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Sustainability	
  Return	
  on	
  Investment	
  
Presenta4on	
  to	
  the	
  Green	
  Municipal	
  Fund	
  
October	
  25,	
  2013	
  
by	
  
Background	
  
•  Berkeley,	
  California	
  (BER)	
  
•  Calgary,	
  Alberta	
  (CAL)	
  
•  Edmonton,	
  Alberta	
  (EDM)	
  
•  Denver,	
  Colorado	
  (DEN)	
  
•  Halifax,	
  Nova	
  ScoCa	
  (HAL)	
  
•  Hamilton,	
  Ontario	
  (HAM)	
  
•  Helsinki,	
  Finland	
  (HEL)	
  
•  Milwaukee,	
  Wisconsin	
  (MIL)	
  
•  Niagara	
  Region,	
  Ontario	
  (NIA)	
  
•  North	
  Vancouver,	
  BriCsh	
  Columbia	
  (NVAN)	
  
•  Portland,	
  Oregon	
  (POR)	
  
•  Vancouver,	
  BriCsh	
  Columbia	
  (VAN)	
  
•  Victoria,	
  BriCsh	
  Columbia	
  (VIC)	
  
•  Washington,	
  DC	
  (WAS)	
  
Edmonton	
  Project	
  
	
  
•  How	
  Best	
  to	
  Embed	
  and	
  Catalyze	
  
Sustainability	
  Principles	
  in	
  Culture	
  to	
  
Achieve	
  	
  Desired	
  Outcomes?	
  
•  Best	
  PracCce	
  Scan	
  of	
  Leading	
  North	
  
American	
  MunicipaliCes	
  
•  What	
  Were	
  CriCcal	
  Success	
  Factors	
  
for	
  the	
  Leaders!!!	
  
Key	
  Findings	
  
•  SCll	
  Struggling	
  with	
  Cultural	
  
Acceptance	
  of	
  Sustainability	
  
•  “Decision	
  Support	
  Tools	
  Needed”	
  	
  
	
  
	
  
Background	
  
•  “If	
  we	
  had	
  $150	
  million	
  to	
  invest	
  
in	
  legacy	
  funds	
  for	
  the	
  
community	
  that	
  would	
  help	
  
address	
  economic	
  development	
  
and	
  new	
  revenue	
  sources	
  for	
  
the	
  City,	
  how	
  would	
  I	
  convince	
  
Council	
  to	
  invest	
  it	
  in	
  a	
  
sustainable	
  community	
  energy	
  
project	
  verse	
  for	
  example	
  shave	
  
and	
  pave?”	
  	
  Jeff	
  Fielding,	
  	
  CAO	
  
City	
  of	
  Burlington.	
  	
  	
  
Background	
  
“We	
  are	
  looking	
  at	
  developing	
  	
  
a	
  simple,	
  cheap,	
  and	
  easy	
  to	
  
use	
  tool	
  that	
  helps	
  us	
  make	
  
beer	
  decisions	
  and	
  allows	
  us	
  
to	
  determine	
  the	
  sustainability	
  
return	
  on	
  investment	
  of	
  
infrastructure.”	
  	
  James	
  Parvey,	
  
Senior	
  Principal	
  Engineer,	
  City	
  
of	
  Tacoma,	
  Washington	
  
	
  
Project	
  Overview	
  
http://www.llga.org/call.php?idCall=27 	
  
Background	
  
“We	
  have	
  done	
  pilot	
  evaluaCons	
  for	
  social	
  return	
  on	
  
investment	
  of	
  our	
  social	
  housing	
  and	
  return	
  on	
  
investment	
  of	
  our	
  green	
  buildings	
  but	
  it	
  focused	
  mainly	
  
on	
  environmental	
  returns.	
  	
  What	
  we	
  need	
  is	
  a	
  simple	
  
tool	
  that	
  we	
  can	
  use	
  to	
  demonstrate	
  all	
  3	
  pillars	
  at	
  once	
  
to	
  Council.”	
  	
