Sustainable Corporate Real Estate Roundtable 2010 Collaborative Research Program November 18, 2010

Member Briefing:

DEFINING THE ROLE OF SUSTAINABILITY MANAGER Responding to Member Request: For use in developing a similar position, please provide examples from Members of job descriptions used successfully to recruit staff dedicated to managing sustainability issues? Sustainability and Corporate Citizenship are gaining increasing prominence in business in the U.S. and global economy. Sustainability has emerged as a business driver for many companies and organizations. The uptake of sustainability as a business driver is documented by SR Inc in the Preface to SCRER Management Best Practices Guidebook II (2009). The increased adoption of sustainability is reflected by the fact that organizations are increasingly creating job descriptions and dedicating individuals to the management of sustainability issues both within the real estate field and within the broader context of enterprise sustainability. Figure 1 identifies the number of full-time employees that companies are dedicating to sustainability efforts. As can be seen from the figure, only 11% of companies with over $1 billion in revenues do not have at least one person dedicated to the sustainability issues.   Figure 1: Number of full-time employees dedicated to sustainability efforts separated by corporate revenues. 1  

Many SR Inc Members have requested information on how to define and establish an appropriate position within their firm. The stated objective from Members for such a position is to identify, enable and generate enough cost savings and benefits to justify sustainability management programs, including environmental, financial, social and public relations benefits. Several Members have requested that SR Inc capture and share examples of job descriptions and salary information. To organize the diverse job titles, SR Inc categorizes dedicated sustainability executives into three buckets which are aligned with the level within the organization. The three are as follows: “VP or SVP of Sustainability”, “Director or Senior Director of Sustainability” and “Manager or Senior Manager of Sustainability”. One  Broadway,  14th  Floor  |  Cambridge,  MA  02142  |  617.682.3632   www.sustainround.com

 

This Member Briefing provides examples and an analysis of job descriptions from SCRER Members who have successfully developed and hired dedicated sustainability executives. The job descriptions are provided in Exhibit 1, Exhibit 2, and Exhibit 3. The Briefing compares the responsibilities, time allocation and salaried compensation for individuals in these roles. Responsibilities   Every company will approach the development of this type of position in a unique manner based on the initiating executive, organizational structure and organizational priorities. For instance, a Sustainability Manager position developed and recruited by the director of real estate will be housed in the real estate department and will be dedicated to more sustainable facilities. However, a Director of Corporate Citizenship that is sourced by the C-suite will have some cross-functional responsibility, but will not be dedicated to real estate exclusively. Using the job descriptions provided in the appendix –from successfully filled positions – as real-world case examples, a comparison of the similarities and differences is instructive. Similarities   Reviewing similarities among the positions provides an understanding of the high-level, strategic foci and functions that a sustainability position should include at a minimum. These include:   • • • • • •

Development of a comprehensive Strategic Sustainability Plan with defined programs and specific actions as well as clear targets and achievable goals;   Collaboration with key internal and external stakeholders for the adoption/adaptation and publication of sustainability policies and incentives;   Managing the process of benchmarking and assessing all major facilities;   Development and delivery of training programs on environmental sustainability to internal stakeholders;   Regular reporting of performance metrics and progress toward goals and objectives;   Development of an overall sustainability communication and marketing plan    

In terms of necessary knowledge and skill set, the three positions require outstanding written and oral communication skills including public speaking, presentations to all levels of management, meeting facilitation, excellent research, and analytical and problem solving skills. Strong leadership, superb organization and solid advocacy are required. Differences   A look at the differences among the specific job descriptions provided in the appendix provides a quick case study of some of the variables that Member executives who are developing a dedicated sustainability position can alter.   Alpha Company, “Environmental Sustainability Program Manager”. Alpha Company’s Sustainability Manager position is “housed” within the real estate function. This position is much very much oriented towards specific environmental considerations such as energy consumption, Page  2  of  13  

