corporate responsibility report - ecova us vision enabling a ... 2016 marks the fourth year of...

2016 Corporate Responsibility Report

A MESSAGE FROM OUR LEADERSHIP TEAMWe are honored to introduce Ecova’s 2016 Corporate Responsibility Report. It’s been thrilling to see this initiative grow over the past several years, to the point where our commitment to corporate responsibility positively impacts our business at nearly every level. Now, more than ever, aligning organizational processes with our mission positions us to shape the new energy future.

Corporate responsibility isn’t just the right thing to do, it’s also vital to the health of our business. It ensures that we remain on the cutting edge of innovation in energy, carbon, water and waste. Being a good corporate citizen helps Ecova understand our clients’ challenges so we can empower them to proactively respond to the changing energy landscape. And as our business further integrates with our parent company ENGIE, this corporate commitment will allow us to be even more competitive at a global level—where so many industry leaders are differentiated by their sustainability efforts. The four pillars of Ecova’s Corporate Responsibility Program—employees, clients, community and the environment—are also at the core of our industry-leading services. The goals we set across each area have tangible benefits for each stakeholder group, ensuring engagement and accountability across the company.

“ By accepting responsibility, we take effective steps toward our goal: an inclusive human society on a habitable planet, a society that works for all humans and for all nonhumans. By accepting responsibility, we move closer to creating a world that works for all. ”

Sharif Abdullah, Founder and Director of Commonway Institute

As Ecova continues to evolve, we’ll work towards even more ambitious goals, guided by 2016’s successes and lessons learned. We’re excited to share our future progress with you, and look forward to seeing the many ways this initiative grows stronger in the months ahead.

THE ECOVA EXECUTIVE LEADERSHIP TEAM

Ecova’s dedication to corporate responsibility is evident in the results we achieved last year, which include:

� Identifying $603 million in cost savings for our facility clients, and a 14.6 tCO2e reduction in greenhouse gas emissions through our utility energy efficiency programs

� Receiving the ENERGY STAR® Partner of the Year award for the 12th consecutive year and being recognized as an ENERGY STAR Elite Member

� Contributing more than 7,824 volunteer hours, forging valuable connections between Ecova’s employees and their communities

� Introducing a full-time Corporate Responsibility Manager to spearhead this program moving forward and deploy strategies to overcome any challenges to reaching our goals

Martin Sieh Bryan Long Mark Henderson Bennett Fisher

Lauren Kirkley Christine Uri Vincent Manier

PORTLAND, OR127

ST. PAUL, MN49

BOSTON, MA37

PHILADELPHIA, PA9

ATLANTA, GA67

SEATTLE, WA35

SPOKANE, WACorporate Headquarters

840

1,374TOTAL EMPLOYEES

REMOTE/FIELD210

43%MALEEMPLOYEES

57%FEMALE

EMPLOYEES

GENERATION X48% MILLENNIALS

41%

BABY BOOMERS11%

PORTLAND, OR127

ST. PAUL, MN49

BOSTON, MA37

PHILADELPHIA, PA9

ATLANTA, GA67

SEATTLE, WA35

SPOKANE, WACorporate Headquarters

840

1,374TOTAL EMPLOYEES

REMOTE/FIELD210

43%MALEEMPLOYEES

57%FEMALE

EMPLOYEES

GENERATION X48% MILLENNIALS

41%

BABY BOOMERS11%

VisionEnabling a sustainable world where people, organizations and the environment thrive.

MissionArchitecting the future of energy, carbon, water and waste through data, insight and action.

ValuesPASSIONATEWe are driven and inspired to make our company and the world a better place.

RESPONSIBLEWe work with commitment and accountability. This translates to our work with each other, with our clients, with our partners and with the communities where we work and live.

COLLABORATIVEWe believe that diverse perspectives create stronger and more innovative solutions. Serving as trusted partners to our colleagues and clients yields better results.

AGILEWe work in one of the most dynamic industries and companies on earth. We are nimble and creative, embracing what’s needed to help build a more sustainable future.

ABOUT ECOVAEcova, an ENGIE company, makes businesses and utilities more successful through energy and sustainability management. Ecova blends data and technology, with people and insight, to drive powerful results for its domestic and international clients. Using insights based on consumption, cost and carbon footprint data spanning thousands of utilities, hundreds of thousands of business sites and millions of households, Ecova provides fully managed, technology-optimized solutions for saving resources, which in turn increase returns, lower risks and enhance reputations.

OUR SERVICES

Business SolutionsEcova leverages fully segmented utility data to help shape business strategies that increase cost savings and reduce operational ineffi ciencies.

Utility SolutionsEcova’s demand-side management solutions blend energy analytics, customer engagement and program delivery to unlock opportunities for utilities and their customers.

57%FEMALE

EMPLOYEES

43%MALEEMPLOYEES

GOVERNANCE & ETHICSEcova’s commitment to corporate responsibility begins with our business practices. From a multi-tiered and transparent governance structure to strong data security practices, we understand the unique needs of our industry and how to meet those needs responsibly.

