Episode 84 – The PACE-Prologis Project in San Francisco
November 20, 2012
In Episode 84 of The Wendel Forum (originally aired on November 10, 2012, on 960 KNEW AM radio), show moderator Dick Lyons, co-founder of Wendel Rosen’s sustainable business practice group, welcomes Aaron Binkley, Director of Sustainability at Prologis, and Rich Chien, PACE program manager at San Francisco’s Department of the Environment.
Richard Chien, PACE program manager at SF’s Department of the Environment
San Francisco’s PACE program uses stimulus funds to improve the environmental performance and reduce greenhouse gas emissions from the City’s existing building stock. Part of the Department of Energy’s green building policy, PACE launched the commercial building program a year ago. It’s first project is Pier 1, the headquarters of Prologis, the country’s largest industrial real estate company.
Aaron Binkley, Director of Sustainability at Prologis
At a cost of $1.6 million, the PACE-Prologis project will include rooftop solar panels and energy efficiency upgrades. Specifically, the building will receive retrocommissioning of its heating and cooling systems (primarily related to software, controls, valves and motors) and a full lighting retrofit (replacing bulbs and some fixtures; adding sensors and daylight capture equipment). When it’s completed in 2013, the project will reduce energy purchases by one third from last year’s baseline. All of the building’s tenants (including the Port of San Francisco) will benefit, and savings will be applied to all occupants on a pro rata basis. The changes have been calibrated so as to not generate excess energy that needs to be sold back to the grid.
Piloted in Berkeley in 2007, the PACE program uses local governments’ taxing or bond-issuing authority to fund projects that have a public benefit. The PACE-Prologis project is 100 percent privately funded, with bonds issued to private investors. Repayments are made through the property tax billing system, which allows for longer terms (up to 20 years). The property is the collateral and repayment obligations transfer to the new owner if the building sold. The interest is federally taxable and California tax-free.
A challenge to the PACE program is that the loan agreements from residential and commercial lenders typically prevent land owners from further encumbering their properties without the lender’s approval. Since the PACE bonds are repaid through increased property taxes, the bonds are effectively senior in security to the lenders’ loans. Some lenders may be reluctant to approve PACE financing unless they are confident that the resulting energy savings will translate into a sufficiently higher property value so that their positions are not impaired. One approach to lender reluctance is for the lender itself to purchase the PACE bonds. In that case, the lender is only subordinated to itself and gets the benefit of the investment in the PACE bonds.
How could the PACE program impact your community?
Post Links:
Listen to the interview with Binkley and Chien: Episode 84 of The Wendel Forum (27:44 mins; mp3)
For information about PACE, visit: www.greenfinancesf.org and www.pacenow.org
Prologis Corporate Responsibility Web Page: http://www.prologis.com/en/responsibility.html
960 KNEW AM Radio Website: http://www.960KNEW.com
Dick Lyons’ online profile: http://www.wendel.com/rylons
In honor of election day (hope you’ve voted), here’s a second post of the day with our recent interview with Spreck Rosekrans discussing the Hetch Hetchy water system and San Francisco’s Measure F.
In Episode 83 of The Wendel Forum (originally aired on November 3, 2012, on 960 KNEW AM radio), show moderator Bill Acevedo, chair of Wendel Rosen’s sustainable business practice group, welcomes Spreck Rosekrans, director of policy for Restore Hetch Hetchy, a non-profit organization that seeks to transform the Hetch Hetchy from a reservoir that imports water to San Francisco back to its natural state as a valley in Yosemite.
Rosekrans has been an environmental advocate for 25 years. Prior to joining Restore Hetch Hetchy, he was asked by the Sierra Club to examine whether Hetch Hetchy can be restored.
SFPUC and Hetch Hetchy system schematic
Originally a valley, akin to but smaller than the Yosemite Valley, Hetch Hetchy became a reservoir that supplied water to San Francisco after the City’s early 20th century earthquake and fire. Soon after, legislation was passed to forbid future reservoirs from being built in national parks. In fact, that actually launched the environmental movement, according to Rosekrans, who notes that’s also when the Sierra Club developed from simply an outing club into an environmental-political organization.
