2024 Sustainability Report

2024

SUSTAINABILITY REPORT

CONTENTS

Photo by Sean Airhart

01

ENVIRONMENT

02

CULTURE + COMMUNITY

03

TRENDS + INNOVATION

MESSAGE FROM OUR CEO We are pleased to present our first corporate sustainability report.

MacDonald-Miller’s commitment to sustainability stems from our company mission to make buildings work better.

At MacDonald-Miller we are ready to zero in on carbon neutrality and ready to support building projects at every stage of their sustainability journey. As a full-service mechanical contractor with a world-class engineering team, we are proud to shape projects that influence and enhance our local communities in Washington, Oregon, and beyond. We design, build, and optimize mechanical systems that lower energy use without compromising performance.

Why are we publishing this report?

1. We hear the demand. We’re tuned in to what our clients are asking for. There’s a growing call for robust sustainability solutions in building design and operations. This demand has only intensified since the inception of Leadership in Energy and Environmental Design (LEED) nearly three decades ago, alongside the rising prominence of Environment, Social, Governance (ESG) initiatives aimed at risk mitigation. We understand that a truly resilient company goes beyond the basics, offering comprehensive services that prioritize environmental health therefore we also set ambitious sustainability goals of our own.

2. We lead by example. As of 2023, we have joined both the Climate Pledge and the MEP 2040 sustainability commitments. As a proud signatory, we are pleased to be able to share our findings publicly with our employees, peers, and customers.

This report marks the culmination of our efforts in establishing a baseline for our sustainability journey.

3. We bring solutions. MacDonald-Miller Facility Solutions isn’t just a name; it’s a promise. We’re uniquely equipped to offer innovative solutions that address the challenges posed by our evolving climate and building codes. Whether you’re navigating stringent state building performance standards or simply aiming to cut down on energy costs, count on us to deliver tailored solutions that meet your needs.

OUR COMMITMENT Net Zero Carbon by 2040 for company operations and projects.

There is a place for everyone on our sustainability journey.

Sincerely,

Gus Simonds, CEO MacDonald-Miller Facility Solutions, LLC

SUSTAINABILITY ACCELERATORS COMMITTEE We plan, manage, track, and provide engineering assistance in executing sustainability efforts of MMFS, including MEP 2040 and Climate Pledge.

2

01 ENVIRONMENT

SCOPE 1 SCOPE 2 Direct Emissions

In December of 2022 we committed to net zero emissions in our facilities and operations by 2040 by becoming a signatory for the Climate Pledge. Our benchmark data from 2022 is the first step to regular reporting, carbon elimination and understanding credible offsets that will help us meet our goals.

SCOPE 3 Among the first in the building design and construction industry to demonstrate leadership in disclosure of total corporate GHG emissions, including third party evaluated Scope 3 emissions.

76.4%

1. Engage material and equipment vendors and manufacturers about reducing energy and water use throughout the value chain.

2. Transition vehicle fleet to electric and hybrid (5% by 2025, 25% by 2030).

3. Explore employee commute data; evaluate realistic reductions for gaspowered single passenger trips.

Value Chain Emissions

Greenhouse gas affiliated with generation of purchased electricity for the buildings we occupy.

Excludes refrigerant leakage for 2022

Greenhouse gases affiliated with upstream and downstream activities.

Our biggest GHG emissions stem from capital goods, which is typically comprised of equipment, pipes, valves, fittings, sheet metal, and electrical materials.

2

FUEL-AND-ENERGY RELATED ACTIVITIES

0

6%

»

5,000

»

10,000

»

15,000

»

20,000

»

25,000

2

»

30,000

»

35,000 »

SCOPE 1 WASTE

.2%

SCOPE 2

BUSINESS TRAVEL

SCOPE 3

EMPLOYEE COMMUTING

13.7%

Building Natural Gas DOWNSTREAM LEASED ASSETS

GOALS

Indirect Emissions

Greenhouse gas emissions affiliated with building natural gas and vehicle fleet.

MMFS CARBON EMISSIONS: 2022 BASELINE YEAR [Metric Tons CO Equivalency (MT CO e)]

.7% CAPITAL GOODS

SCOPE 3

.1%

END-OF-LIFE TREATMENT OF SOLD PRODUCTS

1.9%

PURCHASED GOODS & SERVICES

1%

Vehicle Fuel

Building Electricity

TOTAL: 42,095 MT CO2e

11

EMITTED BY MMFS IN 2022

EQUIVALENT TO:

Value Chain (upstream & downstream supply chain)

10,018

5,527

Gas-powered passenger vehicles for one year.

Homes’ energy use for one year.

Wind turbines running for a year needed to offset these emissions.

