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Green
Assets By Jamie Swedberg Editor's note: This article first appeared in the August 2009 issue of Credit Union Management. Economic troubles are touching every credit union nowadays. Austin, Texas, is one of the few relatively bright spots on the financial map, yet this city's University Federal Credit Union has begun delaying its scheduled branch deployments by months or even years. But the downturn hasn't prevented the credit union from designing its buildings with sustainability in mind-nor will it. In the thick of the recession, the credit union still regards "green" initiatives as a high priority. It's possible to keep making environmentally friendly changes during a bad economy, as long as you evaluate which changes are right for your organization, says Paul Seibert, CMC, of EHS Design, Seattle. "I think it's really just picking out what works for you and going through that process of what green really means," he says. "When you take a board and a management team, there are a lot of people there. You want to come to a common idea of what green means to you, how you can approach it, and what the cost/benefit analysis of each item is. Often, it turns out to be an array [of different approaches]." Green initiatives can include changes to facilities, operations, company culture and community relations. A little brainstorming usually turns up a long list of options. Some cost a lot, some a little and some nothing at all. A few even save money. Not only that, but chances are, the credit union is doing a few green things already. It's easy to get the ball rolling. "What you do is look back and create a realization of what you're already doing; then form that into a strategy going forward," Seibert recommends. "That's how you build a strategy of sustainability that you can afford." A lot of credit unions mistakenly believe green materials and processes cost 15, 20 or even 25 percent more than their non-green counterparts, he says. That's why some CUs might be tempted to pull back at a time like this. But there are different levels of going green. You can go for the gusto, or you can take smaller, more piecemeal measures that don't require a significant investment. Every credit union has its own comfort level. 'LEEDING'
THE WAY As part of the certification, BCU recycled more than 95 percent of the construction waste associated with the remodeling. It purchased locally built furniture; reused existing ceiling tiles, lights and doors; and specified low-VOC (volatile organic compound) carpeting and paint. To encourage more environmentally friendly commuting, it provided additional bike racks and premium parking for carpools and hybrid vehicles. The building is cleaned using green products and methods. SVP/Business Development and Marketing John Bratsakis says there were a couple of reasons BCU decided to pursue LEED certification. "As we began the design process, it was something that was already being discussed, because we'd had some green initiatives," he says. "Also, at Baxter [Healthcare] corporate, one of their initiatives was a green initiative and LEED certification. So it really dovetailed pretty nicely." Because the CU needed to remodel its IT area and rewire the power coming into this building, project engineers pointed out that they had an opportunity to make these areas more green. They said the credit union would be able to recoup the additional costs in three to five years. While Bratsakis, a CUES member, is a little skeptical about that specific claim, he stands behind the decision. "We were remodeling a large facility," he says. "It was pretty empty, so the things we were going to have to do, we were going to have to do anyway. All of the areas where we reduced toxins, like the lower-emitting paint and the adhesives for the carpet, we felt it was just the right thing to do." In a way, he says, the bigger the remodeling job, the easier it is to pursue certification. In fact, the simplest scenario is new construction, where you never have to deal with obsolete technologies or inefficient structures. On the other hand, remodeling gave BCU the opportunity to take six truckloads of old cabinetry to Habitat for Humanity, and to repurpose old workstations for another of the credit union's locations. "I think we would have done that anyway," Bratsakis says. "We've got such a big charitable arm. Employees were offering suggestions all along, like 'What if we did this? What if we recycled that?' I thought it was pretty remarkable at how important it was to staff that we were doing this, and the pride that they had in the initiatives that we were pursuing." LEED isn't for everyone. Documentation is cumbersome, and it takes a concerted effort at a time when resources may be stretched thin. Some credit unions might rather emulate Austin's $1 billion/134,000-member University FCU, whose new Ben White Boulevard branch has garnered the highest rating (five-star) from the Austin Energy Green Building Program. The new branch, which went live in October 2008, utilizes many of the same green materials as BCU's does. Because of its location in sunny, arid Texas, it was designed with innovative water-saving and solar-energy technologies. "The tower you see in photos of the branch (at the top of this page) is a 1,000-gallon water cistern that collects flow from the drive-through roof," says VP/Operations Steve Kubala. "The water is used to flush toilets inside and to irrigate the landscape. This is a research and development branch for us, so we were willing to put some extra time and energy and money and design time into this. We knew what the expected cost was, and this showed us the actual costs, which in some cases were different. For instance, in the future we won't use rainwater for inside plumbing issues, because it's too expensive. We'll deal with irrigation only." Kubala says using rainwater for indoor plumbing is expensive for two reasons: 1) the deployment of additional lengthy runs of plumbing pipe; and 2) city inspections and pipe labeling requirements to ensure non-potable water was not confused with potable water. (That's right, Kubala says, the credit union had to post signs not to drink out of the toilet.) The Ben White branch was designed to maximize ambient light and solar heat gain, and it even has a solar array on the drive-up. This photovoltaic system produces excess energy which is sold into the grid when the CU is not using it. It would have been prohibitively expensive at $176,000, but the City of Austin helped out. Because city planners want to avoid having to build a new power plant, the local government offered a $100,000 rebate. "We bought into something where we could get a reasonable return on our investment and a discounted energy bill far into the future," Kubala says. "The ROI is probably somewhere in the seven- to eight-year range." ADD