Hetch Hetchy Valley Restored, artist’s rendering
According to Rosekrans, through improved water management, which might include water recycling and capturing rainwater, San Francisco could eliminate its reliance on Hetch Hetchy water. But some, (including California Senator Dianne Feinstein) who are concerned about San Francisco’s sources of water and hydropower, are opposed to the restoration. Many of those opponents believe the Hetch Hetchy is San Francisco’s birthright, according to Rosekrans. Others see it as an iconic dam with symbolic value, making restoration seem radical. For their part, legislators don’t want to address the issue. As a result, Restore Hetch Hetchy is taking the issue to the people of San Francisco through Measure F, which seeks to create a public plan that would modernize San Francisco’s water system, including water recycling and groundwater banking (in which cities exchange water with agricultural districts). Measure F would also establish a task force, which would come back to voters in 2016 with specific programs and facilities that would be an alternative to Hetch Hetchy.
While the restoration of Hetch Hetchy Valley would be years in the making, Measure F is a critical component to the restoration effort. Do you support Measure F?
Post Links:
Listen to the interview with Rosekrans: Episode 83 of The Wendel Forum (27:52 mins; mp3)
Restore Hetch Hetchy’s Website: http://www.hetchhetchy.org
Measure F — Restore Hetch Hetchy’s Ballot Initiative: http://www.hetchhetchy.org/images/Reports/Ballot_Initiative.pdf
960 KNEW AM Radio website: http://www.960KNEW.com
Bill Acevedo’s online profile: http://www.wendel.com/wacevedo
Episode 82 – Elemental Herbs Brings Good to Body Care — Inside & Out
November 6, 2012
In Episode 82 of The Wendel Forum (originally aired on October 27, 2012, on 960 KNEW AM radio), show moderator Bill Acevedo, chair of Wendel Rosen’s sustainable business practice group, welcomes Caroline Duell, the founder of Elemental Herbs, an organic body care company based on the central coast of California.
With a background in herbal medicine, Duell is a massage therapist and outdoor enthusiast who began making skin care products for her friends and family. Later, after success selling the products at farmers markets, she launched Elemental Herbs, a California certified B Corporation. That certification is to sustainable business what Fair Trade certification is to coffee – it measures a company’s commitment to operating a business responsibly and sustainably.
Caroline Duell, Founder of Elemental Herbs
Duell also runs a farm, from which she harvests some ingredients for her natural healing products such as All Good Goop, a moisturizer and salve. While Duell also gets ingredients from outside suppliers, she only partners with similar-minded businesses. In particular, she examines other companies’ employee benefits, utilities use, social benefits and transparency. Though not certified organic, all Elemental Herbs holistic products and remedies contain organic ingredients and are free of GMOs (genetically modified organisms).
The Elemental Herbs farm also offers a CSA (community supported agriculture) and serves as an education center, including offering courses about sustainable living. As a member of 1% for the Planet, one percent of all Elemental Herbs revenues is dedicated to fighting for social and environmental justice around the world. Organizations it supports include a local marine mammal protection organization, a local trail organization, Save Our Snow, which provides information about how global warming affects the planet’s snowfall, and cityWILD, which brings inner city kids into the mountains.
Do you care about the company policies, as well as the ingredients, of your skin care products?
Post Links:
Listen to the interview with Duell: Episode 82 of The Wendel Forum (26:47 mins; mp3)
Elemental Herbs website: http://elementalherbs.com
B Corporation website: http://www.bcorporation.net/
1% for the Planet website: http://onepercentfortheplanet.org/en/
960 KNEW AM Radio website: http://www.960KNEW.com
Bill Acevedo’s online profile: http://www.wendel.com/wacevedo
Episode 81 – Reel Green Media is Greening the Entertainment Industry
November 1, 2012
In Episode 81 of The Wendel Forum (originally aired on October 20, 2012, on 960 KNEW AM radio), show moderator Bill Acevedo, chair of Wendel Rosen’s sustainable business practice group, welcomes Lauren Selman, founder of Reel Green Media, an environmental consulting and production company dedicated to greening the entertainment industry both on and off screen.
Lauren Selman of Reel Green Media
Reel Green Media started as a student project when Selman was at UC Berkeley. The company’s first movie project was Benjamin Bratt’s La Mission, which was filmed in San Francisco. Selman initially zeroed in on composting and recycling movie set waste. For example, the 80-person La Mission crew was going through as many as 500 disposable water bottles a day. Selman substituted water jugs. She then analyzed the energy used, including studying generators, transportation, hotel accommodations and caterers. In addition, she consulted on whether the products that appeared on screen were environmentally friendly and promoting a green lifestyle. In addition to movies, Reel Green Media now works on live events, such as the Golden Globes, the Emmys and the Oscars.
