Showing posts with label sustainable. Show all posts
Showing posts with label sustainable. Show all posts

Friday, 29 May 2015

Ethical Bank

Wikipedia/ Blogger Ref http://www.p2pfoundation.net/Transfinancial_Economics




An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans. Ethical banks are part of a larger societal movement, called "Banktivism," which calls for a move towards more social and environmental responsibility in the financial sector. This movement includes: ethical investment, impact investment, socially responsible investment, corporate social responsibility, and is also related to such movements as the fair trade movement, ethical consumerism, and social enterprise.
Other areas, such as fair trade, have comprehensive codes and regulations to which all industries that wish to be certified as fair trade must adhere. Ethical banking has not developed to this point; because of this it is difficult to create a concrete definition distinguishing exactly what it is that sets an ethical bank apart from conventional banks. Ethical banks are regulated by the same authorities as traditional banks and have to abide by the same rules. While there are differences between ethical banks, they do share a common set of principles, the most prominent being transparency and social and/or environmental aims of the projects they finance. Ethical banks sometimes work with narrower profit margins than traditional ones, and therefore they may have few offices and operate mostly by phone, Internet, or mail. Ethical banking is considered one of several forms of alternative banking.


History[edit]

Historically banks have been viewed solely as financial institutions, which should concern themselves with all things financial. Morality has not entered the equation. This public view has allowed banks significant leeway with concern to ethical standards. This is because they have not been associated with the actions taken by the businesses they lend to. Banks have also stated that a reason for not mounting the new challenges that sustainability presents is that such inspection would require interference in the activities of clients.Jeucken 2002 However with changing social demands, and as more is known about the effects that banks can have through their lending policies, banks have begun to feel pressure from the general public, NGOs, governments, and the like to go beyond conventional business management. For example in the mid-1990s the Cooperative Bank asked 6,000 customers what their thoughts were on ethical banking; 84% responded that it was a good idea.Harvey 1995 In fact the cooperative bank was formed in response to the growing consumer base looking for ethically oriented banks.

Potential for banks to create environmentally and socially conscious business practices[edit]

In general all banks play an intermediary role in the economy; because of this the possibility for banks to contribute to sustainable development is potentially profound. Jeucken 2002 Banks have extensive and efficient credit approval systems, which gives them a comparative advantage in knowledge (regarding sector-specific information, legislation and market developments).Jeucken & Bouma 1999 Banks are well seasoned and well equipped to weigh risks and attach a price to these risks; because of this banks can fulfill an important role in reducing the information asymmetry between market parties, for example between the business and consumers. This is important not just to consumers but also to depositors. When depositors allow a bank to invest for them they are able to assume that the bank will know which investments will maximize their returns. Conventional banks are legally bound to maximize return for their clients. If clients are concerned with more than simple return (i.e. the costs of the return on other areas such as society and the environment) then they may need to turn to an ethical bank to find ways in which they can garner return while keeping to their own moral concerns.
Some businesses externalize costs onto the environment and society. An example of this would be water pollution. A wood mill, for example, could dump its waste into a local river instead of paying to dispose of it properly. This cost is then put onto to the public who uses this water; the costs could come in the form of poor health or as a cost to the local water treatment plant. In order to create more equitable distribution of costs amongst consumers, the environment, and businesses, banks can raise interest rates or apply tariffs on loans given to clients with high environmental risks. This tariff differentiation by banks will stimulate the internalization of environmental costs in market prices.Jeucken & Bouma 1999 Meaning that companies would pay more if their business caused extensive environmental damage; taking some of the cost off of society as a whole and putting it on the company. Through such price differentiation, banks have the potential to foster sustainability.Jeucken & Bouma 1999 This potential would be determined by the extent to which all banks worked in unison to create similar regulations that would result in the loss of access loans that treat the environment and/or society as an externality.
Through their intermediary role, banks may be able to support progress toward sustainability by society as a whole—for example, by adopting a ‘carrot-and-stick’ approach, where environmental and social front-runners would pay less interest than the market price for borrowing capital, while environmental laggards would pay a much higher interest rate.Jeucken & Bouma 1999 Banks can also develop more sustainable products, such as environmental, social, or ethical investment funds. In addition, there is great scope for banks to improve their internal environmental performance.Jeucken & Bouma 1999 In creating environmental and social screens, banks can promote socially/environmentally geared companies and penalize those who do not conform to these standards. However it is important that these different possibilities (i.e. social/environmental screens, ethical products, and internal environmental practices) be used as a package. If not, there is a danger that banks could simply do the things that make them look the most ethical (i.e. advertise their recycling program) while not changing other areas that would have a larger impact. If the changes are solely driven by customers, the bank will be pressured to offer preferential treatment to what depositors deem as desirable, but will have limited ability to punish undesirable action. Governmental regulation, initiated by an informed and involved public would be an effective way to ensure that all banks follow socially accepted morals and ethics.

