees worked out of our Chicago office, with some traveling on an as needed basis to work with clients in countries around the world.

Our stakeholders include our employees, our

partners, our clients, and the communities we work in. We regularly engage with our stakeholders to advance our vision and commitment to sustainability. PEP PARTNERSHIP PRESIDENT Sustainability Consulting Computational Sciences Performance Simulation Building Automation

Systems HVAC Electrical Plumbing/Fire Protection

MEP + FP ENGINEERING

BUILDING AUTOMATION SYSTEMS ENERGY MODELING ANALYSIS DECARBONIZATION PLANNING

SUSTAINABLE STRATEGIES MASTER PLANNING SERVICES

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introduction

our identity

environment

workforce + culture

_{Chicago, USA}

Clean Tech Building Automation Virginia, USA Clean Tech New Buildings Mishawaka, USA New Buildings Existing Buildings Nashville, USA Clean Tech New Buildings Astana, Kazakhstan Clean Technologies Urban Ecologies Seoul, Korea Clean Tech Chengdu, China Clean Tech New Buildings

Jeddah, Saudi Arabia

Clean Tech Suzhou, China Clean Tech New Buildings Chengdu, China Clean Tech New Buildings

2013 Project Locations

Urban Ecologies Champaign, USA Clean Tech Vancouver, Canada Clean Tech New Buildings Toronto, Canada Clean Tech New Buildings Beijing, China Clean Tech New Buildings

In the 21st century, a new approach to urban design is needed: one that will make significant, demonstrable changes to the existing city landscape and address the energy and resource usage in our cities. We work with local, regional and national organizations and governments to establish decarbonization plans and new frameworks for today’s cities.

New Buildings

A building’s mechanical and electrical systems can be expensive and energy intensive. Deploying the right systems, components, and control strategies can make measurable differences in the operating cost, functionality, flexibility, and maintainability of a building. We work closely with clients to identify and implement the right building systems to ensure tenant satisfaction, achieve energy conservation goals and protect investments.

Existing Buildings

Existing buildings are responsible for up to 70% of carbon emissions. We need to transform these structures from part of the carbon problem to part of the solution. We assist clients with the design of replacement systems or improvements to help reduce operating costs, improve building health, reduce carbon emissions, and extend building life.

Clean Technology/ Sustainability Consulting

The sustainable, high-performance city requires a new kind of infrastructure that is focused on energy efficient and clean technologies. As a holistic practice, PEP focuses on the research and development of these new technologies, ranging from single products to large-scale urban infrastructure solutions.

urban

ecologies

6%

new

buildings

50%

existing

buildings

34%

clean

technology

10%

On the left you will see a breakdown of our 2013 projects by sector. Projects were weighted based on annual revenue.

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It has become clear that

our society is in need of

change; our use of natural

resources today will be

unsustainable in the future.

At PositivEnergy Practice

we take a positive approach

to this challenge, seizing

the opportunity to increase

awareness, adjust attitudes

and take actions that are

good for humans, good for

business and good for the

planet. As an engineering

firm, we are in a unique

position to address many

of the core aspects of

sustainability through our

work.

Our firm applies

sustainable principles not

only to our work but also

to our everyday lifestyles,

as evidenced by our office

practices. We take pride

in this and are continually

looking for ways to

improve and build upon

our sustainable initiatives.

This section outlines

our sustainable business

operations and our project

work.

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13 introduction

our identity

environment

workforce + culture

introduction

our identity

environment

workforce + culture

We have implemented an office-wide waste management system to help us manage resources effectively. Our staff are educated on this policy which is based on reducing, reusing, and recycling. Aluminum, plastic, paper, and waste are collected into separate streams. Recycling bins for paper are conveniently located near work stations and printers, while aluminum, glass, and plastic bins are located in the kitchen. In addition, our IT staff has developed a program for recycling batteries and electronic waste. We also supply reusable dishware and utensils to reduce waste. We try, whenever possible, to use reusable dishware for team lunches and events. No bottled water is supplied by our office; staff are encouraged to use the water filters provided as well as reusable cups.

Our printers are set to default to double-sided printing in an effort to reduce paper consumption. Staff are also encouraged to use digital documents and memos whenever possible. In an effort to reduce our environmental impact, we have implemented an office-wide policy to purchase sustainable materials whenever possible. We only use FSC-certified paper in our office. Our office supplies vendor participates in the Terracycle recycling program which enables us to recycle pens back to them. As sustainable vendors and supplies become more widely available, we will be able to engage their services and products more consistently.

