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Trends in the Building and Construction LEED v4 & Owner Disclosure Requirements Heather Gadonniex Director, Sustainable Building and Construction

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Page 1: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Trends in the Building and Construction

LEED v4 & Owner Disclosure Requirements

Heather Gadonniex

Director, Sustainable Building and Construction

Page 2: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Megatrends Affecting Business

22.06.2015 2

7 Billion People

Complex Global Value Chains

Climate Change

Scarce Resources

Page 3: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure
Page 4: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Global construction to grow by almost 70%

from $7 trillion today to 12 trillion by 2020

Page 5: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Green Building Councils Are Providing Metrics

Page 6: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Corporate

Responsibility/

Supply Chain

Health Environment

Acronym Overview

22.06.2015 6

• PCR – Product Category

Rule

• LCA – Life Cycle

Assessment

• EPD - Environmental

Product Declaration

• HPD – Health Product

Declaration

• PTD – Product

Transparency Declaration

• CASRN - Chemical

Abstract Service

Registration Number

• GRI – Global Reporting

Initiative

• CDP – Carbon Disclosure

Project

• SCOWG – Supply Chain

Optimization Working

Group

What does it all mean?

Page 7: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

MR Credits:

• Building Life Cycle Impact Reduction

• Building Optimization and Disclosure: Environmental Product

Declarations

• Building Optimization and Disclosure: Sourcing of Raw

Materials

• Building Optimization and Disclosure: Material Ingredients

22.06.2015 7

LEED v4 and Material Health

Other North American rating systems incorporating demand for Transparency & Disclosure

Page 8: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 8

In Depth Credit Overview

Page 9: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 9

EPD Credit Intent

Encourage the use of products and

materials for which verified life-cycle

information is available

Materials and Resources

Building product disclosure and optimization – Environmental Product

Declarations (EPDs)

Encourage the selection of

environmentally-preferable products

Page 10: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 10

EPD Credit Language: Option 1

Option 1. Environmental Product Declaration (1 point)

Use at least 20 different permanently installed products sourced from at

least five different manufacturers that have:

• Product-specific LCA

(counts as ¼ product)

• Industry-average EPD

(counts as ½ product)

• Product-specific EPD

(counts as 1 product)

Page 11: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 11

EPD Credit Language: Option 1

Option 1. Environmental Product Declaration (1 point)

Use at least 20 different permanently installed products sourced from at

least five different manufacturers that have:

• Product-specific LCA

(counts as ¼ product)

• Industry-average EPD

(counts as ½ product)

• Product-specific EPD

(counts as 1 product)

Publicly available LCA report. Requires

critical review by a third party to ensure

conformance with ISO 14044.

Page 12: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 12

EPD Credit Language: Option 1

Option 1. Environmental Product Declaration (1 point)

Use at least 20 different permanently installed products sourced from at

least five different manufacturers that have:

• Product-specific LCA

(counts as ¼ product)

• Industry-average EPD

(counts as ½ product)

• Product-specific EPD

(counts as 1 product)

Type III EPD that is generic to a product

(rather than specific to a particular

manufacturer or company). For the product

to be eligible, the manufacturer must claim

representation either directly on the EPD or

through a Program Operator. Verified

through a Program Operator against ISO

14025.

Page 13: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 13

EPD Credit Language: Option 1

Option 1. Environmental Product Declaration (1 point)

Use at least 20 different permanently installed products sourced from at

least five different manufacturers that have:

• Product-specific LCA

(counts as ¼ product)

• Industry-average EPD

(counts as ½ product)

• Product-specific EPD

(counts as 1 product)

Type III EPD that is specific to a particular

manufacturer and does not necessarily

reflect the practices of the rest of the

industry. Verified through the Program

Operator against ISO 14025.

Page 14: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 14

Raw Material Credit Intent

Encourage the use of responsibly

sourced and extracted materials

through reporting and demonstration

of responsible extraction practices.

Encourage reduced use of raw

materials by selecting reused and

recycled materials.

Building product disclosure and optimization – sourcing of raw materials

Page 15: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 15

Raw Material Credit : Step-by-Step Guidance

Option 1. Raw Material Source

and Extraction Reporting (1 point)

Option 2. Leadership

Extraction Practices (1 point)

Page 16: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 16

Option 1. Raw Material Source and

Extraction Reporting

Specify and select compliant products

Specify products from manufacturers that can provide reports of raw materials

from their suppliers.

Page 17: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 17

Option 1. Raw Material Source and

Extraction Reporting

To meet the credit requirements, reports must include information on the

following:

Raw material supplier extraction locations

Commitment to long-term ecologically

responsible land use

Commitment to reducing environmental harms

from extraction and manufacturing processes

Commitment to meeting voluntary standards or

programs that address responsible sourcing

Page 18: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Raw Material Option 1. Documentation

22.06.2015 18

Corporate sustainability reports

• Third-party verified reports (also called externally

assured reports) are counted at full value for

credit compliance

• Self-declared reports are counted at half value.

