Case Study

Daimler Trucks 
North America

Vehicle Manufacturing

Total Metrus investment

$6.56 million

CarbonCount™

0.41

2023

Metrus Impact Report

Investing in Energy as a Service

Our Mission

We are leading the way to a sustainable, low-carbon future by bringing energy efficiency and clean energy projects to life.

Executive Message

Dear Stakeholders,

As we publish our fourth annual Impact Report, we continue to remain steadfast in our belief that meaningful climate action requires meaningful climate disclosure. In climate impact speak, “trust and verify” translates to “measure, verify, and report.” It is worth focusing on why disclosure matters and how it is material to different stakeholders.

For Metrus, disclosing the climate-related impact of our portfolio provides a north star for our business that validates the solutions we offer, the partnerships we establish, and the project-level investments that we make. For each project Metrus finances, we: (1) verify that it results in a net drop in scope 1 and scope 2 emissions, and (2) calculate a CarbonCount for each individual project to quantify the GHG reduction impact of each dollar that we invest. If a project is not climate-positive, we won’t finance it.

For corporations, climate-related data is critical information on two levels. First, it provides needed insight into where and how they can meet sustainability goals and improve the efficiency and resiliency of their business operations. Second, it puts a spotlight on material climate-related risks that can impact the financial performance of their business which is important for investors and corporate decision-making.

A growing number of governing bodies, regulatory agencies, and global organizations make disclosure a prominent requirement of assessing the impact of measures that are undertaken to address climate change. The SEC recently passed a climate disclosure rule to ensure that investors have access to material corporate climate-related data that could influence investment decisions. While other entities such as Europe’s Corporate Sustainability Reporting Directive and the State of California have established more rigorous disclosure requirements, the SEC's rule (notwithstanding ongoing legal challenges) is still a watershed moment in its reach and its acknowledgment that climate change carries significant risks, and that climate impact and financial performance are intertwined.

With this edition of the Metrus Impact Report, we are expanding our reporting to include atmospheric pollutants. While climate change caused by GHG emissions gets the most attention, burning fossil fuels also creates sulfur and nitrogen compounds that pollute our air and water, with devastating consequences for public health and safety. Reporting on the atmospheric pollutants from our projects is consistent with our goal of safeguarding the environment and supporting health and wellness by promoting sustainable energy.

At Metrus, we see an important transition underway as climate planning is linked to finance planning. This requires expanding our business model to incorporate new financing solutions (which will be built into future impact reports). Specifically, financing sustainable cooling and heating projects is a new and growing part of our business and reflects increased demand for efficient and cleaner cooling and heating systems and the need for private sector investment.

Metrus is proud to play a part in the momentous—and urgent—transition to sustainable energy. This Impact Report, which provides financial and environmental data from 2023 to quantify the real impact of the work we do, is a meaningful example of how we are fulfilling that role.

Thanks,

About This Report

This report is structured to present the performance of the projects in our portfolio through three different lenses, followed by a summary of our commitment to climate action and responsible investing.

Our Portfolio
This section provides details on our number of project sites, types of energy efficiency measures, and the aggregate portfolio performance relative to expected energy savings and CO2 reduction.
Our Impact
This section details the impact of our projects for customers in terms of lifetime and annual CO2 reductions, annual energy and water savings, and highlights three project case studies.
Our Emissions
This section includes data on Metrus’ own emissions from our business operations and the equipment that we finance and own on behalf of our customers.
Our Portfolio

Metrus has operational Sustainable Energy Services Agreement (SESA) projects in 34 states, encompassing more than 940 sites.1 Our portfolio consists of over 30 different types of energy efficiency measures and technologies.

Energy Efficiency Measurements (EEMs)

Nearly half of our projects feature three or more EEMs, which is consistent with our efforts to bundle upgrades with varying economic and technology profiles to achieve scale. Ninety-seven percent of our projects include lighting, reflecting both its crucial value to customers and its economic importance to unlocking deeper energy retrofits. SESA projects for private sector business, education, and healthcare customers are all represented in the 8+ category. The 20% of our projects with a single EEM are predominantly for warehouse and distribution center clients.

Annual Performance

Over the last decade, our realized savings have exceeded the expected savings (as projected in an initial energy audit) each year. On average, our portfolio performs at 101.7% of its expected savings.2

CO2 Savings per $1,000 of Investment

Metrus measures the efficiency of its investment portfolio in reducing CO2 (metric tons) by using CarbonCount™ as a scoring tool.3 Higher ratios mean greater carbon reduction per $1,000 of investment.4 The data below represents the average scoring for Metrus projects located within 21 different regional eGrid zones.5 Our investments in the SPNO and SRMW zones have the highest CO2 efficiency ratings due in large part to the higher carbon content in the midwestern power grid.

ABCD
1.0
eGrid Zone
Metric tons of CO2 saved per $1,000 investment

Circles are shown relative to their CarbonCount score.

Our Impact

Environmental performance is interwoven into each of our projects. We prepare annual reports that detail project-level CO2 savings broken out by scope 1 and scope 2 emissions to facilitate customer reporting under SBTi.6 Beginning this year, we are also reporting on Metrus’ annual reduction of sulfur oxides (SOx) and nitrogen oxides (NOx), atmospheric pollutants caused by burning fossil fuels.

795,800

total metric tons of CO2 saved7

That’s the equivalent of 26,074 cars being taken off our roads each year.8

= 10 cars

97,186

9

annual metric tons of CO2 saved
Scope 1 emissions saved
Direct emissions that occur at an organization’s location (e.g., natural gas-fired furnaces, oil-fired boilers, etc.)

3,074

annual metric tons of CO2 saved

Scope 2 emissions saved
Indirect emissions that are generated elsewhere in service to an organization (purchased or acquired electricity, steam, etc.)