  Carolyn	
  Bowen,	
  Manager,	
  Office	
  of	
  
Sustainability,	
  City	
  of	
  Calgary	
  
CEC	
  Project	
  Team	
  Members	
  	
  
Leaders	
  in	
  SROI	
  	
  
	
  
Statement	
  of	
  Need	
  
A	
  simple,	
  open	
  sourced,	
  and	
  accessible	
  SROI	
  tool	
  for	
  Canadian	
  
MunicipaliCes	
  does	
  not	
  currently	
  exist.	
  Such	
  a	
  tool	
  would	
  create	
  a	
  
common	
  approach	
  to	
  SROI	
  that	
  would	
  allow	
  for	
  municipaliCes	
  to	
  
benchmark,	
  collaborate	
  on	
  reporCng	
  and	
  on	
  data	
  availability	
  and	
  
collecCon	
  issues,	
  as	
  well	
  as	
  provide	
  consistency	
  in	
  
communicaCons	
  to	
  the	
  public	
  and	
  senior	
  levels	
  of	
  government.	
  
Proposed	
  ObjecCves	
  
1.  Develop	
  an	
  inexpensive	
  tool	
  that	
  could	
  be	
  uClized	
  by	
  Canadian	
  
MunicipaliCes	
  	
  that	
  will	
  provide	
  a	
  consistent	
  and	
  replicable	
  approach	
  to	
  
determining	
  Sustainability	
  Return	
  on	
  Investment	
  (1st	
  order	
  esCmates);	
  	
  	
  
2.  Increase	
  capacity	
  of	
  municipaliCes	
  and	
  others	
  in	
  the	
  use	
  of	
  such	
  a	
  SROI	
  
tool;	
  and,	
  	
  
3.  Create	
  a	
  	
  standardized	
  and	
  replicable	
  source	
  of	
  data	
  for	
  the	
  tool	
  that	
  can	
  
be	
  used	
  by	
  Canadian	
  municipaliCes	
  as	
  well	
  as	
  by	
  other	
  senior	
  levels	
  of	
  
government.	
  	
  
Possible	
  Deliverables	
  
Discussions	
  with	
  Calgary	
  led	
  to	
  the	
  following	
  proposed	
  deliverables:	
  
•  A	
  report	
  	
  on	
  the	
  current	
  state	
  of	
  	
  SROI	
  uClizaCon	
  in	
  North	
  America;	
  
•  A	
  report	
  on	
  municipal	
  needs	
  for	
  an	
  SROI	
  tool;	
  
•  Terms	
  of	
  reference	
  and	
  design	
  criteria	
  for	
  the	
  development	
  of	
  the	
  tool	
  
with	
  recommendaCons	
  on	
  how	
  to	
  proceed;	
  
•  A	
  detailed	
  work	
  plan	
  for	
  the	
  design	
  and	
  development	
  of	
  the	
  SROI	
  tool;	
  	
  
•  A	
  beta	
  test	
  of	
  the	
  SROI	
  Tool;	
  
•  A	
  report	
  on	
  beta	
  test	
  of	
  the	
  tool	
  and	
  recommended	
  revisions;	
  
•  A	
  final	
  operaConal	
  municipal	
  SROI	
  tool;	
  	
  
•  A	
  central	
  accessible	
  database	
  on	
  cosCng	
  informaCon	
  for	
  infrastructure	
  and	
  
other	
  relevant	
  social,	
  economic	
  and	
  environmental	
  data.	
  	
  Regionally	
  
applicable	
  standards,	
  measures	
  and	
  indicators	
  assembled	
  throughout	
  the	
  
project	
  duraCon;	
  	
  
•  A	
  resource	
  guide	
  on	
  the	
  use	
  of	
  SROI	
  and	
  the	
  Tool;	
  	
  	
  
•  Delivery	
  of	
  a	
  capacity	
  building/training	
  workshop(s)	
  for	
  project	
  partners.	
  	
