Groundhog day has a slightly different meaning if you are a sustainability professional in an organization that reports to GRESB. Regardless if he sees his shadow or not, you definitely have 6 weeks of heads down data collection. Unfortunately, some days, it can also resemble the movie Groundhog Day as well. But there are some strategies that you can use to differentiate yourself and maybe even make next year a little easier.
We might as well jump to trash and diversion rate; why beat around the bush? Probably one of the most stress-inducing metrics we collect. But there are some things you can do to make it easier…
Start with thinking about the process of how waste and recycling are collected; who touches it? Who can provide you data? I’m not talking about collecting the invoices, the way many of us calculate this now. Really think about the property and the process from tenant or employee to the container. Who touches it?
If you have a door-to-door collection service, you might be at an advantage, assuming your door-to-door service can provide you data. Challenge them to provide you metrics - quantities that they put in the trash and recycling. Door-to-door service should really drive your diversion rate up, and if implemented properly, can also help monetize an amenity helping improve net operating profit.
I often use this example when considering energy or water upgrades in tenant-controlled expense areas. Most of us have a budget for food and utilities. Maybe not a hard number, but we know we need to set aside X dollars every month for rent/mortgage and utilities. Those dollars go straight to the utility company and the landlord or mortgage holder. But what if you can reduce those expenses?
Pursuing tenant energy and water efficiency measures provides exactly that, a way to reduce the cost of living in the residence or working in the office space. As when you reduce energy or water spend in common areas, the savings fall to your bottom line; the same is true for tenants. When you help them reduce energy or water spend, you free up money from that monthly utility. This is where door-to-door trash collection can step in, redirecting some of those savings that would have gone to the utility company and now providing an amenity - and income for the property, improved diversion, reduced contamination, and metrics.
I would also challenge you to talk to your waste collection companies about entering the trash and recycling collection data directly into Energy Star Portfolio Manager for you, with each invoice. Wait, what? Yup, the data entry for trash is just another meter as far as Energy Star Portfolio Manager is concerned. If the hauler can calculate a bill, they should be able to upload the data into Energy Star Portfolio Manager. This is exactly what Waste Management did for me through their National Account Program. Each property ID was provided to Waste Management, “meters” were established for landfill waste and recycling. They uploaded the usage metrics based on the invoice directly into our Energy Star Portfolio Manager Account every month. Since it was done monthly, the mad scramble for 12 months of invoices disappeared and was replaced with data that I could actually easily access and upload when doing GRESB reporting. They may ask what assumptions they should use when converting volume to weight. I recommend following the EPA guidelines; this provides you a recognized standard and originates from best practices across the country.
What about data coverage? I am willing to bet if we pulled all of the sustainability professionals from each GRESB reporting organization into a bar because why wouldn’t we meet in a bar… Before too long, the topic of data coverage would come up, especially if multifamily sustainability professionals are in the room.
Our utility framework, in many ways, resembles our government in that it tends to be regulated at the state level instead of the federal level. This results in 50 different approaches. Often the state will push these decisions down to the local tariff so that each state may have multiple approaches. This is why there is so much inconsistency and the challenge of a one size fits all answer.
There are potentially some easy responses, for example, if the building happens to sit in a jurisdiction that requires reporting of utility data for benchmarking purposes. Typically such laws also carry requirements for the utility to provide aggregate level building data. Another potential solution is the utility itself may have an aggregate data collection procedure. This one is rare, but occasionally you may come across it, and it is worth asking the question, especially if the property has smart meters.
Another option is submetering at the panel level. For example, the Schneider Electric EM6400 comes in at around $150 per meter and is installed at the electric panel for each unit. Other meters perform similar functions for measurement and verification purposes and load studies, “Standard Accuracy” is the industry norm. You may also see “Revenue-Grade,” but these are really more for billing and demand metering. In each case, the data is transmitted via ModBus and collected by a data aggregation system, where it can be transmitted back via reporting software.
When there are no other alternatives, data sampling is the next best thing. This involves obtaining tenant consent which allows the power company to share the tenant’s data. A percentage of the tenant data is collected, and this is extrapolated out using an established procedure, such as Fannie Mae’s Data Sampling Procedure. My suggestion is to incorporate the consent documents as an addendum to the lease itself for this approach. Making it part of the leasing process provides better acceptance. Note, however, some utilities will only accept their particular data release document, so you may need to attach the utility form for data release.
The other issue being faced is that of green certifications, including Energy Star or IREM CSP, among many others. In the case of EnergyStar, tracking that this is completed can be complicated in a larger portfolio. Expiration dates need to be monitored, a PE needs to sign off on the application, the application needs to be submitted, and you need to know who is eligible. Our National Consulting Platform can help manage that process if you are an EnergyScoreCards customer. The team provides a turnkey service by helping you identify which properties are eligible and completes the necessary steps needed to hand you a certification.
Finally, this is when you should be planning for next year’s GRESB. Keep track of pain points or data that you found difficult to obtain. Make a plan now on how to fix that in the future. Where you see holes in data coverage, determine what can be done to address it and plan for it in the budget cycle. Where you see opportunities to obtain green certifications, get them scheduled so that you can claim them next year.
The cycle continues year in and year out, collect data - measure data - benchmark data - report data. Then you get your results and determine where improvements can be made and make improvements. The more you go through the cycle, the easier it gets. Keep smiling, your almost through it!
You can help reduce the impact of the built environment by sharing this blog with your peers. Together we can impact the 39% of greenhouse gasses attributed to the built environment. It starts with awareness, and we succeed with teamwork.
Stay well!
Chris Laughman is the ThirtyNine Blog author, a blog dedicated to reducing the impact of the built environment. When not blogging, Chris is helping the real estate industry reduce energy and water impact as the Vice President of Sustainability for Conservice, the Utility Experts. Whether Multifamily, Single Family, Student Housing, Commercial, or Military, we simplify utility billing and expense management by doing it for you. Our insight into your utility consumption provides an opportunity to identify risks. Leveraging innovation and experience we ignite solutions with real impacts and track performance to ensure the trendline stays laser-focused on the goal. At Conservice we have developed a true bill-to-boardroom solution to help truly make a difference. We have before us a tremendous opportunity. Standing shoulder to shoulder, we will get this done. Contact me at claughman@conservice.com for more information.
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