Green Canopy is proud to be a driving force in the movement towards all-electric.

Green Canopy has been committed to addressing the challenges of climate change and resource scarcity in our urban infill communities since 2009. Homes and the built environment are responsible for 40% of the annual global carbon emissions, the leading source of climate change.

“Transforming the built environment towards greater sustainability is fundamental to our core beliefs. Building all-electric homes is a no-brainer. It is a key solution to reducing our dependence on fossil fuels. It creates healthier, safer communities, and eliminating gas pipes and air ducts reduces the cost to build,” says Aaron Fairchild, CEO.

One of Green Canopy’s all-electric townhomes across from the Ballard Locks

Photo of Green Canopy CEO Aaron Fairchild, by Grant Hindsley for The New York Times

Green Canopy has built and sold hundreds of homes; every one of them clean, all-electric. 

We choose to build this way because we believe business has a role to play in solving for our local housing and global climate crisis. Building all-electric releases the dependence on fracked gas and provides a healthier, more resilient future for our homeowners and our communities.

Dustin Van Wyck, Real Estate Broker with Van Wyck & Porter Real Estate shares that “since 2009, Green Canopy has been ahead of the curve serving as the leading advocate for adopting eco-friendly building trends across the Pacific Northwest. They build homes based on the understanding of how it can impact the present and future health of the environment, as well as the health of the people in our City.”

We are pleased to share The New York Times highlighted Green Canopy as a developer leading the charge towards building all-electric. Green Canopy is blazing a path for other developers to build all-electric, even before regulation is put in place.

The Seattle Times article “Natural gas industry’s $1 million PR campaign sets up fight over Northwest’s energy future” details the gas industry's campaign to fight local progress towards all-electric building proposals. "Natural gas is under an existential threat," the gas industry supporter proclaims.

The only existential crisis Green Canopy is aware of is a human one. Read more on why we believe all-electric is the future of homebuilding and why Green Canopy’s all-electric homes are healthier for the planet and for our homeowners.

While it’s clear the gas industry is preparing for a  lengthy battle to ensure the continued use of fracked gas, there is hope on the horizon. The Seattle Times article features Green Canopy co-founder Sam Lai showcasing one of Green Canopy’s hundreds of all-electric homes. “For electric systems to completely take over, there will need to be cultural change,” says Lai. As of 2018, more Seattle homes are being built with electric heat than not! Green Canopy has helped spearhead this transformation and will continue to advocate for the regulation needed to bring the percentage of clean all-electric homes to 100.

In the new year, Green Canopy has already brought the all-electric issue to our regional journals.

Aaron Fairchild, Green Canopy’s CEO continued the push with the opinion piece, “All-electric homes are a smart option” in the January edition of the Puget Sound Business Journal. “I’m convinced that clean, sustainable, fossil-fuel-free housing is the right path to sustainability in the face of both our housing crisis and our climate crisis,” says Fairchild.

Green Canopy will continue to build all-electric and advocate for the transition to the Clean Energy Future.

Disrupting the Construction Industry –Why it Should Matter to You & How to Do it

If you have been engaged in construction, you’ve likely come across the 2017 McKinsey Global Institute report Reinventing construction: A route to higher productivity that identifies construction as the last lagging industry with an “intractable productivity problem.”  The report states that revolutionizing construction “can boost the sector’s value added by an estimated $1.6 trillion, adding about 2 percent to the global economy.”  

Green Canopy was founded out of the idea of disruption and it has been a core part of who we are and strive to become. One area ripe for disruptive innovation are the norms around cost overruns. Cost overruns of at least 10% have become standard in the industry.  Since 2014, Green Canopy has managed to disrupt the industry with an average construction variance of less than 3.5% -- this is nothing short of remarkable in the construction industry. Green Canopy’s platform for cost control - the project development platform - has been vital for this success.

The project development platform provides a critical lever for higher productivity in the industry. Green Canopy is furthering this imperative by using this platform to help others develop real estate projects more efficiently. The platform focuses on three key principals:

1. Create enabling processes that can be easily improved

2. Define control points within the development pathway

3. Vertically integrate when possible to bypass external bottlenecks
   

ENABLING PROCESSES:

Our process improvement systems are focused around the idea that inefficiency is best rooted out by those who are closest to the ground. Within our Quality Control, Inspection Checklists, Construction Packages, and streamlined Feasibility process, we seek to provide our team with the tools to leverage their expertise through defined processes that engage experts early while providing the right information at the right time.

For example, our Construction Package consists of everything that our construction managers will need to deliver a project on time and on budget. They are the final reviewer of this package and ensure that they have every piece of information needed in order to get started.

