By committing to the goals of smart growth and civic responsibility, JBG seeks to develop buildings that improve communities while preserving our environment and conserving our resources. JBG’s sustainability efforts are centered upon creating value through the strategic design, development and management of properties that result in energy efficiency resource conservation, and waste reduction.
JBG Sustainability Report
Executive Summary
3
Sustainable and Responsible Investment Strategy 5 Green Building Certifications 9 Case Study: LEED for Core & Shell
13
Case Study: LEED for Existing Buildings
19
Green Building Alliances 20 Utility Supply Management 23 Utility Demand Management 25 Sustainability and Efficiency Initiatives 29 Case Study: Retro-Commissioning Training
35
Case Study: Parking Garage Lighting Retrofit
37
Case Study: NCI’s Living Wall
41
Case Study: Electric Vehicle Charging Stations
45
Next Steps 47
growing value with sustainable results
Executive Summary
At JBG, we are committed to the rigorous pursuit of sustainability and energy efficiency because we believe that environmental stewardship is key to delivering exemplary returns moving forward. We have created this Sustainability Report to share our progress and acquaint you with our significant efforts to ensure responsible building and sustainable operating practices across the JBG organization. At mid-year 2013, JBG completed an assessment of its real estate investments to determine the level of sustainability achievement as compared to its peer firms. JBG is proud to report that 62% of its real estate holdings are invested in projects that have either received green building certifications or are actively engaged in the designation process. With $6.58 billion of assets characterized as sustainable in nature, JBG is emerging as a market leader of high-performance properties. While JBG is certainly known for its urban infill projects that are lauded for their inherently green, transit-oriented focus, we are also increasingly recognized for our portfolio-wide sustainability and energy efficiency initiatives. These activities are led by a core, internal JBG team, the Sustainability Committee, which focuses on building environmental awareness and improving technical capabilities at all tiers of the organization. To enhance returns for both new developments and existing operating properties, a sustainability plan was created around five core areas: • Green building certification for LEED and ENERGY STAR recognition • Demand management for benchmarking, consumption reduction and participation in utility incentive programs
JBG sustainability report
• Energy supply management for pricing and risk control • Sustainable best practices for operating efficiency and tenant retention • Technology adoption for competitive advantage We are learning every day and are actively seeking to gain new ideas from our broad base of architect, engineering and consulting relationships. Rather than selecting a few, high-profile projects for “platinum” achievement, we are instead taking a ground-up approach to sustainability by targeting incremental performance improvements across the entire portfolio. We believe greater long-term value generation will result from tackling continuous improvement at each and every property. Compounded together, this adds up to substantial resource reduction. Sustainability efforts at multiple levels, coupled with our attention to detail, is making a difference. By tracking energy metrics, completing comprehensive energy audits, harvesting utility incentives, investing in frequent engineer team training and improving tenant awareness through our JBG Green website (JBGgreen.com), we are making sustainability headway. We appreciate your support and acknowledgement of JBG’s drive towards growing value with sustainable results.
3
sustainable and responsible investment strategy
Sustainable and Responsible Investment Strategy
As part of JBG’s core strategy to maximize investor returns, JBG supports rigorous efforts to achieve third-party sustainability or green property designations for its development and existing building investments. It goes beyond the plaque on the wall. JBG is measuring tangible operational improvement and better tenant/guest experience from incorporation of green features. Almost two-thirds of JBG’s $5.9 billion portfolio is considered invested in “green” projects. This means that the property has been designated with the Environmental Protection Agency’s (EPA) ENERGY STAR label, U.S. Green Building Council’s (USGBC) LEED certification, other green-industry designations (such as EarthCraft, Green Communities, Virginia Green Lodging, Green Key Eco-Rating) or is registered in active pursuit of LEED award. Through our focus on sustainability, JBG is improving asset quality and delivering upgraded property services that will directly translate into value creation. By leveraging our deep relationships within the design and construction community, we are developing and renovating with more efficient technologies and we are adopting best operating practices for higher performance buildings.
JBG sustainability report
Across the JBG portfolio, properties that have achieved the ENERGY STAR or LEED designations have proven to have lower water and energy consumption metrics. By employing both supply and demand management strategies, we reduce our portfolio’s exposure to energy price volatility. We believe that sustainability commitments help reduce operating risks and avoid potential property environmental degradation. In the Washington, DC, area, these sustainability certifications are also recognized as a hallmark of best-in-class property management. Being a leader in sustainability attracts new opportunities and improves tenant satisfaction and retention. In addition, the investment sales markets have also ascribed value premiums for higher levels of LEED certified commercial office and hospitality properties. Paying attention to sustainability is smart building.
5
JBG Corporate Headquarters, LEED Commercial Interior
62% of JBG Funds
invested in development and existing projects that are considered green.
6
Sustainable and Responsible Investment Strategy
Analysis of JBG Portfolio Funds Invested in Green Programs Property
Energy Star Label
LEED Certified
LEED Registered
Other Green Designations
Total*
85.9%
96.0%
3.0%
36.7%
99.0%
12.7%
0.0%
12.7%
0.0%
12.7%
8.8%
0.0%
8.8%
36.2%
45.0%
26.4%
12.6%
61.1%
10.8%
84.7%
28.7%
16.4%
63.9%
11.0%
90.3%
8.1%
0.0%
46.2%
5.3%
51.6%
11.7%
1.8%
25.7%
0.0%
31.4%
Fund III % of Fund Invested in Green Fund IV % of Fund Invested in Green Fund V % of Fund Invested in Green Fund VI % of Fund Invested in Green Fund VII % of Fund Invested in Green Fund VIII % of Fund Invested in Green JBG Urban % of Fund Invested in Green All JBG Funds Invested in Green
$3,670,638,500
FMV of All Funds % of Funds Invested in Green 21.9%
$5,891,164,315 12.0%
43.3%
8.0%
62.3%
* Properties only counted once for the Totals column. Figures as of mid-year 2013.
