Building Sustainable

Business through
Performance,
Place, and Culture
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A healthier workplace yields greater productivity

By Stephanie Sikora
Did you know that about 90% of a
businesss operating costs are typically
employees? Or business healthcare
costs have increased significantly in
recent years? With staff as organizations
largest expense (by far) businesses are
actively seeking ways to maximize employee productivity, increase efficiency,
and decrease staff-related costs all
while retaining staff.
As a result, more businesses are
adopting wellness programs, implementing sustainable practices, and
taking on corporate responsibility initiatives that help employees care more
about their work and the place they do
it. A business whose staff is healthy and
happy is more productive and people
are more invested in their work.
A RAND study with the U.S. Department of Labor found that healthcare
costs are rising due to diseases and
illnesses, with businesses paying a price.
As a result, more businesses are adopting wellness programs in an effort to
improve employees health and decrease costs. In RANDs employer survey,
businesses overwhelmingly expressed
that workplace wellness programs
reduce medical costs, absenteeism, and
health-related productivity losses, thus

increasing productivity. One analysis by

the American Journal of Health Promotion of 42 corporate wellness programs
found these efforts led to a 25% reduction in absenteeism and sick leave and a
25% reduction in health costs.
A UCLA-led study found that employees are 16% more productive at companies that adopt green practices. A study
conducted by the World Green Building
Council determined that better indoor air
quality can lead to a 10% improvement
in productivity. Employee proximity to
windows and views of nature are linked
to productivity gains. On-site health and
exercise amenities encourage healthier
lifestyles.
Poor ventilation, pollutants in the air,
temperature, humidity, lighting, noise and
other factors can affect peoples comfort,
health, morale, and performance. For example, if a worker is too hot or cold, it can
be hard for them to focus and perform
their work. Too much carbon dioxide in
the air degrades cognitive ability. Indoor
pollutants from furniture, paint, printers,
and mold can cause infections, asthma,
and sick building syndrome.
From wellness programs to employee
health considerations to environmental
characteristics and social responsibility
initiatives studies show a clear return
on investment at the bottom line. There

are many things businesses can do to

improve internal environments and encourage healthier living, thereby increasing employee productivity and reducing
employer costs.

10 WAYS TO MAKE YOUR

WORKPLACE HEALTHIER
AND HIGHER PERFORMING
Build opportunities for
physical activity into the workday.
(Try walking meetings!)
Ensure that workers work
stations are setup ergonomically.
Provide standing workstations.
Offer healthy food options in
company-purchased meals.
Add plants to help control
humidity, clean the air, and
add beauty.
Change your air filters regularly.
Increase ventilation rates to
provide more fresh air.
Request that custodial staff use
third-party certified non-toxic
cleaning products.
Arrange office furniture to
provide more people access to
natural light.
Create a wellness program.

BUILDING SUSTAINABLE BUSINESS THROUGH PERFORMANCE, PLACE, AND CULTURE

Business Advantages to Third-Party Certifications

By Leslie Montgomery

munity with high-quality art installations

and programming.

Green building and place standards

like Energy Star and LEED (Leadership in
Energy and Environmental Design) have
become mainstream, demonstrating a
clear focus on designing for a sustainable future. While third-party certifications may not fit every project, they add
significant value, provide quality control
and assurance, and must be considered
for prudent business.
Studies prove that LEED certified
buildings can demand higher premiums, boast higher occupancy rates, and
garner media attention, but green buildings without a certification dont always
receive such perks. Anyone can say their
building is green, but when a trusted
third-party like the U.S. Department
of Energy, U.S. Green Building Council
(USGBC), or International Living Future
Institute validates green building claims,
the claims and buildings themselves
become more valuable.
Three specific business advantages to
pursuing third-party rating certifications
include:

Owner Dependability

Do More by Using Less

In a 2015 Huffington Post article,

USGBCs Roger Platt pointed out that
lenders value buildings that pursue
rating systems like LEED and Energy
Star because their owners have greater
potential to generate steady cash flow
and withstand certain challenges over
time, meaning theyre less likely to default on loans. According to Platt, green
buildings are recognized as high-quality
collateral and, therefore, an important
variable to reducing risk of mortgage
defaults. Case in point: Fannie Mae now
offers multifamily properties reduced interest rates on mortgages if they achieve
a third-party green building certification.

