2009 ENERGY EFFICIENCY INDICATOR

Transcription

1 Johnson Controls, Inc. International Facility Management Association 2009 ENERGY EFFICIENCY INDICATOR SUMMARY REPORT

2 International Facility Management Association International Facility Management Association 1 E. Greenway Plaza, Suite 1100 Houston, Texas, USA P: F:

3 2009 ENERGY EFFICIENCY INDICATOR SUMMARY REPORT Background Starting in 2007, Johnson Controls initiated the first Energy Efficiency Indicator survey with the intent to measure the impact of rising energy prices on organizations and their associated actions. In the first year of the survey, partnered with Johnson Controls and fielded the web-based survey to a sample of its members. Now in its third year, the survey has expanded globally and continues to monitor how companies react to rising energy costs and their expected payback on energy management improvements. The study has held up to is original intention of tracking opinions specific to energy and monitoring trends. Methodology An online survey was conducted in April 2009 targeting energy management decision makers. In order to answer the survey, respondents had to meet the following criteria: Job responsibilities included reviewing or monitoring the amount of energy used by their company s facilities, or proposing or approving initiatives to make their company s facilities more energy efficient. Responsible for capital- or operations-related budget for their organization s facilities. The North America participants included professional members of International Facility Management Association () and company executives such as CEOs, COOs and general managers solicited from a survey panel. This report focuses on the responses of the facility management community for this year, but also includes data from the 2007 and 2008 studies where applicable. Throughout the report, comparisons are made to the responses of the 2009 executive panel sample. Many charts contain highlighted cells indicating a statistically significant difference was uncovered when the responses of the two groups were compared side by side. The survey was issued in April A total of 422 completed surveys were received from members in 2009, compared to 338 in 2008 and 449 in Throughout the survey, respondents were asked to consider energy used in the operation of facilities such as natural gas, electricity, and fuel oil, but not energy such as fuel used in running vehicles. For some questions, percentages may not add up to 100 percent due to rounding or the acceptance of multiple responses. Where applicable, data for 2009 have been compared with responses for 2008 and Several new questions were added to the 2009 survey and a few questions were modified, so for these questions only 2009 data is shown. 2

4 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT EXECUTIVE SUMMARY Increased Emphasis on Energy Management The importance of energy management has grown significantly among members threefourths of them now consider energy management to be extremely or very important to their company, compared to just 52 percent of the executive panel. Three-fourths of members believe their company is paying more attention to energy efficiency now than it did last year. The remaining one-fourth believes the company is paying the same amount of attention. Nearly three-fourths of members review their energy consumption on at least a monthly basis, but only one-third review their energy forecasts as frequently. One-fifth of members companies have a green-certified building and one-half have buildings with some green elements, but have not undertaken a certification process. For the vast majority of respondents, though, energy efficiency is a design priority in new construction and retrofit projects. While energy efficiency is a priority for new construction and retrofit projects, green certification is more likely to be the goal for new building construction. Incorporating green elements and fixtures without certification is a more common goal when retrofitting facilities. Motivations for Energy Efficiency As is the case for other respondents, saving money is a greater motivation for members to improve energy efficiency than is concern for the environment. The environment is usually a consideration but cost savings are generally more important. Half of the facility managers agree that incentives from utilities or government entities are extremely or very influential in their decision making. They anticipate more government regulation in mandating energy efficiency and carbon reduction in the near future. The key barriers members cite that keep their companies from capturing potential energy savings are the availability of capital and the company s assessment of the project s return on investment (ROI). Current Use, Expectations and Plans members work for companies that spend large amounts on energy (one-half spend in excess of US$1 million annually on energy expenses) and for one-third of companies, energy accounts for at least 10 percent of their total expenses. The number of members who expect energy prices to increase over the next year has fallen from 79 percent in 2008 to just 59 percent in Nearly one-third expect to see no changes in the price of energy. On average, members who expect to see a price increase are anticipating a rise of about 10 percent, compared to 16 percent among the executive panel. members are considerably more likely to make energy efficiency investments from both capital and operating budgets than are those from the executive panel, but both groups expect to invest about the same percentage of their budgets. 3