JBG sustainability report
7
green building certifications and alliances
Green Building Certifications
JBG actively pursues green building certifications for the majority of its portfolio, with the specific goal of achieving the EPA’s ENERGY STAR label as well as LEED Silver certification or higher on its commercial office assets. With its large portfolio of LEED and ENERGY STAR projects, JBG is a sustainability leader in the Washington, DC, metropolitan market. New Construction and Development Project Certification The USGBC’s LEED program exists to support the leaders in the industry as they innovate and create cutting-edge, high-performance buildings, homes and neighborhoods. By working closely with architects, engineers, contractors and other consultants throughout the design and construction process, JBG teams are able to select the rating system that serves the unique needs of a project. This allows the team to lessen the negative consequences for water resources, air quality and natural resources.
JBG has certified new development projects under the following rating systems:
Because JBG is a significant General Services Administration (GSA) landlord, all of our recent commercial office properties have been developed under the LEED process for either New Construction or Core & Shell designations. We evaluate green certifications for hospitality and residential properties on a site-specific and sub-market basis. In all cases, we follow best practice guidelines to make sure we include as many health building features and energy-efficient fixtures and equipment as economically viable.
• LEED for Neighborhood Development integrates the principles of smart growth, urbanism and green building into the first national system for neighborhood design.
JBG sustainability report
• LEED for New Construction & Major Renovations takes an integrative approach to the design of efficient buildings and promotes construction practices that have a lower impact on their environment. •L EED for Core & Shell certifies the design and construction of the entire core and shell base building, but allows for flexibility in the design and construction of the tenant fit-out.
Based on our positive experience to date, our goal is to continue to expand the number of properties that are targeted for green building certifications and are enrolled in follow-on energy efficiency and sustainability initiatives that improve performance. As regulations continue to evolve, we will carefully underwrite these green building programs to make sure they continue to be accretive to property returns.
9
13.1 million sq. ft.
of JBG LEED Certified projects, existing and new development, as of Q3 2013.
Arlington Capital View Hotels, LEED for New Construction Gold
10
Green Building Certifications
New Construction and Development Projects LEED Certified*
LEED Registered
million sq. ft.
1.8
million sq. ft.
8 Projects
26.6
34 Projects
million sq. ft.
17 Projects
10.7
Other Green Certifications
* Includes 7 projects (1,364,700 sq. ft.) where JBG is an investment partner.
Recent LEED for New Construction and Core & Shell Certifications
Renaissance/ Residence Inn Capital View, Arlington, VA
New Construction Gold 439,985 sq. ft.
800 North Glebe, Arlington, VA
New Construction Gold 308,055 sq. ft.
900 North Glebe, Arlington, VA
New Construction Gold 146,479 sq. ft.
Summit I & II, Reston, VA
Core & Shell Gold
JBG sustainability report
288,293 sq. ft.
11
18 %
energy savings
over the required ASHRAE 90.1 baseline.
800 North Glebe, LEED Core & Shell Gold
12
Green Building Certifications
Case Study: 800 North Glebe – Awarded LEED for Core & Shell Gold A Recent JBG LEED for Core & Shell Project in Virginia
Sustainability Highlights:
JBG was awarded the USGBC’s LEED Gold certification for its development of 800 North Glebe, a 308,055 square foot, high-performance office building on the brownfield site of a former automotive dealership. The project achieved bonus density during the rezoning process in Arlington County, VA, as a result of the commitment to achieve the LEED Gold certification. Sustainability decisions during the design and construction process were extensively evaluated to determine an optimized return-on-investment strategy, with a focus on achieving a high level of energy efficiency.
• The building is designed to achieve an 18.1% savings over the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) 90.1 baseline. This is achieved through the selection of high-performance glass that balances the aesthetic look, providing a highvisibility transmittance, while taking advantage of the solar orientation on the south and west elevations.
As part of the LEED process, the team took a rigorous approach to resource management, including: • remediation of numerous petroleum contaminants on the site • diversion of 82% of non-hazardous demolition/ construction waste • procurement of materials with recycled and regional content Indoor materials were also scrutinized with a particular attention paid to preventing contamination and chemical exposure: • specification of low-emitting adhesives, sealants, paints and carpet • structuring of Tenant Improvement Guidelines emphasize protection of indoor environmental quality • indoor chemical and pollutant source control • increased ventilation • green housekeeping program • enhanced refrigerant management
JBG sustainability report
• At the request of the Arlington Historical Society, JBG agreed to reproduce the Bob Peck showroom canopy and diamonds. This was done in lieu of retaining and restoring the original canopy, which, after years of disrepair, was deemed unsalvageable. Over 980 tons of on-site generated construction waste, including the original canopy, was diverted from landfill. • A Transportation Management Plan (TMP) was initiated to create multiple, alternate transportation options for the building’s occupants to reduce personal vehicle miles. This includes providing SmarTrip METRO passes, access to convenient bus stops, bicycle commuter support and ongoing TMP support by Arlington County Commuter Services (ACCS). • Outside air is controlled with a demand control ventilation system that limits the introduction of outside air, reducing the heating and cooling loads in the building. • The parking garage uses a carbon monoxide monitoring system to control the fans and reduce unnecessary energy consumption.
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Green Building Certifications
Existing Buildings: Operations & Maintenance ENERGY STAR Labeled
million sq. ft.
Minimum of
5.0
million sq. ft.
25 Projects
2.4
LEED Volume Program Registered
4 Projects
million sq. ft.
20 Projects
5.9
LEED Existing Certification
Existing Building Certifications With a combined portfolio of over 21 million square feet of existing office, hospitality and residential buildings, JBG has a significant opportunity to streamline operations and create a positive environmental impact. For our existing building portfolio, JBG maintains energy consumption information in the EPA’s ENERGY STAR program, which allows for the benchmarking of energy efficiency metrics against similar-type buildings across the nation. JBG actively seeks the ENERGY STAR label for its office portfolio, which requires an energy score greater than 75 to qualify. In addition, JBG is focusing on achieving the LEED certifications for Existing Buildings Operations & Maintenance (EB: O&M) for its commercial office assets. Recent LEED EB: O&M Certifications
Department of Transportation Headquarters, Washington, DC
Existing Buildings Gold
1,353,700 sq. ft.
1801 North Lynn, Arlington, VA
Existing Buildings Gold
349,741 sq. ft.
1 Choke Cherry, Rockville, MD
Existing Buildings Silver 228,020 sq. ft.
950 North Glebe, Arlington, VA
Existing Buildings Gold
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247,232 sq. ft.