GOVERNANCE STRUCTUREAs a wholly owned subsidiary of ENGIE, Ecova’s business practices receive oversight from several key groups with ultimate accountability to our parent company. We also hold ourselves accountable through a rigorous code of ethics.

Executive Leadership TeamMartin Sieh, Interim Chief Executive Offi cer/Chief Operations Offi cer Lauren Kirkley, Chief Business Performance Offi cer Mark Henderson, Chief Utility Solutions Offi cerBennett Fisher, Chief Strategy Offi cer/Interim Chief Products Offi cerBryan Long, Chief Technology Offi cerVincent Manier, Chief Financial Offi cerChristine Uri, Chief Legal Offi cer

Board of DirectorsFrank Demaille, ENGIE North AmericaSuthiwong Kongsiri, ENGIE North AmericaSayun Sukduang, ENGIE Resources John Mahoney, OpTerra Energy

Ethics & ComplianceFollowing the model of our parent company, ENGIE, Ecova operates in accordance with established laws, regulations and ethical standards in all circumstances. Our code of conduct drives day-to-day strategic decisions, management and professional practices. It also provides the structure needed to measure our compliance with this commitment.

Ethics StandardEcova’s ethical requirements are essential to our reputation, relationship with stakeholders, and continued performance. Our activities are guided by four fundamental principles:

� Acting in accordance with laws and regulations

� Maintaining a culture of integrity

� Behaving fairly and honestly

� Respecting the diversity of others and the communities we serve

Risk ManagementEcova takes a proactive approach to managing risk, with a toolbox that includes an enterprise risk management process; safety, crisis, and business continuity program management; and consistent application of risk appetite tools and assessments. We incorporate this process into our strategic planning process and apply it across all business lines and signifi cant activities. Identifi ed risks and new mitigations are evaluated annually and reported to ENGIE.

Information SecurityOur commitment to high-quality data extends to ensuring its security. Ecova’sInformation Security Program—aligned with the NIST Cyber Security Framework andISO 27001-2013 standards—maintains the confi dentiality, integrity and availabilityof sensitive information. Informed by established best practices, our program alsoallows Ecova to comply with applicable regulatory and contractual requirements in addition to our annually tested SSAE16 and SOC 2 external security audits.

SafetyEcova values our employees deeply, and providing a safe working environment at every level of the organization remains a top priority. An active Safety Team at each offi ce location oversees this initiative’s success, developing solutions for achieving an injury-free workplace and educating staff on key safety considerations.

CORPORATE RESPONSIBILITY AT ECOVA2016 marks the fourth year of Ecova’s Corporate Responsibility Report. What began as a desire to monitor our footprint on the planet and in the community has now evolved into a full-fledged business strategy, informing operations at every level of the organization. Ecova’s Corporate Responsibility Program allows us to truly “walk the talk” as a leader in the energy industry. The principles of corporate responsibility guide us as we nurture employees’ professional development, respond collaboratively to clients’ needs, give back to the communities in which we live and work, and protect the environment through smarter resource management. Goals achieved in 2016 position us for even greater success as we continue to grow and evolve in years to come, bolstered by the support and global presence of our parent company ENGIE.

FOUR AREAS OF RESPONSIBILITYAt Ecova, our approach to corporate responsibility encompasses four key areas, each connected to the other and integral to our company’s mission. These areas are vital to the health of our business—and our ability to effectively architect the future of energy and sustainability requires the strong foundation that they provide.

EmployeesEMPOWERING PROFESSIONAL GROWTH. Ecova’s people are critical stakeholders, and our greatest strength. The wide-ranging expertise of our diverse team fuels the innovation that places us on the leading edge of the energy industry. As such, we nurture a company culture that encourages all employees to thrive through training and ongoing professional development.

ClientsGUIDING CLIENTS TO GOALS. Clients are at the forefront of our mission. We leverage our people and insight, bolstered by data and technology, to drive powerful results for businesses and utilities nationwide. We approach this process with a true spirit of collaboration, responding to our clients’ unique needs and strategic priorities rather than offering a one-size-fits-all solution.

CommunityCARING FOR COMMUNITIES. Ecova understands that being a good corporate citizen begins with the health of the communities we serve. We actively engage with the world around us to identify opportunities for partnership—contributing our time, energy and expertise to make a difference in the lives of others.

EnvironmentENGAGING IN ENVIRONMENTAL RESPONSIBILITY. As a leader in the energy industry, Ecova sees firsthand the many benefits of smart energy usage and resource conservation. Our internal processes reduce our carbon footprint while increasing organizational efficiency. We track and document results to ensure accountability for our impact on the planet.

OUR 2016 CORPORATE GOALSIn 2016, Ecova identifi ed one goal in each of our four areas of corporate responsibility and committed to achieving these goals by the end of the year. We ensured accountability and transparency by reporting on our progress to all employees—including leadership—on a quarterly basis.