5 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT 70 percent of members expect to invest part of their capital budget on energy efficiency improvements and 75 percent expect to make investments from their operating budget. One-half of members expect a resultant decrease of less than 10 percent in consumption. members are split in their preference for how to finance the assets acquired when making energy efficiency improvements 45 percent prefer to own the assets and 46 percent prefer a power purchase agreement. The decision of which option to select is most often influenced by the ROI, rather than the net present value of the assets. Measures Already in Place members have adopted a number of measures to manage or improve the energy efficiency of the facilities they manage. The following includes the most commonly adopted measures: Staff-related: Educating staff and facility users on ways they can reduce energy use, also attending or sending staff to energy management seminars. Equipment and Systems: Most have adjusted their heating, ventilation and air conditioning (HVAC) controls to reduce running time. Other popular measures include upgrading the building management system and installing variable speed drives (VSD) and variable frequency drives (VFD). Lighting: Many have switched to energy efficient lighting and installed lighting sensors or adjusted time clocks. Energy Supply: Two-fifths have negotiated energy contracts with suppliers, but the same percentage has not made any energy supply-related changes to improve energy efficiency. Building Design: One-half of members have not adopted any building design measures to improve energy efficiency. One-fourth of member companies have a publicly-stated carbon reduction goal. The most common strategy for meeting the goal is to improve the energy efficiency in the buildings. 4

6 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Respondent Profile The majority of respondents are facility managers and over one-fourth are vice presidents or directors of facilities. The sample is quite different from the executive panel, which is comprised primarily of CEOs and general managers. (449) (338) (468) (1,002) Position % % % % Facility Manager CEO * VP or Director of Facilities General Manager COO or VP/Director of Operations CFO Other members typically have responsibility for much larger facilities, with almost one-third responsible for managing one million square feet or more. (449) (338) (390) (983) Area of Responsibility % % % % Less than 100,000 sq. ft ,000 to 499,999 sq. ft ,000 to 999,999 sq. ft million to 1.99 million sq. ft million to 4.99 million sq. ft million or more sq. ft Don t know

7 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT The members who participated in the study also work for companies employing more workers than respondents from the executive panel, four-fifths of who are with companies consisting of fewer than 100 employees. (449) (338) (416) (1,001) Number of Employees % % % % Fewer than ,000 4, ,000 9, ,000 49, ,000 or more Don t know Nearly two-thirds of members are from large companies with revenues of US$100 million or more; onethird represented companies with over $US 1 billion in revenue. In comparison, one-half of respondents from the executive panel represent companies with revenues of less than US$500,000. (415) (308) (416) (564) Company Revenue * % % % % Less than $100K $100K less than $500K * $500K less than $1 million $1 million less than $5 million $5 million less than $10 million * $10 million less than $50 million $50 million less than $100 million $100 million less than $500 million $500 million less than $1 billion $1 billion or more Don t know * Currency shown in U.S. dollars 6

8 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Both groups, and the executive panel, represent a wide variety of industries but the sample has more representation from financial services and manufacturing industries as well as government entities, while the executive panel has more representation from service industries, retail and construction. (449) (338) (418) (1,004) Industry % % % % Service industry Finance, insurance, and banking Manufacturing Retail Real estate Education K-12 NA Higher education NA Health care Government and public administration Construction * * 1 7 Communications Wholesale Hospitality Transportation and logistics Consumer products NA Other Nearly one-fifth of respondents from the sample are from government and public sector organizations. (449) (334) (390) (965) Industry % % % % Private sector Public/government-owned