Ethical initiatives[edit]

Numerous ethical banks (as well as some conventional banks) allow customers to contribute to organizations that have positive societal/environmental impacts either in the local community or in developing countries. Examples include an evaluation of the energy efficiency of a home and potential improvements in this; carbon-offsets;Coro Strandberg 2005 credit cards that benefit charities[1] or lower interest rate loans for low emission cars.[2]

Community involvement[edit]

Ethical banks excel in community involvement, as do other financial institutions such as credit unions. Community involvement is not limited to ethical banks as conventional banks also partake in such actions. The following are a few examples of community involvement done by ethical banks, credit unions, and conventional banks:
  • Affordable housing projects (ex. Vancity & Citizens bank)
  • Many banks/credit unions try to increase financial literacy in the community
  • Give local scholarships & sponsorships.
  • Financially support community events (for ex. each year TD Canada trust donates to a local cause).

Environmental standards for lending[edit]

Environment is a key focus amongst ethical banks (in this field specially called sustainability or green banks) as well as amongst many conventional banks that wish to appear more ethically oriented or that see switching to more environmental practices to be to their advantage. Some view this move as green washing. In general bankers "consider themselves to be in a relatively environmentally friendly industry (in terms of emissions and pollution). However, given their potential exposure to risk, they have been surprisingly slow to examine the environmental performance of their clients. A stated reason for this is that such an examination would ‘require interference’ with a client's activities."Jeucken 2002 While the desire to not meddle in the business of the client is valid, one could also note that banks are required to interfere in the business of their clients regularly to ensure that the clients’ business plan is viable before issuing them a loan. The kind of analysis that all banks partake in is termed a single bottom line analysis (this analysis only considers financial performance). It is arguable whether or not performing a triple bottom line analysis (an analysis that takes into account environmental, social, and financial performance) would be any more intrusive.

Internal vs. external banking ethics[edit]

Conventional banks deal with mostly internal ethics, ethical banks add to internal concerns by applying external ethics.

Internal ethics: processes in banks[edit]

Internal ethics are concerned with the well being of employees, employee and customer satisfaction, benefits, wages, unionization, fair sex and race representation, and the banks environmental standing. Environmentally the potential combined effect of banks switching to more environmentally friendly practices (i.e. less paper use, less electrical use, solar power, energy efficient light bulbs, more conscientious employee travel policies with concern to commuting and air travel) is huge. However when compared with many other sectors of the economy banks do not incur the same burden of energy, water and paper use.Jeucken & Bouma 1999 Many times such energy efficient changes are not based on moral concern but on cost efficiency.

External ethics: products of the banks’ relationships/products[edit]

External ethics are concerned with the wider ramifications of banks actions. External ethics looks at the impacts that their business practices, such as who they loan to or invest in, will have on society and the environment. In applying external ethics, one looks at how the products of banks can be used unethically, for example how borrowers use the money that is lent out by the bank.

Discussion[edit]

In general banks are reluctant to broaden the scope of their external ethics policies because it would require that the bank interfere with the activities of its clients and/or screen its potential clients. External ethics can be seen as much more important than internal ethics because the potential that the bank has internally to cause huge societal or environmental damage is minimal whereas many companies that banks fund have great potential to cause widespread damage. Internal ethics, such as switching to energy efficient light bulbs, are relatively insignificant if the bank is, for example, simultaneously funding the unsustainable harvest of natural resources.
Ethical banking is a relatively new sector; along with this fact come problems. These problems fall under two categories; the first concerns depositors, and the second concerns ethical banks.
In the first category lies the problem of really knowing how ethical banks measure or qualify their ethical policies. For example when Vancity/Citizen Bank states ‘we seek to work with organizations that demonstrate a commitment to ethical business practices,’ the depositor is unable to understand what ‘seek’ means. These statements sound nice but they do not tell potential depositors how the bank evaluates or uses these statements. This is insufficient. Even when given the opportunity to view an accountability report it is difficult to truly understand what their screening processes are. For example, the Van City Accountability Report for 2006/07 (for Van City credit union and Citizens Bank in Canada) states,
"the Ethical Policy requires that all business accounts are screened at the time of account opening by the staff person dealing with the member. Social and environmental risks of larger business banking loans (non-credit-scored loans) are assessed at the time of the loan application, guided by the Ethical Policy and Lending Policies."
This statement does not give the reader the information s/he needs to understand the criteria used in assessing clients. However statistics such as that given by the Cooperative Bank (UK), stating that in 2003 they reviewed 225 potentially problematic financial opportunities and of these 20% were found to be in conflict with their ethical statements and were subsequently denied further business, costing the bank 6,887,000 poundsCoro Strandberg 2005, give the consumer the impression that the banks’ proposed ethics, however ambiguous, are being taken seriously.
Another issue in this category is that of codes. Many ethical banks as well as conventional banks voluntarily join larger bodies that put forth certain regulations that, according to the rules set by the body, should be followed by members. Such outside bodies could act as overarching institutions that could guarantee a certain level of conformance with certain regulations. An example of this in the United States is the Food and Drug Administration. Depositors who use ethical banks do not have this assurance because there is no external regulatory body that sets minimum acceptable legal standards.
In the second category ethical banks face obstacles such as losing business and consumer support to conventional banks, and having to regulate above and beyond the present international legal systems.
According to Cowton, C. J., and P. Thompson, "banks that had signed the United Nations Environment Programme (UNEP) Statement, a voluntary industry code that promulgated environmental stewardship, transparency, and sustainable development, did not act significantly different than the non-signatories."Cowton & Tompson 2000 They concluded that, for codes to be more effective; regulators, monitors, and methods of enforcement need to be in place.Cowton & Tompson 2000 This problem is similar to the problems faced by the fair trade movement. Both the fair trade movement and ethical banks rely on people to pay extra for known ethical goods. There is a limit to how much more people will pay for that guarantee, after that point further initiatives will undercut the banks income and therefore are likely to not be followed.
Losing business to banks that do not screen so strictly is a problem for ethical banks. Many times ethical banks must work with much lower budgets because of this. Ethical banks exclusion of unethical borrowers often results in the borrowers going to other banks, this brings up the importance of industry wide regulations. One way of raising the industry wide regulations would be for citizens to apply pressure on banks. Without this rise it is difficult to impede unethical businesses from finding a bank to finance their projects. A rise in regulations that deal with moral topics is not out of the question. The current industry wide codes, for example, prohibit the financing of illegal drug production. This reflects the prominent societal morals against such drugs.
Ethical banks cannot solely rely upon the legal system to determine whether or not a potential client has acted unethically or whether or not their future plans are unethical. This is because of the wide range of laws throughout the world. While a business may be lawful in the international setting, this does not mean that the laws were up to the moral standards in which the bank originates. For example, extensive pollution and labor laws that would not be considered lawful in many developed countries are allowed in many lesser-developed countries.