Our 2016 results have informed the expansion of our corporate goals in 2017, including the addition of a second goal to each focus area to better encompass the range of our business. More information about these evolving goals can be found in the following sections.

A CULTURE OF CORPORATE RESPONSIBILITY At Ecova, corporate responsibility is more than a program. It’s a strong ethic that runs through everything we do—from basics like our safety practices and community service benefit up through our engaged leadership team. We have moved away from a siloed approach to corporate responsibility targets and are instead connecting the underlying principles to all parts of our business. We also use the insights gleaned from corporate responsibility initiatives to enhance our service to clients, leveraging our internal work to offer added value.

The integration of corporate responsibility into Ecova’s business is led by several key stakeholder groups working closely in partnership with each other.

Corporate Responsibility Advisory BoardTwelve senior leaders work with the Director of Corporate Responsibility to define the program’s vision and long-term strategy, and to ensure our internal program is directly linked to Ecova’s business strategy.

Ecova Impact Teams and Corporate Responsibility LeadsApproximately 100 employees are active in local Impact Teams, where they engage their colleagues in activities that reflect local interests and needs. Teams develop competitions, educational activities and volunteer opportunities for employees to get involved in corporate responsibility efforts. Nearly 20 designated Impact Team Leads drive their local office team’s management of corporate initiative implementation. An additional 15 Corporate Responsibility Leads oversee the development of companywide systems and processes informed by corporate responsibility work.

Subject Matter ExpertsSubject matter experts across the company are instrumental in the successful implementation of corporate strategies— collecting data for comprehensive reporting, developing and implementing new initiatives, and offering their expertise and involvement for heightened efficiency and business value.

Ecova LeadershipExecutive and senior leadership support the integration of corporate responsibility principles into company policies, decision-making strategies, employee experience and brand guidelines.

Provide 45,000 training and professional development hours to our employees by the end of 2016

EMPLOYEES

Identify $550 million in cost savings and 9.5 million tCO2e GHG emissions reductions by the end of 2016 through comprehensive resource management programs

CLIENTS

Give back 9,000 hours through volunteer and other community outreach efforts by the end of 2016

COMMUNITY

Reduce our own business-related GHG emissions by three percent (or 121 tCO2e) from 2015 baseline by the end of 2016

ENVIRONMENT

2016 Goals:

101%

164%110%

87%

16%

45,416 HOURS

$603M

Results:

7,824 VOLUNTEER HOURS

19 tCO2e

14.6M tCO2e

Ecova 2016 Corporate Responsibility Report12

2016 HIGHLIGHTS

+45,000 HOURS2016 GOAL

this graph is still off-- it should be 2016 results and goal-- and should highlight the 2016 results (45,416 hrs) -- with the relative distance between goal/results accounted for

+45,416 HOURS2016 RESULTS

Empowering ProfessionalGrowthThe insight, agility and passion of Ecova’s employees

remain our company’s greatest assets. We are

dedicated to building an inclusive workplace where

employees of all backgrounds and areas of expertise

are celebrated. It is these collective strengths

that make Ecova better and more powerful.

As such, we strive to cultivate an environment

in which our employees can grow: sharing their

talents with others, developing new skills and

profi ciencies, and opening up opportunities for

advancement to create a long-term career path.

101%

EMPLOYEES

� Transitioned to a new recruiting system, aligned with ENGIE’s, to connect with the people best equipped to support Ecova’s ongoing growth and innovation

� Ensured Ecova’s employee benefits package remained unchanged despite increasing costs nationwide

� Conducted the “ENGIE & Me” survey, allowing employees to express opinions, expectations and perceptions and inform the company’s strategic transformation

� Strengthened Ecova’s leadership team through a series of core trainings for front-line executives

� Participated in voluntary process checks, including audits of both ethics and safety practices, through ENGIE

Achieved a total of 45,416 training hours

Our employees succeeded in exceeding our goal of 45,000 training and professional development hours by the end of 2016. In support of this goal, Ecova continued to expand opportunities for relevant training and education. We also improved our tracking process to ensure we accurately captured the time spent by employees on skill-building experiences.

Provide 45,000 training and professional development hours to our employees by the end of 2016

RESULT:CORPORATE GOAL:


$85,559REIMBURSED THROUGH EMPLOYEE EDUCATION

REIMBURSEMENT PROGRAM

Identify $600 million in cost savings and 12 million tCO2e GHG emissions reductions through comprehensive resource management programs

COMMUNITY

CORPORATE GOALS:

Achieve 3,000 Ovation awards and other peer-to-peer recognition.

