Energy Efficiency Alliance. CEEA 2014 Survey: Canadian Business Attitudes on Energy Efficiency

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1 C A N A D I A N CEEA 2014 Survey: Canadian Business Attitudes on Energy Efficiency

2 TABLE OF CONTENTS Introduction, Foreword & Methodology 3 Key Findings 6 Concern About Energy Costs 9 Views About Energy Efficiency 13 Energy Efficiency: What Companies Are Doing 19 Incentives & Programs 34 Building & Design The Commercial Market 42 Building & Design Architects & Builders 46 Appendix 62 2

3 CEEA Elizabeth McDonald President and CEO Sylvie Powell Vice President, Member Services and Operations The Gandalf Group David Herle Principal Partner Alexander Swann Vice President Working Committee Steve Clayman, Thermal Insulation Association of Canada Bob Collins, Ontario Power Authority James Grant, Enbridge Jay Nordenstrom, NAIMA Canada About CEEA The Canadian (CEEA) is a leading independent advocate promoting the economic and environmental benefits of energy efficiency. The not-for-profit works with the federal and provincial governments, and stakeholders, to ensure energy efficiency is a priority for all sectors of the economy. Producing studies and surveys as it promotes energy efficient public policy ideas, programs and standards; CEEA is an effective resource for policy makers, businesses, consumers, energy companies and environmental groups. About The Gandalf Group The Gandalf Group is a leading provider of public opinion research, strategic communications advice and issues management. For more information visit Thank You to Our CONTRIBUTORS 3

4 CEO Foreword Do Canadian businesses get energy efficiency? After exploring Canadian consumer attitudes on energy efficiency in last year s survey we felt it made sense to turn our attention to the corporate sector. We wanted to find out how important energy savings were to a company s bottom-line, and if it wasn t important why not. Of course this is a huge task, but we are up to the challenge. Working with The Gandalf Group we ve collected provincial and national data from detailed phone surveys that will give us a new perspective. Energy costs must be accounted for whether businesses own or rent their space, or are in a high-rise or low-rise. The question is how much are businesses willing to spend in up-front investments to make energy-saving measurements? Businesses are important because they occupy buildings and buildings account for over 30 per cent of global CO2 emissions and 40 per cent of global energy use. Space heating, lighting, and space cooling represent close to half of commercial site energy consumption. Our findings will give members a tool to increase the effectiveness of their efforts with Canadian businesses. The case for getting businesses to invest in energy efficiency lies in delivering a better bottom-line. We need energy efficiency programs to resonate with the business sector and encourage benchmarking. This survey will help us understand how to get them to take action. Elizabeth McDonald President and CEO CEEA 4

5 Methodology q The Gandalf Group conducted a survey of n=661 Canadian companies by telephone on behalf of the Canadian, between March 21 st and April 8 th, q The survey was fielded with two main groups of companies and organizations with varying questions depending on type: q Building sample: Architecture and Construction firms q Business sample: A range of small, medium and large businesses & organizations from the complete range of Canadian NAICS industrial sectors q Surveys were conducted with senior company decision-makers at small, medium and large or who oversee or are knowledgeable about their organization s energy costs and energy efficiency practices (& among building sector companies, those who are knowledgeable about energy efficient design or building codes). 5

6 Key Findings q Most companies are concerned about energy costs and have made upfront investments in order to become energy efficiency. q But there is much more to do: less than half have set targets for reductions in energy consumption and most admit they are not doing all they could do to be more energy efficient. q Smaller employers as well as those that rent space for their operations are less concerned about energy costs than others. q Companies that are most concerned about energy costs are larger employers as well as those that are using gasoline, diesel or propane in addition to electricity and gas. These types of companies are especially engaged. 6

7 Key Findings q The institutional/public sector is somewhat further ahead of the other sectors in implementing energy efficiency measures. q Industrial, construction, retail, accommodation and other sectors are mostly engaged. q Sectors that are less energy intensive are less likely to have made energy efficiency as high a priority i.e. real estate/property owners and other services sector companies have not made this as high a priority as other sectors. q Companies are primarily focused on improving lighting efficiency and secondarily heating and air conditioning efficiency. q Cost is an important barrier to doing more and so incentives are top of mind in terms of what would help these companies make further improvement. 7

8 Key Findings q Most company representatives said they would support moving ahead with stricter building codes, even if it raised the cost of real estate, if it improved energy efficiency. q Builders and architects see a growing market in energy efficient building design and construction. q Most architects are familiar with green-certification programs. q Yet only a minority of builders and designers feel they will be able to participate in this growth market unless or until building codes are amended to put all businesses on an even playing field with higher energy efficiency standards. 8

9 Concern About Energy Costs q Energy costs are a concern for most Canadian companies. q This is the case for most in every industrial sector surveyed. q Concern is especially high among larger companies and those that consume gasoline, diesel & propane in addition to electricity and gas. q Smaller companies are less concerned as are those that rent (60% very concerned) compared to those that own property they use for their for their operations (81%). q While most in the real estate & services sector (excluding retail & hospitality) are concerned about energy costs they are less concerned than others. q Most (61%) have seen their energy costs increase in the last year. 9

10 Thinking about all the ways that your business uses energy, how much of a concern are energy costs to your business? Business sample; n=475 Total Propane Gasoline/ diesel Natural Gas Electricity High concern (7-9) Moderate concern (4-6) Low concern (1-3) DK & N/A 10

11 Thinking about all the ways that your business uses energy, how much of a concern are energy costs to your business? Business sample; n=475 Total Retail/Accom./Food/Arts Institutional Trade & Warehouse Industrial Real estate Service High concern (7-9) Moderate concern (4-6) Low concern (1-3) DK & N/A 11

12 Have your energy costs decreased in the last year, or have they increased in the last year or have they stayed unchanged? Business sample; n=475 Total Greatly increased Somewhat increased Unchanged Somewhat decreased Greatly decreased DK /N/A 12

13 Views About Energy Efficiency q The majority of companies want to make improvements when it comes to energy efficiency q 73% of the business sample said energy efficiency was a high priority for their organizations. q 76% of builders and architects share this view. q The motivation to do so is higher among those with a higher concern about energy costs. q Companies perceive cost savings or greater efficiency in operations or production as the most important benefit to them from undertaking energy efficiency measures. The benefit to the environment or their environmental record is secondary. 13

14 To what extent is improving energy efficiency a priority for your business? Business sample; n=475 Total Low concern w energy costs (3-1) Moderate concern (6-4) High concern w energy costs (9-7) High priority (9-7) Moderate priority (6-4) Low priority (3-1) DK & N/A 14

15 To what extent is improving energy efficiency a priority for your business? Total sample; n=661 Total Institutional Trade & warehouse Building/Architecture Retail/ Accom/ Food/ Arts Real estate Industrial Services High priority (9-7) Moderate priority (6-4) Low priority (3-1) DK & N/A 15

16 To what extent is improving energy efficiency a priority for your business? Business sample; n=475 Total <25 FTE FTE FTE FTE Renters Owners High priority (9-7) Moderate priority (6-4) Low priority (3-1) DK & N/A 16

17 To what extent is improving energy efficiency a priority for your business? Business sample; n=475 Total ATL ON Prairies BC QC High priority (9-7) Moderate priority (6-4) Low priority (3-1) DK & N/A 17

18 What would the benefits be to your company if it did all that it could to incorporate energy efficiency measures? Business sample; (Multiple Mention) n=475 Cost saving 69 Environmental benefit 24 Efficiency in operations 20 Good corp. citizen 5 Client benefit % saying each 18

19 What Companies Are Doing q Despite the overwhelming concern and interest, there is much more companies can do when it comes to energy efficiency. q Only 27% believe they are doing all they can q Most (56%) have done or are doing some things. q Smaller employers and those with the least operating space tend to be those who have yet to undertake any energy efficiency measures (14%) q Less than half (38%) have set targets for energy efficiency and cost savings q One third of renters said they leave most decision-making regarding energy efficiency and related initiatives to their landlord. 19

20 Which of the following statements best describes your company? Business sample; n=475 Total <25 FTE FTE FTE FTE 500+ FTE We are doing everything we can We have done or are doing some things We have not engaged in energy efficiency measures yet DK / N/A 20

21 Which of the following statements best describes your company? Business sample; n=475 Total <10k sq ft k-49k sq ft k+ sq ft We are doing everything we can We have done or are doing some things We have not engaged in energy efficiency measures yet DK / N/A 21

22 Which of the following statements best describes your company? Business sample; n=475 Total Retail/Accom /Food/Arts Industrial Trade/ warehousing Institutional Real estate Services We are doing everything we can We have done or are doing some things We have not engaged in energy efficiency measures yet DK / N/A 22

23 Has your company set targets for energy efficiency savings or energy cost reductions? Business sample; (Multiple Mention) n=475 Total Institutional Industrial Retail/ Accom/ Food/ Arts Trade/ warehousing Real estate Services Yes No DK & N/A 23

24 Do you Business sample, those that are renters: n=114 Take an important role in or have a say in most 55 Leave most decisionmaking regarding energy 35 Don't know 4 N/A % saying each 24