Judging what is ethical[edit]

Claiming to be an "ethical" bank requires an objective way to determine what is ethical. Popular ethical theories that could be used include those of Mill, Kant and Aristotle.

John Stuart Mill[edit]

The premise of John Stuart Mill's utilitarian ethical theory is that an action's moral status is dependent on the extent to which if it contributes to happiness. Therefore, in Mill's perspective a bank would be moral if it tended "to promote happiness".(p. 10)Mill 1957 If the bank in question acts in way that produces the greatest amount of happiness for the greatest amount of people then it will be acting morally according to Mill. Because the banking sector is so large, complex and far-reaching in its effects it is difficult to accurately judge the happiness of everyone affected by the conduct of banks in general or by certain banks in particular. However it sometimes possible to discern which of different possible courses of action would produce the most happiness. For example the act of generous philanthropy in forms such as giving back to communities, employees, members, environmental/development groups, etc. will on the whole increase happiness. Similarly lending to businesses that do not "produce the reverse of happiness"(p. 10)Mill 1957 by, for example, giving to businesses that treat employees fairly and are concerned with such public goods as the environment would also be considered ethical according to Mill. Given that things such as global warming, air pollution, water contamination, and soil pollution negatively affect large groups of the population, if not all of the population (in the case of global warming), banks that chose to partake in the above examples could be viewed as contributing to the overall happiness of all people and would hence have moral value.

Immanuel Kant[edit]

According to Immanuel Kant's Categorical Imperative, morality concerns intentions, and not outcomes. A person is moral insofar as they act with a good will, regardless of the consequences. With this knowledge one could propose that the act of lending money is not in and of itself immoral and according to Kant's perspective banks should not be judged as moral or immoral based on the outcomes of their lending. However the second formulation of Kant's categorical imperative states: "act in such a way that you always treat humanity, whether in your own person or in the person of any other, never simply as a means, but always at the same time as an end" (pg. 66–67)Kant 1956. Based on this formula one could argue that the whole practice of lending is not ethical, as it treats people as means to gaining money, (mere means) rather than as ends in themselves.

Aristotle[edit]

For Aristotle, lawfulness is important in the measurement of morality, as is equality and justice. Whether an action is or is not in accordance with the law is an important measurement of morality for Aristotle. Many banks do business in accordance with the law in all practices. They may also specifically seek to do business with law-abiding clients. Nevertheless this can be problematic, as laws vary internationally. This means that a bank could be viewed as ethical even while funding clients who lawfully conduct business in harmful manners. However this measurement is challenged by Aristotle's statement: "what is just in transactions is something equitable, and what is unjust is something inequitable" (p. 84)Aristotle 2002. This means that a bank needs to take into account the unjust/inequitable behavior of its borrowers to qualify as an ethical bank. For example, lending to a law-abiding corporation that does not pay its employees a sufficient living wage would be immoral.