3525+ YEARS SERVICE AT ECOVA

27% OF EMPLOYEES

95%OF INDIVIDUAL DEVELOPMENT PLANS COMPLETE

351NEW HIRES

220EMPLOYEES ON INTERNAL COMMITTEES

258INTERNAL PROMOTIONS & LATERAL MOVES

QUALITY, ENVIRONMENT & SAFETY

1,186 HRS

45,416TOTAL HOURS OF PROFESSIONAL DEVELOPMENT

PROFESSIONAL TECHNIQUES

33,539 HRS

OTHER6,079 HRS

MANAGEMENT & PERSONAL DEVELOPMENT

4,612 HRS

2,509EMPLOYEE EDUCATION HOURS REIMBURSED

been completed by more than 100 Ecova leaders, with a goal to eventually train all people managers.

Our change management program was put to the test during Chief Utility Solutions Officer Mark Henderson’s redesigned structure for the Utility Solutions Team. Careful planning and strategies (e.g., stakeholder analysis, a retrospective of current challenges and opportunities, and leadership workshops) minimized disruption and employee questions. Messaging was also fine-tuned to the needs and concerns of each stakeholder group impacted by these changes, resulting in a smooth roll-out. Building on this success, change management activities have now been integrated into all organizational design and business transformation activities. As we navigate the new energy future, the work done in 2016 will position us to keep employees engaged as we meet their communication needs.

Investing in change management prepares Ecova for future growth

In the fast-moving energy industry, it’s easy to feel like the only constant is change. For Ecova, change is a necessary part of our continuing innovation and growth. The ability to manage this change successfully—empowering management to take a leadership role and ensuring employees feel informed and supported—requires tools not previously integrated into Ecova’s operations. A breakthrough occurred in 2016 with the launch of our change management methodology and its deployment during several organizational shifts.

Ecova’s approach to change management seeks to provide the right information to the right people at the right time, clearly delineating the chain of communication between stakeholder groups. Managers work to increase employee acceptance of upcoming changes, drawing on a user-friendly digital toolkit (containing items like Ecova’s change management model, stakeholder analysis and communication plan templates, and communication vehicles matrix). A two-day “Leading Change” training program has also

Provide 45,000 training and professional development hours to our employees

Ecova’s strategy for the next year focuses on deepening engagement by better connecting employees to our mission and the importance of the work they do every day, including:

� Updating our annual performance review process, encouraging leadership to prioritize their team’s ongoing development and motivate high-performing employees

� Implementing a comprehensive employee engagement strategy with dedicated resources supporting the effort

� Launching an employee recognition platform, the Ovation Awards, that allows employees to celebrate co-workers who demonstrate Ecova’s core values

� Commemorating Ecova’s 20th anniversary with a series of festive events and a designated month of community service

OUR PLAN:

Achieve 3,000 forms of internal peer-to-peer recognition

LOOKING FORWARD AT 2017:

A TOOLKIT FOR TRANSITIONAL TIMESCASE STUDY:



2016 HIGHLIGHTS

COST

SAV

INGS

EMIS

SION

S RED

UCTI

ONS

+9.5M tCO2e 2016 GOAL

+$550M 2016 GOAL

+$603M2016 RESULT

+14.6M tCO2e2016 RESULT

� Improved the Ecova Platform’s functionality through the addition of tools such as Portfolio Benchmarking and Weather Normalization

� Deployed an enterprise information security program that allowed us to complete the coveted Service Organizational Control (SOC) audit

� Introduced Ecova’s globalization services for clients across 23 different countries. including the ability to handle foreign currencies, measures and multilingual needs

� Fully integrated Retroficiency services, resulting in an ENGIE Innovation Award—as well as finalist standing for the Ethical Corporation’s Responsible Business Award

� Responded to the market need for guidance on integrating distributed energy resources (DERs) into procurement strategies by launching the Renewable and DER Resource Solution

� Received the ENERGY STAR® Partner of the Year Award for the twelfth consecutive time, and was one of only six companies to receive the Sustained Excellence Award

Guiding Clients to GoalsEvery aspect of Ecova’s work is driven by our

commitment to serving clients effectively and

collaboratively. We customize our offerings to the

unique needs, challenges and strategic priorities of

our business and utility partners, working together

to develop innovative solutions and deliver them

successfully. Our ability to drive powerful results for

our clients is evidenced by our strong net promoter

score and client retention rate of 96 percent.

164%

110%CLIENTS

Identify $550 million in cost savings and 9.5 million tCO2e GHG emissions reductions by the end of 2016 through comprehensive resource management programs

Identified over $603 million in cost savings and 14.6 million tCO2e in GHG emissions reductions for our clients

Ecova understands that delivering sustainable results for our clients requires us to provide the right data and insight, driving meaningful action. We work closely with the businesses and utilities we serve to define immediate and long-term goals, then track progress towards those goals in a transparent, defensible manner. Regular communication with our clients provides a high level of quality assurance and allows us to confidently meet targets on time and within budget.


ANNUAL SPEND BY SERVICE PER SITEFOOD SALES FOOD SERVICE HEALTHCARE LODGING

ELECTRIC

OFFICE RETAIL

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

2009

2012

2015

2009

2012

2015

2009

2012

2015

2009

2012

2015

2009

2012

2015

2009

2012

2015

NATURAL GAS WATER/SEWERAN

NUAL

COS

T PER

SITE

As overall resource consumption has decreased, water/sewer usage has grown to dominate resource consumption spend.