Every construction package contains:

• Full set of construction plans - detailed to the last finish screw

• Comprehensive construction schedules

• Each subcontract’s scope of work & purchase orders

Once the construction package is complete, the construction manager is enabled and empowered to provide the final review. Using a checklist approach, they check every aspect of the Construction Package, ensuring they have every piece of information needed in order to “push play, and go”.  Not only does this level of detail help control costs, but the process ensures the project can move smoothly and continuously.

CONTROL POINTS:

In addition to processes that enable our team members, we’ve also created defined waypoints throughout the project development pathway to provide oversight and clear points of control. These points allow our team to gather and confirm that a project has everything it needs in order to proceed into its next phase of development, from design to estimating to construction, and make critical decisions regarding the project such as budget limits, design aesthetic, and efficiency goals. Again, governed by a checklist approach, these waypoints create opportunities for oversight from our underwriting committee, led by our Board Chair Peter Orser, as well as any other internal stakeholders and clients who are involved in the project.

VERTICAL INTEGRATION:

Despite having the winds of economic recovery at our backs for some time, the construction industry is still feeling the pinch of a labor shortage. This constriction is not only felt by those who build our homes but also but by those who design and entitle our projects. In order to better navigate the constraints of constantly outsourcing our labor, we’ve made strategic decisions to vertically integrate the design and entitlement process, estimating and purchasing, as well as framing. Having a full team of architects, estimators, and framers in house provides us with a distinct advantage when it comes controlling our costs alongside our project delivery timelines. By having these experts in house, we are able to leverage their combined expertise to design cost efficient projects and take on opportunities like off-site panelized framing that allow us to deliver a better product in less time.

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While revolutionizing the construction industry will provide an economic boost to our economy, the reality is that without it, meeting the challenges of the housing crisis and future sustainability requirements will be difficult to meet. Our local think tank, Sightline, has completed some analysis on the cost of housing, using the example of an apartment. The author, Dan Bertolet, points out that “construction is the biggest single cost, consuming 39 percent of the rent check.” And, while we agree that developers have little control over the cost of labor and materials, using a checklist driven process platform can ensure tighter cost control.

Learn more about Green Canopy’s Developer Services.

We are proud to announce that Green Canopy is launching Real Estate Development Services! As an extension of Green Canopy’s existing work building its own deep green and Net Zero Energy projects, Green Canopy will now offer its development and general contracting services to third party investors, developers and investment property owners. Whether you are building a deep-green, affordable multi-unit project or investment property in Seattle or Portland, we are excited that Green Canopy can now help you remove uncertainty out of the development and construction process while delivering your projects on time and budget. The Green Canopy team has been informed by hundreds of projects since 2010, and with care we have packaged our collective learnings into a proprietary process management platform that offers the best in project and change management. The Green Canopy process is designed to help you mitigate risk, contain costs to allow for greater social, environmental and financial returns.

We look forward to working with you or anyone in your network that could use Green Canopy’s real estate development and construction services.

The Future of Homebuilding is here - And it’s Powered by 100% Clean Energy

An alarm was sounded again last week by young people around the world demanding action and change towards addressing our climate crisis. “Systems change not climate change,” marchers’ signs read – a call for not just individuals, but for governments and businesses to shift behaviors and policies. Although the streets have since been emptied of climate strikers, Green Canopy is still marching alongside many who are actively doing the hard work to bring about a new paradigm and new behaviors towards systems change.

One new behavior that we are excited about is Seattle City Council’s recent step towards passing legislation that would remove natural gas from new construction buildings in the city. Green Canopy fully supports this movement beyond fossil fuels, and we have been voluntarily been selling all-electric homes since the sale of our first home in 2010.

“We’re proud of our Seattle Council members for identifying that this is the right thing to do - and the market is ready for this as evidenced by the hundreds of electric homes that we have sold.”

— Aaron Fairchild, CEO

Why does Green Canopy choose to build all-electric homes?

We cannot continue to rely on fossil fuels
Fossil fuels, including coal, oil, and natural gas are currently the world's primary energy source – but they are finite resources and cause irreparable harm to the environment and our communities. According to the U.S. Energy Information Administration, the burning of fossil fuels was responsible for 76 percent of U.S. greenhouse gas emissions in 2017 — It is time to make the shift and build a clean energy future.  The gas we use to cook with and heat our homes is often fracked gas, a significant source of carbon and air pollution. When faced with the choice, building all-electric homes that run on 100% clean energy – sometimes even powered by the sun – is a no-brainer.

