Presentation to Soprema North American Sales Meeting January 24, 2017.

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• Certification growth has stopped in North America
– LEED/LEED Canada
• Energy efficiency has moved to forefront along with
concern over carbon emissions
• PACE financing will grow existing building market
– Building pays for upgrades, not owners
• Zero net energy buildings are “next” next thing
– Make efficient reflective roofing part of the solution
• Competition among rating systems may grow
– UK BREEAM now in the US for existing buildings

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• Cloud computing, Big Data analytics, Internet of
Things and algorithm-based approaches
• More cities demand performance disclosure
– Easy to do with new platforms & utility data
• Growing interest in healthy buildings &
disclosure of ingredients of building materials
• Solar power goes mainstream
– Roofing solutions need to consider solar
• Water conservation remains a vital concern

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Green Building Was Once Thought to Be
The Best Pathway to a Better Future

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We Started with a Simple System…

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Vs.

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Consider: ~10,500 Credit Interpretations!

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US Commercial Building LEED Projects

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US Commercial Building Market Uptake

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US Commercial Building Market Uptake

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US Commercial Building Market Uptake

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• 5.5 million existing US nonresidential buildings
• Annual LEED-EBOM certifications: 500-600
• Amount: ~0.01% (1 in 10,000)
• No growth in the US
• Limited interest because LEED-EBOM fails to
create any real value for building operations
– An Instagram photo in a YouTube world

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• LEED US nonresidential certifications 2016:
– no growth vs. 2010-2015 average
• LEED US nonresidential new registrations
– 102% growth from 2015, most in 2nd half. Why?
– LEEDv4 comes into force on November 1, 2016
• Up-markets (certification):
– Interior remodels; retail
• Down-markets (certification)
– LEED-CS, Core & Shell (commercial offices)
– K12/higher education & healthcare

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• Total non-residential project certifications:
455->348 (2015/2016)
• Annual LEED Canada EBOM certifications: 33-
>42 (2015/2016)
• Amount: <0.01% (1 in 10,000)
• No real commercial interest because it fails to
create any real value for building owners!
• Compare: BOMA Canada’s BOMA BEST
existing building certifications: 5,000+

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• On November 1, 2016, LEEDv4 became ONLY
rating system available, so what happened?
• LEEDv4 registrations: 90 total US projects in
November and December, or an annual rate
of 540 projects (vs. 4700, 2010-2015 average)
• Prior to this, LEED v4 available for 3 years
– Only 6% of new LEED projects registered to use it
• Obvious conclusion: this is a HARD SELL!
– …and is going to continue to be a hard sell.

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• Radically cut carbon emissions – primary goal
– 2030 goals
• Redesign green ratings as management tools
for continuous improvement
• Deal separately with healthy building
concerns; one system can’t do it all
• Set a Big Hairy Audacious Goals: Increase
uptake 10x in 10 years, from 4% to 40% of
building area

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• Use Big Data analytics to organize operations
• Leverage algorithms to measure sustainability
– Self-driving cars
• Cut certification costs 90% to 99% & cut time
to certify to one week
– Totally change delivery model!
– USGBC: no interest in this; will stay niche player
• Rise of competing rating systems & rapid
growth of information will strain marketers!

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• People want your product information
• In more ways than you can imagine
• Need to respond in totally automated ways
• New tools being used by major buyers, e.g.,
GSA in the US
• Online catalogs help buyers to sort through all
rating systems, EPDs, HPDs, etc.
– Ecomedes now has 150,000 products with all
attributes & is available to GSA buyers

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Take-Aways

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