Green Building Certifications
ENERGY STAR The ENERGY STAR Portfolio Manager allows building owners and managers to benchmark their building’s energy usage using a numerical rating system compared to similar buildings nationwide. Buildings earn an ENERGY STAR label by achieving a rating of 75 or higher on the EPA’s 1-100 energy performance scale. The rating system accounts for differences in operating conditions, regional weather data and other variables. As an ENERGY STAR Partner since 2009, JBG is committed to using the resources and tools offered through ENERGY STAR to help measure, track and improve the energy performance of our organization. JBG has been recognized on the ENERGY STAR website as a partner and as a supporter of the ENERGY STAR Challenge.
Washington, DC
Score
Labeled Since
USDOT Headquarters
96
2009
801 Eye Street
81
2010
800 K Street
77
2012
1233 20th Street
96
2012
2121 Wisconsin Ave.
92
2012
1025 Thomas Jefferson
88
2012
1 Choke Cherry Road
89
2009
4445 Willard Ave.
89
2009
5515 Security Lane
86
2010
5630 Fishers Lane
97
2010
5 Choke Cherry Road
81
2011
5635 Fishers Lane
90
2012
12420 Parklawn Dr.
93
2012
1801 N. Lynn
91
2007
Rosslyn Gateway North
82
2009
11790 Sunrise Valley Drive
74
2010
11800 Sunrise Vallery Drive
83
2011
1831 Wiehle
82
2011
11720 Sunrise Valley Drive
77
2012
950 North Glebe Road
80
2013
Maryland
Virginia
JBG sustainability report
15
24
JBG professionals
with green building accreditations through the USGBC.
National Cancer Institute, LEED for New Construction
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Green Building Certifications
LEED Volume Program for Existing Buildings: Operations & Maintenance JBG enrolled in the USGBC’s LEED Volume Existing Buildings Operations & Maintenance (EB: O&M) program for the streamlined certification of a portfolio of commercial office properties. This new, high volume certification program will have a significant impact on improving sustainable operations at JBG’s existing building portfolio of over 75 operating assets. JBG is seeking existing building certifications to measure and document on-going best sustainable operating practices the following areas: • Energy conservation • Water efficiency • Waste reduction
The program simplifies the LEED submission process and allows for faster certification at a lower cost. Individual property teams will be responsible for implementing and documenting sustainable best practices and members of the sustainability committee will perform quality control checks. JBG has identified an initial selection of 25 commercial office projects that are strong candidates based on ENERGY STAR scores, building systems, water fixture efficiency and long-term occupancy and development plans. JBG is the second major Washington, DC, real estate owner/developer to pursue this process with the LEED Volume program. The goal is to achieve staged approvals for over five million square feet of commercial office space by 2016.
• Indoor air and environmental quality • Site management JBG Commercial Management enrolled in the LEED Volume Program in August of 2012 and has recently completed a one-year, submittal-review process to pre-approve: • Operating policies and procedures • Documentation methods • Quality control processes
JBG sustainability report
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One Choke Cherry, LEED for Existing Buildings Silver
71%
waste diverted
from the landfill by recycling and composting.
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Green Building Certifications
Case Study: One Choke Cherry—Awarded LEED for EB: O&M JBG’s first LEED Existing Building Certification in Maryland In April 2013, the headquarters of the Substance Abuse and Mental Health Services Administration (SAMSA), at One Choke Cherry Road in Rockville, MD, earned the USGBC’s LEED Silver certification for Existing Buildings Operations & Maintenance (LEED EB: O&M). One Choke Cherry is an eight-story, 240,758 square foot, Class A office building with a highly visible location off Shady Grove Road and Interstate 270, with convenient access to the Shady Grove Metro. The building’s energy efficient design features include: • Heat reflective white roof • High-performance light fixtures • Low-emissivity glass windows • High-efficiency HVAC system • Environmentally friendly finishes such as cork tiles and clean air paints and carpets The certification follows an intensive, 12-month effort to improve energy efficiency and implement sustainable operating practices for this federal facility, which was built by JBG in 2004. The property team was able to achieve the following sustainable accomplishments:
JBG sustainability report
• Improved the ENERGY STAR rating by 16 points to a score of 84 through operational changes and a complete lighting retrofit that reduced electricity consumption. • Diverted over 71% of the property’s waste stream from landfills through a comprehensive recycling program, which included composting food waste and recycling 100% of mercury-containing lamps and batteries. • Instituted a comprehensive Green Cleaning Program with more than 90% of cleaning products used in the building meeting independent sustainability criteria. • Installed dual flush handles for toilets, achieving significant reductions in water consumption. This certification signifies an important milestone for JBG. We do not only build new developments with state-of-the-art sustainable design, we are also actively retrofitting existing projects and communities to improve practices. In recognition of this achievement, JBG made a donation to the Arbor Day Foundation, which will be used to plant more than 1,900 trees in the Blackwater River State Forest located in the Florida Panhandle, home to many endangered and threatened wildlife species.
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Green Building Alliances
Twinbrook: Urban by Nature JBG is proud to be a part of Urban by Nature, a partnership that is working to build the framework for a sustainable and successful future throughout the inner suburb of Twinbrook, Maryland. Urban by Nature is an organic evolution that is guided by eight core principles: • Advance transportation choice • Appreciate dogs • Bring back the bike • Celebrate nature • Promote wellness • Provide public space • Support public art • Respect the environment
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As Ashley Lambdin, director of the Twinbrook Partnership has said, “Twinbrook is fortunate to have very good bones. The area is one of several long-established neighborhoods that are wrapped around a major employment center of 16,000 people situated on a Metro transit stop. That’s an enviable combination from any perspective.” With Rock Creek Park less than a mile from the Metro station, the partnership is working to make the streets more pedestrian- and bike-friendly. A new hiker-biker path is planned to connect the Twinbrook Metro station to hiker-biker paths in Rock Creek Park. New signage, wider sidewalks and brick-paved roads are also planned to help designate Twinbrook as a defined district with a new identity.
Green Building Alliances
Sustainability Alliances and Recognitions JBG has partnered with several organizations to advance sustainability goals through industry collaboration. Through these partnerships, JBG can explore new opportunities and stay apprised of market trends. JBG has partnered with: • Department of Energy’s Better Building Alliance - Leadership in Energy Efficient Parking Committee
• NAIOP MD/DC recognized JBG at its 2013 Awards of Excellence for: - Best Sustainable Design (National Cancer Institute) - Best Suburban Office (800 North Glebe)
• Twinbrook Station received the Maryland Governor’s Smart, Green and Growing Award for Transit Oriented Development.