Recycling and Waste Reduction Energy Consumption

PEP has no direct energy consumption; all of the energy consumption is indirect from the energy used in our office at 115 S. LaSalle. Our energy is tracked through our utility bills for metered electricity, and an estimate from the building manager for base building systems is prorated for our office space. It is important to note the constraints of our landlord metering on both reporting and the ability to influence consumption. 59% Heating 22% Cooling 19% Electricity Total of 496,109 kWh in 2013 EUI: 185 kWh/m2

Our electricity, which we can control, has decreased by 14% since 2012. This is attributable to our officewide computer shut off policy, cloud computing, and reduced plug loads.

On September 11th 2013, The Mayor of Chicago put forward a benchmarking ordinance that will require PEP’s landlord to report its annual energy consumption to the City of Chicago in June 2014. PEP was an early supporter of Benchmarking, and will continue to work with the City and our building to push energy efficiency and data transparency.

Transportation

Our office is located in the heart of Chicago’s “Loop” with access to Chicago’s bus and train lines as well as easy access to the Metra train system serving the Chicago suburbs. Within a 10 minute walk of our office there is easy access to bus stops, all local elevated/subway train lines and regional Metra trains. Easy access to multiple modes of public transit, as well as the scarcity and expense of parking in the area, encourages staff not to drive.

PEP also participates in the Regional Transportation Authority’s (RTA) pre-tax benefit program and does not provide subsidized parking. These incentives, combined with excellent public transit access, have consistently shown results in employee public transit use. For the past three years we have completed an employee commuter survey; the survey is anonymous and has an 80 percent response rate. Every survey revealed that 100 percent of our staff either walks or takes public transit. The map below illustrates our office’s connectivity.

PEP OFFICE 5minutes 10minutes

14%

Walk

24%

“L” Train

48%

Metra

14%

Bus 2012

The graph above indicates the results of our 2013 commuter survey.

Airplane Travel

Although airplane emissions are scope 3 emissions, we feel it is necessary to report them. As a professional services firm, travel to and from clients is one of our most carbon intensive activities. Therefore we believe it is necessary to track and report it.

Over the past year our flights have reduced significantly from 2012. This is in part due to the locations of our projects. We also have continued to use technology such as video conferencing to reduce travel. In 2014, we will continue to use these methods to reduce travel, but understand that some travel is necessary to properly serve out clients. We will continue to track and report air travel.

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introduction

our identity

environment

workforce + culture

Carbon Emissions

PEP’s carbon emissions all fall into Scope 2 and 3 emissions; there are no direct emissions. Our scope 2 emissions are comprised of energy purchased to run our office. Building emissions are calculated based upon our electricity, heating, and cooling consumption. Annual electricity data is taken from our utility bills, using emissions factor of 0.641 kg CO₂ /kWh. This is referenced from the Center for Neighborhood Technology’s 2008 Chicago Greenhouse Gas Assessment. Our heating and cooling consumption was prorated based upon total building consumption and our square footage, applying emissions factors of 5.31 kgCO₂/ therm and 0.664 kgCO₂/ kWh for heating and cooling respectively. These are referenced from the Center for Neighborhood Technology’s 2008 Chicago Greenhouse Gas Assessment.

Scope 3 emissions are comprised of air travel emissions and employee commuting emissions. Air travel emissions are estimated from an annual travel log provided from our travel agent. This log tracks every flight taken by an employee for work-related reasons during 2013. From this data we were able to calculate total miles traveled and then carbon emissions associated with each flight, depending on the type. Carbon emission factors are as follows: 0.277 kgCO₂ / passenger mile for short haul flights, 0.299 kgCO₂/ passenger mile for medium- haul flights. and 0.185 kgCO₂/passenger mile for long-haul flights. These emission factors are referenced from the Environmental Protection Agency’s 2008 Greenhouse Gas Inventory Protocol. Employee commuting emissions are estimated

from our annual commuting survey, which asks employees to record their commute for a given week. In 2013 we had an 80 percent response rate for this survey. For those responders, a carbon emissions estimate is calculated for that week and then extrapolated for the year (assuming two weeks vacation per employee per year). An average of the responders is used for those employees who did not respond, in order to get an estimate for the total number of employees as of December 31, 2013. Emission factors for modes of transport are as follows: 0.336 kgCO₂/passenger mile for a CTA bus, 0.19 kgCO₂/passenger mile for the Metra, and 0.274 kgCO₂/ passenger mile for the elevated train. These emission factors are referenced from the Federal Transit Authority.

