For the last BAGI session in October, Gunnar and Jake interviewed Molly McCabe from HaydenTanner about the business case for green buildings and a concept called “Total Value Analysis.” This new concept posits that the market requires a vastly different business case for owners, one that looks at the total value of sustainability and includes the full range of non-energy as well as energy, benefits. Decisions around sustainability need to quickly move beyond neat rows of check boxes (and simple payback) to the messy complexity of real life. There exists a quantifiable suite of integrated payoffs at the property level that accrue to both owner and occupants, as well as at enterprise and community levels. Change happens when we are able to articulate the benefits in the context of this complexity and make this the primary source of inspiration and the lever for action vs falling into the trap of easy black and white answers. In this evolved business model, sustainability and deep retrofits effectively future-proof a building against functional and economic obsolescence, while increasing the stability and predictability of the income stream. The resulting methodology both quantifies and monetize the results – at the property, tenant, enterprise and community levels and looks to provide the means to fund it.
Guest: Founder and President of Hayden Tanner, Molly is a management consultant and strategic advisor to global organizations and governmental agencies. Grounded in more than 20 years of experience in commercial real estate and business consulting, she is an innovator in the field of finance, sustainability and the monetization of deep energy retrofits. She has a unique, comprehensive and quantitative understanding of the triple bottom line and takes a systems approach in cultivating practical solutions and strategies to accelerate the emergence of resilient buildings and vibrant, sustainable cities.
Molly is the author of the book: Practical Greening: The Bottom Line on Sustainable Property Development, Investment and Financing as well as several research reports. She is an active member of the Urban Land Institute’s (ULI) Responsible Property Investment Council and Climate and Land Use Advisory Panel (CLUE) and is a Research Fellow for the Responsible Property Investing Center. Before starting her entrepreneurial career, she spent several years in corporate America. Originally from San Francisco, she now lives with her family in Northwest Montana.
Watch Molly’s presentation on this subject for the University of Idaho Integrated Design Lab’s 2013 Fall Lecture Series here: