Climate Smart Communities Mid-Hudson Region

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1 Introduction The Town of Red Hook, NY is exploring the creation of a green business certification (GBC) program, which recognizes businesses that address environmental, economic, and social performance in their operations. Businesses participate in GBC programs by taking actions to improve energy efficiency, reduce their waste, and conserve water. The benefits of participation can range from financial savings to increased sales due to their certified green status. The community benefits through reduced pollution, waste, water use, and greenhouse gas (GHG) emissions. GBC programs can help generate these benefits by providing an impartial, third-party program that identifies, certifies or acknowledges, and promotes green businesses. Based on established sustainability practices from around the country, a strong GBC program uses a menu-based system whereby the user can choose which actions make sense for their operations and measure the associated savings (e.g., energy, cost, vehicles miles traveled) by participating businesses. Participants are awarded points for every action implemented. This document outlines how to create a Green Business Certification Program, building off of the success of other green business certification and sustainability programs. The steps outlined here are applicable to any local government, even though this guide was created for Red Hook. Table of Contents Introduction... 1 Connecting a GBC Program to the Larger Picture... 2 Developing the GBC Program... 2 Program Benefits... 3 How a GBC Program Can Work in Red Hook... 4 Stakeholders... 5 Administering the Program... 5 Business Categories... 6 Tiered Rankings... 6 Verification... 7 Recertification... 7 Certification Fee... 7 Piloting the GBC Program P a g e

2 Potential Marketing Support... 9 Creating a Checklist... 9 Additional Templates for Creating a Checklist Conclusion Connecting a GBC Program to the Larger Picture A GBC program in Red Hook can create a structure for commercial businesses and property owners to systematically and collectively reduce energy use, water consumption, vehicle miles traveled, and waste in their operations, as well as deepen their engagement in the community. This not only positively impacts businesses bottom line, but it will also assist the Town in reducing community-wide greenhouse gas emissions (GHG) in the commercial sector, transportation sector, and the waste sector. A recent community-wide GHG emissions inventory of Red Hook showed that the commercial sector contributed roughly 21% of community-wide emissions, and of the 193 businesses located in Red Hook, nearly 72% provide services that are typically based in commercial buildings. 1 A GBC program builds upon the demonstrated successes of administering a voluntary energy use reduction program in Red Hook through the 10% Challenge 2, which focuses on the residential sector (the second highest sector of GHG emissions). 3 Developing the GBC Program There are several steps Red Hook can take to create a successful GBC program summarized in this section and expanded upon in the following sections. Step 1: Evaluate Evaluate programs such as the Chicago Green Office Challenge, Austin (TX) Green Business Challenge, Westchester County (NY) Green Business Challenge, San Francisco Green 1 The commercial office category for the purposes of this strategy includes the following business types: arts and culture, accounting, business management services, consultants, engineers/architecture, printing/publishing, home/office cleaning, computer support, banks, insurance services, government/education, health/wellness, legal, lodging/ travel, non-profit organizations, and real estate/moving/storage. It does not include agriculture, automotive, contractors, home/garden, manufacturing/production/wholesale, pets/veterinary, utilities, churches, food/restaurants, retail/shopping, and activities. 2 10% Challenge website: 3 The transportation sector contributed roughly 40% of total emissions, followed by the residential sector at roughly 26% of community-wide emissions. Source: Mid-Hudson Region, NY, 2010 Tier II Regional Greenhouse Gas (GHG) Emissions Inventory. Prepared by ICF International, a Sub-consultant to VHB, Inc., for NYSERDA. 2 P a g e