25 What Companies Are Doing q Among those who have not done all that they can, the initial cost of implementation was the most common (41%) reason why they have not done more to boost their organization s energy efficiency. q Lack of time (16%) and knowledgeable personnel (9%) were secondary reasons. 25

26 What has held you back from doing more to increase your operation's energy efficiency? Business sample, those that have not done all they can (Multiple Mention) n=333 Cost of implementation Lack of time Lack of HR Owned/ operated by others Lack of support/programs/information Energy not a big expense ROI small or doubtful Other priorities Other DK N/A % saying each 26

27 What Companies Are Doing q 79% have invested in energy saving measures with upfront financial investments. Those in the institutional/public sector are particularly likely (89%) to have invested in energy saving measures. q Those that have implemented energy saving measures say on average they have reduced energy costs by 10% on average, although a substantial number were unable to say how much they had saved. q Many of those who don t know may have saved a negligible or imperceptible amount or have seen savings eaten up by increases, or they may simply not be tracking energy costs with a view to energy used and targets for savings. 27

28 Has your company invested in energy savings measures, with upfront financial investments such as new equipment or technology or audits or renovations with a view to reducing energy use? Business sample, those that have done something or all they can n=398 Total Institutional Yes No DK / N/A 28

29 By roughly what percent has your company reduced energy costs in the last year based on energy saving initiatives? Business sample, those that have done something or all they can; n=398 % saying each % 1%-9% 10%-19% 20%+ Don't know N/A 29

30 What Companies Are Doing q Those that have invested in energy savings with upfront costs have: q Mostly invested in lighting & improved heating & air q 26% replaced or upgraded equipment, appliances or trucks q 14% engaged in building renovations q 13% installed vehicle or equipment trackers and usage meters q Very few have conducted energy efficiency audits, with the exception of the institutional/public sector (12% among them) q As with upfront investments, initiatives that required no investment most commonly include lighting and heating or air; employee/ customer engagement as another albeit secondary component for many. q Despite the preference to deal with heating, air conditioning or lighting, the building sector (construction & architects) believes the market places about the same importance on efficient heating and air as they do on building design efficiency. 30

31 What are the 2 most significant energy efficiency measures your company has taken that required upfront investment? Business sample, those that have taken energy savings measure with upfront costs; (Multiple Mention) n=316 Replace/ upgraded Lighting 42 Replaced/ upgraded heat/air 28 Replaced/ upgraded equipment 26 Building renovation Equip. usage tracking Energy audits Better energy source Other mentions <5%: Solar, Employee/ client awareness, flux drives, other. DK: 4% N/A: 1% % saying each 31

32 What else has your company done to increase energy efficiency that did not require upfront investment? Business sample, those that have done something or all they can; n=398 Efficient lighting usage 18 Better informed employee/ client 15 Efficient heat usage 13 Internal consumption review 9 Production controls Efficient bulbs Changed practices, use less energy Efficient equip usage Other mentions <5%: Mgmt commitment, Bldg upkeep, other. Nothing: 6% DK: 26% N/A: 8% % saying each 32

33 What is more important to customers: Among Building Sample; n=169 Energy efficient heating and air systems? 16 Energy efficient building design? 5 Or are they equally important? % saying each 33

34 Incentives & Programs q Many companies said they would benefit from incentives in terms of what could help them improve energy efficiency in their operations. q However, many others were uncertain of what would help 23%. q Some said information (13%) and others said government support or regulations (13%). 34

35 What would help you to overcome obstacles to doing more to conserve energy? Business sample, those that have not done all they can; (Multiple Mention) n=333 Incentives, help w costs 31 Gov't support, prov/fed regulations & legislation Info on options/ existing programs Greater return on investment Other mentions <5%: Support from mgmt, utility incentives, more staff DK: 23% N/A: 9% Time % saying each 35

36 What two things do you believe governments or utilities should do to help companies such as yours adopt more energy efficiency measures in operations or in building structures? Business sample; n=475 $ Incentive/ assistance 40 Comm. info about programs Regulate prices of energy Access to energy audits Other mentions <5%: Reduce red tape, stricter regs and monitoring, long-term planning, DK: 25% N/A: 3% % saying each 36

37 Incentives & Programs q Most companies are not familiar with programs offered by utilities and governments to help with energy efficiency & conservation. q And 38% have taken advantage of such programs. q Familiarity is slightly higher in the building sector. 37

38 How familiar are you with programs offered by utilities & governments to help businesses become energy efficient & conserve? Business sample; n=475 Total Atlantic Region Quebec Ontario Prairies BC Very familiar Somewhat familiar Not very familiar Not at all familiar DK /N/R 38