2011 2012 2013 Scope 2 Scope 3

224

117

193

95 ₅₆

188

The chart above illustrates CO₂emissions over the past three years. All numbers are in tons CO₂

2013 Carbon Emissions

Our CO₂ emissions are from building operations, employee commuting, and employee air travel. At PEP, we feel it is important to”practice what we preach” and reduce our own emissions, especially those we can control. The first step has been the measurement and reporting of our emissions through these annual reports. We have seen a continual decrease in our emissions since we have been reporting, and look forward to coming up with innovative ways to keep that trend moving forward.

188

metric tons CO₂

Building Emissions

account for 77% of our 2013 emissions. We have made efforts to reduce our office’s electricity consumption through computer shut-off

policies, use of blinds, and working with the building to have more control of our space temperatures. Our electricity emissions decreased by 12% from 2012.

35

metric tons CO₂

Commuting

accounts for 14 % of our 2013 emissions. Although we cannot control how our employees commute, we can encourage

sustainable options. This is accomplished through our building location’s proximity to public transit and our participation in RTA’s pre-tax benefit program.

21

metric tons CO₂

Air Travel

accounts for 9% of 2013’s emissions. This is a third of our air travel emissions from last year. Although we realize that as a professional services firm there is a need to travel to meet clients, we have tried to employ video conferencing whenever possible. Moving forward we will track these efforts.

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We foster a challenging and

rewarding workplace and

understand that the encouragement and

development of each member of our staff

will advance the practice. The business

practices outlined in the following section

are implemented in hopes of bettering our

staff as well as our organization as a whole.

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introduction

our identity

environment

workforce + culture

Diversity

PositivEnergy Practice encourages a diverse workforce in order to reflect the multifaceted world in which we live.

We value the knowledge that diverse backgrounds bring to our firm and our clients. PEP does not discriminate in employment opportunities or practices on the basis of race, color, religion, gender, national origin, age, disability, sexual orientation or any other characteristic protected by law.

We use the criteria of merit, qualifications, and abilities to determine hiring decisions and promotions within the organization.

45% Female

55% Male

The above shows our gender ratio as of December 31, 2013. We are proud of the high percentage of women we employ relative to the engineering industry. We will continue to create a culture that retains women in our practice. As of December 31, 2013 there were 20 percent U.S. minorities at PEP. We are proud of the diversity of our staff and are looking for ways to be more involved in the community with minority outreach.

Benefits

• 401(k) savings plan

• Subsidized healthcare programs including medical and dental insurance

• Life and disability insurance

• Transportation benefits, allowing employees to set aside pre-tax earnings for mass transit and parking expenses

• Paid Time Off (PTO) • Wellness programs

• Flexible Spending Account (FSA) and Dependent Care Spending Account • Subsidized training and self- improvement

courses

• Subsidized annual engineering memberships and annual licensing fees

<30

30-50

50+

30%

40%

30%

The above is PEP’s age profile as of December 31, 2013.

American Institute of Architects

ASHRAE

International Building Performance Simulation Association

CTBUH

American Society of Plumbing Engineers

Society for College and University Planning

Society for Marketing Professionals

Institute of Electrical and Electronics Engineers

2013 Professional Involvement

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GRI Content Table

PEP believes consistent CSR reporting measures are valuable for business worldwide, and we have adopted the Global Reporting Initiative (GRI) methodology.

Some of the standards and indicators of the GRI are not applicable because of the nature of our organization. Wherever the GRI is applicable we have included information to the best of our ability. Following is a table summarizing the contents of this report and the corresponding guidelines from the Global Reporting Initiative, Sustainability Reporting Guidelines, version 3.1 (G3.1).

STRATEGY AND ANALYSIS

GRI Indicators 1.1-1.2

ORGANIZATIONAL PROFILE

GRI Indicators: 2.1-2.10

REPORT PARAMETERS

GOVERNANCE, COMMITMENTS AND ENGAGEMENT

PERFORMANCE INDICATORS

GRI Indicators/Economic Performance GRI Indicators/Environmental Performance GRI Indicators/Social

For more information on the Global Reporting Initiative, visit: www.globalreporting.org Pages: 3-7 Pages: 9-17 Pages: Cover,1,32 Pages: 3,5,31 Pages: 8,19 Pages: 11-15 Pages: 17-19

It is intended that a detailed Corporate Sustainability Report will be issued every year from PEP. This report was created in order to establish transparency regarding our economic, environmental and social impacts and procedures. PEP is the self-author of this report and provides CSR Reporting as part of its consulting services.

We welcome feedback regarding the information in this report. If you wish to provide feedback, please contact Craig Burton, Director, at [email protected].

Corporate Sustainability Report POSITIVENERGY PRACTICE