General Motors Dealer Facilities

Bill Hepburn & Gary Laundroche

2

Example:LaFontaine Buick – Pontiac - GMC – Cadillac

Located in Highland, Michigan 63,000 SF facility Pursuing a LEED “Gold” certification. Would be one of the first Gold certified dealerships in USA Dealers are independent businesses.

3

Short Term Goals Assist our dealers:

– Reduce energy use & cost– Develop a competitive advantage in the market place– Market & sell vehicles to environmentally conscious

consumers • Expect an increase in sales

– Improve image in the community • Part of solution – Not part of the problem• Stimulate local economies with regional materials

– “Do the right thing”

4

Long Term Goals

Assist our dealers:

– Reduce negative impact on the environment

– Reduce long term lifecycle cost

– Reduce the impact of spikes in energy cost

– Help the local community

– Be a good corporate citizen

5

Barriers to Success Decision to go for LEED certification made too late in process

Project team including Architect, Contractors and Suppliers lacked LEED knowledge and experience at onset of project

– Steep learning curve & sub education needed

– Additional coordination efforts needed

General perception cost of construction would be considerably higher

– Industry executives recently estimated 13-18%* incremental cost

Perception more difficult to build

General belief LEED is cost prohibitive

* As reported by Market Barometer, Turner Construction

6

Business Case for Sustainability

Economic Benefits:

– Reduced utility cost 2-30 %*

– Improved employee productivity 2-16%*

– Reduce total lifecycle cost over 20 years**

– Sales & marketing benefits

– Tax deductions & energy credits

Health & Community BenefitsHealth & Community Benefits– Easier community permitting & less red tapeEasier community permitting & less red tape

in some casesin some cases Environmental BenefitsEnvironmental Benefits

Health & Community BenefitsHealth & Community Benefits– Easier community permitting & less red tapeEasier community permitting & less red tape

in some casesin some cases Environmental BenefitsEnvironmental Benefits

* As reported by US Green Building Council (USGBC)

** As reported “The Cost of Green Revisited” Davis Langdon, July 2007

* As reported by US Green Building Council (USGBC)

** As reported “The Cost of Green Revisited” Davis Langdon, July 2007

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Best Practices & Lessons Learned

Make decision to go for LEED certification early in process

– Before site selection

Assemble a team of LEED accredited professionals with experience in designing& building “Green” buildings

LEED is about more than “Green” – it’s about sustainability for generations to come

Sustainability at PepsiCo

Tim Carey

9

Profile of PepsiCo

Global Food and Beverage Company Over $35 Billion in Revenue, more than $6 Billion in Profit

– 17 billion-dollar brands

Major Operating Sectors

– PepsiCo Americas Foods • (Frito Lay, Quaker Foods and Snacks)

– PepsiCo Americas Beverages • (Pepsi Cola, Gatorade, Tropicana)

– PepsiCo International

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Our EvolutionPhase I – Environmental: Reduce environmental impact by improving PepsiCo’s operational effectiveness and eco-efficiency

Strengthen corporate environmental governance mechanisms

Enhance external communications and transparency

Phase II – Social: Through engagement, address key social issues local and global. AIDS/HIV, child labor, safety

Phase III – Integration: Full integration of the three legs of sustainability into all decision making

IntegrationPhase 1

Phase 2Phase 3

20001990s

Environmental

2010

Mat

uri

ty

Social

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Environmental Platforms

• (4) LEED Sites

- Facility Efficiency

- Process Innovation

- Sustainability Education

Energy and Water

Resource Conservation

2010 Goals = 30% reduction over 2004

To date savings: PepsiCo-Chicago

-- 1 billion gallons water

-- 520,000 equivalent bbl’s of oil

-- 386 million KWHs

Technology Development

- Faster product lines

- On-Site Bottle Delivery

- Waterless Rinsing

• World Class Conservation• Largest LEED Bev Sites in World• Largest Energy Credits in World• Energy Star “Partner of Year”

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PepsiCo Chicago Headquarters will be the first PepsiCo office to achieve

LEED Certification – JUL’08

PepsiCo Chicago Headquarters will be the first PepsiCo office to achieve

LEED Certification – JUL’08

Blue Ridge Gatorade Plant, 2nd Largest Food /Beverage LEED Site in the World – LEED Gold – April 2007

Blue Ridge Gatorade Plant, 2nd Largest Food /Beverage LEED Site in the World – LEED Gold – April 2007

Pryor, OK Gatorade Plant, Largest Food/Beverage LEED site in the World –

April 2008 -- LEED GOLD

Pryor, OK Gatorade Plant, Largest Food/Beverage LEED site in the World –

April 2008 -- LEED GOLD

Central Florida Gatorade DC LEED GOLD – ca 2009

Central Florida Gatorade DC LEED GOLD – ca 2009

Tolleson, AZ Gatorade Plant LEED GOLD – AUG’07

Tolleson, AZ Gatorade Plant LEED GOLD – AUG’07

LEED CertificationLEED Certification

Future

Future

Future

Future

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Example Projects – Facilities Photovoltaics—Fullerton Warehouse Capture Sun’s energy

convert to electricity

Warehouse will be off-grid during peak hours (11AM to 3PM)

Start-up May 2008

Target savings ~1,000 barrels of oil/year

Photovoltaics—Fullerton Warehouse Capture Sun’s energy

convert to electricity

Warehouse will be off-grid during peak hours (11AM to 3PM)

Start-up May 2008

Target savings ~1,000 barrels of oil/year

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Example Projects – Manufacturing

Modified storage and transportation methodsModified storage and transportation methodsModified storage and transportation methodsModified storage and transportation methods

– Significant decrease in operating costs– Reduced electrical consumption– Reduced waste water discharge and treatment costs– Significantly reduced GHG emissions

– Significant decrease in operating costs– Reduced electrical consumption– Reduced waste water discharge and treatment costs– Significantly reduced GHG emissions

Nearly 63mm Gallons of Juice Storage

Tropicana Unit Train backhaul program