and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all...
Transcript of and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all...
![Page 1: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/1.jpg)
Corporate Sustainability as a Profit Centerand Legal & Economic Aspects of Going Green
and
MEYERS, ROMAN, FRIEDBERG & LEWIS28601 Chagrin Boulevard, Suite 500
Cleveland, OH 44122Phone: (216) 831-0042
Fax: (216) 831-0542
AFFINITY CONSULTANTS, INC.P.O. Box 513
222 North Canal StreetCanal Fulton, OH 44614Phone: (330) 854-9066
MRFL©2010
![Page 2: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/2.jpg)
Nicholas Zingale, Ph.D.
February 18, 2010
![Page 3: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/3.jpg)
![Page 4: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/4.jpg)
![Page 5: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/5.jpg)
![Page 6: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/6.jpg)
![Page 7: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/7.jpg)
SustainabilityThe Triple Bottom Line (TBL)
Economic Performance
Environmental PerformanceSocietal Performance
Sustainability
Sweet Spot
Excellence exists at the Sweet Spot
![Page 8: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/8.jpg)
![Page 9: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/9.jpg)
Facility & Building Envelope
Governance, Legal, Management & Operations
Design & Product Innovation
![Page 10: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/10.jpg)
![Page 11: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/11.jpg)
![Page 12: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/12.jpg)
![Page 13: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/13.jpg)
GREENWASHING:
How to Protect Yourself
and Your Company from the Threat of Federal Charges
MRFL©2010
![Page 14: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/14.jpg)
WHAT IS GREENWASHING?
• Green-wash (green’wash’, -wôsh’) –verb: the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service.
MRFL©2010
![Page 15: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/15.jpg)
WHAT IS GREENWASHING?
• The Federal Trade Commission (FTC) has developed Guides for the Use of Environmental Marketing Claims –otherwise known as “The Green Guides.”– The Green Guides provide guidance to
marketers as to the types of claims they may make, and what proof is required to make such claims.
MRFL©2010
![Page 16: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/16.jpg)
GENERAL ENVIRONMENTAL BENEFIT CLAIMS
• Example: – “Environmentally-Friendly” Product
Packaging
MRFL©2010
![Page 17: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/17.jpg)
SPECIFIC ENVIRONMENTAL BENEFIT CLAIMS
• Example: – “Biodegradable” Paper Towels
MRFL©2010
![Page 18: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/18.jpg)
THE CONSEQUENCES OF GREENWASHING
• June, 2009 – FTC brought charges for false and unsubstantiated claims that products were “biodegradable” against:- Kmart Corp.; - Tender Corp.; and- Dyna-E International
• Kmart Corp. and Tender Corp. settled with the FTC.
MRFL©2010
![Page 19: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/19.jpg)
THE CONSEQUENCES OF GREENWASHING
• Dyna-E International did not settle, and on December 15, 2009, the FTC issued a Decision and Order with severe consequences.
• The Order stated that Dyna-E and/or its President, George Wheeler :– shall not represent that its products or packaging are “biodegradable.”– shall, for 5 years make available to the FTC all advertisements,
labeling, packaging, and promotional materials, and any tests, reports and studies relied upon for any representations.
– shall notify the FTC of any changes in business for the next twenty 20 years.
– Wheeler shall, for 10 years, notify the FTC of any change in his personal address or employment.
MRFL©2010
![Page 20: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/20.jpg)
HOW TO PROTECT YOURSELF AND YOUR COMPANY
• Green Insurance
– Certain insurance companies, including AIG, are offering insurance policies to offset the expenses associated with Greenwashing, including the costs of bad press companies will get from being accused of Greenwashing.
MRFL©2010
![Page 21: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/21.jpg)
HOW TO PROTECT YOURSELF AND YOUR COMPANY
• Third-Party Certification
– Obtaining third-party certification doesn’t ensure that the FTC cannot bring Greenwashing Charges, but it does provide some assurance of the validity of green marketing claims.
MRFL©2010
![Page 22: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/22.jpg)
GREEN BUILDING
• Green Building – What is it?
• Why should you care?
• What should you look for? (a few legal considerations)
MRFL©2010
![Page 23: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/23.jpg)
“GREEN” BUILDING- What is it?
• EPA definition – “The practice of creating structures and using practices that are environmentally responsible and resource-efficient throughout a building’s life cycle from siting to design, construction, operation, maintenance, renovation and deconstruction.”