*Per national averages proposed by EPA GHG Equivalencies Calculator. Note: Assumed refrigerant leakage and jobsite offices/trailers energy use are not included. (version: 3/12/2024)

Scope 3 calculations were performed by third-party consultant Brightworks Sustainability.

Information for calculations included financial/spend based, estimations, and/or raw data.

SUSTAINABILITY REPORT | 2024

3

01 ENVIRONMENT

Seattle Convention Center Summit Building

PROJECT SPOTLIGHT

SEATTLE, WA

Clackamas County Courthouse

A highlight of a few of the sustainable projects we’ve designed and constructed between 2023–2024.

OREGON CITY, OR

Rendering by DLR Group

Serving the growing County, this 257,000 square-foot building includes courtrooms, judicial chambers, jury assembly, and office spaces.

GOALS • LEED Gold • No natural gas on site • Resiliency considerations • Over 40% indoor water use reduction • Over 36% energy cost improvement, over ASHRAE 90.1–2016 • Over 37% operational GHG emissions reduction

KEY FEATURES

Photo by Adam Hunter

• Mass timber • Radiant floors • Heat recovery from high-density heat sources (IDF and MDF rooms), recycled for retained domestic hot water preheat • Rooftop and parking lot solar arrays

Over 1.5 million square feet devoted to bringing people together in ballrooms, 62 meeting spaces, lobby, offices, common areas, and terrace. Committed to safety, MMFS contributed 797,000 on-site hours with a Recordable Incident Rate of 0.5, well below the national average of 3.9.

KEY FEATURES

GOALS

• High efficiency HVAC: Heat recovery chiller for space heating and cooling

• LEED New Construction Platinum achieved

• Indoor Air Quality: 35 air handling units (heat recovery coils on exhaust), low VOC materials and finishes • 232,000 sf of radiant flooring • Rainwater harvesting • 143kW rooftop solar array (1% offset of annual energy cost)

• > 50% indoor water use reduction • 27% site energy use reduction, over ASHRAE 90.1–2007 • 43% greenhouse gas (GHG) reduction • Greater than 75% construction waste diverted from the landfill (recycled), achieved 92% diversion rate • Increased ventilation by 30%, over ASHRAE 62.1–2007

SUSTAINABILITY REPORT | 2024

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01 ENVIRONMENT

Microsoft Thermal Energy Center (TEC)

35 Stone

PROJECT SPOTLIGHT

REDMOND, WA (project shown on the cover and last page)

Meydenbauer Convention Center

SEATTLE, WA

BELLEVUE, WA

Photo by Sean Airhart

MacDonald-Miller is providing a multiphase implementation of energy efficiency measures to comply with the Washington State Clean Building Standard on this 150,000+ square foot building.

GOALS • Target Energy Use Intensity = 55 (Current EUI: 87.5)

KEY FEATURES • Water source heat pump efficiency upgrades • Heat pump for domestic hot water in kitchen

This geothermal central plant serves 17 new buildings (approx. 3,000,000 square feet) on a 72-acre site. As the design-build contractor with a shared design role, we were proud to provide assistance with engineering, estimating, and constructibility during design. We provided all detailing, prefabrication, and installation of the mechanical systems for this complex and inspiring project.

• HVAC controls upgrade • Retro commissioning • Upgrades to the chilled and hot water pumps • New boilers, domestic hot water upgrades • Lighting and lighting controls improvements

Our commitment to leading the industry starts with our vision to demonstrate that every project has a path to a carbon neutral outcome.

GOALS

Rendering by Weber Thompson

• No fossil fuels – all electric plant • 50% energy use reduction

KEY FEATURES • 10,500 ton chilled water plant with heat recovery and geothermal energy exchange. Designed for future capacity of 12,000 tons • Thermal storage tanks for heating water and chilled water • 875 geowells drilled 550 feet underground

Reagan J. Perry, President of Construction | MacDonald-Miller Facility Solutions

This mixed-use 120,000 square foot building will be home to Brooks Running.

This was a plan-spec project for MMFS, providing installation of mechanical and plumbing systems in the core and shell.

KEY FEATURES • Mass timber • Healthy materials • 250,000 gallon rainwater cistern • 180 ton air source heat pump, 90 ton heat recovery chiller

GOALS • Seattle Living Building Pilot Program • Materials Petal Certification • 25% energy use reduction • Treated rainwater for all non-potable uses, e.g. toilet flushing and irrigation

SUSTAINABILITY REPORT | 2024

5

02 CULTURE + COMMUNITY At MacDonald-Miller Facility Solutions, our company culture is defined by a spirit of collaboration, innovation, and continuous improvement. We foster an environment where every team member feels valued, empowered, and inspired to make a difference. Our commitment to community extends beyond our workplace, as we actively engage in philanthropic initiatives, volunteer efforts, and partnerships aimed at creating positive social and environmental impacts in the communities we serve.