Bank regulations and the free market[edit]

See also: Wall Street reform
The argument against regulating banks is that the regulations would violate the proper functioning of the free market economy. Severyn T. Bruyn disputes this argument in his article "The Moral Economy".Bryun 1999 He states that the extreme disconnection between market actions and morals was never the intent of the market economy's founding thinkers, specifically Adam Smith. He argues that putting standards and regulations in place that rest on the basic morals of society should not conflict with the free market, but are actually an important part of the proper functioning of the free market. His conclusion is based on statements made by Adam Smith. When Smith first envisioned the market economy, he did not divorce morals from the market. In fact, morals were supposed to be a natural part of the workings of the market economy. He believed that economic transactions should be the result of mutual agreement and should involve morality and friendship. He stated that selfishness could obstruct the market economy from running morally. If interpersonal relationships did not play a part, then the interdependency experienced by individuals could vanish and unfair play based on greed and mistrust would exist. Bruyn discusses today's society as one that has lost its basic morals in the market. He states that there is a need for a reigniting of civil society.Bryun 1999 Originally, civil society was assumed to be naturally able to regulate the morality of the market, but with the great distances between individuals involved in transactions as time has passed, governments became the prime regulators of morality in economic exchanges. In recent history governments have been pressured to stop interfering in the economy. This has allowed bodies such as corporations, which operate immorally or at best amorally, to create extremely damaging outcomes without legal or societal penalty. Bruyn promotes the resurrection of civil society, calling society to demand fair practices and to regulate the morality of the economy.Bryun 1999 One way people could influence civil society would be to act as economic regulators by choosing to do business with banks that do not finance corporations such as the aforementioned.[citation needed]
Rudolf Steiner suggested that capitalism has the task of funding economic initiatives; capital should be directed into directions productive for society. He proposed that rather than prices being set through either the total control of government regulation, or the total lack of control of a free market, each industry could have self-regulating associations of producers, wholesale and retail businesses, and consumers. These associations would determine prices fair to all three groups. The state would not interfere with purely economic decisions but would be responsible for protecting human rights (this could include a minimum wage and safety in the workplace) and equality of its citizens' rights.[3] (See Threefold Social Order.)

Differences from credit unions[edit]

Credit unions are not banks but they offer many of the same services as banks (e.g. investment opportunities, commercial and business loans, checking & savings accounts, etc.). Credit unions are member-owned rather than shareholder-owned. This gives each member more influence in the decision-making process. When a credit union has surplus, the profits made will either be invested into the community or will go back to the members in the form of "patronage rebates" (i.e. cheques). Credit unions focus on the members because they are also the owners, and on the communities in which they are situated. Credit unions put a higher focus on local community development than banks do. Most credit unions lend strictly to people and businesses in the community where the union is located. This fact leads credit unions to affect communities more positively than regular banks.
However, credit unions do not necessarily have the same potential to cause widespread change in business practices as ethical banks do. This is because credit unions largely avoid the problem of funding unethical corporate/business activities by focusing on funding local businesses, which are easier to monitor and arguably less capable of generating wide-reaching social and environmental benefit.[citation needed]

List of ethical banks[edit]

Europe[edit]

Denmark
Germany
Spain
Switzerland
United Kingdom
Other European countries

North America[edit]

USA
  • Urban Partnership Bank, Based in Chicago. Successor to ShoreBank
  • RSF Social Finance, based in San Francisco, not a 'bank,' but offers social investment accounts with rates comparable to bank CDs
  • New Resource Bank, based in San Francisco. New Resource is a commercial bank that focuses on businesses that share their mission to progress sustainability within their community.
  • First Green Bank, Based in Mount Dora, FL is a commercial bank dedicated to ethical practices and environmentally friendly investments.
  • One Pacific Coast Bank, Based in Oakland, with branches in Seattle, Portland, and Illwaco, WA.
  • Spring Bank, Based in the Bronx, New York, with branches in the Bronx and Manhattan, New York. Spring Bank is an FDIC insured commercial lender and certified community development financial institution (CDFI) with a stated mission to expanding financial inclusion in low-income neighborhoods.

Oceania[edit]

Australia
New Zealand

Alliances and networks[edit]

Global Alliance for Banking on Values[edit]

The Global Alliance for Banking on Values (GABV) is a membership organization founded in March 2009 by BRAC Bank in Bangladesh, GLS Bank in Germany, ShoreBank in the US, and Triodos Bank in the Netherlands.[4] It is currently made up of around 25 of the world’s leading sustainable banks, from Asia, Africa, Latin America to North America and Europe.[5]

National Community Investment Fund[edit]

National Community Investment Fund (NCIF) invests in mission-oriented banks and other financial institutions that provide responsible financial services in underserved communities.[6] The NCIF Network includes over 30 US banks that qualify for inclusion based on their Social Performance Metrics and on their participation with NCIF initiatives to advance mission-oriented banking.[7]

See also[edit]

References[edit]