All-electric homes are better for your health
The dirty secret of the gas industry is that what is delivered to our homes to heat our homes and cook our food is toxic to our health and our children’s health. When heating our homes or cooking food for our children, we breath in toxins such as carbon monoxide and formaldehyde.  Studies show that this increases the risk of respiratory illness like asthma, especially in children. With our homeowners’ health in mind, we put induction cook stoves into all of our homes. While we know change is sometimes uncomfortable, induction takes advantage of the latest in technology to help you cook faster, with more precision, and the best yet – healthier.

More power costs less
We live in an advanced technological age where increasingly obsolete technology is being replaced by the latest and greatest. Appliances powered by natural gas are an inevitable relic of the past, especially as more powerful technologies already exist and are commonly used. The induction stoves and electric heat pumps in our homes are far more efficient than their gas counterparts, meaning they not only perform better, but save our homeowners money as well, allowing them to spend their money where they want to – not on their energy bills.

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Recently, we partnered with Climate Solutions and Van Wyck and Porter to showcase one of our latest all-electric homes. With pie in hand from 314 Pie, we gathered with our community to demonstrate the benefits of the technology, design, health, and comfort of our all-electric homes.

““We know seeing is believing and highlighting what’s already happening in all-electric home building makes it easier to scale and accelerate solutions to the problem of building emissions. Building emissions are a big focus in addressing climate change and it’s exciting to see how businesses like Green Canopy are leading the way in making all-electric buildings a more accessible reality for communities across Washington State”

— Stephanie Noren, Climate Solutions

Check out some of the photos from our event!

For Immediate Release

SEATTLE, WA & PORTLAND, OR (August 20, 2019) – Green Canopy Inc., announced today it has completed the initial closing of its Series D preferred equity raise. The company raised $5.13 million from 35 impact investors across the nation. Green Canopy is a mission-driven market leader in deep green, urban infill residential design, development, construction and fund management. The completion of Green Canopy’s Series D growth capital will scale the Company’s impact by unlocking $120 million in development capacity, and by leveraging the highly efficient Green Canopy Development and Design Platform to build residential and low to mid-rise apartments for aligned investors, developers and community partners.

“We are humbled and proud to be in community with over 70 investors who all share in the desire to see Green Canopy realize the financial and impact opportunity it was built to accomplish,” says Aaron Fairchild, CEO.

Green Canopy has successfully developed a specialized, integrated and scalable platform to develop, design, build, and bring to market deep green residential properties that help regenerate communities and environments in the urban infill neighborhoods of Seattle and Portland.

Peter Orser, Green Canopy Board Chair & former homebuilding executive, says, “We see a future that can deliver on a triple bottom line. With this team, mission and platform we believe the completion of the Series D preferred offering will enable Green Canopy to dream bigger and achieve heights the typical real estate company doesn’t even consider, much less include in their core values.”

DISCLAIMER: This is not an offering or solicitation of investment.

About Green Canopy
Green Canopy, Inc. and wholly owned subsidiaries Green Canopy Homes, LLC and Green Canopy Capital, LLC have offices and teams in Seattle and Portland. Green Canopy Homes began building in 2009 and has successfully sold over 165 third-party certified, deep green and net-zero energy homes earning over $125 million in gross revenues.

Green Canopy has successfully developed a best in class, specialized business model for urban infill development at scale. Development projects are built on small, medium and large, non-contiguous lots in walkable urban neighborhoods of opportunity. The Company has a vertically integrated process and established systems for acquisition, feasibility, design, estimating, construction project management, sales, owner services and fund management. Since inception the Green Canopy Team has focused on creating an authentic, disruptive and widely recognized brand.

The Company’s mission is to build homes, relationships and businesses that help regenerate communities and environments. By committing to the deep work of its mission, Green Canopy believes a future is possible where net zero energy homes are the norm, these good homes are affordable, wildlands are preserved, communities are resilient and vibrant because they are inclusive, and people who want to invest in that future earn profits. 

For more information contact:
Susan Fairchild, Director, Investor Relations & Impact
206.792.7280
susan@greencanopy.com

Contributed by Emily Butterfield and Ryan Nieto

For blackberry lovers, outdoor enthusiasts, and baseball fans, summer is a cherished time in the Pacific Northwest. It is also a time cherished by Green Canopy Net Zero Energy homeowners whose solar panels are performing at their highest potential. As the sunnier months are rolling through, some exciting trends are emerging regarding the energy that our homes consume and produce.

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The energy production of our three homes with solar panels was almost enough to offset the total consumption of all 15 homes combined!