- Building Re-tuning Training Program Participant
Sustainable Community Outreach
• U.S. Green Building Council
JBG is known for a long-standing commitment to the community. Whether it is through donations or hundreds of hours of volunteer work, JBG is dedicated to making a difference in communities across the Washington, DC, metropolitan region. One of the core missions of JBG Cares is to support programs that respect the environment and sustainability.
- National Member since 2007 - National Capital Region Gold Sponsor
• EPA’s ENERGY STAR Program - Partner since 2009
• Arlington County Community Energy and Sustainability Task Force board participant
JBG participates in the: • Anacostia Watershed Society
• Environmental Defense Fund Internship Program
• Arlingtonians for a Clean Environment (ACE)
Green Building Recognitions
• Audubon Naturalist Society
JBG has been recognized by various industry groups and governmental bodies for superior green building practices and for promoting sustainability. These include:
• DC Greens: Washington, DC
• The DC government recognized JBG for its support of the Sustainable DC Plan, which aims to make DC the healthiest, greenest and most livable city in the nation.
• Rock Creek Conservancy
JBG sustainability report
• Environmental Film Festival in the Nation’s Capital
• Washington Youth Garden, Friends of the National Arboretum
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utility supply and demand management
Utility Supply Management
Since utility expenditures are a major component of operating costs, JBG focuses on policies that control pricing and supply risk, seeking expert market intelligence and analytics to lower expenses and commodity volatility. Supply Management: Bulk Energy Renewal Contracts in Deregulated Markets Commencing in June 2013, 50% of the power purchased for JBG’s commercial and residential portfolio will be offset with Green-e certified renewable Energy Credits for two years at an average incremental cost of $0.001 per kWh. At the end of 2011, JBG recompeted its energy brokerage relationship and signed a three-year agreement for strategic energy sourcing services with national advisor Ecova. Ecova offers JBG a comprehensive scope of services including utility procurement, bill payment, benchmarking and energy management solutions. They provide recommendations to JBG based on current market conditions, using a combination of indexed, fixed-supply and hedged-contract strategies, to stabilize utility expenditures and reduce commodity costs in the deregulated energy markets. Ecova’s energy supply recommendations provide JBG with in-depth market analytics and reporting to help the asset teams determine and implement the best strategies for energy sourcing and price risk management. The goal is to lower expenses and achieve budget certainty. Contract terms and structures are tailored to the different needs of the commercial office, residential and hospitality portfolios. Ecova’s dedicated, energy-advisory team proactively and cost-effectively manage the timing and term of our energy
JBG sustainability report
sourcing decisions. They develop strategies based on JBG’s risk tolerance and notify us of changes in-market prices that may trigger opportunities, while also tracking the performance of our contracts against various benchmarks. Market intelligence is provided through regular reports that have helped reduce utility budget volatility and achieve year-over-year cost saving opportunities, while instituting a disciplined approach to energy supply management. JBG recently completed three competitive utility bids in the deregulated markets (Maryland and DC) and locked in bulk supply contracts, saving JBG properties $865,594 in 2012, a combined 9% savings over the previous year’s historic utility rates. Contracts include: • Fixed electric supply contracts totaling 119,860,014 kWh for the commercial and residential portfolio starting June 2013 for a two-year period. First year savings: $699,987. • Index supply natural gas contracts totalling 586,218 therms for the hospitality properties staring in November 2012. Annual savings: $81,337. • Index supply electric contracts for one Washington, DC, hotel for an $84,270 in savings.
23
Utility Supply Management
Timing of JBG Major Utility Purchases Natural Gas Prices 2001–2011 $MMBtu (12-month Strip) August 15, 2013 – Historical Range
$ 4.1 million
$12.00 of JBG portfolio utility expenditure savings between 2011 and 2012.
$10.00
JBG twoyear gas purchase & one-year electric purchase
$8.00
$6.00
JBG two-year electric purchase
$4.00 2/24/2002: $2.605
4/19/2012: $2.559
10.2 Years
$2.00 JAN 01
JAN 03
JAN 02
JAN 04
JAN 05
JAN 06
JAN 07
JAN 08
JAN 09
JAN 10
JAN 11
JAN 12
JAN 13
Two-Year Electrical Prices PJM Value Buy Report: Contract Strip Price: $40.54 Strip Percentile: 45%
25th Percentile 50th Percentile 75th Percentile 100th Percentile Contract Strip Price
$60.00 $57.00 $54.00 $51.00 $48.00
JBG two-year electric purchase
$45.00 $42.00 $39.00
MAY 13
APR 13
MAR 13
FEB 13
JAN 13
NOV 12
OCT 12
SEP 12
AUG 12
JUL 12
JUN 12
MAY 12
APR 12
MAR 12
FEB 12
JAN 12
DEC 11
NOV 11
OCT 11
SEP 11
AUG 11
JUL 11
JUN 11
$36.00
Data provided by ECOVA
24
Utility Demand Management
Demand Management – Tracking Utility Bill Metrics for Improved Cost Control Demand side management involves reducing energy use through initiatives that promote electric or natural gas energy conservation, or promote more efficient management of building energy loads. JBG recognizes it is critical to provide portfolio managers and property teams with accurate and easily accessible utility data for frequent comparison.
5.2% Reduction in kWh Consumption– Commercial
9.4% Reduction in kWh Consumption– Residential
JBG manages a diverse portfolio totaling over 125 operating properties comprised of over 22 million square feet of commercial office, retail, residential and hospitality space. The company used over 247 million kWh of electricity, 5.3 million therms of natural gas and 807 million gallons of water in 2012. Given this large overall portfolio size, we are actively focused on carefully tracking operating budgets and adopting strategies to continually reduce costs and minimize consumption of utility resources. The key to this effort is having reliable, electronic-based utility account information available to all of the property teams. From a combination of both conservation initiatives and supply rate reduction efforts, JBG has reduced its total utility expenditures by over $4 million (as evaluated over a constant set of properties held during 2011 and 2012).