9 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Respondents from both samples have responsibility primarily for office space but a wide range of other facility types are also represented. (449) (337) (417) (993) Primary Type of Building % % % % Office space Industrial/manufacturing/plant Warehouse/storage Retail Education campus Research center/laboratory Hospital/health care facility/clinic Hotels/hospitality Other Responses were collected primarily in North America, with representation from the United States and Canada Countries Represented (418) (1,004) United States Canada 43 5 Afghanistan 1 Argentina 1 Australia 1 Azerbaijan 1 Brazil 1 Cayman Islands 2 China 1 Cote d Ivoire 1 Germany 1 Hong Kong 9 Iceland 1 India 5 Indonesia 1 Ireland 1 Italy 4 Japan 1 Nigeria 6 Oman 1 Pakistan 1 Qatar 1 Singapore 1 1 Spain 1 Switzerland 1 United Arab Emirates 1 United Kingdom 1 8

10 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Detailed Findings Increased Emphasis on Energy Management For members, energy management has grown in importance over the past year and it is significantly more important to these respondents than to the executives interviewed. Importance of Energy Management to Company (449) (338) (418) (1,003) % % % % Extremely/very important Extremely important (5) Very important (4) Somewhat important (3) Not very important (2) Not at all important (1) 1 * 3 9 Mean The interest in energy efficiency has exhibited an upward trend for the past three years. Three-quarters of the facility management group and 69 percent of the executive panel say they are paying a little or a lot more attention to energy efficiency than they were one year ago. (449) (338) (418) (1,004) Attention Paid to Energy Efficiency Vs. One Year Ago % % % % Paying a lot more attention now (5) Paying a little more attention now (4) Paying about the same attention (3) Paying a little less attention now (2) Paying a lot less attention now (1) - * - 1 Don t know Average

11 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Facility executives review their energy consumption data more frequently than the executives two-thirds review consumption at least monthly versus just one-half of the executive panel. The frequency in which facilities review consumption data has increased over time. (449) (338) (418) (1,003) Frequency of Reviewing Consumption Data % % % % Daily (265) Weekly (52) Monthly (12) Quarterly (4) Twice a year (2) Annually (1) Less than once a year (0.5) Don t know Avg. times per year While two-thirds of facility managers review energy consumption monthly, only one-third review their energy forecasts as frequently. (449) (338) (418) (1,002) Frequency of Reviewing Forecasts % % % % Daily (265) * Weekly (52) Monthly (12) Quarterly (4) Twice a year (2) Annually (1) Less than once a year (0.5) Don t know Avg. times per year

12 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Among members the median level of tolerance for seeing an ROI in energy efficiency is between three and four years. Fifty percent of members expect to see a positive return within that timeframe (338) (417) (1,003) Tolerance for ROI on Energy Efficiency Investment % % % Less than a year (0.75) but less than 2 years (1.5) but less than 3 years (2.5) but less than 4 years (3.5) but less than 6 years (5.0) but less than 10 years (8.0) years or more (10.0) Would not require ROI Don t know 7 14 Average Maximum ROI period 4.1 years - - Not much has changed in regard to an allowable pay back period. Two-fifths of members believe ROI tolerance is unchanged in 5 years. (449) (336) (412) (994) ROI Tolerance Compared to 5-Years Ago % % % % Company will allow longer payback period today Allowable payback period has not changed Company allowed longer payback 5 years ago Don t know

13 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT companies are considerably more likely to have green buildings than those represented in the executive panel. One-fifth of members have at least one green-certified building in their portfolio and one-half have buildings with green elements. In comparison, only 37 percent of the executive panel works in buildings with any green elements (336) (416) (1,003) Current Status Vis-à-Vis Green Facilities % % % Have at least one green certified building Have buildings with elements but no certification Have no buildings that incorporate green elements Don t know For the vast majority of companies, energy efficiency is a priority in construction and retrofit projects. (320) (238) (253) (210) Consideration of Efficiency in Construction Projects % % % % Energy efficiency was/will be a design priority Energy efficiency was not/will not be a priority Don t know Companies are more likely to have a goal of green certification for new construction projects than for retrofit projects. They are more likely to incorporate green elements into retrofit projects rather than achieve certification. New Construction Projects Members Retrofit Projects Members (144) (149) (72) (143) (165) (149) Goal for Greenness of New Construction/Retrofits % % % % % % To be certified to a recognized green standard To have green elements but not green certification No goal for them to be green buildings Don t know