We are currently tracking the energy data from 15 of our homes in Seattle and Portland, thanks to homeowners who have generously opted into sharing this information directly from their Sense home energy monitoring systems with us. Of these homes, 3 of them are currently producing solar power, and in June we found that the energy produced from their solar panels was almost enough to offset the total consumption of all 15 homes combined!

This is the idea of Net Zero Energy; some months will allow solar panels produce more energy than is consumed, like in the spring and summer, and some months energy consumption will surpass production. Over the course of the calendar year, it will balance out to be zero energy since the extra energy produced can be banked with the local utility as credit to offset the winter months when the sun is lower on the horizon and shining less.

The potential for net zero solar energy in the Pacific Northwest may seem far-fetched considering its reputation as a haven for clouds and rain. However, Western Washington and Oregon actually receive more solar energy than Germany – currently one of the leading producers of solar power despite their annual solar resources being comparable to that of Alaska. Our long summer days and mild climate allows solar panels to function at a higher level of efficiency than many regions. Plus, rain and clouds aren’t even all bad – energy is still produced on overcast days, and a regular shower cleans the panels.

As our tracking continues, we anticipate learning more from emerging trends, which will help us refine our processes in building highly energy efficient homes. Even though not all our homes produce solar energy, the tools and systems in place in every Green Canopy home allow them to consume significantly less than the average home, continuing the shift towards a carbon-free lifestyle and energy market. We hope to not only improve our systems, but with Sense, we seek to also empower homeowners with a better understanding of how their day-to-day habits connect to their energy usage, in turn helping them make informed decisions on the ways they live within their home.

“It’s sometimes easy to forget that all the small and seemingly insignificant tasks that we perform daily adds up to big change. Reading the Impact Report reminds me that we’re doing good work and adhering to our mission.”  - Green Canopy Employee

We know you believe transforming the built environment toward more sustainable and healthy housing can help ensure a better future. Thank you for being our partner!

Contributed by Emily Butterfield

We shape our buildings; thereafter they shape us.
- Winston Churchill

Certified Green homes are synonymous with sustainability, energy efficiency and a positive environmental impact, but did you know that living in a Green home is better for your health, too?   

Adhering to third party green building standards such as those set by Built Green in Seattle and Earth Advantage in Portland, helps ensure Green Canopy Homes are both better for the environment and better for our health.

We reduce common health hazards by paying close attention to how we build our homes and what we put in them.

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Eliminating Moisture

Here in the Pacific Northwest, we are no strangers to moisture and the issues that it can present. Water damage is often a result of inadequate construction, ranging from poor window installation, leaky roofs, and inadequate framing. Mold and mildew are common signs of moisture issues, and can be a significant trigger for allergies and rashes, making the home uncomfortable and sometimes unsafe to live in. To build a home that is well sealed, Green Canopy uses several weatherproofing methods – this allows for both protection from the elements as well as energy efficiency. One of these tools we use is Blueskin, a self-sealing barrier that we wrap around the exterior framing of our homes to keep out air and moisture. In addition to reducing the risk of moisture, it also prevents drafts from entering the home, improving both comfort and reduced energy costs.

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Improving Indoor Air Quality

Weatherproofing our homes creates a seal to keep unwanted elements out, but in turn also traps in the air in the home. Air quality has a huge impact on our health and comfort, whether it be from city pollution, seasonal allergies, or the annual forest fires we are beginning to become familiar with in the PNW. Since our homes are nearly airtight, Green Canopy incorporates energy efficient air systems called ERVs (energy recovery ventilators) in order to introduce fresh air into the home, filtered from outside pollutants and allergens, while also exhausting stale air. A recent study found that “inhabitants of energy-efficient, mechanically ventilated homes rated the quality of indoor air and climate significantly higher” than those living in standard homes.

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Reducing Exposure to Toxins

As homeowners are becoming more aware of the contaminants found in furniture, cleaning supplies, and other everyday objects, the demand for a healthier living space is increasing. By using zero-VOC (Volatile Organic Compounds) paint, adhesives, and finishes we ensure there is minimal off-gassing from the products that are installed within our homes. VOCs, noted by that familiar “new paint smell”, can cause dizziness and headaches. While most VOCs leave the paint as it dries, some paints release VOCs into homes for years. The toxicity of VOCs can cause both short and long term health effects. Green Canopy homes use paint that is VOC-free, and complies with environmental regulations and guidelines. We also make a deliberate decision to install non-gas appliances. Gas appliances like stoves, furnaces, and water heaters release toxic byproducts into a home including nitrogen dioxide, carbon monoxide, and formaldehyde. Our induction stoves eliminate the risk of fumes that gas stoves release while cooking, while additionally providing a quicker cook time and precise temperature control.