Using LEED as a roadmap, a Western

Pennsylvania museum director recently
aimed to achieve a high level of energy
efficiency so he could reduce his operating costs. The museum achieved LEED
Gold certification and its energy bills are
nearly half those of similarly sized buildings, enabling him to run a financially
lean business while providing his com-

Green buildings financial benefits

come in all forms, including added asset
value, higher employee satisfaction and
productivity, and cash saved. Companies
all over the world have realized that
green building certifications pay. The
most notable local (and international)
example is PNC Financial Services, which

The David L. Lawrence Convention

Center was the first green convention
center in the world

Financial Benefits

has more newly constructed LEED buildings than any company in the world. A
2012 Notre Dame study compared the
performance of PNCs LEED certified
bank branches to those that were not
certified, and found that LEED certified
banks significantly outperformed the
others. Consumers opened 458 more deposit accounts and deposited $3 million
more in LEED branches than non-LEED
branches.
Erie Insurance Company also completed a LEED Gold project. According to
Vice President of Environmental Management, Gary Diley: The decisions we
make [like pursuing LEED certification]
help our business financially. According
to USGBC, operating costs for LEED certified buildings are 13.6 percent lower for
new construction and 8.5 percent lower
for existing building projects.
While third-party certifications may
not fit every building project, there
is no question of the absolute value
in achieving them. Achieving a green
building certification demonstrates an
investment in your building, employees,
tenants, and in your city.

A brighter, healthier tomorrow

EDEN HALL CAMPUS SOLAR CANOPY AND WELCOME GATES

When we act more sustainably, our communities look very different. We better manage
resources water, energy, and land - and do more to promote social justice and the
rights of future generations. A degree from Chathams Falk School of Sustainability
allows you to be part of this change, develop the professional skills needed to address
these challenges, and help lead the way to a brighter, healthier future for us all.

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Dean, Falk School
of Sustainability

Eden Hall Campus

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High Performing Buildings Are Profitable:

Pittsburgh 2030 District as a Roadmap for Success
By Anna Siefken
A collaborative group of building
owners and managers, community
stakeholders, and resource partners,
the Pittsburgh 2030 District is a publicprivate-nonprofit partnership voluntarily
committed to aggressive building performance goals. Specifically, 435 buildings
totaling nearly 68 million square feet in
Downtown Pittsburgh and Oakland have
already committed to reducing energy
consumption, water use, and transportation emissions to 50 percent below
baselines by the year 2030; new construction projects aim to reach carbon
neutrality by the same year. Pittsburgh
is the largest of thirteen 2030 Districts in
North America.
A 2030 District is a tangible, quantifiable, place-based, and goal-oriented
method for balancing environmental
concerns with economic prosperity and
community needs through collaboration and sharing of best practices. The
program showcases a financially viable,
multisector effort that maximizes
prosperity while meeting sustainability
objectives. Property owners, facility
managers, and tenants collaborate to
achieve realistic, measurable, and innovative strategies that make businesses
more competitive while their buildings
operate more efficiently, competitively,
and with reduced resource use from
operations and maintenance.
In Downtown, 61 percent of the existing building square footage is committed to Pittsburgh 2030 District reduction
goals; its up to 84 percent in Oakland.
Buildings already working toward these
inspirational reductions include all
types of owners and uses: office build-

PROGRESS
ENERGY
In 2014, the Pittsburgh 2030
District used 6.3% less energy than its
baseline - equivalent to 5,562 homes
annual energy use! In the same year
(and its second pursuing the 2030
Challenge), Downtown Pittsburgh
participants achieved a reduction of
17.9% below baseline.
DOWNTOWN
The Pittsburgh 2030 District includes 435 buildings, totaling nearly 68 million square
feet. Participating buildings, shown in green, cover 61% of Downtown and 84% of
Oakland square footage.

WATER
In 2014, 96 Downtown buildings
representing 80% of Downtowns
square footage achieved a
cooperative 10% reduction in water
use, representing almost 53 million
gallons of wateror 362 homes
annual water usage).

TRANSPORTATION
The 2015 Make My Trip Count
Commuter Survey received 20,710
responses in late 2015. These results
will be compared to the Pittsburgh
2030 District transportation baseline
OAKLAND
ings, local and federal governments,
corporations, all three Pittsburgh sports
teams, colleges and universities, historic
buildings, healthcare institutions, and
cultural amenities.
Through collaboration, leveraging
incentives and financing mechanisms,
and creating shared resources, the
Pittsburgh 2030 District continues to

prove the business case for healthy and

high performing buildings. This type
of collaborative action will help keep
Pittsburgh competitive and innovative in
the year 2030 by making ongoing invest-

in 2016 to demonstrate commuter

mode splits and associated air
emissions.