  1. Jump up ^ Citizens bank
  2. Jump up ^ (ex. of low emission car initiative put forth by Citizens Bank)
  3. Jump up ^ Steiner, Rudolf (1999). Towards social renewal: rethinking the basis of society. London: Rudolf Steiner Press. pp. 8 and Chap. 3. 
  4. Jump up ^ "MICROCAPITAL STORY: Global Alliance for Banking on Values Launched in The Netherlands; Eleven Banks Join to Form the Alliance". Microcapital.org. 2009-03-16. Retrieved 2013-07-20. 
  5. Jump up ^ "Global Alliance – For Banking on Values ~ About us". Gabv.org. 2013-01-18. Retrieved 2013-07-20. 
  6. Jump up ^ About NCIF
  7. Jump up ^ About the NCIF Network
  • ^ Aristotle, and Joe Sachs. Nicomachean Ethics; Nicomachean Ethics. English. Newbury, Massachusetts: Focus Pub./R. Pullins, 2002.
  • ^ Bruyn, S. T. "The Moral Economy." Review of Social Economy 57.1 (1999): 25–46.
  • ^ Cowton, C. J., and P. Thompson. "Do Codes make a Difference? the Case of Bank Lending and the Environment." Journal of Business Ethics 24.2 (2000): 165–178.
  • ^ Coro Strandberg. (2005). Sustainability finance study:A study of best practices, standards and trends in corporate social responsibility
  • ^ Fairbairn, B., et al. Credit Unions and Community Economic Development. Centre for the Study of Co-operatives, University of Saskatchewan, 1997.
  • ^ Green, C. F. "Business Ethics in Banking." Journal of Business Ethics 8.8 (1989): 631–634.
  • ^ Greenspan, Alan, "Gold and Economic Freedom," Capitalism: The Unknown Ideal, 101. Inflation, Ayn Rand Lexicon.
  • ^ Greenspan, Alan, "Gold and Economic Freedom," Ayn Rand — Capitalism: The Unknown Ideal, 96. Gold Standard, Ayn Rand Lexicon.
  • ^ Harvey, B. "Ethical Banking: The Case of the Co-Operative Bank." Journal of Business Ethics 14.12 (1995): 1005–1013.
  • ^ Jeucken, M. "Banking and sustainability—slow Starters are Gaining Pace." Ethical Corporation Magazine 11 (2002): 44–48.
  • ^ Jeucken, M. H., and J. J. Bouma. "The Changing Environment of Banks." GREENER MANAGEMENT INTERNATIONAL (1999): 21–35.
  • ^ Kant, Immanuel, and H. J. Paton. The Moral Law : [Or] Kant's Groundwork of the Metaphysic of Morals. [3 .] ed. London: Hutchinson University Library, 1956.
  • ^ Mill, John Stuart, and Oskar Piest, eds. Utilitarianism. Indianapolis ; New York: Bobbs-Merrill, 1957.
  • ^ Missbach, A. "The Equator Principles: Drawing the Line for Socially Responsible Banks? an Interim Review from an NGO Perspective." Development 47.3 (2004): 78–84.
  • ^ Rand, Ayn, "The Objectivist Ethics", The Virtue of Selfishness, 23. Morality, Ayn Rand Lexicon.
  • ^ Rand, Ayn, "Moral Inflation," The Ayn Rand Letter, III, 12, 1. Inflation, Ayn Rand Lexicon.
  • ^ Rand, Ayn, "Who Will Protect Us from Our Protectors?", The Objectivist Newsletter, May 1962, 18. Inflation, Ayn Rand Lexicon.
  • ^ Rand, Ayn, "America's Persecuted Minority: Big Business," Capitalism: The Unknown Ideal, 48. Free Market, Ayn Rand Lexicon.
  • ^ Rand, Ayn, "America's Persecuted Minority: Big Business," Capitalism: The Unknown Ideal, 47. Free Market, Ayn Rand Lexicon.

Further reading[edit]

  • Ben Cohen and Mal Warwick, Values-Driven Business, ISBN 1-57675-358-1
  • Christopher J. Cowton & Paul Thompson, "Do Codes Make a Difference? The Case of Bank Lending and the Environment", Journal of Business Ethics, v.24, n.2 (March 2000)
  • Clark Schultz, "What is the Meaning of Green Banking", Green Bank Report http://greenbankreport.com/green-bank-deals/what-is-the-meaning-of-green-banking/
  • Paul Thompson & Christopher J. Cowton, "Bringing the Environment into Bank Lending: Implications for Environmental Reporting", British Accounting Review, v.36, n.2, pp. 197–218 (June 2004).

