Johnson Controls and FirstRand Bank sign agreement under Clinton Climate Initiative; first CCI agreement in South Africa seeks to reduce energy consumption
MILWAUKEE (March 23, 2009) – Johnson Controls, Inc. (NYSE: JCI) has entered into a project development agreement (PDA) with FirstRand Bank Limited, one of the largest financial institutions in South Africa. This represents the first agreement signed in South Africa under the Clinton Climate Initiative (CCI), as well as the first energy performance contract in South Africa that will not follow the shared savings mechanism, reinforcing that energy efficiency has never been more important than it is now.
CCI’s Energy Efficiency Building Retrofit Program brings together many of the world’s largest cities, real estate firms, financial institutions and energy service companies in a landmark effort to reduce energy consumption in existing buildings across the municipal, institutional, commercial, private, educational and public housing sectors. Under the agreement, Johnson Controls will perform energy efficiency audits and retrofits in three buildings – one in Johannesburg and two in Randburg initially, with the potential of adding more in the future.
“The PDA allows Johnson Controls to research existing equipment, products and processes and make recommendations to implement more efficient and affordable energy saving solutions,” said Jose Fernandez, business area operations manager at Johnson Controls in South Africa. With plans to use an established and proven procurement model known as performance contracting, FirstRand would be able to significantly save energy and reduce their utility costs and carbon footprint, while using those savings to repay the project capital investment over the term of the contract, without increasing the bank’s operating budget. In other words, funds that would normally pay for monthly utility (electric and gas) expenses will be redirected to repay the capital investment on the project.”
Specifically, Johnson Controls will review all of the bank’s major energy usage, equipment sizes and efficiencies, maintenance procedures, hours of operation and current operating conditions. An analysis will be done to determine if sustainable offerings such as cogeneration and renewable energy sources (photovoltaic, wind, etc.) are viable options.
“The FirstRand Group has a ‘green’ philosophy, and we are part of the Global 500 in terms of green initiatives and minimizing carbon footprint. With this project we are aiming to prove that the concept is possible to put into practice, and that such a large organization is able to become more energy efficient,” says Branko Burazin, property category manager at FNB Shared Services. “We chose to use Johnson Controls’ services not only because they are one of the only companies in South Africa to offer energy performance contracting, but because they have a proven track record in South Africa and globally.”
“FirstRand is confronting rising energy costs, and they have determined energy efficiency will be their primary measurable action," said Neil Cameron, general manager at Johnson Controls in South Africa. “We are a leader in evaluating and providing energy management solutions throughout a variety of building types. We will closely strategize with FirstRand regarding equipment replacement as well as building renovations.”
Johnson Controls signed the first Project Development Agreement under the CCI in February 2008. That project, with K Raheja Corp., one of India’s largest realty and construction developers, was to retrofit Inorbit Mall, the largest mall in Mumbai. The company also signed the first higher education agreement with Lee College, Baytown, Texas.
About FirstRand Group
FirstRand, one of the largest financial institutions in South Africa, was created in April 1998 through the merger of the financial service interests of Anglo American Corporation of South Africa Limited (AAC) and RMB Holdings Limited (RMBH). FirstRand represents a very different proposition to its peers in that it is the only fully integrated financial services group in South Africa. It is also the only one of the big-four South African retail, commercial and investment banking groups that is “owner-managed”. The FirstRand Group employs 42,300 people and has a retail franchise footprint of 712 branches and 4800 ATMs in Southern Africa. For more information go to the company’s website: www.firstrand.co.za.
About Johnson Controls
Johnson Controls is the global leader that brings ingenuity to the places where people live, work and travel. By integrating technologies, products and services, we create smart environments that redefine the relationships between people and their surroundings. Our team of 140,000 employees creates a more comfortable, safe and sustainable world through our products and services for more than 200 million vehicles, 12 million homes and one million commercial buildings. Our commitment to sustainability drives our environmental stewardship, good corporate citizenship in our workplaces and communities, and the products and services we provide to customers. For additional information, please visit http://www.johnsoncontrols.com/.
Darryll L. Fortune