RESOURCE TRENDS

ELECTRIC

NATURAL GAS

WATER/SEWER

ANNUAL COST PER SITE

INDE

X CO

MPA

RISO

N TO

200

8 BAS

ELIN

E

0.6

0.8

1.0

1.2

1.4

1.6

0.4

0.6

0.8

1.0

1.2

1.4

0.6

0.8

1.0

1.2

1.4

1.6

2008 2009 2010 2011 2012 2013 2014 2015 2016

ANNUAL CDD PER SITE

ANNUAL UNIT PRICE ANNUAL USE PER SQFT

ANNUAL HDD PER SITE

Reductions in Electric usage have persisted despite spikes in CDDs.

Electric Usage has decreased ~15% since 2008, driving a similar decrease in Cost per Site.

Since 2009, Natural gas unit prices have generally been influenced by mild winter weather.

Water/sewer Cost per site has increased nearly 40% since 2008

Significant increases in unit prices (up > 50% since 2008) are offsetting any reduction in usage.

Usage for Natural Gas is largely driven by HDDs.

*CDDs-The number of degrees thata day's average temperature is above 65º F

*HDDs-The number of degrees thata day's average temperature is below 65º F

In 2017, Ecova will cement our position on the leading edge of data-driven energy management services through the following tactics:

� Launching an updated suite of solutions representing the culmination of our market research, recent innovations and emerging technological advancements

� Continuing to assess and enhance the Ecova Platform’s functionality to ensure we effectively respond to our client’s evolving needs

� Aligning more closely with ENGIE, allowing us to identify new opportunities for offering additional value to our clients by leveraging the services of our parent company and other organizations in the global ENGIE family

Identify $600 million in cost savings and 12 million tCO2e in GHG emissions reductions through comprehensive resource management programs

Provide value to 1,000 clients through our portfolio of services

a truly unique industry event, putting a collaborative approach to thought leadership at the forefront, rather than selling products and solutions. Its success was evident in the immediately positive response from clients: not only was there a waiting list leading up to Ecova Insight, but follow-up communication found that clients are continuing to have conversations with their peers that originated in Chicago.

As established in the conference’s opening remarks, the energy industry is in a state of revolution. To successfully prepare our businesses for this massive transformation, we must come together as a group to shape the energy future—rather than simply reacting to it. Ecova Insight planted the seeds for thoughtful, strategic solutions that our clients are now transforming into action.

Ecova Insight unites industry leaders to drive shared success

Understanding and responding to client needs remains the foundation of all Ecova’s work. Last year, this focus took a new form in Ecova Insight, a two-day conference in Chicago that created a rare opportunity for energy, sustainability, facility and financial professionals to share and learn from each other. By bringing leaders from more than 100 businesses and utility companies together to address pressing energy and sustainability challenges, Ecova Insight sparked a conversation that will impact the energy landscape for years to come.

Ecova Insight was truly an event driven by our clients. In addition to inspiring the very idea of the conference, their feedback informed its organization at every level through surveys and a dedicated client advisory board—from recommending topics to choosing its location. After arriving in Chicago on October 5th, clients were involved in nearly every panel and forum, contributing their individual expertise while forming vital connections with industry peers. The conference was

Ecova monitors our clients’ utility usage and expenditures to identify savings opportunities.

LOOKING FORWARD AT 2017: OUR PLAN:

NAVIGATING THE NEW ENERGY FUTURE TOGETHERCASE STUDY:


VOLU

NTEE

R/OU

TREA

CH H

OURS +9,000 HOURS

2016 GOAL

+7,824 HOURS2016 RESULT

2016 HIGHLIGHTS


Gave back a total of 7,824 volunteer hours

In 2016, 954 employees took advantage of our Community Service Day benefit, a six percent increase over 2015. These volunteers contributed 7,824 hours of their time—the equivalent of nearly four full time employees. Several offices also achieved participation rates of nearly 100 percent. While organizational restructuring and competing priorities made it challenging to reach our initial goal, we continue to enhance strategies for engaging our employees in their communities, and we are confident that we will reach our ambitious 2017 goal in this area.

87%

Give back 9,000 hours through volunteer and other community outreach efforts by the end of 2016

COMMUNITY

� For the fifth straight year, Ecova’s Saint Paul, Minn. office set a company standard by once again achieving a 100 percent participation rate

� The Spokane office alone contributed more than 4,200 volunteer hours—54 percent of total commu-nity service hours

� Donated $6,000 to four community organizations via the winners of our inter-office Community Ser-vice Day competition

� Raised more than $26,000 in employee donations and collected an additional $25,000 in donated goods through office drives

� Created a magical holiday for children in need when 60 senior leaders came together to support Fantasy Flight, a nonprofit organization that takes disadvantaged or terminally ill young people on a trip to the North Pole

Caring for CommunitiesBeing a responsible corporate citizen begins

with giving back to the communities in which we

live and work, both as a company and through

our individual employees. As a company, we

believe in fostering social value and uplifting

communities both through partnerships with

our clients and by supporting our employees’

community involvement. Our Community Service

Benefi t gives every employee eight hours paid

time off each year to volunteer for the non-

profi t or educational organization of their choice.