IT UP Before BCU renovated its headquarters, it had already committed to some small green efforts. "At the time I started in May 2007, they already had an automated lighting and HVAC system in place," says Facilities Manager Ron Williams. "It would automatically turn the lights and HVAC off at a certain time so we didn't waste energy on the weekends or late in the evening. We also had a paper recycling program already in place." Far from costing the credit union money, these initiatives actually saved cash. The former reduced the CU's energy bill, while the latter lowered the cost of its garbage contract. Williams says another planned change, the replacement of restroom paper towel dispensers with earth-friendly hand dryers, should save the organization close to $50,000 in utilities and purchasing over the next five years. You can pick the initiatives that make the most financial sense now, and add on as you go, Seibert says. "Having sprinkler systems that turn off when it rains is a pretty straightforward thing," he points out. "Having light switches replaced so that they turn on when people are in the room and off when they aren't is not expensive. And in the future, when you have more money, you can always retrofit with more green measures. You can add solar panels or rainwater collection. For now, it's good to have an idea that you might do these things later, because there are slight modifications you can make in your designs so that it is easier and less expensive later on." "Certainly when we upgrade old offices and build new ones, we're paying attention to environmental standards," says Doug Schneider, VP/marketing at $900 million/86,500-member Credit Union of Colorado, Denver. "For example, in our electric signage, we're using the low-heat LED lights. They last longer. They may cost a little bit more initially, but we figure over time they're going to be a better investment than doing it the old way." University FCU has replaced expensive old metal halide bulbs with compact and large-scale fluorescents. As an affordable yet effective green initiative, changing out light bulbs is hard to beat. It pays for itself almost immediately, Kubala has found. "We worked with our vendor to get appropriate lights," he says. "The new ones don't burn out as often, so our maintenance costs to drive around to all of the branches and replace the bulbs is much reduced. Under the canopy in a drive-through, we had 10 to 15 bulbs that the tellers would leave on in the middle of the day. So we took control-we just had an electrician come out and put those on a solar cell." GREEN
MINDS "We recently started printing using Forest Stewardship Council standards, which basically means that all the wood and pulp used in the paper production process meets a pretty high environmental standard," says Schneider. "Now we're using FSC printers and stock as well. That was a cost-neutral decision. No, we're not making any money off the deal in terms of lowered expense, but we are doing our part to help preserve the environment." He's not sure whether this change resonates with the credit union's membership, but since the cost is the same, he figures, "Why not?" In fact, he says, the economy hasn't weighed much on the CU's green decisions, because executives there have focused on low- or no-cost cultural changes. Things like duplexing statements and sending out only one marketing insert per household make good financial sense as well as preventing environmental waste. There is a groundswell of support for sustainability among University FCU employees, says Kubala. Many workers have changed their signature lines to say, "Don't print this unless you really need to." Bottled water has been replaced with filtered water, and everyone carries his or her own cup. But credit unions may be able to make an even bigger impact by changing the way they relate to their members and the community at large. A couple of months ago, CU of Colorado ran a promotion offering to plant a tree and give a $5 incentive if members changed to e-statements. Similarly, BCU participated in a government program called Green Rewards. The state of Illinois offered a $1,000 rebate when citizens purchased eligible hybrid or alternative fuel vehicles. BCU sweetened the deal even further by offering auto loans for these efficient cars at a rate far lower than its usual one. Bratsakis says it didn't cost the credit union much, if anything, and the marketing department had a great time with it. Seibert says he's seen CUs do similar things with mortgages, offering reduced loan rates for environmentally friendly structures. When attending community events, BCU has changed the nature of its giveaways. Instead of offering trinkets that will almost certainly end up in the waste stream, its employees incent potential new members with reusable shopping bags, live trees and the like. Williams says the credit union also serves as a battery- and CFL-bulb recycling location. He personally makes sure the items get to the recycling plant. "Credit unions can take on a particular cause or two," suggests Seibert. "Let's say you're in Colorado and one of the big issues is water quality. You can back that financially, and have your staff participate in cleaning up streams. There are great projects with great visibility, and they bring credit union employees together, doing something they believe in." Earth-friendliness is its own reward. Any time a credit union makes its operation a little greener, everyone benefits. But as cynical as it sounds, a credit union would be remiss not to take advantage of the public relations boost that often comes with it. "I
got behind [our green building] because I really believed in this stuff,"
says Kubala. "But we also like to build branches that have
retail curb appeal. This particular branch is in a part of Austin that's kind
of hip and cool, and green is a hot topic there. Being a university credit
union in a city that's concerned about environmental issues-well, we didn't
want to be part of generic Jamie Swedberg is a free-lance writer based in Athens, Ga.
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