External links[edit]


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Saturday, 29 November 2014

A Manifesto for Sustainable Business Economics

The Manifesto


Blogger Ref http://www.p2pfoundation.net/Transfinancial_Economics

http://www.the-sustainable-economy.org/

Ecologist_revolution.jpg
We have developed a Sustainable Economy Business Manifesto, which provides a ten-point plan for what businesses can do in practical terms, in migrating towards a more sustainable economy.
As with all ideas on this Project, the Manifesto is a work in progress, rather than a rigid prescription.  We invite you to engage with it; discuss, probe, debate, play with it in your own context - adapt and improve - we are not precious about the detail, but hope the principles we have shared help you develop your own meaningful plan of action.
Good luck!  And please do share your thoughts and feedback with us.
The Sustainable Economy Business Manifesto
1. We can embrace the challenge and work through what a more responsible and sustainable form of economy could mean. We will examine the risks and opportunities for our business, our customers, and our suppliers, while never losing our focus on how we create and share genuine value and wealth.
2. In looking at the big picture, we can start developing creative solutions and new business strategies to explore new market possibilities based on truly sustainable value. We can adopt new models of business success, based on outcomes delivered, and real value generated and shared.
3. We can realise the benefits of the circular economy by optimising resources, reducing waste and costs.  And we can collaborate with others – sharing waste and resources – through industrial symbiosis strategies.
4. In exploring this challenge, we can find the sweet spot of green economy: new jobs, prosperity and reduced environmental impact. These wins are to be found not just in the clean-tech and green sectors but throughout the economy.
5. In recognising the drivers for more re-localised economies, we can examine opportunities for our business operations and supply chain strategies with the possibility of revitalising regions and communities, further sharing value.
6. We can review our business models, and seek opportunities to eliminate unnecessary costs.  We will maintain our margins by reducing waste and resource expenditures yet spending more money on people thereby emphasising the creation and preservation of good jobs.  This will improve the resilience of business and its ability to generate long-term profitability: from waste-to-wages.
7. We can also take the opportunity to move towards shared forms of business ownership with a fair distribution of rewards for the people that truly enable wealth creation.
8. We can engage with all stakeholders, including the investment community to help them through the transition. Our integrated business reporting approaches can help spread awareness of the long-term benefits of sustainable approaches to business.
9. We can use our money wisely, moving it if necessary, to ensure we bank with and invest in appropriate organisations. This is not just an option for disenfranchised individuals – it applies to businesses, too.
10. We can develop new forms of leadership, with vision and courage, to help us look beyond the current system, beyond present-day difficulties, and to take on the real challenge of transformation. We can – and we will – take our business to a better place, another model we have not seen before.
-- We must be the change we want to see
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Tuesday, 22 April 2014

Green building in the United States


From Wikipedia, the free encyclopedia Blogger Ref Link http://www.p2pfoundation.net/Transfinancial_Economics

This article provides examples of Green Building programs in the United States. These programs span the public, private, and non-profit sectors, and all have the goal of increasing energy efficiency and the sustainability of the built environment.


Sustainable Design Organizations and Green Building Programs[edit]

In the United States, governments and private organizations have established several sustainable design organizations and programs in green building.
The U.S. Green Building Council (USGBC) is a non-profit trade organization that promotes sustainability in how buildings are designed, built and operated. The USGBC is best known for the development of the Leadership in Energy and Environmental Design (LEED) rating system and Greenbuild, a green building conference that promotes the green building industry. As of September 2008, USGBC has more than 17,000 member organizations from every sector of the building industry and works to promote buildings that are environmentally responsible, profitable and healthy places to live and work. To achieve this it has developed a variety of programs and services, and works closely with key industry and research organizations and federal, state and local government agencies. USGBC also offers a host of educational opportunities, including workshops and Web-based seminars to educate the public and industry professionals on different elements of the green building industry, from the basics to more technical information. Through its Green Building Certification Institute, USGBC offers industry professionals the chance to develop expertise in the field of green building and to receive accreditation as green building professionals.
The National Association of Home Builders, a trade association representing home builders, remodelers and suppliers to the industry, has created a voluntary residential green building program known as NAHBGreen.[1] The program includes an online scoring tool, national certification, industry education, and training for local verifiers. The online scoring tool is free to builders and to homeowners.
The Green Building Initiative is a non-profit network of building industry leaders working to mainstream building approaches that are environmentally progressive, but also practical and affordable for builders to implement. The GBI has developed a web-based rating tool called Green Globes, which has been upgraded in accordance with ANSI procedures.[2]
The United States Environmental Protection Agency's Energy Star program rates commercial buildings for energy efficiency and provides Energy Star qualifications for new homes that meet its standards for energy efficient building design.
The Collaborative for High Performance Schools is a non-profit green rating program specifically for K-12 schools.[3] CHPS addresses energy efficiency and additional design considerations fostering healthy and environmentally responsible school buildings. On June 4, 2008, the U.S. House of Representatives passed the "21st Century Green High-Performing Public School Facilities Act," which would commit over $20 billion of funding over the next five years to high performance schools.[4] CHPS is recognized as one of the standards that projects would need to meet in order to qualify for the H.R. 3021 legislation funding.[4] H.R. 3021 was referred to the Senate on August 1, 2008.[5]
The Green Communities Initiative provided the first national green building program for new constructions and rehabilitation of affordable housing. It was launched in 2004 as a partnership between initiative taker Enterprise Community Partners (ECP), the Natural Resources Defense Council, Global Green USA, the American Institute of Architects, the American Planning Association, Southface and the National Center for Healthy Housing, along with a number of corporate, financial and philanthropic institutions. Enterprise Community Partners first committed to $555 million in grants, financing and equity to bring green affordable housing to the mainstream. ECP launched the "next generation" Green Communities in 2009 thereby committing to an additional $4 billion. The Green Communities Initiative created the Green Communities Criteria which address eight areas for green building projects and are compatible with LEED standards.[6][7]
Research conducted by the Environmental Policy Alliance, an organization dedicated to exposing environmental hypocrisy, suggests that the certified green buildings in Washington, D.C. "might not be doing much good." City officials released the first round of energy usage data on 28 February 2014. The data is measured in Energy Use Intensity (EUI)'s, a unit that relates a building's energy consumption to its size. The group analyzed the data and found that privately owned buildings that received the green energy certification Leadership in Energy and Environmental Design (LEED) use more energy than those that do not have this green building certification. Buildings with the green building stamp of approval averaged an EUI at 205 while non-LEED-certified buildings had an EUI at 199.[8][9][10][11]

