ReVV 2010 Conference

Exciting news for G2B Ventures!  ReVisioning Value has announced that our own Aaron Fairchild will be one of the featured speakers at their ReVV 2010 Conference on Monday, April 26th!

ReVV 2010 is a conference at the “intersection of purpose and profit,” bringing together leaders from varied fields to discuss and learn about ways to create a more sustainable world. The Conference is an exciting opportunity for Aaron to discuss what we’re doing here at G2B Ventures, as well as learn valuable ideas from businesspeople dedicated to social change.  We hope to see you there!

Cynical Optimism, Innovative Pragmatism

Post contributed by Aaron Fairchild:

The Cascadia chapter of the U.S. Green Building Council (USGBC) Seattle branch conducts four workshops during the year. Last week they conducted a workshop, and I had the opportunity to join in the conversation as a panelist on the topic of, “Emerging Greener from the Recession – A panel discussion on codes, incentives, and opportunity for greener communities as we emerge from the Recession.”

Generally there was a lot of optimism on the panel and in the crowd. Interestingly, one term that came up was, “cynical optimism.” Sounds like an oxymoron, but I believe the thought behind the comment was more along the lines of “cautious optimism.” We have a lot to be optimistic about in Seattle right now. Our leaders are making difficult decisions in a tough budget environment and they continue to land on the more environmentally progressive side of policy and business. This causes me to be optimistic. During the discussion we all agreed that while there is room for optimism right now, we should remain cautious and get involved because political winds change with each election and economic cycle. Our elected leadership and the policy they create should favor business and free markets that align with societal values and norms. Smart policy should incent these companies with favorable legislation and regulation and not take a “hands-off” approach.

One of the questions to the panel was, “what are the exciting opportunities that are arising out of the recession?” Someone on the panel said, “Innovative pragmatism.” I am not sure which panelist said it, but it certainly struck a chord with me.  Innovation with a purpose is really how I read this. Again, it relates to societal values and objectives. We have entered an era of innovation driven by need, not necessarily by want. This new era will have legs that last beyond fashion and economic trends. Certainly there will continue to be innovative new plasma, ultra thin televisions coming to the market that have everything to do with wanton consumption and innovations focused on “want” vs. “need.” However, there will be less innovating for innovation’s sake, and much more pragmatic innovation. Society has begun and will continue to reward businesses that foster innovation in alignment with societal values and a common desire for a healthy environment for future generations.

Exploring the two ideas of, “cynical optimism and innovative pragmatism” made the evening worthwhile and memorable. While I am not overly idealistic, I do hold out hope that conversations like the one last week help stimulate positive change and action in our critical times. Thanks for having me as participant in the discussion!

Sustainable Industries takes notice

The nice folks at Sustainable Industries took some time to catch up with Aaron Fairchild, Managing Partner of G2B Ventures recently and published an article titled, “Seattle fund fuels efficiency.” We loved that! You can read his ink here.

---

 

It’s all in a name

Some good friends of G2B Ventures have changed their name and we really like the new moniker (EnergySavvy). It’s all in a name after all, and this one for Evoworx, really tells you what they are all about. Read more about it/them on TechFlash here.

 

---

 

Seattle ranked number 1!

Post contributed by Aaron Fairchild:

Did anyone else catch the Natural Resource Defense Council’s, Smarter Cities rankings? The rankings made the rounds at the G2B Ventures office pretty quickly, and then around the country in the form of email smirks to friends in other major metros. Seriously though, it is no wonder that we chose to do our work in Seattle and are gaining such great traction on residential energy efficiency in this town:

Seattle was ranked #1 overall and we were #1 in 3 out of 9 categories: Green Buildings, Air Quality, and Energy Production and Conservation. Seattle was in the top 5 in all of the remain categories with the exception of Environmental Standards and Participation, in which Seattle placed ninth. G2B is proud of Seattle and we consider ourselves to be lucky to have such a great city to launch out of!

---

Green Trifecta in Motion

Post contributed by Aaron Fairchild:

I got back from the West Coast Green green building conference recently, and I continue to be struck by issues of contrast. Green “do-gooders” and green “capitalists” mingle about with policy wonks like one big happy family. I have written about this contrast before. But what I continue to find is that, while tension still exists, we are for the most part coming together nicely. There are a lot of people out there who have been fighting for the environment and changing their behaviors for a long time. Some of these folks have a proprietary feeling regarding issues of the environment, but the majority holds open their arms to welcome in the mainstream. I see the convergence of three major sectors around a new green economic imperative or paradigm on the horizon: for-profit business, non-profit, and government.