3 Business Certification Program, and the Green Alliance to see which elements Red Hook would like to incorporate into its own program. 4 Step 2: Structure the program There are many considerations for creating a GBC program including building and administering) the program, obtaining funding to support the program, building external support, and deciding which types of actions to include to become certified. At the beginning of the program development, invite a handful of potential early-adopters and partners to provide input about the program. Step 3: Develop the tools, marketing materials and program resources Develop a checklist so that the participants may create a baseline against which to measure their progress and develop new strategies. In addition, begin developing marketing materials such as logos, brochures, e-blasts, etc., and a GBC webpage or website as a onestop-shop for all GBC resources and events. Step 4: Engage and recruit Engage those who provided input about the program to test and provide feedback on the program design, checklist, and actions. Engage partner organizations to encourage their constituency to participate in the GBC. Use the pilot phase to address any issues and to build buy-in from local businesses. Step 5: Begin certifying businesses Officially launch the GBC program, help participants build internal capacity, and celebrate their successes! Program Benefits There are a number of benefits to businesses who participate in a GBC program. The benefits realized will depend on the structure of the overall program and capacity of the entity that is administering the program. Typical benefits of a GBC program include: Savings. Many of the actions called for as part of GBC certification would lead to cost savings for businesses, whether installing energy efficient lighting, conserving water, minimizing waste, or reducing travel. Greater recognition. Certified green businesses will be recognized through decals on windows, their website, through an annual awards program, and through press releases 4 Westchester County s Green Business Challenge: other local government green business challenges: 3 P a g e

4 as well as stickers for store windows, annual awards programs, or press releases and events. Demonstration of values. Becoming a certified green business is also a way for a business to demonstrate a commitment to its community and its overall sustainability. Competitive advantage. Sustainability is an issue of growing concern and will be of greater importance for future economic success, whether through cost savings or a marketing advantage. Businesses that take a leadership role are positioning themselves ahead of competitors as grant programs, supply chains, and customers incorporate sustainability into their decision-making. Trainings and workshops. Green business certification programs often hold trainings and workshops as well as provide technical assistance to help businesses advance their efforts in achieving additional actions on the GBC checklist. Mentorship. Companies that participate in a GBC program could be connected to mentors other businesses who have achieved certification to assist them in moving beyond some of the barriers they may be experiencing in achieving certification. A peer mentoring program is a great way to build momentum and support and accomplish overall program goals. Build on other initiatives. The GBC has the potential to link to, and help expand, other initiatives in Red Hook. For example, a business participating in the GBC program could earn points by installing a bench on the sidewalk or park near its shop, to support Red Hook s Walk it Off aspect of the 10% Challenge, or supporting local businesses by instituting a local purchasing preference policy, such as shopping at the Red Hook Village Farm Market. How a GBC Program Can Work in Red Hook Several questions should be considered at the outset to build a success GBC program, including: 1. Who is involved in creating and launching the program? 2. Who will administer the program, and how will the program be administered and materials distributed (e.g., via a website)? 3. Should industry-specific business categories be included? 4. Should tiered ranking system be incorporated into the program? Will verification be required? 5. Will recertification be required? 6. Will there be a fee? 7. Should the program be piloted to test the structure and functionality? 8. How can the Town market the program and keep participants engaged? 9. How may the checklist be designed? 4 P a g e

5 Stakeholders Creating and launching a GBC program requires collaboration among the local government, partner organizations such as professional associations (e.g., Red Hook Area Chamber of Commerce), and participants willing to provide feedback about the program design and participate in the pilot phase. The Town may reinforce this collaboration among stakeholders in the development and ongoing support of the program through marketing materials with partners logos and co-hosting events such as the launch and awards events. An important consideration is the degree to which the highest elected official s recognition of participants involvement in the program drives their decision to participate. A motivating factor for businesses to participate in the Chicago Green Office Challenge was Mayor Richard M. Daley s praise for and participating businesses engagement the program. Also consider convening an advisory committee comprised of individuals representing these stakeholder groups, especially the businesses that are early-adopters, to provide input on the structure of the program and design of the checklist. A GBC program in Red Hook has the support from local leadership, including representatives from the Red Hook municipal government, the Chamber of Commerce, the Economic Development Corporation, Bard College. Partners from the 10% Challenge could also support the GBC. For example, Central Hudson Gas & Electric Corporation could assist with energy efficiency training, the local Student Conservation Association s AmeriCorps team could assist with verification tasks, and the Mid-Hudson Energy $mart Communities could provide funding or checklist development assistance. Administering the Program When developing a GBC program, it is important for Red Hook to consider how to administer the GBC program as well as who and how to engage participating businesses. The Town may administer the program in-house, engage a third-party such as a local non-profit to administer the program, or a combination of the two. The City of Chicago, for example, partnered with an international non-profit hosted in the City s (former) Department of Environment to create and administer the Chicago Green Office Challenge through the completion of Round 1. This allowed the City to guide the development of the program but relieve itself from the minute and time intensive details necessary to build and administer the program. The program administer also did one to two site-visits a year (each Round lasts approximately one year) to discuss participants progress and any technical questions they may have about the program or an action(s). It is at this time that participants were asked to demonstrate the implementation of actions. In other words, while scores were tabulated on the honor system, there was a degree of accountability. Depending on the complexity of the 5 P a g e