94,112

annual metric tons of CO2 saved

73

metric tons NOx

49

metric tons SOx

298,849,979

kWh of electricity saved

482,577

therms of natural gas saved

9,468

gallons of fuel oil saved

75,036,860

gallons of water saved

2,507

Americans' water usage for 1 year
Case Study

University of Northwestern Ohio

CarbonCount = 0.31

Case Study

Kuakini Medical Center

CarbonCount = 0.65

Case Study

Daimler Trucks North America

CarbonCount = 0.41

Our Emissions

A holistic look at our overall carbon impact, including Metrus’ own emissions.

While we maintain a low energy profile within our own built environment, we take responsibility for the impact of scope 3 emissions for assets that we own and install on behalf of our customers. Our goal with this report is to provide complete transparency into the energy savings and environmental impact of our business as well as our project investments.

0

metric tons

18

metric tons

277

metric tons

41,905

metric tons

42,200

metric tons

Our Net CO2 Savings

-

42,200

metric tons of CO2 produced

=

54,986

net metric tons of CO2 saved
Our Commitment

Metrus is committed to accelerating 
and scaling climate action by financing, owning, and operating sustainable energy projects.

Fifteen years ago we introduced a groundbreaking finance solution that enables companies to decarbonize and reduce their environmental impact with no upfront cost. We remain steadfast in our mission to drive climate action by championing energy efficiency projects and accelerating the transition to a sustainable, low-carbon energy future. We’re living at a pivotal time when investment, innovation, and decisive action can make a real difference in the shape of tomorrow and we’re fully committed to driving progress and being accountable.

Our Partnerships

$300 million

The Department of Energy’s Better Buildings Challenge is a partnership of businesses, manufacturers, cities, states, universities, and school districts committing to improve the energy efficiency of their buildings by at least 20% over 10 years. Metrus was one of the first financial allies to join this program. After exceeding our first two commitment goals, we’ve recently reupped our target to $300 million.

$200 million

The America Is All In initiative (formerly We Are Still In) is a diverse coalition of U.S. leaders who support halving U.S. emissions by 2030 and reaching net zero emissions by 2050.  As part of this ongoing initiative, Metrus increased its financing commitment from $100 million of sustainable energy projects to $200 million and is now 43% of the way towards its new target.

In 2021, Metrus became a signatory to the internationally-recognized Principles for Responsible Investment (PRI), publicly demonstrating our commitment to responsible investing, at a global level. We join an international cadre of investors and asset owners who believe that an economically efficient, sustainable global financial system is a necessity for long-term value creation

In 2023, Metrus joined Mission Efficiency in their pursuit to accelerate the transition towards energy efficient economies worldwide. Mission Efficiency is a collective of actions, commitments, and goals from a coalition of governments, organizations, and initiatives coming together to drive progress on energy efficiency, and Metrus is providing strategic support on key issues in the US.

The Cool Coalition is a partnership of proactive governments, businesses, and civil society organizations that aims to accelerate progress toward efficient and climate-friendly cooling. Metrus joined the coalition in 2023 in order to promote the adoption of environmentally friendly cooling technologies and to facilitate equipment upgrades through its Energy as a Service financing solution. As part of the first-ever Global Cooling Pledge announced at COP28, Metrus has committed $100 million in sustainable cooling projects.

Diversity, Equity, and Inclusion

Metrus is dedicated to creating a work environment that reflects our commitment to diversity, equity, inclusion, empowerment, and anti-racism. We respect and learn from different viewpoints and lived experiences. We welcome, support, and benefit from the perspectives of people who differ in race, culture, ethnicity, gender identity, physical ability, religion, and sexual orientation. We believe that having diverse employees, business partners, and community relationships is vital to delivering our services and achieving our mission of bringing energy efficiency and clean energy projects to life. At Metrus, diversity of thought and experience is respected and viewed as essential to excellence.

References

1) Sites are unique locations that may be incorporated in multiple projects.

2) Performance is determined by measured and verified savings using Efficiency Valuation Organization International Performance Measurement and Verification Protocol (IPMVP): https://evo-world.org/en/products-services-mainmenu-en/protocols/ipmvp. Each calendar year may not align with a project’s annual period; therefore savings are weighted between calendar years based on the project’s substantial completion date.

3) Hannon Armstrong’s CarbonCount™ was used to calculate CO2 (metric tons saved annually) / $1,000 invested: https://www.hannonarmstrong.com/esg/carboncount/.

4) Each $1,000 investment represents the cost of installing the energy efficiency upgrades in that eGRID region.

5) U.S. EPA eGRID regional emissions data: https://www.epa.gov/egrid/power-profiler#/.

6) U.S. EPA eGRID Scope 1 and 2 Emissions: https://www.epa.gov/greeningepa/greenhouse-gases-epa.

7) All conversions into CO2 are based on U.S. EPA eGRID regional emission data: https://www.epa.gov/egrid/power-profiler#/.

8) U.S. EPA Greenhouse Gas Equivalencies Calculator: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator.

9) This total includes 22,260 metric tons of avoided CO2 through assets that Metrus has financed but does not own.

10) Savings in 2023 are determined by measured and verified savings using IPMVP when available. Otherwise, expected savings are included. In instances where the calendar year may not align with a project’s annual period, savings are weighted between calendar years based on the project’s substantial completion date.

11) Electricity, natural gas, and fuel oil savings were individually converted to MMBtu, and total MMBTU was converted to equivalent barrels of oil using data from the U.S. EPA: https://www.epa.gov/energy/greenhouse-gases-equivalencies-calculator-calculations-and-references#oil.

12) U.S. EPA WaterSense: https://www.epa.gov/watersense/types-facilities.