 

carbon emissions, recycling, waste management, resource consumptions, transportation profiles, environmentally friendly purchasing, and green energy procurement. The job description specifies that the individual should have a substantial technical background such as an engineering or related degree and that the candidate should have experience with energy and sustainability programs. Also, being a Certified Energy Manger is a plus for this position.   Beta Company, “Director, Corporate Citizenship”. Beta Company’s Director of Corporate Citizenship, which is not dedicated solely to the real estate function, is oriented less towards the technical aspects of sustainability management and more towards managing the company’s overall sustainability programs. The job description places emphasis on developing internal and external collaboration to help publicize the firm’s corporate sustainability initiatives. It is also differentiated by its more international perspective as reflected in its emphasis on developing both national and international alliances with various stakeholders/ groups and identifying global best practices in environmental sustainability. In relation to Alpha Company’s Sustainability Manager, this position requires more substantial business, real estate, and management knowledge and skills as well as deep understanding of today's key global corporate citizenship issues.   Sigma Company, “Director, Sustainability Strategy”. Sigma Company’s Director of Sustainability Strategies provides the most specific position responsibilities in regards to established and specific existing environmental programs, certification programs, education and training programs, and stakeholder engagement. The position places strong emphasis on property management across the company’s portfolio and coordination on global basis. In that respect, the company requires substantial sustainability experience in relation to process development and program implementation. Facilities and property management experience is prioritized. Deep understanding of LEED is assumed as indicated by the requirement for LEED AP certification. The focus on external and internal coordination and communication becomes clear from the requirements for regular reporting, briefings on new legislation, and presentations to clients. Time Allocation A recent survey of 535 professionals identified how individuals in the different roles (VP/SVP, Director & Manager) allocate time. Each role spent the most time developing strategy (See Figure 2) and indicated that “Reporting” and “Working with my peers” were in the second and third slot. The fact that “Energy efficiency and facilities management” is only cited in the top six by the VP indicates the broad activities of dedicated sustainability directors. Figure 2 provides the top six areas that sustainability professionals in the survey dedicate their time.    

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  Figure 2: Activities pursued by sustainability presidents, directors, and managers.2  

 

 

Compensation A recent survey of 535 sustainability professionals provides insight into the compensation structure for various executive levels, for various industries and for individuals with various backgrounds. Compensation varies significantly. The general trend is to compensate those with technical expertise and focus such as engineering at a higher rate those with a less technical background and focus such as marketing at a lower rate. In addition, in terms of industry sectors average salaries are highest for basic materials, retail, and industrial goods, and lowest for healthcare and professional service providers.   The average compensation for Vice Presidents of Sustainability is $192,064 (with a median salary of $175,000), as shown in Figure 3. For companies with revenues of less than $1 billion, the median is the same but the average salary is much lower at $153,523. Age does not play an important role for this level of executive. There is a slight difference in salary levels for men and women. The percentage of men to women who serve as either VP or SVPs of Sustainability is about 69% to 31%, respectively. Education also does not seem to influence salary level. What is most important is years of experience.   Figure 3: Salaries of VP and SVPs of Sustainability. 3  

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Directors of Sustainability earn an average of $160,320 (with a median of $ 175,000). For companies with revenue under $1 billion, the average salary is much lower – $106,700 (with a median of $110,000), as shown in Figure 4. Age seems to be the most decisive factor for compensation levels as reflected by the fact that directors in their 40s earn more than their younger peers. Directors in their 50s earn the highest salaries.     Figure 4: Salaries of Directors of Sustainability. 4  

 

The salary for Sustainability Mangers has a very broad range (see Fig 4). The average is $ 103,197 (with a median of $100,000). Gender and age play an important role. Professionals over forty earn a lot more than their younger counterparts. Those with more experience in the field get up to 16% more than those with fewer years of experience (see Fig 5). For example, Sustainability Managers with more than ten years of experience receive $109,265 as compared those with less experience who are compensated about $ 94,107.5   Figure 4: Salaries of Directors of Sustainability. 6  

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    Figure 5: Impact of gender and age on salary for Managers of Sustainability. 7  

Conclusion The executives serving in dedicated sustainability roles are all strategically moving their companies toward greater sustainability. Their responsibilities, of course, vary and their compensation is drivin by the seniority of the position, the level of technical knowledge required and the amount of industry experience. SR Inc welcomes the opportunity to further assist Members in the development and execution of sustainability strategies including questions revolving around the topic of this Member Briefing – developing a dedicated sustainability management position.  