6 GBC and number of participations, it may take up to half or 1 full-time-equivalent to administer the program based on other GBC programs. Additional program administration elements to consider are who will accept application forms, verify completed checklists, archive program records, process fees (if applicable), coordinate trainings and technical assistance to educate and keep stakeholders engaged, ultimately certify the businesses as green, and organize awards events? Each participating business also needs to a primary liaison that is responsible for registering for the GBC, manage developing a baseline, implement actions, and report progress. This individual may attend a kick-off meeting, communicate with the program administrators by phone and , and coordinate internal efforts and reporting. Their time commitment may be a couple hours a month on average. An explanation of the role and commitment of the primary liaison should be included in or linked to the registration webpage or documentation. Business Categories Consider whether the program, and therefore a checklist and trainings and technical assistance, will be tailored to different or all industries within the commercial sector. The high electricity and paper demands of an office environment is different than the food and waste issues of a restaurant, while the heavy gasoline and chemical use of a landscaping company is different still. The San Francisco Green Business Program 5 accommodates this by catering to eight distinct industry categories, ranging from hotels to retailers, and dentists to garment cleaners. Again, a greater number of industry categories would add to the complexity and time required to create the program but may add much value to participants. Some programs begin with actions that are generally applicable to all industries within the sector and add more categories as interest and the range of participating industries grows. Tiered Rankings The best-known example of tiered rankings is probably the LEED rating system, which awards Certified, Silver, Gold, and Platinum rankings, based on the project s performance. A tiered approach is appealing because it allows the program to be accessible to many businesses, while also rewarding higher-performing businesses with higher achievement levels. GBC programs vary in whether or not tiers are offered, and in the number of tiers. Some GBC programs provide an entry level certification that asks simple yes or no questions, such as have you collected all your utility bills for the past year? and awards points for yes responses. More points can be awarded for businesses that develop plans to reduce utility 5 The San Francisco Green Business Program: 6 P a g e

7 expenditures, and even more points for businesses that achieve certain savings, such as a 10% reduction in energy use. Including an entry level that allows yes or no responses may make the program accessible to a greater number of businesses, some of which may have no knowledge or experience with sustainability efforts including tiers would then award improvements beyond the basic level. Also consider if participants such as tenants and property managers will be assessed differently. In the Chicago Green Office Challenge, property managers are evaluated on performance-based base and stretch goals (e.g., increased energy efficiency by 10% vs. 20%), while tenants are evaluated on how many points they earn from implementing actions in the checklist. Verification The degree to which participating businesses achievements are verified differs between GBC programs. Some GBC programs allow for participants to self-report with the caveat that the participant must demonstrate implementation of an action (e.g., use of default computer and printer settings throughout the office) if asked while others require verification by submitting the relevant documents (e.g., receipts of purchased equipment or energy assessment documents). Some programs require third-party auditing in order to become certified. More stringent verification provides greater credibility to the program, which would give it more value in the eyes of the public. However, time demands for this review and administration for the Town and participants can be significant and must be considered. Recertification Most GBC programs require some sort of recertification, usually every year to three years. This is to ensure that the certified businesses maintain their good practices, stay engaged, and keep pace with advancing technology. Requiring recertification provides the opportunity for continual improvement; businesses reexamine their actions. Some programs even require businesses to take additional actions to receive recertification, though this is not the norm. Another model is to assume that any participate that submits a baseline and updated checklist each round are committed to continuing to the next round therefore eliminating the administrative burden of re-registration. Certification Fee Certification fees provide income for program administration as well as adding legitimacy that free programs may lack. If a new fee will be required, it will be important to articulate the benefits of participation (e.g., technical assistance, training or mentoring). Having no fee would likely increase participation, though requiring a fee, however small, would filter out businesses that are less committed to taking action. 7 P a g e