JBG sustainability report
7.2% Reduction in kWh Consumption– Hospitality
Conservation initiatives include participation in utility demand response programs, completion of portfolio-wide energy audits and subsequent equipment retrofits or changes to mechanical system protocols. Implementation of best practice operating policies, stemming from the LEED EB: O&M effort has also streamlined usage. Based on a “same-set” analysis, properties that have 24 months of utility bill operating performance under JBG management (from January 2011 to December 2012), demand management strategies saved the company saved a total of $2,951,452 in utility costs between 2011 and 2012.
25
14,347 metric tons
of cardon dioxide avoided, resulting from energy savings between 2011 and 2012.
North Bethesda Market
26
Utility Demand Management
Utility Benchmarking and Scorecard Reporting JBG energy consumption efforts between 2011 and 2012 helped the climate by saving 14,347 metric tons of carbon dioxide. This is the same environmental benefit as the amount of carbon absorbed annually by over 11,759 acres of forest.
15.9 Million kWh of Electricity Saved
590 Thousand Therms of Gas Saved
During 2012, JBG embarked upon a company-wide initiative to consolidate utility account payments and improve utility usage visibility for the property teams. JBG is a major, consumer of electricity, natural gas and water in Washington, DC. The consolidation of over 1,000 utility accounts into a centralized bill processing system, which includes a cloud-based platform for viewing bill information, has improved control over usage. Property management teams can now view an accurate record of historic usage and access property scorecards, which track both cost and consumption data in numeric and graphic formats. Through improved utility tracking, JBG achieved significant consumption reduction savings between 2011 and 2012 (with milder weather also making a positive difference.) This new comprehensive utility bill management and benchmarking service was put in place with Ecova’s help at all commercial office, residential and hospitality assets. As part
JBG sustainability report
41.6 Million Gallons of Water Saved
of this service, Ecova produces both portfolio and individual asset scorecards to track costs and provide consumption and variance statistics to help property teams improve the management of electric, gas and water costs. Utility scorecards are included as part of property-level quarterly reports along with a summary of recently completed sustainability and energy conservation efforts. Scorecards can be accessed as a benchmarking tool for month-to-month, year-to-year and property-to-property comparisons. Ecova monitors utility bills for variances, late fees and incorrect billings. In the first year, over $200,000 portfolio bill savings were identified in the portfolio. By outsourcing to Ecova, JBG has created significant savings and efficiencies at the accounting administrative level. Ecova also uploads utility data directly into the EPA’s ENERGY STAR site, improving accuracy and efficiency.
27
sustainability & efficiency initiatives
Sustainability & Efficiency Initiatives
By partnering with leading architectural and engineering firms and green building industry groups, JBG takes an active approach to incorporating sustainable policies across our diverse portfolio. We are engaged in a number of pilot programs and collaborative initiatives to improve efficiency and resource savings. Office tenants, residents and hospitality guests are taking notice. Managing for Performance Enhancement JBG’s sustainability and efficiency initiatives are focused on reducing resource consumption and improving the health of our commercial, residential and hospitality environments. Our corporate goal is to instill a mindset of responsibility, efficiency and environmental stewardship within all of our personnel. We believe constant awareness, continuous improvement and ongoing measurement is the best strategy to achieve company-wide progress in sustainability practices. Recent performance enhancing initiatives include: • ASHRAE Level I energy audits to identify energy conservation measures • Targeted capital expenditures to achieve meaningful energy savings at underperforming properties • Participation in utility-sponsored energy rebate programs • Participation in building engineer retro-commissioning training offered by the Commercial Building Energy Alliance and Pacific Northwest National Labs
• The launch of the JBGgreen.com website for improved tenant communication and awareness • Improved comprehensive recycling at commercial assets • Common area and garage lighting retrofits JBG actively seeks input from leading, green industry organizations for new ideas. We work with the Department of Energy’s Commercial Building Alliance, the EPA’s ENERGY STAR forum, the National Capital Region Chapter of the U.S. Green Building Council, Arlington County’s Initiative to Rethink Energy (AIRE), PEPCO’s utility rebate program and the District of Columbia’s Sustainable Utility Company (DC SEU). Many of the initiatives described in this section of the report were implemented at a very low cost by utilizing these marketplace resources. They are helping us change behavior, and we are emphasizing engineer training and tenant education programs to increase awareness about energy conservation, sustainability and best management practices.
• Department of Energy pilot program involvement for the installation of electric vehicle charging stations
JBG sustainability report
29
Element 12420, LEED for Core & Shell Gold
600+ water and energy conservation measures identified for JBG properties by audits.
30
Sustainability & Efficiency Initiatives
Energy and Water Conservation Audits JBG has identified over 600 different energy and water conservation improvements through the completion of ASHRAE level 1 audits throughout its portfolio. The audit procedure includes: • Preliminary analysis of energy use utility bills • Walk-through survey of building features and equipment operation and maintenance • Breakdown of energy use by major catagories • Identification of capital improvements, including analysis of potential costs and savings • I dentification of low-cost/no-cost changes with quantification of the savings for these improvements
Following completion of the audits, action plans for energy conservation measures (ECMs) are created to track the implementation of savings projects. Low and no-cost improvements are implemented on a case-by-case basis and capital improvements are researched and approved through the standard annual budget process. Each month, completed ECMs are logged by the engineering staff and documented in the property’s quarterly sustainability report, which is included in the monthly operating report reviewed by asset managers and investors. These records are used for green building certification documentation and for the tracking of costsavings impacts.
Energy and Water Conservation Improvements Identified through Audits Properties
Low-Cost Recommendations
Capital Recommendations
Hospitality
Lighting retrofit; motion detectors; reprogram BAS; storm water reclamation; retrofit showerheads
Variable frequency drives; boiler and chiller replacements; packaged AC replacement
Commercial
Adjust temperature set points; repair fan coils; change lighting schedules; optimize start/stop for BAS; motion sensors; sub-meter tenant units; timeclocks
Upgrade and add additional equipment to BAS system; install low flow bathroom fixtures; replace cooling tower; window solar film
Residential
Reduce lighting levels; aerators on kitchen and bathroom fixtures; turn off vacant unit water heaters; motion sensors; reduce lobby temperatures
Parking lot lighting; high-efficiency light bulbs, central BAS; lighting retrofit; locker room water heater; VFD’s
JBG sustainability report
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Sustainability & Efficiency Initiatives
District of Columbia Sustainable Energy Utility Partnership The DC Sustainable Energy Utility (DC SEU) was contracted by the District Department of the Environment (DDOE) and local utility provider, PEPCO, to help DC residents and businesses reduce the costs of energy conservation measures. JBG has partnered with DC SEU to participate in both the prescriptive program, which offers pre-approved rebate amounts for common energy efficiency improvements, and the custom program, which offers financial incentives based on projected energy reductions. Participation in the custom
program not only off-sets the cost of capital projects, but provides building owners with a comprehensive energy analysis of contractor bids, technical assistance and design recommendations. JBG commercial properties have applied for and received a number of rebate grants under the prescriptive program. Additionally, JBG has worked with DC SEU engineers to receive approval for incentives on several projects through the custom program. Incentive payments through both programs totaled over $67,000.