 

SR Inc Authors:

Steven Byler, LEED AP   VP, Research & Operations  

Irina Mladenova  

 

Sustainability Analyst    

Chris Phillips  

VP, Advisory Services                     Page  6  of  13  

 

EXHIBIT 1: Alpha Company Job Description    

Job Title: Environmental Sustainability Program Manager    Responsibilities  

The purpose of the position is to oversee the development and implementation of environmental sustainability programs, including minimizing energy consumption, resource consumption, carbon emissions, recycling, transportation, and sustainable design. The Sustainability Manager (SM) is responsible for leveraging the use of existing Facility Management Teams for program execution, accountability and performance. Additionally, the Sustainability Manager will be agent for change management by creating awareness of the program’s key objectives and establishing training and implementation programs that achieve the program’s objectives. The Sustainability Manager is responsible for developing and leading a Sustainability Management program for facilities which are geographically dispersed. To make the program successful, this requires that the Sustainability Manager have exceptional communication skills in addition to an awareness of the different organizational structures and policies. The SM will champion the program and make presentations to business lines to gain their support and participation. Sustainability Managers work with the understanding that there must be enough cost savings and benefits generated to justify sustainability management programs, including financial, social and public relations benefits.   Specifically, the SM will:  

 

• • • • • • • • • •

• •

Develop a Strategic Sustainability Plan with defined programs and specific actions and implementation timelines Establish clear targeted and achievable goals for the sustainability program Chair the facilities sustainability team Manage the benchmarking and assessment of all major facilities, including energy consumption, carbon emission, recycling, waste disposal, resource consumptions, transportation profiles, environmentally friendly purchasing. Work with Corporate Sourcing to develop the process to procure green energy.   Develop sustainability policies and incentive programs   Manage the process of identifying and prioritizing capital projects that support sustainability, including methodologies for economic, and non-economic justification.   Responsible for routine reporting of performance metrics and progress of goals and objectives   Develop portfolio-wide training and communication of energy conservation activities.   Use six sigma type methodologies to identify opportunities and create control plans to sustain energy savings, carbon emission reductions, resource utilization reduction, and other sustainability practices   Coordinate the development and implementation of an Corporate Environmental Sustainability Report in concert with Public Affairs and other strategic stakeholders.   Develop overall sustainability communication and marketing plan to enable achievement of strategic objectives  

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Qualifications   • Bachelor’s Degree in Engineering or related areas preferred Years experience with energy, sustainability or related programs Demonstrated ability to work independently and in a team environment   • Demonstrated ability to drive results through indirect relationships and influencing others   • Certified Energy Manager a plus     • Exceptional oral and written communications skills.   • Computer skills in spreadsheets and work processing applications   • Experience presenting information to all levels of management   • Demonstrated experience in training and change management  

 

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EXHIBIT 2: Beta Company Job Description Title: Director, Corporate Citizenship Our scope of products and services makes us the largest company in our industry in the world. But that hasn't obstructed our view of what matters - creating solutions that empower healthcare professionals to focus on their patients. That's the power of every Beta Company employee - to make a big difference in the small picture. That's the power to build your future. Position Description: The Director of Corporate Citizenship contributes to Beta Company’s success by developing and executing corporate citizenship strategies and initiatives that further enhance Beta Company’s reputation as a global leader in the our industry. The Director implements "best practices" and expands the company's corporate citizenship practices and programs across the company and collaborates with business units and other key internal stakeholders to adapt these programs at the local and regional levels. •  

• • • • • • • • • • • • • •

Creates opportunities to advance and protect company's image; builds support among key stakeholders, and enhances the company's position as a good corporate citizen Positions the company as a corporate citizenship leader among clients, prospects and employees Researches, writes and publishes the company's annual Corporate Citizenship Report Engages in an analysis of current policies and practices at the company and uses that benchmark information to chart a long-term corporate citizenship strategy Identifies global best practices in environmental sustainability by tracking and analyzing those that are most sophisticated and proven Tracks environmental legislation that may have an impact on the company’s operations. Identifies and implements environmental projects that conserve natural resources and have a positive financial impact Works in partnership with internal and external communications to publicize the company's corporate citizenship initiatives Identifies, develops, cultivates and/or build relationships and alliances with national and international nongovernmental organizations (NGOs) and advocacy groups concerned with the environment, socially responsible investing and CSR reporting Responds to all internal and external requests for Corporate Citizenship data Works with Human Resources to better integrate the company's Corporate Citizenship programs into recruiting tools and new hire orientations Develops and delivers training programs on environmental sustainability to internal stakeholders Crafts a comprehensive corporate sustainability strategy. Sample considerations include health and safety, operations, product sourcing and emerging markets. Leads the executive level Environmental Council and expands the local level Councils around the world Report on Company's sustainability performance, including business risks and opportunities

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• •

Develops sustainability capabilities within the organization. Educates and links different groups and functions in company. Ensures the implementation of policies, strategies and programs Tracks the fiscal impacts of company's sustainability efforts

Minimum Requirements: • • • • •

Minimum 8 years of relevant experience combining business and environmental acumen in a large corporate setting with a strong emphasis on counsel to management. Strong experience in developing, implementing and institutionalizing successful initiatives in a large, diverse and dynamic organizational environment. A sophisticated understanding of the global corporate citizenship landscape and best practices. Thorough understanding of corporate citizenship programs and demonstrated process management experience in embedding corporate citizenship practices in operations and business strategy. Outstanding oral and written communication skills, excellent research, analytical and problem solving skills and strong project management skills required.