$30,383ADDITIONAL COMMUNITY DONATION ACTIVITIES

65%EMPLOYEES VOUNTEERED

$188,871VALUE OF

VOLUNTEER HOURS

$26,500UNITED WAY

& EARTH SHARE FUNDRAISER

$239,754TOTAL VALUE TO COMMUNITIES

3.76 FULL-TIME EMPLOYEES

HOURS EQUAL TO

226ORGANIZATIONS

SERVED

7,8247,8247HOURS VOLUNTEERED

TYPES OF ORGANIZATIONS SERVED

2% INTERNATIONAL 12%ENVIRONMENTAL STEWARDSHIP

24%CHILDREN & FAMILIES

26%EDUCATION

27%OTHER

9%HUNGER

64ECOVA ORGANIZED VOLUNTEER EVENTS

holiday gifts not just for children, but also disadvantaged youth, families, seniors, and people with disabilities. A Wall of Snowflakes, prominently located in the office lobby, allows staff to view the age, gender and suggested gift for each recipient. As a result, the process feels especially personal and meaningful for both parties. Michelle Wise, one of the office organizers, reflected on the Snowflake Project’s impact, stating “It continues to be a real privilege to be able to carry on with this program.”

In the 2016 holiday season alone, the Snowflake Project connected more than 300 individuals with thoughtful presents, creating a mutually beneficial link between Ecova’s Spokane office and members of their community.

The Snowflake Project makes winter a little warmer for those in need

The holiday season is typically a time of generosity and concern for others. But for low-income families, the holidays often mean increased financial strain and stress instead. With nearly a quarter of Spokane residents living below the poverty line, employees at Ecova’s flagship office rallied to ensure a happier winter for community members in need by launching the Snowflake Project, an annual event now in its sixteenth year. Since its inception, the Snowflake Project has provided holiday gifts to 4,740 individuals in need. And like a snowflake, each person assisted by this initiative is unique, representing the depth and range of Ecova’s community involvement.

The entirely voluntary Snowflake Project reaches families in partnership with Tree of Sharing, a local nonprofit organization that distributes gifts through 57 agencies—from the Children’s Home Society of Washington to Daybreak Youth Services to Meals On Wheels. Ecova’s Spokane employees embraced the opportunity to collect

Give back 9,000 hours through volunteer and other community outreach efforts

Develop and launch a strategic community engagement plan

To reach our 2017 goals and build upon the efforts of the past year, Ecova will develop a focused strategy that increases employees’ excitement for community service, incorporating the following components:

� Customizing our strategy for each office location, so that messaging feels personal, relevant and linked to the community in question

� Continuing to promote the Community Service Day benefit through friendly competition, storytelling, and support from leadership

� Developing relationships with key non-profit partners to elevate our impact and connect employees with their work

� Further incentivizing participation through Ecova’s 20th anniversary celebration and designated Month of Service, offering employees additional paid time off to participate in volunteer activities


ECOVA’S SPOKANE OFFICE SHARES THE HOLIDAY SPIRIT

CASE STUDY:

ANNUAL SPEND BY SERVICE PER SITE


ANNUAL SPEND BY SERVICE PER SITEFOOD SALES FOOD SERVICE HEALTHCARE LODGING

ELECTRIC

OFFICE RETAIL

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

2009

2012

2015

2009

2012

2015

2009

2012

2015

2009

2012

2015

2009

2012

2015

2009

2012

2015

NATURAL GAS WATER/SEWERAN

NUAL

COS

T PER

SITE

As overall resource consumption has decreased, water/sewer usage has grown to dominate resource consumption spend.

RESOURCE TRENDS

ELECTRIC

NATURAL GAS

WATER/SEWER

ANNUAL COST PER SITE

IND

EX

CO

MPA

RIS

ON

TO

20

08 B

ASE

LIN

E

0.6

0.8

1.0

1.2

1.4

1.6

0.4

0.6

0.8

1.0

1.2

1.4

0.6

0.8

1.0

1.2

1.4

1.6

2008 2009 2010 2011 2012 2013 2014 2015 2016

ANNUAL CDD* PER SITE

*CDDs-The number of degrees that a day's average temperature is above 65º F

*HDDs-The number of degrees that a day's average temperature is below 65º F

ANNUAL UNIT PRICE ANNUAL USE PER SQFT

ANNUAL HDD* PER SITE

Electric usage has decreased ~15% since 2008, with a similar reduction in cost per site.

Electric usage continues to decline despite spikes in CDDs.

Usage for Natural Gas is largely driven by HDDs.

