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Banks focused on a new kind of green
Tuesday, March 16, 2010

From building environmentally friendly branches to supporting green power to replacing styrofoam cups with china in break rooms, Pittsburgh-area banks are embracing ways to protect the planet while at the same time saving money and attracting customers to boot.

PNC Financial Services Group, the region's biggest and the nation's fifth-largest bank, has become a Green Giant of sorts with more green-certified buildings than any company in the nation. The banking behemoth even has a trademark on the term "Green Branch."

PNC's green branches, which the bank has been building for about eight years, use a host of plant-saving materials and techniques, such as recycled cardboard for countertops, hog hair carpet, cabinets made from a byproduct of wheat processing and huge panels of super energy-efficient glass that bathe the main lobby in natural light while insulating it from extreme temperatures. High-efficiency heating, cooling and lighting systems help slash energy consumption by about 35 percent compared with conventional branches.

Besides saving on energy, the 3,600-square-foot branches cost about $100,000 less to build than traditional branches, said Gary Saulson, director of corporate real estate for PNC.

In all, PNC has 68 buildings certified by the U.S. Green Building Council and plans for around 100 by midyear. Those buildings are mostly branches but also include the big Downtown processing center that opened in 2000 called Firstside Center, the second-largest green-certified building in the country behind the David L. Lawrence Convention Center.

The bank's new Downtown skyscraper, Three PNC Plaza, also is green certified. A new luxury hotel set to open at the end of March occupying the upper floors of the building will be Pittsburgh's first green certified hotel.

Across town at Bank of New York Mellon, which no longer operates a large retail branch banking system, the focus has been on cutting energy consumption in existing office buildings. Two of the financial institution's three Downtown properties have earned the Environmental Protection Agency's and U.S. Department of Energy's Energy Star certification, a designation designed to recognize the most energy efficient buildings in the country.

So far, 11 BNY Mellon buildings out of a possible 26 sites nationwide have received the Energy Star rating. Its Energy Star buildings use state-of-the art equipment such as biofeedback building management systems that automatically adjust the air temperature based on need and infrared sensors that turn off lights whenever a room isn't occupied.

Achieving the designation is a prerequisite to applying for full green certification from the green building council. Although BNY Mellon has not built a new building for about 10 years, it hopes to apply for green status under the council's program for existing buildings, said Chip Logan, the company's managing director of corporate facilities services and sustainability. So far, the company has made an application for a building in Everett, Mass., he said.

On another front, BNY Mellon this year made a five-year, $3.5 million commitment to buy Renewable Energy Credits, a program that helps companies support renewable energy generation by subsidizing production of clean power, such as wind, solar, hydroelectric and geothermal energy.

At the employee level, BNY Mellon is focusing on boosting recycling efforts and cutting back on waste. One seemingly small change -- setting copier machines to print on both sides of the paper -- has helped reduce trash from 447 pounds per person in 2008 to 382 pounds last year, the company said.

At PNC, the bank in June hired its first sustainability coordinator, Benson Gabler, to improve green initiatives.

As part of one recent initiative, the bank began replacing plasticware with biodegradable eating utensils in company cafeterias. And it is about to begin construction on a cafeteria at Allegheny Center to be called Eco Bistro that will be green certified by the building council and offer a healthy menu that discloses the food's calorie, fat and sodium content.

PNC also recently hired an energy czar, Nana Wilberforce, to negotiate energy contracts and reduce overall energy demand. The company is spending $400,000 to install high-efficiency lighting at 23 former National City Bank buildings acquired in the takeover of the Cleveland, Ohio-based bank. The move should save about $300,000 a year on electric bills. If the test works out, other buildings will get the upgrades.

The green movement has gained so much momentum, it won't turn out to be a fad, Mr. Saulson said. "This is the real thing. Look at Home Depot. Five years ago it had no identified green products. Now it sells over 3,500 products. So this is being consumer driven," he said.

"The train has left the station and it's not too late to get on."

Smaller financial institutions in the region also have been stepping up efforts to conserve energy, reduce waste and protect the environment.

At Parkvale Bank, where paper and computer equipment are recycled companywide, green efforts have concentrated most recently on making the bank's Monroeville headquarters more energy efficient.

The company recently upgraded the six-story building's heating and air-conditioning system and installed programmable thermostats to reduce heating and cooling during off-peak hours, senior vice president Gil Riazzi said. High-efficiency upgrades to interior lighting and windows are being considered.

Downtown-based Dollar Bank, the region's fourth-largest retail bank based on deposits, developed a bank-wide sustainability plan as a member of the Green Building Alliance in Pittsburgh, a 15-year-old organization that promotes green buildings and products.

Dollar's efforts include companywide recycling, using green certified janitorial and restroom supplies and supplying reusable plates and cups in break rooms to reduce waste. New bank branches are constructed with sustainability goals in mind, although none of the buildings have been green certified, spokesman Jim Carroll said.

Building materials are purchased from local suppliers when possible. Inside, the bank uses energy-saving compact fluorescent lights and motion sensors to cut off lights in unoccupied rooms. Work stations often are produced with recycled materials, and most equipment is Energy Star rated, Mr. Carroll said.

At First Niagara Bank, efforts to build new environmentally friendly branches have been spurred in part by public demand, said first vice president Mary Scamacca, who is in charge of everything green for the Buffalo, N.Y.-based financial institution.

"As I go to town board meetings, one of the first things we are asked when we are trying to get site plan approval is, 'What are you doing green?' " said Ms. Scamacca, whose bank entered the Pittsburgh market last year with the purchase of 57 former National City branches from PNC.

First Niagara uses recyclable carpet and furniture, low-odor paint, green certified cleaning products and high-efficiency lighting and appliances, and it focuses on using natural light and locally made building supplies when possible, she said.

So far, First Niagara, which is the Pittsburgh region's third-largest retail bank, has not applied to get buildings certified by the green building council. "Because it increases the cost of us doing a new build, we haven't totally committed to that yet," Ms. Scamacca said. "I'm sure we'll get there one day."

PNC reports that green certification is a good investment. "I can't tell you how many e-mails I've gotten from customers opening accounts at PNC because we built a green branch in their community," Mr. Saulson said.

"There is a real desire among consumers to do business with companies that are socially responsible."

Patricia Sabatini: psabatini@post-gazette.com or 412-263-3066.
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First published on March 16, 2010 at 12:00 am