Selman also set out to reimagine beauty pageants, competing for the Miss Malibu title in a completely sustainable way with, for example, an all-organic dress and makeup. She won the pageant’s Miss Congeniality title and the People’s Choice Award and influenced the way other contestants approached sustainability.
Bill and Selman discuss how greening the entertainment industry requires re-thinking basic concepts. For example, it’s not always easy to quickly get things – such as compostable plates – to remote areas where movies often film. But studios are getting more on board with sustainable practices and both production structures and executives’ awareness is developing. That, Selman says, will have ripple effect to entertainment industry vendors.
Are you more likely to see a movie that used sustainable practices in filming?
Post Links:
Listen to the interview with Selman: Episode 81 of The Wendel Forum (27:41 mins; mp3)
Reel Green Media: http://www.reelgreenmedia.com
960 KNEW AM Radio website: http://www.960KNEW.com
Bill Acevedo’s online profile: http://www.wendel.com/wacevedo
In Episode 80 of The Wendel Forum (originally aired on October 13, 2012, on 960 KNEW AM radio), show moderator Dick Lyons, co-founder of Wendel Rosen’s sustainable business practice group, welcomes Elliot Kallen, founder and CEO of Prosperity Financial, a San Ramon, Calif.-based money market fund with $200 million under management.
Elliot Kallen, CEO of Prosperity Financial, visits The Wendel Forum
Years ago, socially responsible investing meant simply avoiding investing in so-called sin products such as tobacco or the defense industry. Increasingly, though, socially responsible investing means more. While it can mean investing in green companies, the issue is somewhat muddy. For example, is it socially responsible to invest in a solar module product if the parts were made in China and the manufacturing process included toxic chemicals that ended up in the water supply?
Not surprisingly, therefore, everyone has a different opinion of what it means to be socially conscious. Generally, though, it means thinking about doing the right thing and considering every facet – from environmental issues to a company’s shareholder governance and charitable activities to the private activities (such as aiding the Nazis) of a company’s founder.
In addition, there are different approaches to socially responsible investing. For example, an investor can proactively support companies that are doing good things for society or devote a portion of a portfolio to green companies. Alternatively, an investor can simply seek the highest possible return on investments but then commit to donating 10 percent of those earnings to a socially responsible cause. Kallen recommends finding an advisor who will listen to your goals.
What does socially responsible investing mean to you?
Post Links:
Listen to the interview with Elliot Kallen: Episode 80 of The Wendel Forum (26:55 mins; mp3)
Prosperity Financial Website: http://www.prosperityfg.com
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’s online profile:http://www.wendel.com/rylons
In Episode 78 of The Wendel Forum (originally aired on September 29, 2012, on 960 KNEW AM radio), show moderator Dick Lyons, co-founder of Wendel Rosen’s sustainable business practice group, welcomes Scott Potter, managing partner of San Francisco Equity Partners, a private equity firm that specializes in consumer products growth companies.
Scott Potter, San Francisco Equity Partners, in The Wendel Forum studio
Potter’s firm partners with companies that have demonstrated a proven demand for their products. So while there’s no consumer adoption risk, the companies are usually facing operational and scale challenges to reach the next level. Typically, they are $5-10 million companies poised to scale their businesses, often to north of $100 million.
Identifying these optimal risk-reward companies is more science than art. San Francisco Equity Partners is particularly focused on its companies’ channel strategy. That is, a given beauty product can’t successfully be sold at both Sephora and Wal-Mart. Channels include food (Safeway), drug (Walgreens), mass (Wal-Mart), club (Costco), prestige (specialty retailers and department stores) and direct-to-consumer (online and direct-response TV). Determining the right channel for products is often a company’s key to success.
A growing channel is the so-called natural channel, as epitomized by Whole Foods, which is separate from the traditional grocery channel. But Potter’s firm specializes in natural products that are targeted for the mass channel. Companies targeting this channel should not ask consumers to pay more for an inferior product “just to save the fish,” Potter says. Rather, the product’s value proposition has to work in and of itself outside of sustainability and natural missions. The prime example is Method products.