On the government side, I had the opportunity to talk to a small business owner at West Coast Green named Nathan Doxsey who wanted his city to do more to support sustainability. Nathan owns a small real estate company in the city of Austin, and is focused on marketing Green homes. Nathan was instrumental in helping the city adopt a brilliant ordinance requiring most all residential homes to have an energy audit done during the purchase and sale of a home. Energy audits performed at the point of sale is just smart policy. Energy is a public good and the use and application of energy affects everyone in society. It is already a regulated resource and the thoughtful use and monitoring of energy should not be left entirely up to the free market. The arguments pro and con couldn’t be exhausted in one or even two essays. Needless to say, at G2B Ventures we are promoting a similar policy for the city of Seattle.

At West Coast Green I also listened to panel discussions that were full of good intention and short on actionable ideas. Those panel discussions brought me back a few years, because they had the activist feel without creating pathways to sustainability through profitability. However, I also met Adam Boucher at West Coast Green. His resume need only read: “Entrepreneur with a golden revenue model; eco-capitalist.” Adam is creating financing solutions at the project level in addition to bringing solar panel to over 100 homes in southern California. Go Adam!

More recently, this afternoon I was at a round table discussion at McKinstry sponsored by Climate Solutions talking about Federal regulation. That was the trifecta of for- and non-profit coming together with federal and state policy makers around the issue of climate change and cap and trade. I have rarely seen such as sense of possibility and urgency as I witnessed in that gymnasium.

In meeting after meeting, I have become more and more convinced the world is changing as you read this. All sectors of our society are pivoting toward green issues. Green had become code for being environmentally and socially responsible. Green equals awareness, but it shouldn’t only equal non-profit “do-gooder” or government bureaucrat. The free, public markets and making money is part of the economic green transformation. Note Apple rejecting the US Chamber of Commerce for its stance on climate change. Note Wal-Mart’s efforts to create a more sustainable supply chain. Note Daniel Pink’s video,  “the surprising science of motivation.” Green gives us a purpose to our businesses and makes those businesses more productive and profitable as a result. The green revolution is not only being televised, it is being brought to you in every sector of your life.

Why Is Green Housing So Scarce?

Post contributed by Sam Lai:

If green, energy efficient homes are so hot right now, then why isn’t everyone doing it???

It seems like everyone’s going green these days.  When you buy your car, a tree gets planted in honor of your purchase, or the chemicals used to dry clean your shirts are “less toxic” than normal.  With every industry scrambling to get to the front of the green line, you would think that the housing industry should be no less affected.  And, with the amount of media attention on green, it would seem to indicate that we’ve reached a saturation point in every sector of society.  However, the availability of green housing seems relatively scarce even in the greenest corner of the left coast.

A recent report was published called the Green Building Value Initiative – Assessing the Market Impacts of Third Party Certification on Residential Properties by Earth Advantage Institute.

The report analyzed the market performance of third-party certified homes in the Portland and Seattle metropolitan areas.  Green homes are commonly recognized as homes that demonstrate a certain level of energy and water savings, CO2 reduction, improved indoor air quality and stewardship of resources.  Prior to the development of any certifications standards, consumers were left in the dark about the actual performance and attributes of homes which were being marketed as green or “sustainable.”  The analysis reports that certified homes in the Seattle metro area sold at a price premium of 9.6% and a 3 to 5% premium in the Portland metro area as compared to non-certified counterparts.  If this is the case, why don’t we see more available green housing stock in our Seattle metropolitan market?  Here are a few thoughts from the perspective of a certified residential appraiser in Seattle (me):

*Green Equals New

Although third-party certification of green homes has been an effective means to differentiate new construction green homes with a greater assurance of quality, certification of the refurbished existing housing stock has been non-existent or extremely uncommon.  Of the 500 homes sold in Seattle in the last 12 months that were marketed as being “green,” only 6 were built prior to 1990.  Of these 6 homes only 1 home was certified as green.  The other supposed “green” homes built prior to 1990 were marketed as having one or two marketable “green” characteristics such as low voc (volatile organic compounds) paint, non-toxic finishes, double-paned windows, energy star appliances, bamboo flooring, tankless hot water heater and energy efficient heat pump.  While many of these characteristics are certainly found in homes that are green, it is self evident that installing bamboo flooring is not enough to transform a conventional house into a “green” house.  One agent went so far as to write on the NWMLS marketing description that the house was “essentially like a brand new 3-star Greenbuilt home.”  In other words, “it’s not new or 3^rd Party Certified, but trust me, it’s still green.”

*Live in a townhouse OR drive green?

The scarcity of available virgin home sites in these metropolitan areas also regulates the diversity of design characteristics of new homes that can be built.  Seattle is comprised of housing stock that was primarily developed prior to 1955.  While green/efficient housing is best fit for close-in metropolitan housing markets, these areas are typically already built-up of older housing stock with few development sites available.  The result is, of the 500 self-declared “green” homes sold in Seattle in the last 12 months, 442 were townhouses or ultra compact zero-lot-line cottage homes.  Would-be buyers of green homes are frequently forced to choose between a historic energy sucker built in 1926, a green triple level 2 bedroom townhouse designed for young professionals with no kids and no arthritis, or move to a “green suburb” and spend over an hour in traffic every day.