39 How familiar are you with programs offered by utilities & governments to help businesses become energy efficient & conserve? Among Building Sample; n=186 Building Sector Very familiar Somewhat familiar Not very familiar 39

40 Has your business ever taken advantage of one of these programs? Business sample; n=475 Total Atlantic Quebec Ontario Prairies BC Yes No DK &N/R 40

41 Has your business ever taken advantage of one of these programs? Among Building Sample; n=186 Building Sector Yes No DK /NA 41

42 Building & Design q Most (68%) would support more stringent energy efficiency standards in building codes even if they raised the cost of real estate. q A minority said they were very or somewhat interested in owning or renting LEED or BOMA Best certified space. Few are very familiar with these certifications. 42

43 Would you strongly/somewhat support/oppose improved building codes that would require better energy efficiency even if this raised the costs of commercial real estate? Business sample; n=475 % saying each Strongly support Somewhat support Somewhat oppose Strongly oppose DK /N/A 43

44 How interested would you be in renting or owning space that met LEED or BOMA best certification or do you rent LEED or BOMA Best compliant space now? Business sample; n=475 % saying each Very interested Somewhat interested Not very interested Not at all interested Currently rent LEED or BOMA Best DK /N/A 44

45 How interested would your company be in having a system of EnerGuide labeling for commercial real estate you occupy so businesses are aware of the efficiency of the commercial space they own, rent or are interested in buying? Business sample; n=475 % saying each Very interested Somewhat interested Not very interested Not at all interested Already adopted measure DK /N/A 45

46 Building & Design: Architects & Builders q There is a moderate level of interest in EnerGuide labeling in the building sector q Architects are especially interested: 61% very or somewhat interested. q Among builders as among the range of other companies surveyed few (12%) are very interested: 39% are very or somewhat interested overall. 46

47 How interested would your company be in having a system of EnerGuide labeling for commercial real estate you occupy so businesses are aware of the efficiency of the commercial space they own, rent or are interested in buying? Among Building Sample; n=186 Architects Construction Very interested Somewhat interested Not very interested Not at all interested Already adopted measure DK /NA 47

48 Building & Design: Architects & Builders q Familiarity with the LEED & BOMA Best certifications is higher in the building sector than among the cross section of businesses and commercial clients surveyed. q Familiarity is higher among architects than builders q Most architects have been involved in a LEED or BOMA certified project as have 42% of builders. q These are typically in residential design. Those who work solely in commercial work were less likely to say they had been involved in a green certified project such as those. 48

49 The LEED green building rating system provides a standard to assess the environmental sustainability of building designs. How familiar are you with LEED certification? Among Building Sample; n=186 Architects Construction Familiar Not Familiar DK /NA 49

50 BOMA Best is an environmental certification program for existing buildings in Canada. How familiar are you with BOMA Best certification? Among Building Sample; n=186 Architects Construction Familiar Not Familiar DK /NA 50

51 Has your company been involved in projects that met LEED or BOMA Best certification? Among Building Sample; n=169 Architects Construction Commercial Residential Yes No DK/NA 51

52 Building & Design: Architects & Builders q The building sector expects increased demand for projects meeting LEED or BOMA standards and many are interested in this line of work q Most architects expect increased demand in the next five years q Most architects are very or somewhat interested in being involved in building LEED or BOMA certified buildings q About half of builders are interested q Most agree there is a growing market for businesses that want to own or lease energy efficient commercial space 52

53 Do you believe that your business will see increased demand in the next five years for projects that meet LEED or BOMA best certification? Among Building Sample; n=169 Architects Construction Yes Maybe No DK/NA 53

54 How interested would you be in building or managing space that met LEED or BOMA best certification? Among Building Sample; n=169 Architects Construction Interested Not Interested DK/NA 54

55 Agree/Disagree: There is a growing market for businesses that want to own or lease energy efficient commercial space. Among Building Sample; n=169 Building Sector Agree Disagree DK/NA 55

56 Building & Design: Architects & Builders q What holds builders and architects back from building or designing more new energy efficient building stock? q Cost, primarily q Customers preferences or demands did not allow it q Or that the customer had declined improvements; q There is not a lack of awareness among builders and architects so much as it s the role of the market and that clients needs or preferences play that is critical. q only 5% said lack of awareness or knowledge and expertise q 4% cited complexity of regulations or certification. q Indeed most agreed that they would be unlikely to be involved in more energy efficient building construction if codes didn t change along with increased demand. 56

57 What are two barriers to adoption of more energy efficient improvements into commercial or residential real estate design and construction? Among Building Sample; n=169 Cost Customers' Preferences Information on ROI Lack of Staff Expertise Rules/Regulations/ Access to Products/ Time Streamline Process DK % saying each 57