MRFL©2010
![Page 24: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/24.jpg)
“GREEN” BUILDING • Some common characteristics of a high performance
building:- Energy efficient
- Efficient water use
- Reduce waste
- Better indoor air quality
- Use and reuse of materials
- Sustainable building policy
MRFL©2010
![Page 25: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/25.jpg)
“GREEN” BUILDINGThird Party Certification
• LEED (Leadership in Energy and Environmental Design)
• Green Globes – LEED competitor
• Energy Star (for buildings)
• ASHRAE Building EQ
MRFL©2010
![Page 26: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/26.jpg)
“GREEN” BUILDINGGovernment Regulation
• Federal
• State
• Local ordinances
MRFL©2010
![Page 27: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/27.jpg)
“GREEN” BUILDING
Distinguish between:
• Design and Construction
• Operations
MRFL©2010
![Page 28: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/28.jpg)
WHY SHOULD YOU CARE TO BE GREEN?
• Triple Bottom Line – People, Profit, Planet
• Reduced Operating Costs– According to the USGBC, average
“Green” building consumes 26% less energy and has 13% lower maintenance cost to average commercial building
MRFL©2010
![Page 29: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/29.jpg)
WHY SHOULD YOU CARE TO BE GREEN?
• Greater Building Value?– Higher ROI and resale– Higher Appraised value? - not there…
yet
• Higher Tenant Demand – Higher rents – Lower vacancy
MRFL©2010
![Page 30: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/30.jpg)
WHY SHOULD YOU CARE TO BE GREEN?
• Marketing Purposes– Sustainable Building– Tenants or owner occupied – sustainability
as corporate policy
• Worker satisfaction and productivity– Sick building syndrome– Satisfied workers = productive workers– Talent recruitment and retention
• Higher initial building costs
MRFL©2010
![Page 31: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/31.jpg)
WHAT SHOULD YOU LOOK FOR?• Design and construction - Integrated
Project Delivery (“IPD”)– collaborative approach – owner,
architect, contractor and others– Paradigm shift from design-bid-build
– Multi-Party Agreements – Who is responsible when there is a problem?
MRFL©2010
![Page 32: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/32.jpg)
WHAT SHOULD YOU LOOK FOR?
• Green Leases– Tenant Buildout requirements– Operating Expenses– Separately metered utilities– Compliance with sustainability policies– Responsibility of certification– Cost of operating efficiency improvements– Remedies for violation
MRFL©2010
![Page 33: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/33.jpg)
WHAT SHOULD YOU LOOK FOR? (cont.)
• Hazard Insurance – Green endorsements are available.
• Compliance with laws – Review your local codes
• Commercial Loans – Do banks care about this?
MRFL©2010
![Page 34: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/34.jpg)
TAX INCENTIVES – ENERGY EFFICIENT BUILDING IMPROVEMENTS
• Section 179D – First Year tax write-off
– Interior lighting, HVAC, hot water systems, building envelope, leasehold improvements
– First year deduction is capped at $1.80 per square foot
– Improvements must result in hypothetical 50% reduction in energy usage.
MRFL©2010
![Page 35: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/35.jpg)
BUSINESS TAX CREDIT (ITC) FOR RENEWABLE ENERGY SYSTEMS
• 30% ITC for solar, fuel cells and wind property.
• 10% ITC for geothermal, combined heat and power systems, and microturbine property.
MRFL©2010
![Page 36: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/36.jpg)
OHIO TAX EXEMPTIONS & FINANCING
• Ohio Air Quality Development Authority
– Exemption from personal and real property, corporate franchise, sales and use
– Solar, Photovoltaics, Landfill Gas, Wind, Biomass, etc.
• State Energy Program
• Home Weatherization Assistance Program
MRFL©2010
![Page 37: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/37.jpg)
RESIDENTIAL ENERGY EFFICIENCY
• Tax Credit for energy efficiency improvements
• 30% of cost up to $1,500 for both 2009 and 2010
• Exterior windows, skylights, storm windows and doors, exterior doors, metal or asphalt roofs, insulation, HVAC, water heaters, biomass stove
• 30% of cost (no upper limit) – for geothermal heat pump, solar water heating, photovaltaics, small wind systems
MRFL©2010
![Page 38: and Legal & Economic Aspects of Going Green · – shall, for 5 years make available to the FTC all advertisements, labeling, packaging, and promotional materials, and any tests,](https://reader034.fdocuments.net/reader034/viewer/2022050208/5f5aa4274e355709501b869d/html5/thumbnails/38.jpg)
TAX CREDIT FOR PLUG-IN VEHICLES
• Tax credit of $2,500 to $7,500 (based on capacity of battery system)
• Credit for purchase of plug-in hybrid electric vehicles, hybrid gasoline-electric, diesel, battery-electric, alternative fuel and fuel cell vehicles
• Manufacturer certificate specifying credit amount
MRFL©2010