14 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Just under half, 47 percent of study respondents who are currently undergoing or planning a new construction or facility retrofit, do not require any type of energy-related due diligence prior to leasing or purchasing (252) (211) Require Energy-Related Due Diligence before New Real Estate Purchases % % Requires energy-related due diligence Does not require energy-related due diligence Don t know

15 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Motivations for Energy Efficiency For all of the survey respondents cost savings is a more influential motivation for achieving energy efficiency than environmental responsibility. A third of the sample is split between achieving cost savings and concern for the environment. (430) (332) (416) (996) Relative Influence of Cost Savings/Environment % % % % 100% cost savings (7) Mostly for cost savings (6) Somewhat more for cost savings (5) % cost savings/50% environmental (4) Somewhat more for environment (3) Mostly for environmental responsibility (2) % environmental responsibility (1) * Mean One-fifth of facility managers feel that climate change is a significant influence on their energy efficiency decisions, the same percentage as the executive panel (336) (418) (1,003) Influence of Climate Change on Energy Efficiency Decisions % % % Extremely/Very significant Extremely significant (5) Very significant (4) Somewhat significant (3) Not very significant (2) Not at all significant (1) Mean

16 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT The impact of incentive continues to grow as we see that close to 50 percent of facility professionals say that incentives offered by utility companies and government are extremely or very influential on their energy efficiency decisions, which is consistent with other respondents views. Influence of Utilities/Government Incentives on Energy Efficiency Decisions (337) (418) (1,002) % % % Extremely/very influential Extremely influential (5) Very influential (4) Somewhat influential (3) Not very influential (2) Not at all influential (1) Don t know Mean A third of members believe that owning and operating green buildings will be extremely or very important in attracting new talent and retaining current employees. Perceived Importance of Green Buildings in Attracting and Retaining Employees (336) (417) (1,001) % % % Extremely/very important Extremely important (5) Very important (4) Somewhat important (3) Not very important (2) Not at all important (1) Don t know Mean

17 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT In a year s time, more respondents anticipate their operations will be impacted by legislation mandating energy efficiency improvements or reducing carbon emissions. Approximately two-thirds of facility professionals and one-half of the executive panel believe it is extremely or very likely that government will play a bigger role in energy legislation. Expectation of Significant Legislation Mandating Energy Efficiency or Carbon Reduction in Next Two Years (334) (416) (1,001) % % % Extremely/very likely Extremely likely (5) Very likely (4) Somewhat likely (3) Not very likely (2) Not at all likely (1) Don t know Mean For facility executives, the top barriers preventing their organizations from investing in energy improvements are lack of capital and the assessment of the project s ROI. As indicated earlier, the majority of companies are seeking an ROI of three years or less, and many energy investments take longer to achieve. The ROI, in particular, is more important to members than to the executive panel, which most commonly identifies capital availability as the key barrier (414) (998) Top Barrier to Capturing Energy Savings for Company % % Capital availability Technical expertise 3 8 Buy-in from senior leaders 9 2 Payback/ ROI Dedicated attention, ownership 9 14 Landlord/tenant split incentives 5 12 Other