INDOOR AIR QUALITY

Along with energy, water, and
transportation, the Pittsburgh 2030
District and University of Pittsburgh

ments in Pittsburghs efficient future.

are piloting an indoor air quality

Learn more at go-gba.org/initiatives/

protocol for 2030 Districts worldwide.

pittsburgh-2030-district.

TEN Congratulates The United

Steelworkers of America and President
Leo Gerard for making substantial progress
toward their 2030 District Commitment
for Energy Reduction!
PROVIDING TECHNICAL AND
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4

BUILDING SUSTAINABLE BUSINESS THROUGH PERFORMANCE, PLACE, AND CULTURE

The City of Pittsburghs Department of Innovation

Role in a Sustainable, Resilient Economy
By Grant Ervin & Stephanie Sikora

The Department of Innovation and

Performance aims to transform Pittsburgh into a world-class city through the
intersection of technology, sustainability,
and performance.
How do these three approaches work
together?
They are mutually supportive. Sustainability is an effort to develop a standard
and process for continuous improvement. We have worked to establish
performance baselines. From energy efficiency to civic participation in the work
that we do, we are taking measured
approaches to develop key performance
indicators and look at results through
the lenses of sustainability and resilience.
Technology is an enabling factor,
and sometimes an integrator of data
or systems, that allows us to improve
decision making and resource allocation. The Department of Innovation and
Performance allows sustainability to
cross silos and serve as a resource to
other departments, but also extend an
outward focus to serve as a resource for
communities or city-wide policy objectives as they pertain to sustainability.
How is sustainability a priority for the
City of Pittsburgh?
Internally, we try to improve the efficiency of City operations, like fleet
management, facilities operations,
and employee engagement. We also
consider city-wide impacts and how
local government can help support the
development or preservation of a more
sustainable and resilient place. Exter-

Grant Ervin, the City of Pittsburghs Chief Resilience Officer, leads the Department of
Innovation and Performance
nally, we integrate policy and investment
perspectives that can influence land use,
transportation, or other infrastructure
decisions.
How does the City support Pittsburghs
businesses in becoming more sustainable through performance, place, and
culture?
The City provides a platform and service for businesses. From infrastructure
and code information, to policies and
local government services, we provide a
supportive environment for businesses
that put sustainable decision-making up
front. We also recognize that transparent and available data helps support
a sustainable business culture. Better
understanding of information related to
building energy performance, recycling,
location efficiency, and transporta-

tion access can help drive growth and

development. The Western Pennsylvania Regional Data Center and Uptown
/ West Oakland EcoInnovation District
are two initiatives that empower a
more supportive environment to drive
decision-making.
What key projects are you working on
that will continue to help local
businesses, governments, and residents
achieve more efficient and healthy
places and organizations?
There are a lot. Let me focus on two.
We are working to reimagine and
develop resources around district heating and cooling and microgrid solutions,
which can reduce operations and maintenance costs for building operators.
Our Energy Collaboration Pittsburgh
program with the U.S. Department of

Energy, National Energy Technology Lab,

University of Pittsburgh, and several
local utilities demonstrates that technologies like combined heat and power
add a layer of security and resilience
to critical infrastructure like hospitals.
Local energy generation and delivery is
more efficient and has less impact on
the environment.
We are also creating a city-wide building energy transparency policy that can
help provide a supportive data environment for building energy consumption.
The policy would create a pathway for
improved resource allocation, a platform
to create open-data-driven decisionmaking, and optimize utility resources
for building operations. As a result, we
would help create a valuable added
benefit for supporting local technology
and providing value to the commercial
real estate market.
How does sustainability directly impact
our regions business economy?
It is a pivotal time in our region and
the global business climate. Issues
like climate change, globalization, and
urbanization are mega trends that are
impacting business decisions in both
macro and micro terms. To lead in the
face of these shifts, to acknowledge
that leading companies and regions are
confronting these issues because the
value proposition is so great, presents
a unique opportunity to encourage innovation and leverage the resources and
capacity of the Pittsburgh region. Placing
sustainability and resilience at the forefront of business decision-making helps
to position our regions economy as a
strong global player.