Additional Knowledge & Skills: • • • • • • • • • • •

Experience working with and influencing senior company leadership on projects that involve the development of new companywide policies and programs. Prior experience publishing corporate citizenship reports using GRI. A sophisticated and deep understanding of today's key global corporate citizenship issues, and the roles of the private, nonprofit and public sectors both in the U.S. and abroad. Demonstrated experience in planning and implementing successful collaborative projects across functions. Exceptional leadership, organizational, lobbying and advocacy skills. A committed, energetic, results oriented, self starter. Innovative thinker that is able to translate new ideas into action. Ability to build multi-stakeholder coalitions. Persuasive written and oral communication skills, including public speaking, presentations and meeting facilitation. Specific experience in the areas of sustainability, green building, conservation, energy and/or waste is preferred. Six Sigma experience strongly preferred.

Education: Bachelor's Degree required, advanced degree preferred  

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EXHIBIT 3: Sigma Company Job Description Title: Director, Sustainability Strategies Position Description In this role you will be leading the company’s sustainability programs supporting facility and property management. Developing resources, tools and programs that support environmental performance of the managed portfolio focused on energy efficiency, water efficiency, waste reduction and carbon footprint reduction. Principal Responsibilities Manage the implementation of environmental programs across the company’s managed portfolio • Prepare bi-annual progress reports in support of the company’s - EPA MOU • Lead the company’s Environmental Challenge program • Lead efforts to enhance data quality and number of managed properties reporting on environmental metrics in Portfolio Manager and Re-TRAC • Manage engagement programs such as Earth Hour and Earth Day • Lead the company’s LEED EB Volume Certification Program • Lead corporate sustainability initiatives ◦ Green office tool kit   ◦ Environmental footprint pilot project • Develop education and training programs ◦ Energy use and water consumption benchmarking with EPA ENERGY STAR’s Portfolio Manager tool ◦ Waste reduction tracking with EPA’s WasteWise Re-TRAC tool ◦ Sustainability 101 course ◦ Green operations and maintenance practices ◦ LEED GA and LEED AP O&M exam preparation training • Support the National Task Force on Energy and Sustainability and develop TF newsletter • Stakeholder engagement ◦ EPA partnership programs: ENERGY STAR and WasteWise ◦ Liaison with REBNY and Mayor’s Office of City of New York ◦ USGBC ◦ BOMA ◦ CoreNet ◦ Other industry committees • Present at industry conferences and conduct client presentations • Prepare briefings on new legislation and impacts on Commercial Real Estate • Contribute to RFP responses • Coordinate update of list of the company’s sustainability accomplishments on a global basis Qualifications •

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BS degree or equivalent work experience, advanced degree desirable Page  11  of  13  

 

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5 - 7 years of sustainability experience included process development and program implementations. Facilities and or Property Management experience a plus LEED AP

 

Required Skills • • • • •

Strong oral and written communication/presentation skills required Strong proficiency with MS Office Suite,(Word, Excel, PowerPoint) Strong relationship management and interpersonal skills Strong organizational abilities and in consistency and quality Team oriented

                                                                       

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      Sources:                                                                                                                               1

 2010. John Davies. Greenbiz Salary Survey.< www.greenbiz.com>    2010. John Davies. Greenbiz Salary Survey.< www.greenbiz.com>   3  2010. John Davies. Greenbiz Salary Survey.< www.greenbiz.com>   4  2010. John Davies. Greenbiz Salary Survey.< www.greenbiz.com>   5 2010. John Davies. Greenbiz Salary Survey.< www.greenbiz.com> 6  2010. John Davies. Greenbiz Salary Survey.< www.greenbiz.com>   7  2010. John Davies. Greenbiz Salary Survey.< www.greenbiz.com> 2

SCRER Member experience & contributed documentation.   Industry Sources.    

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