18 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Current Energy Use, Expectations and Plans members represent companies that spend large amounts on energy consumption. One-quarter of members work for companies that spend in excess of US$5 million annually on energy and one-half spend over US$1 million. (432) (317) (229) (480) * Amount Spent on Energy Last Year % % % % Less than $100K $100K but less than $500, $500K but less than $1,000, $1,000,000 but less than $5,000, More than $5,000, Don t know * Currency shown in US dollars The largest percentage of members spend less than 5% of their total expenses on energy consumption, but one in twelve companies spend more than 25% of their total expenditures on energy expenses. (449) (338) (415) (1,003) % of Total Expenses Energy Accounts for % % % % Less than 1% % - 4% % - 9% % - 14% % - 19% % - 24% % or more Don t know Average 10% 11%

19 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Sixty percent believe energy prices will increase over the next year and nearly one-third believe energy costs will not change significantly. (449) (338) (418) (1,004) Believe Price of Energy Will % % % % Increase over the next year Decrease over the next year Not change significantly members are far more optimistic than executives about how much they expect energy prices to rise. On average, they expect an increase of around 10 percent compared to over 15 percent expected by executives. (346) (265) (245) (609) Anticipated Increase % % % % 1% - 5% % - 10% % - 20% % - 40% More than 40% 1 * 2 3 Don t know Mean anticipated increase 10.56% 9.85% 10.0% 15.6% 18

20 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Approximately two-thirds of members are either currently or planning to in the next 12 months to undergo new facility construction or facility retrofits 36 percent are currently or planning new construction and 39 percent are currently or planning retrofits. Currently or Planning in Next 12 Months for New Construction or Facility Retrofits Currently or planning new construction 7% 36% Currently or planning facility retrofits 15% 39% No new construction or retrofits in next 12 months 37% 69% Don t know 3% 10% n=418 n=1004 Facility professionals expect to spend a considerably larger proportion of their capital budget on energy efficiency improvements than do executives. (449) (338) (418) (1,004) Finance Energy Efficiency Improvements with Capital Expenditures % % % % Expect to make energy efficiency improvements with capital expenditures in the next year Do not expect to make improvements with capital expenditures in the next year Don t know

21 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT The majority of respondents who intend to use capital funding for energy efficiency improvements will likely allocate 9 percent or less of their capital budget on such improvements. There is a shift in 2009 to use a smaller allocation of capital funding for this purpose. (297) (253) (291) (360) % of Capital Budget Expect to Invest % % % % Less than 1% % - 4% % - 9% % - 14% % - 19% % - 24% % or more Don t know Mean expectation 7% 9% - - Facility professionals are also more apt to use operating funds tor finance energy improvements when compared to members of the executive panel. Finance Energy Efficiency Improvements with Operating Expenditures Expect to make energy efficiency improvements with operating expenditures in the next year Do not expect to make improvements with operating expenditures in the next year (449) (338) (418) (1,004) % % % % Don t know

22 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Facility professionals expect to commit less of their operating budget to energy efficiency improvements than they do of their capital budget one-half expect to commit less than 5 percent of their operating budget to the improvements. Once again, there is a shift toward lowered investment overall compared to previous years. (310) (255) (315) (473) % of Operating Budget Expect to Invest % % % % Less than 1% % - 4% % - 9% % - 14% % - 19% % - 24% % or more Don t know Mean expectation 4% 6% - - By investing operating and capital dollars into energy efficiency improvements, one-half of facility managers expect to use between 1 percent and 9 percent less energy. (407) (321) (418) (1,002) Anticipated Resultant Consumption Reduction % % % % Don t plan on any improvements Less than 1% % - 4% % - 9% % - 19% % - 29% % or more * Don t know Mean expectation 7% 8%

23 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT When choosing to invest in renewable energy projects such as solar panels, facility managers are split in their preference of how to finance the assets 45 percent would prefer to own the assets, while 46 percent prefer to enter into a power purchase agreement (i.e. an arrangement whereby the company purchases the energy generated from the asset, but not actually own the asset). Financing Renewable Energy Projects Prefer to own the assets 45% 61% Prefer a power purchase agreement 46% 69% Other 3% 9% n=411 n=999 When considering an investment in renewable energy, facility managers are more likely to consider the ROI of their investment rather than the net present value of the asset. Regarding Investing in Renewable Energy What Most Influences Financial Decisions Return of Investment 61% 73% Net Present Value 22% 29% Other 4% 5% n=411 n=