Campus greening[edit]

Main article: Campus greening
Transformative work on American college campuses in the 2000s has done much to change the implicit evaluation of "progress" that green building attracts amongst academics. According to Ann Rappaport, a lecturer at Tufts School of Engineering who writes about climate change and universities, "[t]he value of campus greening [in the United States] goes well beyond resources saved; greening generates interest and invites members of the academic community to think differently about societal values, goods consumed, and the infrastructure for shelter and mobility, raising questions about how human needs can be met in new ways."[12]

Federal High-Performance Green Buildings[edit]

Main article: Office of High-Performance Green Buildings
American Recovery and Reinvestment Act of 2009 has made available not less than $4.5 billion for measures necessary to convert General Services Administration facilities to High-Performance Green Buildings, as defined in the Energy Independence and Security Act of 2007 (Public Law 110-140).

Green Affordable Housing[edit]

Main article: Green Affordable Housing
Green Affordable Housing is a term that refers to affordable housing that exhibits "green" or "sustainable" features. Several state and local governments have adopted programs that encourage or require building green when constructing affordable housing.[13][14][15]
Mixed income housing developer McCormack Baron Salazar was is the first developer in the world to have received two U.S. Green Building Council LEED for Neighborhood Development (LEED-ND) Certifications for completed neighborhoods University Place, in Memphis, Tennessee and Renaissance Place in St. Louis, MO. Both are urban, mixed-income, affordable developments built under the Department of Housing and Urban Development’s HOPE VI program.[16]

State and Local Initiatives[edit]

California[edit]

The 2010 California Green Building Standards Code(Calgreen) is the first statewide green building code in the country and seeks to establish minimum green building standards for the majority of residential and commercial new construction projects across California.[17]
San Francisco Mayor Gavin Newsom approved a green building ordinance in early August 2008 that imposes strict requirements on newly constructed residential and commercial buildings within the city, as well as building renovations.[18]
For homes, the ordinance requires ratings from the GreenPoints rating system,[19] developed by a non-profit organization called Build It Green.[20] Starting next year, new "small" residential buildings (those with four dwellings or fewer) must achieve 25 GreenPoints (equal to the "Elements" rating), but do not need to be rated. For 2010 and 2011, the homes must be GreenPoint Rated and building applications must demonstrate that a minimum of 50 GreenPoints (equal to the "Whole House" rating) will be achieved. And starting in 2012, building applications for new homes must demonstrate that at least 75 GreenPoints will be achieved. The same rules apply for mid-size residential buildings, except that the requirement for 75 GreenPoints starts earlier, in 2011.
For commercial buildings and high-rise residential buildings, the ordinance adds in requirements from the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) rating system. Starting in November (if the California Energy Commission has approved the legislation), new permit applications for high-rise residential buildings must include documentation to achieve LEED certification (or 50 GreenPoints), and starting in 2010, they must include documentation to achieve LEED Silver certification (or 75 GreenPoints). A number of specific LEED standards must also be met for landscaping, water use reduction, and construction debris management. Mid-size commercial buildings don't need to meet LEED certification requirements but must meet LEED standards for building commissioning, landscaping, water use, and construction debris management starting in 2009, and must meet enhanced commissioning standards and tighter water use requirements starting in 2010. Beginning in 2012, the buildings must also meet LEED standards for the use of on-site renewable energy or the purchase of renewable energy credits.
The toughest requirements apply to large commercial buildings. Starting in November, new permit applications for high-rise residential building must submit documentation to achieve LEED certification, and that requirement ratchets up to LEED Silver in 2009 and LEED Gold in 2012. There are also requirements to meet additional LEED standards, nearly equal to those for mid-size commercial buildings. Finally, for new large commercial interiors and major alterations to existing buildings, new permit applications must include documentation to achieve the same LEED rating requirements as for new large commercial buildings, and must also meet the LEED standards for materials that emit low levels of indoor pollutants. All new buildings must earn additional rating points if an older building was demolished to make room for it, and they must earn even higher points if the demolished building was historical. Building projects can also earn extra points by retaining historical features of the previous building.
Earning LEED credits within this framework is becoming cost neutral for most hotel developers, especially in the Napa Valley where the industry has caught up to speed.[citation needed] Since at least March 2008, green property builders have been giving them "real figures on what it costs to build a green property" after developer tax incentives.[21]