When San Francisco Equity Partners first invested in Method, it was producing just hand and cleaning products. It has evolved to include bathroom and specialty products and even successfully launched into the competitive laundry space. Early on, Method knew it would never have the marketing budget of Proctor & Gamble. So it chose to overinvest in packaging, focusing on the point of sale: when product is on the shelf. Method’s in-house design team devised a distinctive look, including the bottle molds, and focused on the aesthetic and the user-experience (such as the one-hand laundry detergent dispensing system). With the “design baked into the products,” Method aspired to be like Apple.
At what kind of store are you most likely to purchase natural products?
Post Links:
Listen to the interview with Scott Potter: Episode 78 of The Wendel Forum (27:48 mins; mp3)
San Francisco Equity Partners Website: http://www.sfequitypartners.com
Method Products Website: http://methodhome.com
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’s online profile: http://www.wendel.com/rylons
In Episode 77 of The Wendel Forum (originally aired on September 22, 2012, on 960 KNEW AM radio), show moderator Dick Lyons, co-founder of Wendel Rosen’s sustainable business practice group, welcomes Dr. Jay Udani founder and CEO of Medicus Research, a contract research organization for the natural health products industry, including botanical drugs, dietary supplements and functional foods.
Dr. Jay Udani of Medicus Research
Dietary supplements give people choices in their health care. Whenever manufacturers of dietary supplements make formal claims – such as “supports healthy joints” – the supplements must undergo clinical trials and testing, akin to pharmaceutical testing. Dick and Dr. Udani discuss how both enforcement of and consumer interest in clinical trials for dietary supplements is increasing. Even major food manufacturers, such as yogurt manufacturer Dannon, have received letters from the FDA about their formal health claims.
Whereas pharmaceuticals are chemicals that interact with the body by targeting a pathway or organ, dietary supplements assist the body in better performing normal, healthy functions. As a result, clinical trials of supplements must be done on healthy people. Supplements can take longer than drugs to show effects so the best way to test the efficacy of supplements is for the individuals in the clinical trials to track how they’re feeling over time. Udani’s research program uses iPods to monitor individuals, whose responses may be both subjective and objectively measurable. When evaluating a clinical trial, consumers should examine how the supplement was tested, the population used and the measuring tools.
When taking dietary supplements, does clinical testing matter to you?
Post Links:
Listen to the interview with Dr. Udani: Episode 77 of The Wendel Forum (27:52 mins; mp3)
Medicus Research Website: http://www.medicusresearch.com
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’s online profile: http://www.wendel.com/rylons
Episode 76 – Ben Lee Shares CircleUp’s Crowd Funding Model
October 9, 2012
In Episode 76 of The Wendel Forum (originally aired on September 15, 2012, on 960 KNEW AM radio), show moderator Dick Lyons, co-founder of Wendel Rosen’s sustainable business practice group, welcomes Ben Lee, director of business development at San Francisco-based CircleUp, a crowd funding platform founded in April.
Ben Lee of CircleUp
CircleUp provides an online mechanism for consumer products companies and retailers to reach out to a broad network of potential investors, who may fund the companies in exchange for equity. CircleUp, which affiliated with WR Hambrecht, takes a commission.
So far, they’ve received 600 applications; they’ve selected 10 companies and four – including a baby skin care brand and an organic food brand – have been successfully funded. CircleUp’s team serves as a curator for the investors. In evaluating companies, they look for businesses with $1 million to $10 million in annual revenue. Usually these companies are seeking to raise $500,000 to $2 million to launch new products and achieve the next stage of growth. The typical investment is $5,000 to $25,000 (while each company’s offer is different, these are generally in the form of preferred stock shares); CircleUp assists with larger transactions offline.
While CircleUp streamlines what can otherwise be a year-long funding process, raising money through the platform can still take several months. Although CircleUp selects companies and presents opportunities, investors must do their own due diligence. Like any private company investment, crowd funding is risky and the investment horizon may be three to seven years.
Lee says CircleUp’s goals include enhancing the ecosystem around consumer products, helping as many small consumer brands get financing as possible, and making sure CircleUp’s platform is a great experience for investors and companies.
Have you participated in crowd funding? What do you see as the biggest opportunities and challenges to this form of financing?