JBG Commercial - DC SEU Custom Program Projects 1600 K Street
800 K/ 801 Eye Street
Building
1920 N Street
Energy Efficiency Project
Energy Management Energy Management System System
LED Lighting Retrofit
DCSEU Incentive Payment
$11,000
$12,580
% Value of Incentives
11%
Estimated First-Year Savings
1920 N Street VFD Installation
(Fans and AHU’s)
2012 Totals
$15,000
$8,300
$46,880
16%
7%
21%
—
$34,300
$38,400
$14,300
$22,492
$109,492
Electric Reduction (kWh)
268,000
201,000
111,000
165,000
745,000 kWh
Natural Gas Reduction (ccf)
—
9,075
—
—
9,075 ccf
Carbon Emission Reductions (pounds)
449,968
444,232
178,878
277,225
1,350,303 lbs.
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Sustainability & Efficiency Initiatives
Demand Response Program JBG has enrolled 27 commercial projects into a demand response program, which allows large electric users to contribute to energy load reduction during times of peak demand, thus alleviating stress on the regional electric grid. Demand response programs enable property owners to capture financial incentives for load reduction during emergency periods. In 2012, JBG participated in the Energy Curtailments Specialists’ (ECS) PowerPay program and implemented energy curtailment action plans for JBG’s DC and MD properties during emergency peak demand periods within the PJM market area. In 2013, JBG expanded this program to its VA properties through a similar arrangement with ECS for the Dominion Virginia Power market area.
As part of this program, real-time internal meters were installed at the properties and engineering teams were trained on how to control building loads and avoid peak utility rates through dashboard access. JBG has participated in two emergency events, one in July 2012 for PJM (MD and DC), and one in September 2013 for both PJM and Dominion (VA). In addition to these emergency events, JBG has conducted several tests to ensure reduction strategies achieve desired load-shed levels. JBG is paid for the demand response participation, regardless of whether emergency periods are called by the utility. If curtailment follows the projections based on PJM and Dominion rates for 2014, payments are anticipated to total over $562,200 during the three-year demand response program period for these 27 properties.
Demand Response Payments
2012 Total Actual Payment to JBG
2013 Total Estimated Payment to JBG
2014 Total Estimated Payment to JBG
Subtotal MD Properties
$32,466
$101,323
$53,687
Subtotal DC Properties
$63,067
$151,736
$80,399
Subtotal VA Properties
—
$19,522
$60,000
Total JBG Portfolio
$95,533
$272,581
$194,086
JBG Property Team Sustainability Education Program JBG has established standard operating procedures that embody our commitment to responsible environmental stewardship. By providing our property teams with training and educational resources on identifying energy efficiency strategies, implementing sustainable best practices and managing LEED documentation requirements, we can
JBG sustainability report
achieve green building certifications with minimal reliance on outside specialty consultants. The JBG Sustainability Committee provides web-based educational presentations and project-experience forums, which are recorded for future access.
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12+ retro-commisioning measures identified for the BAS and HVAC system.
7200 Wisconsin Avenue, LEED for Existing Buildings Registered
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Sustainability & Efficiency Initiatives
Case Study: 7200 Wisconsin Avenue – Retro-Commissioning Training Through the Department of Energy’s Commercial Building Energy Alliance (CBEA), JBG engineers participated in a Building Retuning Training Program co-hosted by the Pacific Northwest National Laboratory (PNNL) and Booz Allen Hamilton. The training was conducted at JBG’s 7200 Wisconsin Avenue property in Bethesda, Maryland, and was attended by select JBG engineering staff, as well as building engineers from around the area. During this two-day training, engineers worked directly with PNNL experts to identify recommendations for building automation changes,
evaluate the performance and operations of building systems and identify opportunities for improved building comfort and performance. Engineers were able to use new and existing technology to fine-tune complex interactions of building systems and to develop a retuning strategy by evaluating the effort compared to the potential savings. As a benefit of JBG hosting the training program, the property team received a full report of re-tuning recommendations, which has been summarized below.
Results from 7200 Wisconsin Avenue Retro-Commissioning Analysis Building Element
Building Operation Action
Effort
Potential Savings
Scheduling
Schedule minimum outdoor air during unoccupied hours (5pm-7am)
Low
High
Schedules for all air-handling units to match tenant occupancy schedule
Low
High
Bathroom exhaust fan schedules (match the AHU schedules)
Low
High
Garage exhaust fans are scheduled or configured to run from CO sensor control
Low
High
Reset discharge-static pressure set points (3:00 PM)
Low
High
Lighting schedules for hallways where possible
Low
High
Terminal VAV Box
Set points for cooling-only (74 °F) and reheat (70°F)
Low
High
Garage Exhaust Fans
Running 2 exhaust fans instead of 3, replace belts or adjust sheaves on fans with slipping belts
Medium
Medium
Install carbon monoxide sensors (CO) to control exhaust fans (instead of timed schedules or similar)
Medium
Medium
Enable chiller isolation valve control (closed when respective chiller is off and open when running)
Medium
Medium
Implement condenser water temperature reset strategy
Medium
Medium
Research ability to reset chilled water temperature (may require control wiring/ interface hardware)
Medium
Medium
CHWP Serving Chiller #1
Chilled water pump is extremely hot during operation. Investigate bearings, piping blockage, etc.
Medium
Low
Air Handling Units
Add economizer controls to all air handlers, (Sensors are already in place for most air handling units)
Chiller System
Medium
High
Capital Retrofit Strategies
Effort
Potential Savings
Envelope Improvements
Replace garage insulation, repair expansion joints & seal piping penetrations
Medium
Low
Water-Side Economizer System
Investigate ability of “new plate and frame cooling” system’s ability to provide free cooling
High
High
JBG sustainability report
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View from L’Enfant Plaza
40 %
energy savings
from the garage lighting retrofit at L’Enfant Plaza.