Virginia[edit]

Charlottesville, Virginia became one of the first small towns in the United States to enact green building legislation.[22] This presents a significant shift in construction and architecture as LEED regulations have formerly been focused on commercial construction. If US homeowner interest grows in "green" residential construction, the companies involved in the production and manufacturing of LEED building materials will become likely candidates for tomorrow's round of private equity and IPO investing.[23][24]

Washington[edit]

In 2005, Washington State became the first state in the United States to enact green building legislation.[25] According to the law, all major public agency facilities with a floor area exceeding 5,000 square feet (465 m²), including state funded school buildings, are required to meet or exceed LEED standards in construction or renovation. The projected benefits from this law are 20% annual savings in energy and water costs, 38% reduction in waste water production and 22% reduction in construction waste.

See also[edit]

References[edit]

  1. Jump up ^ NAHBGreen - National Green Building Program | national green building standard certification nahb research center program homes residential builders remodelers scoring tool co...
  2. Jump up ^ "Green Building Initiative". Retrieved 2011-05-13. 
  3. Jump up ^ http://www.green-technology.org/green_technology_magazine/chps_story.htm Green Technology.
  4. ^ Jump up to: a b [1][dead link] eSchool News
  5. Jump up ^ http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.03021: THOMAS Library of Congress.
  6. Jump up ^ Myerson, Deborah L. (2008). ULI Community Catalyst Report Number 7: Environmentally Sustainable Affordable Housing. Washington D.C.: ULI - the Urban Land Institute. 
  7. Jump up ^ Enterprise Community Partners. "About". Green Communities. Retrieved 3 December 2011. 
  8. Jump up ^ Hurtubise, Sarah (2 March 2014). "Report: DC’s green-approved buildings using more energy". The Daily Caller. Retrieved 3 March 2014. 
  9. Jump up ^ Schow, Ashe (3 March 2014). "Your energy LOL for the day: 'Green' buildings not so green". Washington Examiner. Retrieved 3 March 2014. 
  10. Jump up ^ Lundin, Barbara (3 March 2014). "USGBC LEED bombshell". Fierce Energy. Retrieved 3 March 2014. 
  11. Jump up ^ "LEED Exposed Project Shows that LEED-Certified Buildings Have Less Energy Efficiency Compared to Other Buildings". AZO Clean Tech. 3 March 2014. Retrieved 3 March 2014. 
  12. Jump up ^ Rappaport, Ann (January–February 2008). "Campus Greening: Behind the Headlines". Environment (magazine) 50 (1): 6–16. Retrieved 2009-04-22. 
  13. Jump up ^ Oregon Housing and Community Services (May 7, 2007). "Green Building in Oregon: Green Building Activities". Salem, OR, USA: State of Oregon. Retrieved 7 December 2011. 
  14. Jump up ^ Office of Housing, City of Seattle. "SeaGreen: Sustainability & Conservation". Seattle, WA, USA: City of Seattle. Retrieved 7 December 2011. 
  15. Jump up ^ Department of Neighborhood Development, City of Boston. "Green Housing Program". Boston, MA, USA: City of Boston. Retrieved 7 December 2011. 
  16. Jump up ^ Developer Achieves Sustainable Development Distinction Unique in Development Industry, press release, May 6, 2011.
  17. Jump up ^ http://www.hcd.ca.gov/news/release/GreenBuildingCodes11310.pdf
  18. Jump up ^ EERE News: EERE Network News - September 3, 2008
  19. Jump up ^ Build It Green - Oakland, CA
  20. Jump up ^ Build It Green - Promoting healthy, energy- and resource-efficient building practices in California
  21. Jump up ^ Freed, Jason Q. (2008-04-21). "Speakers break down costs of going green". Hotel & Motel Management 233 (7) (Henderson, NV). pp. 1, 32. Retrieved 2009-04-23. [dead link]
  22. Jump up ^ Albemarle examines cost, benefits of green buildings, Charlottesville Tomorrow, 2007-04-20. Retrieved 2007-05-03
  23. Jump up ^ Energy Roundup, Wall Street Journal Energy Roundup, 2007-05-03. Retrieved 2007-05-03
  24. Jump up ^ The Power of Small Communities to LEED Change: Charlottesville, VA[dead link], Energy Spin, 2007-05-03. Retrieved 2007-05-03
  25. Jump up ^ Washington State Law Mandates Green Building, RenewableEnergyAccess, 2005-04-21. Retrieved 2007-02-10

External links[edit]

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