Since 2009, Natural gas unit prices have followed weather trends. the more HDDs, the higher the price.

Water/sewer Cost per site has increased nearly 40% since 2008.

A >50% increase in unit prices offsets any usage reductions.


GHG

EMIS

SION

S

121 tCO2e2016 GOAL

19 tCO2e2016 RESULT


� Continued efforts to encourage alternative modes of transportation at Ecova’s Spokane office through participation in the State of Washington’s Commute Trip Reduction Program

� Updated our travel policy, motivating employees to consider the environmental impact of transportation, lodging and dining choices

� Developed a “leasing scorecard” that includes cultural and environmental considerations, to be used by internal teams to inform recommendations for new office locations

� Developed the internal systems needed to capture employee vehicle mileage data related to business travel, to be incorporated into future reporting

� Celebrated environmental awareness throughout the month of October by conducting waste audits, coordinating waste reduction awareness trainings and participating in the Northwest Earth Institute’s annual EcoChallenge

Engaging in Environmental ResponsibilityAt the core of Ecova’s work is our belief

that environmental responsibility leads

to a healthier business. Smarter resource

use certainly strengthens the bottom line

of any company invested in sustainability

efforts, but it also contributes to increased

employee comfort and satisfaction, serves

as a competitive advantage, and motivates a

more strategic approach to business operations.

2016 HIGHLIGHTS

16%

Reduce our own business-related GHG emissions by 3 percent (or 121 tCO2e) from 2015 baseline, by the end of 2016

ENVIRONMENT

Reduced our carbon footprint by 19 tCO2e (0.5 percent reduction from 2015 baseline)

As Ecova has grown, we have strategically aligned our use of office space with our business needs, conserving resources by consolidating teams in single locations and encouraging work-from-home opportunities where appropriate. We also consistently identify and embed the most energy- and resource-efficient practices to steadily decrease our carbon footprint. These efforts have had an impact: in 2016, we reduced our use of electricity even while adding office space to our portfolio. A ramp-up in activity associated with Retroficiency’s acquisition and Ecova’s integration with ENGIE resulted in more employee travel, increasing air-travel-related emissions by eight percent. However, our efficient resource use and distribution of office space offset this increase. A new partnership with Ecova’s Accounting Team enhanced our ability to capture and report on mileage accrued through business travel via personal and fleet vehicles. While not included in our 2016 results, this data will be integrated into our baseline in future years.


EMPLOYEE COMMUTES

59%DROVE ALONE

12%TELEWORKED

9%CARPOOLED

3%OTHER

6%BIKED ORWALKED

5%BUS OR TRAIN

$12,320ECOVA CONTRIBUTIONS

TO MASS TRANSIT ASSISTANCE PROGRAM

EMISSIONS INTENSITY PERFORMANCE TRENDING (tCO2e)

TOTA

L GHG

EMIS

SION

S PER

EMPL

OYEE

(TCO

2e)

0

1

2

3

4

5

2012 2013 2014 2015 2016

35% REDUCTION in emissions per Ecova employee (from 2012)

6645,51545,515BUSINESS MILES BUSINESS MILES

TRAVELEDTRAVELED

2016 EMISSIONS BY SCOPE

NATURAL GAS & GASOLINEELECTRICITY USE

AIR TRAVEL

8% INCREASE(from 2015)

8% REDUCTION(from 2015)

30% INCREASE(from 2015)

4001 TOTAL tCO2e

117 tCO2e 1911 tCO2e

1973 tCO2e

Reduce our own business-related GHG emissions by 3 percent (120 tCO2e)

Establish baselines for 100 percent of available resource impacts

A strategic expansion benefits employees and the environment

It’s no secret that Ecova has experienced tremendous growth over the past several years. Adding employees supports greater innovation and enhanced client service, but can leave some offices scrambling to find space to accommodate new team members. Such was the case in Seattle, where this expansion drove the business case for an energy-efficient office remodel—creating a cohesive workplace aligned with Ecova’s sustainability goals.

As the Seattle office moved into two additional suites, staff quickly realized the need for a comprehensive remodel, resulting in a unified office experience. The remodel also presented the opportunity to increase the site’s energy efficiency and support Ecova’s overall carbon reduction targets. Working with the architect responsible for the new Portland office’s design, project managers in Seattle solicited employee feedback at every step to ensure their needs and priorities were represented. Key aspects of the new design included increased access to daylight, dedicated bike storage,

highly efficient light fixtures, Wattstopper lighting controls and refurbished (rather than replaced) workstations, door frames, doors and carpet.

The remodel was completed in late 2016, with an immediate impact on building performance. New light fixtures alone will yield an estimated 7,865 kWh in annual savings. Employee feedback has been similarly positive. As Project Lead Laura Holcomb told us, “The renovation has really helped align our office with Ecova’s values. The reclaimed materials and efficient lighting help reduce our environmental impact, and the natural light and open floorplan combine to make a very collaborative space. It is now a very inviting place to visit and work.”