*New Equals Green

Seattle Department of Planning and Development has a reputation for being one of the most stringent energy codes in the country and is touted as achieving potentially 10-20% energy savings over ASHRAE/IESNA Standard 90.1-1999 and Standard 90.1-2004 respectively.  I’ve heard numerous builders, developers and buyers say, “Yeah, if you’re looking at a new house in Seattle, you’re already looking at a green house.” Right or wrong, there’s a pervasive perception in the marketplace and in the building industry that new homes in Seattle have already undergone a high level of scrutiny to pass Seattle’s increasingly strict energy codes.  Therefore, the perceived delta between the efficiency of a Built Green certified home and a conventional new home in Seattle may seem diminished both for developers and consumers.  

*Green Is Custom-Built

When asked about the current trend of deep green projects being developed and certified in the Puget Sound, the program manager at Built Green, Koben Calhoun, responded:  “We are pleased with the number of projects we have seen come through at the 4 and 5-Star levels. Particularly in the past two years the number of 5-Star projects has increased dramatically. At the end of 2007 we had around 16 or 17 5-Star projects (the 5-Star program started in 2004 so in 3 years we had that many), and now in the past two years we have added about 50 more 5-Star projects. It is definitely exciting and I am hoping we can keep the trend headed that way.” While the numbers for 4 and 5 Star homes seem encouraging for the green market as a whole, many of these deep green homes are custom built, luxury quality and not available for middle market buyers.

*Green – It’s For You, Too

Where will the next wave of certified Green/Energy Efficient housing for the masses come from?  I think the answer is right under our nose.  Existing housing stock in major metropolitan cities across the country can be refurbished and repositioned in the market as certified Green and Energy Efficient housing.  According to the U.S. Department of Energy, almost 75% of the buildings in the country were built prior to 1979[1].  Refurbished Green/Energy Efficient housing resonates with the values held by consumers in metropolitan markets on a number of levels:

*Reduce/Reuse/Recycle – nuff said

*Green home buyers can select close-in neighborhoods in walk able/bike able proximity to employment & goods/service centers

*Reduce greenhouse gas emissions from some of the guiltiest perpetrators (old residential housing)

*Existing housing stock is plentiful and allows for a much more diverse & cost effective Green/Efficient housing options

*Homes built in the 1950’s and earlier are 50% more compact than average new homes today.

More to come…

---

[1] Source:  DOE /EERE http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12607

---

Consumers see the value in green houses

Friend of G2B Ventures, Ben Kaufman, of Greenworks Realty, talks to MicrosoftHOHM about the premium value consumers see in green houses:

For-Profit AND Energy Efficiency

The Bank's Turf

Post contributed by Aaron Fairchild:

I was recently invited by the Federal Reserve Bank of St. Louis to present in Louisville, Kentucky at a symposium on “Green” Finance Investing in Sustainable, Energy Efficient Developments. I was very honored to participate and to share what we are working on at G2B Ventures. You can download a PDF of the agenda here. There were a lot of other very cool programs presented, like The Babylon Project out of Babylon New York, and Enterprise’s Green Communities program.

I headed to Louisville with a healthy dose of humility, expecting to be an

Aaron Fairchild on a panel presenting the Efficient Real Estate Fund

outlier from the speaker’s podium, and left there with the impression that I was indeed an outlier, but only because I was one of the only speakers talking about for-profit approaches to improving our existing residential building stock. In fact, G2B was the only group represented on stage with a for-profit solution to improving the energy efficiency of existing single family housing. As a result, I had a great time sharing what we were working on and enjoyed several questions and discussions about how to implement a program similar to ours in Louisville and beyond.

I also left Louisville with a new outlook on the city. They are making big strides toward energy efficiency, and Kentucky is working on retrofitting 10,000 homes with their Clean Energy Corps! I had the opportunity to visit a very progressive and fun hotel / museum, 21C, and would recommend the city to anyone interested in visiting. Thanks for the hospitality Louisville and thanks to the team at the Federal Reserve Bank of St. Louis.

Back to the Bay Area

Aaron Fairchild - G2B Ventures & Nathan Doxsey - E3 Properties

A few members of the G2B Ventures team are heading back to San Francisco this week for West Coast Green and will share our experiences upon our return. If you’re going to be attending as well, shoot us an email at info at g2bventures dot com so we can try to meet up. One of the sessions we’re most eager to attend? “Defining Business in The New Economy” which will be presented by Gordon Starr and Tom Paladino.