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Sustainability & Efficiency Initiatives
Case Study: Parking Garage Lighting Retrofit – Innovative Green Technology 1,450 parking space garage at L’Enfant Plaza renovated with high-efficiency, programmable light fixtures. JBG recently undertook a major energy savings project involving an innovative, high-efficiency programmable light fixture that was installed at the L’Enfant Plaza parking garage in Southwest Washington, DC. Originally construction in 1969-1970, the 397,332 square foot parking garage includes 1,450 parking spaces dedicated to the JBG-owned office, retail and hotel complex. Prior to renovation, the garage housed over 1,119 obsolete lighting fixtures installed in a concrete waffle slab structure. The lighting fixtures produced poor quality lighting and were continuously operated on a 24/7 basis. The existing system was replaced with the high-efficiency garage lighting system using T8 fixtures and the LimeLight/Twist wireless control system for programmable operation. The renovation reduced the total fixture count by 50%, to 520 fixtures, and is expected to produce a 40% energy savings in addition to achieving the goal of a material improvement in overall light levels and quality.
JBG sustainability report
LimeLight’s wireless system allows users to intelligently control every fixture and each of the three bulbs within the fixture. This allows for maximum flexibility to modulate light to the appropriate level. Additionally, the combination of advanced luminaire technology and two-way communication capabilities can automatically adjust light levels to desired specifications during the day and react immediately to motion in the evening hours. Energy savings are maximized while the customer experiences an environment that is well-lit , whether they are driving or walking through the garage premises. The LimeLight system is operated and monitored via a web portal that manages schedules, events, reporting, light output and maintenance. A customized lighting control and operations plan was developed to control different usage areas such as bay parking, drive aisles, elevator banks and valet parking, all of which have specific light-level needs. JBG’s choice to upgrade L’Enfant Plaza was made after a prior successful installation at JBG’s mixed-use project, North Bethesda Market.
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Sustainability & Efficiency Initiatives
Tenant Communication and Occupant Awareness JBG recognizes that the daily activities of a building’s occupants has a large impact on the sustainable performance of the building. In order to encourage responsible occupant behavior, JBG provides tenants with information on energy and resource conservation through its newly created JBGgreen. com website. The property teams also regularly distribute electronic newsletter communications with tips on energy and water saving strategies and resources. Tenants are encouraged to form green teams within their own organization and work with JBG property teams to identify areas for improvement and opportunities for expanding sustainability initiatives. Occupants are educated on their role in LEED certification and are informed about alternative transportation, given comfort surveys and shown how waste diversion and energy consumption impact the building’s performance metrics.
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JBG’s properties use events to engage tenants throughout the year, raising awareness about sustainability programs and celebrating green building certification accomplishments. Each year in April, JBG’s properties celebrate Earth Day and encourage tenants to attend Earth Day Fairs where local vendors and city officials to set up booths and share information about sustainability initiatives in the community. Property teams organize electric vehicle ride-and-drive events, E-Cycle events, stream clean-ups, green-roof tours, raffles and giveaways of gifts such as reusable water-bottles, grocery bags and lunch bags. Information is circulated to tenants regarding JBG Sustainable initiatives and the Earth Day events happening throughout the area.
Sustainability & Efficiency Initiatives
Comprehensive Commercial Recycling Program JBG recently partnered with Great Forest, a national sustainability consulting firm, to implement a comprehensive, standardized recycling program designed to divert waste from landfills throughout its commercial office portfolio. Through collaboration with janitorial, building staff and tenants, Great Forest is making recycling as simple and effective as possible. To increase proper waste disposal, JBG property teams ensure that all occupants have access
to desk-side recycling bins, electronics recycling and recently installed dual-stream trash/recycling bins located in parking garages and exterior common areas. Regular waste audits and report metrics break down the components of the waste stream to identify areas for improved compliance. In 2012, the commercial office portfolio successfully diverted 48% of its total waste stream from landfill disposal through recycling and reuse programs.
Composition of Waste at JBG Commercial Properties Compost 97 tons Good Manufacturing Products 268 tons Cardboard 489 tons
Shredded Paper 35 tons
48%
Universal 8 tons
Diversion Rate Trash 4,243 tons
Paper 2,647 tons
JBG sustainability report
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2,400 plants
live in the special conditions of the BioWall.
National Cancer Institute, LEED for New Construction
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Sustainability & Efficiency Initiatives
Case Study: National Cancer Institute’s “Living Wall” – Innovative Green Technology JBG demonstrated its leadership in sustainable construction at the recently delivered National Cancer Institute (NCI) at Johns Hopkins University in Rockville, MD. This 575,000 square foot office and research facility is expected to earn LEED New Construction Gold certification and was submitted for NAIOP’s 2013 award for Best Sustainable Design. This innovative project features significant sustainable elements including: • High-performance flush and flow water fixtures (estimated to save 48% over standard fixtures)
top edge. Water is automatically refilled through a real-time monitoring system that sends updates on water quality, nutrient levels and leak detection. The living wall improves indoor environmental quality by passively filtering volatile organic compounds (VOCs) from the air, VOCs may be present from paint or carpeting, especially in new construction. The living plants also do a great job at converting carbon dioxide into oxygen, which saves energy by reducing the need for fresh air to be brought in from the outside.
• High-performance envelop design (estimated to achieve a 22.5% energy savings) • Integrated daylight harvesting and window shades • Energy efficient mechanical design • Two, large green roofs • Three bio-retention ponds • A series of bio-swales including a sand filter stormwater pond NCI also includes a notable example of innovative technology with its signature, green “living” wall. This unique lobby feature includes two vegetation-filled vertical surfaces called BioWalls, which are home to 2,400 plants that are well-adapted to growing under the special conditions of a BioWall. The living plants are supported hydroponically from a basin of water that recirculates water and drips from the
JBG sustainability report
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$1.1 million
Hospitality portfolio utility consumption savings 2011 to 2012.