58 Agree/Disagreed: We would be unlikely to design or build more energy efficient space unless it was required by more stringent building codes. Among Building Sample; n=169 Building Sector Strongly agree Somewhat agree Somewhat disagree Strongly disagree DK/NA 58

59 Building & Design: Architects & Builders q There is majority support in the building sector for stricter energy standards in building codes even if it raises cost of commercial real estate, especially among architects. q And builders and architects suggested a range of measures to help overcome barriers: q 21% said reduced costs or incentives q 14% said codes and standards or regulations q 17% said public awareness or education and 2% said awareness of financial benefits q 6% said knowledge, expertise or education for the sector 59

60 Would you strongly/somewhat support/oppose improved building codes that would require better energy efficiency even if this raised the costs of commercial real estate? Among Building Sample; n=186 Architects Construction Strongly Support Somewhat Support Somewhat Oppose Strongly Oppose DK /NA 60

61 What do you think would be most effective to help overcome some of those barriers to adopting more energy efficient design into new real estate? Among Building Sample; n=169 Reduce Costs/Incentives 21 Public Awareness/Education Change Standards or Codes or Enforce Regulations Educate Industry Other Educate on ROI 2 Other/DN/NA % saying each 61

62 APPENDIX 62

63 NAICS Sectors Represented Sector n= Sector n= Sector n= Accommodation and food services Administrative and support, waste management and remediation services Agriculture, forestry, fishing and hunting 22 Information, communications 14 Manufacturing Architecture 64 Arts, culture, recreation/ sport, entertainment Construction of commercial buildings and residential construction Mining, quarrying, oil & gas extraction 32 Other services 9 98 Professional, scientific, technical services 9 Real estate development Real estate management 28 Retail trade 22 Service (general mention) Transportation and warehousing Utilities 18 Education 30 Property owner 12 Other sectors (specify) 30 Finance, insurance 20 Health care and social services 49 Public administration, public sector, government services Real estate (unspecified) 35 Don't Know 1 5 Not applicable 2 63

64 Has your company set targets for energy efficiency savings or energy cost reductions? Business sample; (Multiple Mention) n=475 Total Atlantic Quebec Ontario Prairies BC Yes No DK & N/A 64

65 The LEED green building rating system provides a standard for the construction industry to assess the environmental sustainability of building designs. How familiar are you with LEED certification? Business sample; n=475 Total Very familiar Somewhat familiar Not very familiar Not at all familiar DK /N/R 65

66 BOMA Best is an environmental certification program for existing buildings in Canada. How familiar are you with BOMA Best certification? Business sample; n=475 Total Very familiar Somewhat familiar Not very familiar Not at all familiar DK /N/R 66

67 Incentives q The majority would be willing to consider an investment in something like an energy efficiency retrofit if they knew they could make their money back in 2 years. q Interest drops significantly if they made their investment back in 5 years. q These findings almost perfectly resemble the CEEA s 2013 public opinion/general population survey findings. 67

68 How interested would you be in investing in a full energy efficiency retrofit if you knew you would make your money back in about two years? Business sample, those that own their building(s); n=346 % saying each Very interested Somewhat interested Not very interested Not at all interested DK /N/A 68

69 And if you were told it would in fact take five years? (To make your money back in a full energy retrofit) Business sample, those that own their building(s); n=346 % saying each Very interested Somewhat interested Not very interested Not at all interested DK /N/A 69

70 Does energy efficiency influence your approach to operations & maintenance? Real estate and property businesses; n=29 % saying each Yes No Don't know N/A 70

71 OTHER FINDINGS q The vast majority of the building sector agrees that energy usage of separate tenant areas in commercial buildings should be individually metered 82% agree 9% disagree. q 75% agreed that compliance paths in national energy codes should result in comparable energy usages and efficiencies q Those in the building sector were less likely to agree that window area in designs should be limited in codes that which is needed for good day-lighting q 41% agree and 51% disagree (27% strongly disagree) 71

72 Agree/Disagree: The energy usage of separate tenant areas in commercial buildings should be individually metered Among Building Sample; n=169 Building Sector Agree Disagree DK/NA 72

73 Agree/Disagree: Compliance paths in national energy codes should result in comparable energy usages and energy efficiencies Among Building Sample; n=169 Building Sector Agree Disagree DK/NA 73

74 Agree/Disagree: Given that windows typically lose far more heat than a wall, the total window area should be limited in buildings codes to that which is needed for good day-lighting Among Building Sample; n=169 Architects Construction Agree Disagree DK/NA 74

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