OUR MOTTO You be you and together we can.

The previous page demonstrates our carbon footprint, here is a summary of our positive impact – otherwise known as our handprint (1):

INCLUSION COUNCIL MWBE PARTNERSHIPS

BUSINESS EQUITY GOALS We aim to include the following percentages of MWBE (Minority/ Women Owned Business Enterprises) firms across our work:

COMMUNITY NONPROFIT PARTNERSHIPS

•

7% in Construction Division

•

2.5% in Building Services Division

•

10% in Corporate Services

Why is culture and community so important to sustainability?

From our experience, the most successful, innovative, and impactful projects are comprised of folks that look out for one another.

Life happens. Family members get sick, mouths need to get fed, and bills need to be paid. Having each other’s backs is in our blood – and doing so means we can all keep showing up to be our best selves.

We truly believe that when we sustain our community (that’s all of you too) then we sustain your buildings.

1 Norris, Gregory. Handprint-Based NetPositive Assessment. Harvard T.H. Chan School of Public Health. Nov 2015.

SUSTAINABILITY REPORT | 2024

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03 TRENDS + INNOVATION Going on over 60 years in business, we’ve watched markets and technology change. We’ve adapted by employing some of the brightest minds that imagine and deliver solutions – BIM detailing & MLab, 3D scanning, technical support for the refrigerant transition, and constant communication in the field. You want it; we’re probably already doing it!

HOW WE

DELIVER

BY THE

MACDONALD-MILLER

NUMBERS

8% of our Giving Fund goes to environmentalrelated organizations 16 LEED Accredited Professionals 100+ LEED projects

Provided 59 existing buildings with rebates and over $1m in ongoing annual energy savings 0.3800 safety rating, 300 OSHA 30 graduates on staff

145+ active buildings with sustainability goals

22 equipment vendors received letters from us advocating for EPDs (embodied carbon data for mechanical & plumbing products)

3 projects pursuing Living Building Challenge

38 tons of CO2 avoided by performing 4,646 remote service calls versus sending a vehicle (Smart Building Services)

25+ ENERGY STAR certifications 3 projects pursuing WELL certification

146,674 tons of CO2 was avoided at customer sites due to running buildings more efficiently

WE SHOW UP!

MEMBERSHIP ASSOCIATIONS & PARTICIPATION WITH LIKE-MINDED ORGANIZATIONS ASHRAE · ASPE · SMACNA · Code Advisory Committees · 16 labor unions · Seattle 2030 District · Bellevue 2030 District · Smart Building Center Founding Partner · WA Hospitality Association · BOMA · IFMA · WSSHE · OSHE · WOMOA · Washington League of Cities · Oregon League of Cities · NAIOP · BuildingGreen MEP Leaders · Degrees of Change · SPIN · ANEW · Rainier Scholars · Greater Portland Incorporated · Greater Spokane Incorporated · Northwest Center · MCAA · MCA Western Washington · Small Business Community Events

SUSTAINABILITY REPORT | 2024

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SUSTAINABILITY REPORT

2024

macmiller.com/sustainability

GLOSSARY How MMFS defines the following sustainability terms.

Energy Use Intensity (EUI) ) Metric used to indicate a building’s energy performance compared to size. Annual energy use divided by conditioned gross square footage (kBTUs/square feet/year). Typically excludes parking area.

Lower EUI demonstrates less energy used.

Greenhouse Gases (GHG) There are six (6) according to the GHG Protocol Corporate Standard (revised edition) – Carbon Dioxide (CO2), Methane (CH4 ), Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), and Sulfur Hexafluoride (SF6 ). Typically expressed in CO2 equivalents (CO2e). Note – this list is not all inclusive.

ABOUT MACDONALD-MILLER We are a commercial mechanical contractor with an extensive in-house engineering team.

We provide design-build services for HVAC, plumbing, and controls for new construction and tenant improvements, as well as energy management solutions for existing and new buildings with our smart building analytics.

Our 24/7 service and maintenance assure that your building runs as smooth as the day it was turned on. With 12 offices located throughout Washington and Oregon, we have the local resources to efficiently and expertly address your commercial mechanical needs.

Net Zero Carbon (by 2040) For the purposes of the Climate Pledge, driving down to zero relevant GHG emissions affiliated with our corporate operations (Scopes 1–3), measured over 12 consecutive months. This involves electrification of company assets, value chain efficiencies, transition of our energy grid to carbon-free fuel sources, and eventual credible offsetting. The GHGs are translated into the same unit of measurement (metric tons of carbon dioxide equivalence, or MT CO2e).

Photo by Sean Airhart