In 2017, Ecova will accelerate the reduction of our carbon footprint by investing in the strategies and tools we need to succeed, including:

� Streamlining and improving our data collection process to yield comprehensive, accurate data

� Investigating opportunities for purchasing carbon offsets to counteract the impact of Ecova’s continued growth

� Establishing a reliable energy usage data set by installing and optimizing submeters

� Conducting waste and water audits in all office locations

� Exploring the creation of science-based targets to align Ecova’s efforts with those of other energy industry leaders


2016 CDP CLIMATE CHANGE PROGRAM SCORE

MANAGEMENT B LEVEL

NEW GROWTH TURNS THE SEATTLE OFFICE GREEN

CASE STUDY:

LOOKING FORWARDCorporate responsibility will continue to be an integral part of Ecova’s work as we architect the new energy future in partnership with our clients, employees and communities. Our ambitious goals for 2017 keep us on track—and ensure that our mission is interwoven into all day-to-day activities.

Employees � Provide 45,000 training and professional

development hours to our employees

� Achieve 3,000 forms of internal peer-to-peer recognition

Clients � Identify $600 million in cost savings and 12

million tCO2e GHG emissions reductions through comprehensive resource management programs

� Provide value to 1,000 clients through our portfolio of services

Community � Give back 9,000 hours through volunteer and

other community outreach efforts

� Develop and launch a strategic community engagement plan

Environment � Reduce our own business-related GHG

emissions by 3 percent (120 tCO2e)

� Establish baselines for 100 percent of available resource impacts

ABOUT ECOVA.......................................................................4

� Employee demographics are based on employee headcount on December 31, 2016.

� Gender data sourced from voluntary reporting at time of hire.

� Baby Boomers are those born between 1945 and 1964; Generation X are those born between 1965 and 1984; and Millennials are those born between 1985 and after.

EMPLOYEES.........................................................................10

� Training and development hours are calculat-ed based on training length and attendance. In-dividual development efforts are incomplete and based on the most reliable available data.

CLIENTS..............................................................................14

� 2016 retention rate referenced is for North American Facility Solutions clients.

� 2016 client cost savings are derived from programs for commercial and industrial clients and are calculated based on a methodology that has been third-party ap-proved by Verdantix, with the exception of Energy Sup-ply Management (ESM). Methodology refinements were made for calculating client savings for ESM to more con-servatively account savings on a client-by-client basis.

� All 2016 client GHG emissions reductions are based on 2016 annual lifetime energy savings for Utility and Research & Policy programs. Methodology for calculating savings has been third-party approved by Verdantix. Greenhouse gas emissions were calculated using the U.S. annual non-base-load CO2e output emission rate sourced from the U.S. EPA (2017) eGRID2014 version 2 with year 2014 data.

� Big data resource trends are based on Ecova’s Energy Data Warehouse, comprising data from a rigorous analysis of more than 150,000 client facilities, making up more than 25,000 MW of U.S. electricity demand. Resource trend graphs are based on a same-store year-over-year analysis.

COMMUNITY........................................................................18

� All community involvement hours are current-ly based on Ecova’s Community Service Day benefit and are tracked by employees using Ecova’s payroll system.

ENDNOTES � Value of volunteer hours is calculated using the 2016

estimated value of volunteer time from Independent Sector.

� Fundraising activity results are tracked by local Ecova Impact teams and verified where possible by the non-profit organization receiving donations. Total funds collected in the United Way/EarthShare fundraising campaign were verified by local chapters receiving funds.

ENVIRONMENT....................................................................22

� Scope 1 and Scope 2 greenhouse gas emissions calcu-lations are based on standards, protocols and/or meth-odology in the following sources: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition), The Climate Registry: General Reporting Protocol (Version 2.1), Defra Voluntary Reporting Guide-lines (Version 2.0), and Energy Information Administration 1605B. All global warming potentials are sourced from the IPCC Second Assessment Report (SAR - 100 year).

� All offices are leased sites located in shared, single-meter buildings. Ecova’s facility GHG emissions are estimated based on percent of total occupied square footage, with the exception of offices under 4,000 square feet, where emissions were calculated using average consumption (kWh per square foot) for typical commercial office space using U.S. Energy Information Administration Commercial Building Energy Consumption Data Survey (CBECS, 2003).

� Business travel emissions are calculated using the following sources: U.S. EPA (2015); Climate Leaders Greenhouse Gas Inventory Protocol Core Module Guidance; Defra (2015) for RFI factor of 1.9 on CO2 value.

� Facility Scope 1 and Scope 2-location based emissions and Scope 3 business travel emissions were third-party verified by Point380 according to a limited level of assurance.

� Emissions intensity calculations are based on total annual GHG emissions and headcount as of December 31st of each year.

� Alternative commuting and telework reported are derived from an all-company commuting survey which took place in August 2016. The methodology for calculating commut-ing was adjusted between 2015 and 2016 to be based on survey population category averaged vs. individual commuting yes/no per category averaged and summed.

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