8 Some programs do not charge a fee at first to spark interest in the program and then once the program builds credibility, fees are phased in over time. Generally, most municipal- or other government organization-based GBC programs are free, while privately-run programs, such as the Green Business Bureau s Green Restaurant Certification program, charge fees that range from a $100 registration fee to more than $500 in certification and verification costs. The fees may also vary based on the size of the business. If a fee is required for initial certification, many programs charge only a reduced fee or a basic registration fee for recertification. Piloting the GBC Program Before finalizing the program, it can be extremely valuable to pilot the program with willing businesses and seek the input of key stakeholders such as the Chamber of Commerce to ensure existing resources (e.g., existing programs, guidance documents, incentives) that are relevant to the implementation of an action(s) is included in the checklist. In fact, engaging a few businesses and partners in the program development decreases the likelihood of future challenges during the design or administration of the program. This input will reveal strengths and weaknesses of the program, determine interest levels for local businesses, ensure action items in the checklist are appropriately attainable and challenging at the same time, and begin creating buy-in to the GBC program. Even if interested businesses have not already taken steps toward reducing resources consumption and waste, opening the GBC program to a free pilot phase will allow the businesses to implement green initiatives over time, potentially with assistance and oversight, to better gauge the challenge a business would experience in becoming certified. A primary component of piloting the program is testing the process for becoming a green certificated business. The following outlines sample steps a business can take to become certified: Step 1: Interested businesses register online or contact a program administrator to become a green business certification participant at which time they will receive a checklist and submit any required fee Step 2: Interested businesses complete the checklist and submit it online or to a program administrator Step 3: The checklist is verified, any required audit is conducted, and the checklist is either approved and the business is certified as a green business, or gaps are identified and the business is given advice on how to address any shortfalls 8 P a g e

9 Step 4: GBC participants attend trainings, workshops, and other GBC events to build internal capacity Step 5: Recertification as appropriate (in case of higher tier achievement or if recertification is required) This process can be modified to fit the specific needs of Red Hook, but the general procedure outlined above will get the program started. Potential Marketing Support Once implemented, the amount of public awareness of the GBC program may determine the level of success. Public awareness will help consumers identify GBC participants, encourage new businesses to participate, and help accomplish the overall goals of the program. Potential means of publicizing the effort should build off the 10% Challenge and include: Create a GBC brand and logo (similar to how one was created for the 10% Challenge) Create program website (similar to how one was created for the 10% Challenge) Promote GBC through websites of participating businesses Develop social media outreach methods (e.g., through Facebook, Twitter, YouTube) Post the program logo in participating or certified businesses (e.g., windows decals, menu stickers, etc.) Publicize in community newsletters Work with partners (e.g., Bard College, Red Hook Economic Development Corporation, Chamber of Commerce, etc.) Invite businesses to participate from a person letter from the highest elected official such as the Town Supervisor 6 Creating a Checklist Checklists are generally divided into multiple categories (e.g., solid waste reduction, energy conservation, transportation, water conservation, and public awareness) and measure the environmental, economic and social benefits (e.g., money saved, waste reduced, greenhouse gas emissions reduced, etc.) associated with implementation of actions. Typically, to achieve a tier or each certification, businesses must earn at least one point in every category and must meet a minimum number of points, but are given flexibility in how they reach that minimum number (see Figure 1 for a sample checklist). 6 Mayors from multiple local governments wrote a collective letter to businesses within their community to participate in a regional green business challenge. View the invitation here: 9 P a g e