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Higher Education Cultivates a Sustainable Future

Carnegie Mellon Universitys Gates Center is one of six buildings on campus with
a green roof.
By Mary Schrag
Higher education institutions play an
influential role in the health, resilience,
and future of our region. Pittsburghs
universities are sustainability leaders on
many levels: ideologically, in the ways
they teach; operationally, in the ways
they use energy and run their buildings;
and locally, in the ways they interact
with their communities.
Colleges and universities directly impact their surroundings, from economic
drivers and influence on tax bases,
to helping businesses succeed and
encouraging community involvement.
For instance, Point Park Universitys

$244 million Academic Village Initiative

will transform and green the schools
campus and Downtown. At Duquesne
University, MBA students work on projects that provide sustainability recommendations for corporate and nonprofit
partners. University of Pittsburgh projects include students designing greenhouses, workshops for K-12 schools, and
having staff and faculty complete local
sustainability projects for United Ways
Day of Caring.
Internally, universities are leaders in
adopting greener practices to defray
energy costs and more. Carnegie Mellon University boasts 13 LEED certified
projects on campus, with another four

Chatham Universitys Eden Hall Campus will be home to the Falk School of
Sustainability. The Caf, pictured here, uses solar panels to generate energy.
in the works. Duquesne University cut
energy use by 50 percent in its Forbes
Garage by installing new light fixtures.
Carlow University reduced energy use
by 19 percent in its new LEED Silver
University Commons. The University of
Pittsburgh avoided $46 million in energy
costs since 1996.
Most importantly, education institutions prepare and cultivate students
to invest in the future of our region.
Instilling sustainable values in students
leads them to seek those values in their
workplaces, communities, homes, and
lives. Chatham Universitys Falk School
of Sustainability creates leaders in
sustainability by bringing those values

to every aspect of students education,

including on its 388-acre, self-sustaining
Eden Hall Campus. Carnegie Mellon
has integrated sustainability into all of
its colleges; evidence of its dedication
to the environment is everywhere on
campus, including six green roofs and
real-time electricity data for resident
halls available online.
Pittsburghs schools and their commitment to sustainability as a value are part
of what makes Pittsburgh an economic
leader and global competitor. Shifts in
operations save money, reduce energy
use, and set an example for businesses,
faculty, staff, students, and the world.

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BUILDING SUSTAINABLE BUSINESS THROUGH PERFORMANCE, PLACE, AND CULTURE

Green Schools Help Prepare Area K-12 Students

for 21st Century Sustainability Challenges
By Andrew Ellsworth
The Pittsburgh regions health and
vitality is inextricably connected to the
quality and effectiveness of our education system. Not only is it critical to fostering the homegrown talent that makes
our region thrive, but it also cultivates
employees and citizens who are prepared to tackle 21st century challenges.
Green schools can help transform our
schools into places that are good for
students, good for the environment, and
good for the economy.
By embedding sustainability into K-12
education, we can ensure that schools
are healthy and high performing places
of learning that have reduced operating
costs and environmental impact; are
healthy places for students and staff;
and prepare students to think and work
in ways that connect them with college and career pathways while actively
engaging their communities.
A high performing school is one that
works at peak performance, where

buildings are clean, comfortable, wellventilated, and resource-efficient. In

addition to the reduced environmental
impact on our air, water, and limited
natural resources, green schools makes
good financial sense, too. Utility bills are
often the second-largest school budget
line item (after employee costs), so saving on energy, water, and waste disposal is good management of taxpayer
resources.
Student and staff health matters, too.
Sick kids are in school less and perform
worse, leaving students behind their
peers and unable to compete in todays
marketplace. Sick kids can also be an
increased burden on our health care
system, while simultaneously reducing
the productivity of working parents. The
healthier the school can be by focusing
on good indoor air quality, healthy food,
plentiful physical and outdoor activity,
and social and emotional well-being, the
better our students will learn and better
citizens they will become.
The Pittsburgh region needs its K-12

Pittsburgh Langley K-8 students, staff and partners in Langleys recently

renovated greenhouse.
schools to excel and be innovative in
their approaches to creating students
who will propel us forward while addressing future realities of the rapidly changing global economy, climate
change, and resource scarcity in an
interconnected world. Sustainability
recognizes the complexity of system

relationships between the economy,

people, and our environment, creating
ways for all to thrive as a unified system:
reduced costs, improved health and
performance, and thriving citizens and
business leaders of tomorrow.
Learn more at go-gba.org/initiatives/
green-healthy-schools-academy

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CLEAN & GREEN

Look up. Chances are the sky above you is clearer
than it used to be. One reason for that is that natural
gas is powering more of the generators that bring
electricity to homes in this region. Thats just one
of the many changes were helping bring about
to reduce carbon emissions while keeping energy
costs low.

CLEANER AIR:
ONE MORE WAY PEOPLES IS MAKING
YOUR LIFE BETTER.