  
	
  
PotenCal	
  Partners	
  
•  P3	
  Canada	
  
•  Infrastructure	
  Canada	
  
•  Infrastructure	
  Ontario	
  and	
  Other	
  
Provincial	
  Departments	
  
•  Canadian	
  AssociaCon	
  of	
  Municipal	
  
Administrators	
  
•  North	
  American	
  Urban	
  Sustainability	
  
Directors	
  Network	
  
•  InsCtute	
  for	
  Sustainable	
  Infrastructure	
  
•  Chief	
  	
  Financial	
  Officers	
  Network	
  
•  Canadian	
  General	
  Accountants	
  	
  
•  NGO’s	
  
•  MunicipaliCes	
  
•  Private	
  Sector	
  
	
  
Status	
  of	
  Calgary	
  Proposal	
  
•  Feedback	
  on	
  esCmated	
  budget	
  provided;	
  
•  Money	
  this	
  fiscal	
  year,	
  want	
  to	
  move	
  now;	
  
•  Moving	
  to	
  develop	
  an	
  RFP	
  to	
  seek	
  a	
  contractor;	
  
•  Interested	
  in	
  further	
  discussions	
  and	
  	
  
partnerships	
  with	
  FCM;	
  	
  
•  Idea	
  for	
  FCM	
  to	
  build	
  on	
  what	
  Calgary	
  creates;	
  
•  Request	
  made	
  for	
  CEC	
  to	
  arrange	
  call.	
  
Considera4ons	
  for	
  FCM	
  	
  
	
  Having	
  GMF	
  as	
  a	
  collaborator/leader	
  on	
  this	
  iniCaCve	
  would	
  provide	
  the	
  
following	
  strategic	
  benefits	
  to	
  FCM:	
  
1.  	
  Provide	
  the	
  Green	
  Municipal	
  Fund	
  with	
  a	
  tool	
  it	
  can	
  use	
  to	
  determine	
  the	
  
sustainability	
  return	
  on	
  investment	
  of	
  funded	
  projects;	
  
2.  Provide	
  GMF	
  with	
  an	
  opportunity	
  to	
  posiCon	
  itself	
  as	
  a	
  leader	
  in	
  building	
  	
  
capacity	
  for	
  a	
  strategic	
  knowledge	
  gap	
  idenCfied	
  by	
  municipaliCes	
  in	
  raising	
  
the	
  municipal	
  bar	
  in	
  North	
  America;	
  
3.  Provide	
  GMF	
  with	
  a	
  standardized	
  tool	
  that	
  (a)	
  would	
  allow	
  for	
  seamless	
  
uClizaCon	
  for	
  applicants;	
  (b)	
  allow	
  for	
  a	
  standardized	
  sustainable	
  
infrastructure	
  	
  indicator	
  and	
  measurement	
  framework	
  to	
  be	
  used	
  by	
  
municipaliCes	
  creaCng	
  more	
  reliable	
  and	
  accurate	
  benchmarking;	
  
4.  Inclusion	
  	
  and	
  use	
  in	
  any	
  proposed	
  federal	
  long-­‐term	
  infrastructure	
  plan;	
  	
  
5.  Others?	
  
Discussion	
  
Feedback/Ques4ons	
  
About	
  Cowan	
  Environmental	
  Consul4ng	
  
	
  Cowan	
  Environmental	
  Consul1ng	
  specializes	
  in	
  providing	
  innova1ve	
  assistance	
  and	
  
advice	
  for	
  your	
  organiza1onal	
  needs	
  related	
  to	
  sustainability	
  and	
  environmental	
  
programs	
  and	
  services.	
  Our	
  business	
  focus	
  is	
  in	
  finding	
  prac1cal	
  local	
  and	
  cost	
  effec1ve	
  
solu1ons	
  to	
  today’s	
  most	
  pressing	
  environmental	
  issues.	
  	
  
	
  
Our	
  mission	
  is	
  to	
  work	
  with	
  organiza1ons	
  and	
  businesses	
  that	
  truly	
  see	
  the	
  value	
  in	
  the	
  
concept	
  of	
  sustainability	
  and	
  are	
  interested	
  taking	
  advantage	
  of	
  the	
  benefits	
  that	
  are	
  
possible	
  when	
  decisions	
  are	
  made	
  using	
  a	
  social,	
  economic	
  and	
  environmental	
  lens.	
  We	
  
want	
  to	
  work	
  with	
  organiza1ons	
  to	
  remove	
  sustainability	
  roadblocks	
  and	
  produce	
  
leading	
  edge	
  prac1cal	
  programs	
  and	
  tools	
  to	
  create	
  success	
  in	
  whatever	
  our	
  clients	
  are	
  
striving	
  to	
  achieve.	
  Organiza1ons	
  are	
  standing	
  on	
  the	
  cusp	
  of	
  a	
  new	
  way	
  of	
  doing	
  
business,	
  a	
  new	
  way	
  of	
  making	
  choices.	
  If	
  your	
  organiza1on	
  is	
  ready	
  to	
  make	
  
sustainability	
  a	
  key	
  aspect	
  of	
  your	
  business	
  then	
  we	
  want	
  to	
  work	
  with	
  you.	
  	