24 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Energy Management Measures Already in Place Three-quarters of facility professionals have continued in their efforts to educate their staff and other facility users on ways to reduce their own energy consumption. Furthering their knowledge in the area of energy management has also taken place among half of the facility management group. (449) (338) (417) (999) Staff-Related Measures Adopted % % % % Educated staff on what they can do to reduce energy use Attended or sent staff to energy management seminars Hired an energy consultant to find ways to improve energy efficiency Hired an energy manager Educated facility users on ways they can reduce energy use None

25 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Facility managers have adopted a number of equipment- and systems-related measures, including adjusting temperature controls, increased consumption monitoring, upgrading or installing a building management system, and installing variable speed and variable frequency drives. (449) (336) (417) (1,002) Equipment and Systems-Related Measures Adopted % % % % Adjusted HVAC temperature controls to reduce time that heating/ac runs Replaced inefficient equipment before the end of its useful life Increased preventive maintenance schedules Increased frequency of monitoring consumption Upgraded or improved an existing building management system Installed variable speed/frequency drives (VSD/VFD) Installed a building management system where there was not one Captured waste energy (e.g. heat and steam) NA Re-commissioned building systems and equipment NA Implemented computer and/or electrical power Other None Facility managers continue to upgrade to energy efficient lighting and to have installed lighting sensors. (449) (338) (417) (1,002) Lighting-Related Measures Adopted % % % % Switched to energy efficient lighting Installed lighting sensors so lights come on and off as needed Installed or adjusted time clocks to turn lights on/off at specified times Other None

26 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Respondents have made fewer improvements to the building envelope compared to adjustments to lighting fixtures and equipment controls. Despite the media attention, installing green roofs has not gained momentum. (449) (322) (406) (988) Building Design-Related Measures Adopted % % % % Installed energy-saving glass in windows Increased building insulation NA Re-roofed with white roof covering to reduce heat gain Installed a green roof NA Other None Those who operate facilities are considerably more likely to have negotiated energy contracts with energy suppliers and more likely to utilize price hedging strategies than members of the executive panel. (449) (324) (407) (990) Energy Supply-Related Measures Adopted % % % % Negotiated energy contracts with suppliers Put energy price hedging strategies in place Installed renewable energy systems (such as solar, wind, geo-thermal, or methane gas) NA Self-generate power during demand peaks Converted to using alternative fuels Other None

27 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Interest and adoption of renewable energies continues to gain momentum. The small businesses represented in the executive panel exhibited a higher incidence of consideration and use of renewable energies in their facility projects. Renewable Energy Used or Considered in Construction or Retrofit Projects (237) (251) (213) % % % Solar electric Solar thermal Wind Geo-thermal Hydro-power Bio-mass None of these Don t know Nearly one-fourth of member companies have a publicly-stated, carbon-reduction goal three times more common than among the executive panel. However, two-thirds of members report that their company does not have a stated carbon-reduction goal. (449) (336) (418) (1,004) Carbon-Reduction Goal % % % % Have a publicly stated carbon-reduction goal Don t have stated carbon-reduction goal Don t know

28 2009 ENERGY EFFICIENCY INDICATOR - SUMMARY REPORT Of those members who have a stated carbon reduction goal, one-half identify improving energy efficiency in their buildings as the top strategy for meeting the goal (98) (70) Top Strategy to Meet Carbon Reduction Goal % % Onsite renewable energy 5 21 Renewable power purchases 8 11 Energy efficiency in buildings Energy efficiency in transportation 4 9 Use of alternative transportation fuels 2 - Carbon emission offset purchases 5 9 No prioritization among strategies Other/Don t know

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