Westin Arlington Gateway
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Sustainability & Efficiency Initiatives
Hotel Guest Incentives and Sustainability Programs The JBG Companies own 13 hotel properties totaling 5,320 rooms, operated under four brands and one independent management agreement. The JBG hospitality group encourages the hotel operating teams to engage in sustainability and energy efficiency best practices at all of its locations. This includes supporting utility benchmarking, energy audits, capital upgrades and brand sponsored green guest programs. Between 2011 and 2012, the JBG hospitality properties achieved a 7.2% reduction in kWh, a 17% reduction in natural gas therms and a 6.7% reduction in water usage. Each of the four hotel brands sponsor active programs to improve the guest experience and control operating costs. Highlights from these brand sustainability programs are described below. Starwood–Sheraton Hotel & Resorts: Make a Green Choice At the Sheraton Premiere at Tysons and the Sheraton Reston Heights
• Guests receive a $5 food and beverage credit or 500 brand loyalty program points for each night they opt–in to decline housekeeping services. This saves 37.2 gallons of water, 0.19 kWh of electricity, 25,000 BTUs of natural gas and seven ounces of cleaning chemicals per night, per room. Hyatt: Meet and Be Green Offered at the Hyatt Fairfax at Fair Lakes
• Guests receive a 3% reduction in fees if they hold a green meeting at the hotel. Environmental benefits come from the commitment to use no bottled water, use recycling bins, ship less than one pallet of event materials, eat locally and eliminate disposable products.
JBG sustainability report
Marriott Five Point Program – Strategy for Contributing to Environmental Conservation At the Marriott Wardman Park in Washington, DC, the North Bethesda Hotel and Conference Center and the Arlington Capital View Renaissance and Residence Inns
Marriott’s goals include: • Reduce energy and water consumption 20% from the 2008 baseline by 2020 • Empower hotel development partners to build green, LEED certified hotels • Green the multi-billion dollar supply chain • Educate and inspire associates and guests to conserve and preserve • Address environmental challenges through innovative conservation initiatives including rainforest protection and water conservation
Hilton: LightStay At the Washington Hilton in Rockville and Hilton Crystal City
The LightStay system analyzes performance across 200 operational practices including housekeeping, paper product usage, food waste, chemical storage, air quality and transportation. LightStay also provides a “meeting impact calculator” feature that calculates the environmental impact of any meeting or conference held at a property. Key commitments under LightStay include a 20% reduction from 2009 – 2014 in energy consumption, carbon dioxide emissions and waste output, and a 10% reduction in water consumption.
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25
charging stations operating at 13 JBGowned properties.
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Sustainability & Efficiency Initiatives
Case Study: Electric Vehicle Charging Stations JBG expands the availability of EV charging stations for its tenants, clients and guests. The JBG Companies enrolled in the Department of Energy’s, Electric Vehicle (EV) Project, a pilot program that aims to deploy electric vehicle infrastructure in major metropolitan areas around the country while collecting information on EV trends. Through this program, JBG has provided access to electric vehicle charging stations at more than a dozen locations in the greater Washington, DC, area. Twentyfive Blink® Wall Mount charging stations are operating
CO2 Reduced
5,118 pounds
Oil Saved
23 barrels
JBG sustainability report
at 13 JBG-owned properties across the region. Since full installation in 2012, the stations have reduced carbon dioxide emissions by 5,118 pounds. JBG is committed to being a responsible community partner. The Blink charging stations are located at a range of JBG commercial office and residential locations, and offer EV customers priority parking. The usage of the charging stations at JBG properties is recorded on the Blink Network website, which tracks the charging hours at each location. The to-date usage is as follows:
Fuel Saved
974 gallons
Total Saved
2,323 dollars
Location Name
Pilot Program Charge Events
1911/1901 N. Fort Myer Drive, Arlington, VA
-
4445 Willard Avenue, Chevy Chase, MD
61
5515 Security Lane, Rockville, MD
23
5635 Fishers Lane, Rockville, MD
68
800 K/ 801 Eye Street, Washington, DC
155
L’Enfant Plaza, Washinton, DC
402
One Choke Cherry Road, Rockville, MD
49
Hilton Crystal City, Arlington, VA
39
Hyatt Fairlakes, Fairfax, VA
49
Reston Westin/Sheraton, Reston, VA
106
Sheraton Tysons Corner, Vienna, VA
27
North Bethesda Market I & II, Rockville, MD
199
The Alaire, Rockville, MD
141
Total Since Installation
1,239
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next steps
Next Steps
JBG recognizes that sustainability goes beyond the initial receipt of green building certifications and that achieving year-over-year performance gains is more about the human factor and less about the technology. Engagement in behavioral change will be critical to supporting long-term value creation from our continued commitment to sustainability. JBG’s Sustainability Committee will continue to expand its knowledge base and identify barriers to change. Our nearterm goals include promoting increased innovation and the understanding of sustainable best practices by continuing to educate at all levels of the JBG organization. We recognize that it’s a team effort and we thank our colleagues for the tremendous progress in growing value with sustainable results. As part of our next step strategies, we recommend advancing JBG’s sustainability plan within the five core areas as follows: • Green Building Certification - Certify 25 commercial properties under the LEED Volume program by 2016 - Position JBG for national visibility at the USGBC’s 2015 Green Build Conference in Washington, DC - Evaluate opportunities for designations as they become better adapted for mixed-use and multi-family properties • Energy Supply Management - Leverage our buying power in the commodity markets
• Demand Management - Initiate real-time interval energy monitoring allowing for smarter control over building systems - Continue frequent engineer and property team training to track and identify best saving solutions - Target year-over-year utility consumption reductions (adjusted for weather) at each operating asset • Sustainable Best Practices - Improve frequency and sophistication of tenant communications to lower tenants’ water and energy usage and improve waste recycling - Refine our external sustainability message and celebrate success stories so as to enhance the JBG brand • Technology Adoption - Participate further in the Department of Energy’s Commercial Energy Alliance to evaluate best value energy efficiency upgrades and specifications of high-performance building systems and products
- Continue to evaluate procurement contract structures and timing to achieve optimum pricing and risk reduction
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Eileen H. Nacev Vice President/Director of Sustainability Carl Breerwood Senior Vice President/Director of Engineering Jessica Long Commercial Operations Associate
4445 Willard Avenue Suite 400 | Chevy Chase, MD 20815 | 240.333.3600 | JBG.com | JBGgreen.com