10 Figure 1: Screenshot of the City of Austin, TX, Green Business Challenge scorecard. 7 Checklists may include the categories (e.g., energy efficiency and conservation, transportation, waste), action names, action descriptions, additional resources (e.g., links to guidebooks, organizations), any required documentation, and the associated points if achieved. Checklists that are developed in Excel and in web-based platforms automatically calculate the total number of points and the associated tier achieved as opposed to a paper checklist which must be manually processed. Points are allocated based on the ease of difficulty of implementing an action. A more simple action such as changing a light bulb may earn one point, while a more difficult action such as changing a company policy may earn two points. Red Hook already has experience similar to setting up a GBC certification checklist, through its organization of the 10% Challenge. As part of the 10% Challenge, Red Hook created 10 categories (see Figure 2) that can serve as a starting point. Several of these are directly relevant to a GBC program, including: Grow It, Compost It, Efficiency Measures, Reuse It, Changing Transportation, Shop Locally, Ramp up Recyclables and Discover Renewables. Similarly, a GBC program would identify available actions and establish minimum standards for achievement in order to be recognized. 7 Austin s Green Business Challenge scorecard is available here: 10 P a g e

11 Figure 2: Red Hook's 10% Challenge categories closely align with the categories of a Green Business Certification Program checklist. Additional Templates for Creating a Checklist Looking beyond Red Hook s experience with the 10% Challenge, a few templates exist that may serve as models for a Red Hook GBC program. A number of local governments implemented green business challenges based on the Chicago Green Office Challenge model. While many of the scorecards are not publically available, the Town may contact the program administrators to request copies to use as examples. Learn about the GBC programs in Houston (TX), Austin (TX), Port of San Diego (CA), Arlington County (VA), Charleston (SC), Bellevue (WA), Chula Vista (CA), Decorah (IA), and the Triangle J Council of Governments (NC) here: The Austin Green Business Leaders Program s Excel-based scorecard accompanies this document. The scorecard is organized into seven categories including Communications & Outreach, Energy, Resource Management, Transportation, Water, Healthy Work Environment, and Community Stewardship. Participants may achieve three tiers, and the completed 11 P a g e

12 scorecard is uploaded to a website. Participants must complete at least once action per category is required to participate. The San Francisco Green Business Program Standards, specifically the Office/Retail standards, available at Retail_Checklist.pdf, provide a strong template to create a customized GBC program for Red Hook. This template covers a range of categories (e.g., solid waste, energy conservation, water conservation, pollution prevention, and general/staff education) and offers flexibility for achieving different points and a means to create tiers within each category. These standards are branching into separate industry categories (e.g., office/retail, hotels, restaurants, etc.), which may also benefit it s the Town as it develops a GBC program. In addition, several resources designed for participating business, which may be useful to Red Hook businesses, are available at Another example of a relevant green certification program is the New Hampshire-based Green Alliance, a fee-based membership association that rates the sustainability of member businesses, supports business-to-business mentoring, in-network purchasing preferences, and provides marketing efforts on behalf of members. Membership in the Green Alliance provides discounts at participating businesses. More information about the Green Alliance is available at while a sample of the Green Business Evaluation is available at The Green Alliance evaluation form is less specific and less intensive than San Francisco s version; it is accessible by sustainability newcomers, while still providing a rating system that can be used to award different tiers of achievement. Conclusion The Red Hook 10% Challenge provides a great starting place to build a GBC program. There are a number of helpful resources available to expand and develop a model that fits the needs, resources, and goals of the Town. A checklist can be created using existing models from similar programs and the structure of the Red Hook 10% Challenge program is a great foundation. Starting with a few businesses to pilot the program and working with existing partners would be an ideal way to test how the overall program will be administered and gauge the interest and feasibility of launching something more formal. Red Hook can begin creating a GBC program by evaluating existing programs, structuring the program, developing the tools, marketing materials, and program resources, engage and recruit businesses, and begin certifying businesses. 12 P a g e