Post Links:
Listen to the interview with Lee: Episode 76 of The Wendel Forum (27:56 mins; mp3)
Circle Up Website: https://circleup.com
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’s online profile: http://www.wendel.com/rlyons
Episode 75 – Gary Eberhart Discusses Solar Energy for Schools
September 25, 2012
In Episode 75 of The Wendel Forum (originally aired on September 1, 2012, on 960 KNEW AM radio), show moderator Bill Acevedo, chair of Wendel Rosen’s sustainable business practice group, welcomes Gary Eberhart, who serves on the board of the Mt. Diablo Unified School District, which serves 32,000 children and adult students at 56 campuses, making it one of the largest school districts in California.
Amid decreasing budgets and increasing energy costs, the Mt. Diablo School District secured a $350 million bond from the community to add solar energy to 51 of the district’s schools. Eberhart and his fellow board members determined that purchasing a solar energy system through a bond program would be more cost-effective than buying power from a solar provider under a long-term purchase agreement. Specifically, Eberhart, who has served on the school board for 17 years, determined they could invest the estimated $220 million savings back into the schools over the system’s 30-year life expectancy. The bond measure was approved by 60 percent of the community.
Mt. Diablo’s 12.2-megawatt system is the largest program in the world for a school district and will meet 92 percent of the district’s energy needs. After a competitive selection process for the contractor, the installation took one year and all but a handful of the 51 systems are now up and running. The solar panels were installed primarily in parking lots and on playground structures, which Eberhart says look better and are easier to maintain than roof panels. The solar energy systems are also providing a unique educational tool for students, who can monitor energy and cost savings through real-time data.
Could your school district use solar energy?
Post Links:
Listen to the interview with Eberhart: Episode 75 of The Wendel Forum (27:43 mins; mp3)
Mount Diablo Unified School District Website: http://www.mdusd.org/Pages/default.aspx
Information about the Bond Program: http://mdusdmeasurec.org
Strategic Facilities Planning, Eberhart’s Company Website: http://www.strategicfacilitiesplanning.com
960 KNEW AM Radio Website: http://www.960KNEW.com
Bill Acevedo’s Online Profile: http://www.wendel.com/wacevedo
Episode 74 – New Belgium Brewing Co. Promotes Meaningful Employment
September 13, 2012
In Episode 74 of The Wendel Forum (originally aired on August 25, 2012, on 960 KNEW AM radio), show moderator Bill Acevedo, chair of Wendel Rosen’s sustainable business practice group, welcomes Jenn Vervier, director of sustainability at New Belgium Brewing Company.
New Belgium Brewing Company prides itself on providing meaningful employment for its owners and workers. It promotes a “high-involvement culture,” in which individuals “bring their whole selves to work” and everyone’s voice is heard. Specifically, the company engages in participative decision-making, soliciting feedback from top to bottom. All co-workers are included in strategic planning and business operations, and financial reports are shared monthly with all workers.
But – they don’t forget that business can be fun! New Belgium Brewing Company is employee-owned, with workers brought into the ownership after a year. On that anniversary, they also receive a bike. Once employees have worked there for five years, they receive a weeklong, all-expenses-paid trip to Belgium to learn about Belgian beer culture. Those are certainly nice perks!
Make no mistake about it, though, sustainability is a guiding business principle of the company. In addition to donating to environmental causes, New Belgium Brewing Company is also one of the first breweries to publish a life- cycle carbon footprint of its processes for consumers. Plus, New Belgium is constantly looking for ways to hone the efficiency and limit the impacts of its operations. For example, the company instituted a new method of dry hopping that saves millions of gallons of water a year, and it also has changed its bottle lubricants to similarly conserve water. For a beer company, conserving water has a tremendous influence on the bottom line and the environment.
In addition, New Belgium has a 200kW solar PV array, 800kW of cogeneration, which produces electricity from the methane captured from its on-site process water treatment, and 200kW of thermal storage—making cold water or ice at night, off peak, to use in the brewing process and in office HVAC during the hottest part of the day.
Are you more likely to drink New Belgium Brewing Company beer after learning about its core values?
Post Links:
Listen to the interview with Vervier: Episode 74 of The Wendel Forum (27:50 mins; mp3)
New Belgium Brewing Company Website: http://www.newbelgium.com/
960 KNEW AM Radio Website: http://www.960KNEW.com
Bill Acevedo’s Online Profile: http://www.wendel.com/wacevedo
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