Total # of

products = # of products

with

manufacturer-

declared

reports

× 0.5 + # of products

with 3rd party

verified

reports

× 1

Equation 1. Number of products with raw material extraction reporting

Page 19: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 19

Raw Material Option 2. Leadership Extraction Practices

For 25% of permanently installed products, by cost, use products that meet at

least one of the following responsible extraction criteria:

% of

materials

cost

=

Applicable

product

cost 1

Equation 2. Percentage of responsibly sourced products

Criterion

valuation

factor

Location

valuation

factor

× 100 Cost of all permanently installed products

+ Applicable

product

cost 2

Criterion

valuation

factor

Location

valuation

factor +…

Criterion Valuation Factor

Extended producer responsibility 0.5

Bio-based materials

• Wood: FSC-certified

• Non-wood: meets Sustainable Agriculture Standard

1.0

1.0

Reused materials (salvaged, refurbished) 1.0

Recycled content

• Post-consumer recycled materials

• Pre-consumer recycled materials

1.0

0.5

Page 20: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 20

Location Valuation Factor

Location Valuation Factor

[formerly MR Credit Regional Materials]

• Double value for materials sourced within 100 miles of the project site

• Structural and enclosure materials – not more than 30% of the value

of compliant building products

Changes from LEED 2009

• The 500-mile (805-km) radius requirement was decreased to 100

miles (160 km)

• All extraction, manufacture, and purchase (including distribution) of

the product and its materials must occur within that radius

Page 21: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 21

Material Ingredients Credit Intent

Encourage the use of products and

materials for which the chemical

ingredients have been inventoried

Materials and Resources

Building product disclosure and optimization – material ingredients

Minimize the use and generation of

harmful substances

Reward raw material manufacturers

whose products have ‘improved’ life

cycle impacts

Page 22: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 22

Material Ingredients Credit Overview

• Option 1 – Material Ingredient Reporting

• Option 2 – Material Ingredient Optimization

• Option 3 – Supply Chain Optimization

Page 23: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 23

Option 1 – Material Ingredient Reporting

• Manufacturer Inventory

• Health Product Declaration

• Cradle to Cradle

“Use at least 20 different permanently installed products from at least five

different manufacturers that use any of the following programs to demonstrate

the chemical inventory of the product to at least 0.1% (1000 ppm).”

Page 24: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 24

Option 1 – Material Ingredient Reporting

“A method for comparative Chemical Hazard

Assessment that can be used for identifying

chemicals of high concern and safer alternatives”

Benchmark 1: Avoid – chemical of high concern

Benchmark 2: Use but search for safer substitutes

Benchmark 3: Use but still opportunity for improvement

Benchmark 4: Prefer – safer chemical

Manufacturer Inventory. The manufacturer has published complete

content inventory for the product following these guidelines:

• A publicly available inventory of all ingredients identified by name and

Chemical Abstract Service Registration Number (CASRN)

• Materials defined as trade secret or intellectual property may withhold the

name and/or CASRN but must disclose role, amount and GreenScreen

benchmark, as defined in GreenScreen v1.2.

Page 25: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 25

Option 1 – Material Ingredient Reporting

GreenScreen® List Translator

• Chemicals are mapped according

to hazard lists

• Only reports Benchmark 1 (LT-1),

possible Benchmark 1 (LT-P1),

and unspecified (LT-U)

• Assesses parent chemical only

Full GreenScreen® Assessment

• Chemicals are mapped according to

hazard lists

• Research is conducted to classify

hazard endpoints and fill data gaps

• Reports all Benchmark results

• Assesses parent chemical and

transformation products

Manufacturer Inventory. The manufacturer has published complete

content inventory for the product following these guidelines:

• A publicly available inventory of all ingredients identified by name and

Chemical Abstract Service Registration Number (CASRN)

• Materials defined as trade secret or intellectual property may withhold the

name and/or CASRN but must disclose role, amount and GreenScreen

benchmark, as defined in GreenScreen v1.2.

Page 26: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 26

Option 1 – Material Ingredient Reporting

HPDs are an inventory tool for reporting

potential hazards in products

Disclosure requirements

• All intentional ingredients (100%)

• All residual ingredients at 0.1% (1000 ppm)

or better

• Hazards linked to each ingredient are

automatically reported in the HPD

• ‘Full Disclosure of Known Hazards’ – the

identity of proprietary materials can be

hidden but their associated hazard must be

reported (by entering a valid CAS number)

Page 27: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 27

Option 1 – Material Ingredient Reporting

HPD cons

• Many chemicals and materials don’t

have CAS numbers

• No consideration of risk or exposure,

only potential hazard

Architects are asking for HPDs

Page 28: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 28

Option 1 – Material Ingredient Reporting

Cradle to Cradle is a multi-attribute

certification for materials,

subassemblies, and finished products

Five categories are evaluated:

“The end use product has been certified at the Cradle to Cradle v2

Basic level or Cradle to Cradle v3 Bronze level.”