  
	
  
CONTACT	
  INFORMATION	
  

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SROI PresentationFCMOCT25

  • 1. Sustainability  Return  on  Investment   Presenta4on  to  the  Green  Municipal  Fund   October  25,  2013   by  
  • 2. Background   •  Berkeley,  California  (BER)   •  Calgary,  Alberta  (CAL)   •  Edmonton,  Alberta  (EDM)   •  Denver,  Colorado  (DEN)   •  Halifax,  Nova  ScoCa  (HAL)   •  Hamilton,  Ontario  (HAM)   •  Helsinki,  Finland  (HEL)   •  Milwaukee,  Wisconsin  (MIL)   •  Niagara  Region,  Ontario  (NIA)   •  North  Vancouver,  BriCsh  Columbia  (NVAN)   •  Portland,  Oregon  (POR)   •  Vancouver,  BriCsh  Columbia  (VAN)   •  Victoria,  BriCsh  Columbia  (VIC)   •  Washington,  DC  (WAS)   Edmonton  Project     •  How  Best  to  Embed  and  Catalyze   Sustainability  Principles  in  Culture  to   Achieve    Desired  Outcomes?   •  Best  PracCce  Scan  of  Leading  North   American  MunicipaliCes   •  What  Were  CriCcal  Success  Factors   for  the  Leaders!!!   Key  Findings   •  SCll  Struggling  with  Cultural   Acceptance  of  Sustainability   •  “Decision  Support  Tools  Needed”        
  • 3. Background   •  “If  we  had  $150  million  to  invest   in  legacy  funds  for  the   community  that  would  help   address  economic  development   and  new  revenue  sources  for   the  City,  how  would  I  convince   Council  to  invest  it  in  a   sustainable  community  energy   project  verse  for  example  shave   and  pave?”    Jeff  Fielding,    CAO   City  of  Burlington.      
  • 4. Background   “We  are  looking  at  developing     a  simple,  cheap,  and  easy  to   use  tool  that  helps  us  make   beer  decisions  and  allows  us   to  determine  the  sustainability   return  on  investment  of   infrastructure.”    James  Parvey,   Senior  Principal  Engineer,  City   of  Tacoma,  Washington     Project  Overview   http://www.llga.org/call.php?idCall=27  
  • 5. Background   “We  have  done  pilot  evaluaCons  for  social  return  on   investment  of  our  social  housing  and  return  on   investment  of  our  green  buildings  but  it  focused  mainly   on  environmental  returns.    What  we  need  is  a  simple   tool  that  we  can  use  to  demonstrate  all  3  pillars  at  once   to  Council.”    Carolyn  Bowen,  Manager,  Office  of   Sustainability,  City  of  Calgary  
  • 6. CEC  Project  Team  Members     Leaders  in  SROI      
  • 7. Statement  of  Need   A  simple,  open  sourced,  and  accessible  SROI  tool  for  Canadian   MunicipaliCes  does  not  currently  exist.  Such  a  tool  would  create  a   common  approach  to  SROI  that  would  allow  for  municipaliCes  to   benchmark,  collaborate  on  reporCng  and  on  data  availability  and   collecCon  issues,  as  well  as  provide  consistency  in   communicaCons  to  the  public  and  senior  levels  of  government.  
  • 8. Proposed  ObjecCves   1.  Develop  an  inexpensive  tool  that  could  be  uClized  by  Canadian   MunicipaliCes    that  will  provide  a  consistent  and  replicable  approach  to   determining  Sustainability  Return  on  Investment  (1st  order  esCmates);       2.  Increase  capacity  of  municipaliCes  and  others  in  the  use  of  such  a  SROI   tool;  and,     3.  Create  a    standardized  and  replicable  source  of  data  for  the  tool  that  can   be  used  by  Canadian  municipaliCes  as  well  as  by  other  senior  levels  of   government.    
  • 9. Possible  Deliverables   Discussions  with  Calgary  led  to  the  following  proposed  deliverables:   •  A  report    on  the  current  state  of    SROI  uClizaCon  in  North  America;   •  A  report  on  municipal  needs  for  an  SROI  tool;   •  Terms  of  reference  and  design  criteria  for  the  development  of  the  tool   with  recommendaCons  on  how  to  proceed;   •  A  detailed  work  plan  for  the  design  and  development  of  the  SROI  tool;     •  A  beta  test  of  the  SROI  Tool;   •  A  report  on  beta  test  of  the  tool  and  recommended  revisions;   •  A  final  operaConal  municipal  SROI  tool;     •  A  central  accessible  database  on  cosCng  informaCon  for  infrastructure  and   other  relevant  social,  economic  and  environmental  data.    Regionally   applicable  standards,  measures  and  indicators  assembled  throughout  the   project  duraCon;     •  A  resource  guide  on  the  use  of  SROI  and  the  Tool;       •  Delivery  of  a  capacity  building/training  workshop(s)  for  project  partners.      
  • 10. PotenCal  Partners   •  P3  Canada   •  Infrastructure  Canada   •  Infrastructure  Ontario  and  Other   Provincial  Departments   •  Canadian  AssociaCon  of  Municipal   Administrators   •  North  American  Urban  Sustainability   Directors  Network   •  InsCtute  for  Sustainable  Infrastructure   •  Chief    Financial  Officers  Network   •  Canadian  General  Accountants     •  NGO’s   •  MunicipaliCes   •  Private  Sector    
  • 11. Status  of  Calgary  Proposal   •  Feedback  on  esCmated  budget  provided;   •  Money  this  fiscal  year,  want  to  move  now;   •  Moving  to  develop  an  RFP  to  seek  a  contractor;   •  Interested  in  further  discussions  and     partnerships  with  FCM;     •  Idea  for  FCM  to  build  on  what  Calgary  creates;   •  Request  made  for  CEC  to  arrange  call.  
  • 12. Considera4ons  for  FCM      Having  GMF  as  a  collaborator/leader  on  this  iniCaCve  would  provide  the   following  strategic  benefits  to  FCM:   1.   Provide  the  Green  Municipal  Fund  with  a  tool  it  can  use  to  determine  the   sustainability  return  on  investment  of  funded  projects;   2.  Provide  GMF  with  an  opportunity  to  posiCon  itself  as  a  leader  in  building     capacity  for  a  strategic  knowledge  gap  idenCfied  by  municipaliCes  in  raising   the  municipal  bar  in  North  America;   3.  Provide  GMF  with  a  standardized  tool  that  (a)  would  allow  for  seamless   uClizaCon  for  applicants;  (b)  allow  for  a  standardized  sustainable   infrastructure    indicator  and  measurement  framework  to  be  used  by   municipaliCes  creaCng  more  reliable  and  accurate  benchmarking;   4.  Inclusion    and  use  in  any  proposed  federal  long-­‐term  infrastructure  plan;     5.  Others?  
  • 14. About  Cowan  Environmental  Consul4ng    Cowan  Environmental  Consul1ng  specializes  in  providing  innova1ve  assistance  and   advice  for  your  organiza1onal  needs  related  to  sustainability  and  environmental   programs  and  services.  Our  business  focus  is  in  finding  prac1cal  local  and  cost  effec1ve   solu1ons  to  today’s  most  pressing  environmental  issues.       Our  mission  is  to  work  with  organiza1ons  and  businesses  that  truly  see  the  value  in  the   concept  of  sustainability  and  are  interested  taking  advantage  of  the  benefits  that  are   possible  when  decisions  are  made  using  a  social,  economic  and  environmental  lens.  We   want  to  work  with  organiza1ons  to  remove  sustainability  roadblocks  and  produce   leading  edge  prac1cal  programs  and  tools  to  create  success  in  whatever  our  clients  are   striving  to  achieve.  Organiza1ons  are  standing  on  the  cusp  of  a  new  way  of  doing   business,  a  new  way  of  making  choices.  If  your  organiza1on  is  ready  to  make   sustainability  a  key  aspect  of  your  business  then  we  want  to  work  with  you.       CONTACT  INFORMATION