An independent organization is responsible for product assessments

Certification also requires continuous improvement

© 2013 Cradle to Cradle Product Innovation Institute

Page 29: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 29

Option 2 – Material Ingredient Optimization

• Inventory with no GreenScreen benchmark 1

hazards

– Inventory of chemical ingredients to 100 ppm

– Full GreenScreen Assessment is worth more than

use of the GreenScreen List Translator

• C2C Silver, Gold, Platinum

• For international projects: no REACH substances

of very high concern

“Use products that document their material ingredient optimization using the

paths below for at least 25%, by cost, of the total value of permanently

installed products in the project.”

Page 30: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 30

Option 3 – Supply Chain Optimization

• …who have validated safety,

health, hazard, and risk

programs

AND

• …who have verification of

their supply chain processes

– Identify, optimize, and

communicate chemical effects

on health, safety, and

environmental impacts

“Use building products for at least 25%, by cost, of the total value of

permanently installed products in the project that are sourced from product

manufacturers…”

Page 31: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Product Transparency … Where is it coming from?

Page 32: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Owners Are Driving Requirements

22.06.2015 32

Salesforce

Data Centers

Carbon / energy efficiency analysis

Facility procurement and site selection

Device procurement standards

Energy efficiency

Renewable energy

Offices

LEED Volume

Green leasing

Energy efficiency

Building Health Initiative

Page 33: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Owners Are Driving Requirements

22.06.2015 33

SFO

Page 34: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

GaBi Lifecycle Database

& Data from EPDs

What Do We Do With All This Data?

Enabling decision making at the speed of design.

Page 35: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

What Do We Do With All This Data?

Driving toward LEED v4 certification

Page 36: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

What Do We Do With All This Data?

Developing Material Libraries and Transparency

Initiatives

Page 37: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

CASE: Flux

ThinkstepONE:

• GaBi(TS)

• Will use

insights to

drive

construction

material

purchasing,

rewarding

manufacturer

s that

succeed

sustainably

• Will use insights

to drive

construction

product

specification,

rewarding

manufacturers

that succeed

sustainably

ThinkstepONE:

• GaBi(TS)

Page 38: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Latest News

Page 39: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 39

About thinkstep

Confidential – Do Not Circulate

Page 40: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 40

2000+ Customers

Confidential – Do Not Circulate

Page 41: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 41

What can thinkstep do for you?

Confidential – Do Not Circulate

Page 42: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Our software, data and services enable organisations worldwide to

succeed sustainably by driving

22.06.2015 42

What’s the value for your business?

Product

innovation

Operational

excellence

Brand

value

Regulatory

compliance

Confidential – Do Not Circulate

Page 43: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

22.06.2015 43

Global

industrial

processes

network

> 13,000

processes

Life cycle and

Value chain

stages

> 15,000 models

Schemas &

Impacts (e.g.

RoHs, CDP,

GRI, CML,

EPD, etc.)

> 550 schemes

Inventories:

Materials

Substances

Costs

Environment

Social data…

Best Practice

Library

> 100,000 due

diligence

recommend-

dations

Benchmark

library

>15,000 data

sets

Data Fusion & Analytics Data Exchange

thinkstep.one Data Foundation

DATA FOUNDATION

Global Industrial

Sustainability Database

Page 44: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Corporate Sustainability Suites For Sustainable Business

Page 45: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

Sustainability

Reporting &

Management

Supplier

Engagement

EHS

Management Energy

Management

Building

Portfolio

Manager

Applic

ations

Suites

CDP Reporter

GRI Reporter

Materiality Analyzer

SASB Reporter

Performance Manager

Automate data

collection for

powerful reporting

and advanced

performance

management

Productively

collaborate

with your

supplier to

ensure

compliance

Reduce risks

and improve

EHS

operations

Monitor and

optimize

energy use

across the

organization

Fulfil investor

demand and

increase the

value of your

real estate

portfolio

Supplier Scorecard

Manager

Audit Manager

Performance Manager

Supplier Data Hub

Supply Chain Networker

Environmental Manager

Incident Reporter

Compliance Manager

Audit Manager

Performance Manager

Energy Manager

TÜV Energy Efficiency

Auditor

Audit Manager

Performance Manager

GRESB Reporter

CDP Reporter

GRI Reporter

Building Portf. Manager

Performance Manager

Embed sustainability reporting, risk management, and

resource efficiency into your core operations and value chain.

Corporate Sustainability Portfolio

Impact Library Benchmark Library Best Practice Library

Data

Page 46: Trends in the Building and Construction LEED v4 & Owner ... · LEED v4 and Material Health Other North American rating systems incorporating demand for Transparency & Disclosure

101 Spear Street A1

San Francisco, CA 94105

Phone: + 510.333.1815

[email protected]

www.thinkstep.com

46

for your attention!

Thank you