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Homes are the nexus of our lives. Green Canopy believes that living in a sustainable and healthy home will inspire our homeowners to embrace a sustainable and healthy lifestyle. To learn more about our theory of change and impact, check out our Impact Report.

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The establishment of Seattle’s first-ever Affordable Middle-Income Housing Advisory Council was announced by Mayor Jenny Durkan in January, as the city seeks to address the growing need to help middle-income families find affordable homes.

Green Canopy CEO Aaron Fairchild serves as a council member, as the group seeks to close market gaps through investment tools and strategies, along with attracting capital investment to create more affordable homes for Seattle’s middle-income earners. 

 “I’m honored to continue advancing Green Canopy’s mission working alongside such an amazing brain trust assembled by our Mayor Jenny Durkan,” says Fairchild.

Market Review & Outlook

As a residential developer hyper-focused on the urban infill markets of Seattle and Portland, Green Canopy continuously evaluates, and buys and sells property. The company also keeps a finger on the pulse of housing research and media reports. Combining boots on the ground with a bird’s eye view, Green Canopy’s team compiled a 2019 Market Review and Outlook in offering a unique perspective on the transitioning regional housing market.  

Following three years of outsized growth, Seattle and Portland single family residential (SFR) home values peaked in May 2018. As home price growth overshot per capita income growth and interest rates ticked slightly higher, more sellers entered the market, but some buyers hit the pause button. Homes sales volume subsequently slowed, listing inventory rose and a sharp but fairly shallow price correction pushed regional home values back toward market equilibrium. Slower sales volumes persisted over the remainder of 2018 and sellers were increasingly forced to reduce prices to complete sales. As the dust settled, Seattle and Portland median home values finished the year a few percentage points higher compared to 2017.

Looking forward, strong local economic and demographic fundamentals support the case for low to moderate home appreciation rates throughout 2019 for the Seattle and Portland housing markets. Key supporting factors include:

• Continued regional net population growth

• Low unemployment, healthy per capita income levels and payroll growth

• Persistent multi-year constrained supply of home listings and new SFR housing starts

• Moderating acquisition and construction costs for homebuilders

Green Canopy is honored to be selected to the inaugural Real Leaders 100 Top Impact Companies! The Real Leaders 100 Top Impact Companies, in collaboration with Big Path Capital and B Lab, is the first ranking of positive impact companies.

“We were very impressed with the quality of applicants who were subjected to a rigorous review process for this first-ever 100 Top Impact Companies awards” said Mark Van Ness, Founder, Real Leaders.

The 100 winners will be celebrated at a formal event on April 4th and 5th at the Momentum (MO) Summit in Asheville, North Carolina.

The MO Summit is an invitation-only event convening with C-suite leaders who are scaling high-growth, positive-impact companies by using the power of creativity for business.

“The Real Leaders 100 list is the first ranking of positive impact companies in North America and leverages the engine of capitalism for great profit and great good,” said Michael Whelchel, Managing Partner, Big Path Capital. “Because of high demand, we are expanding the list globally in 2020,” added Whelchel.

The ranking is based on the formula for force – that is mass times acceleration:
Three-year growth rate (acceleration) x Revenue (mass) x B Impact assessment score = A Company’s Force for Good score.

About Real Leaders:

Real Leaders magazine has been in circulation since 2010 and is the world’s first sustainable business & leadership publication. It aims to inspire better leaders for a better world.

About Big Path Capital:

Big Path Capital has been called “Impact Investing’s investment bank” and works with the top sustainable and impact companies and funds.

About B Lab:

B Lab is a nonprofit that serves a global movement of People Using Business as a Force for Good. Its vision is that one day all companies compete not only to be the best in the world, but the Best for the World® and as a result society will enjoy a more shared and durable prosperity.

See how our organization ranked among 99 other companies that are a Force For Good below.

Green Canopy builds homes, relationships, and businesses that help regenerate communities and environments.

Green Canopy is pleased to announce a new mission statement that has developed from much thought and collaboration.

“Mission statement” is one of the first terms inside startup guides, marketing courses and business plans. It can feel like fluff on an entrepreneur’s checklist of a million-and-one things to manage — a checklist that also includes terms like revenue and retention rate.

And a mission can become fluff that has little real impact internally or externally. Aaron Fairchild, CEO of Green Canopy says, “Where intention and attention go, energy flows.” A mission statement helps set intention and attention, ensures stakeholder alignment, guides strategy, and helps differentiate — creating a sustained competitive advantage and supporting the long-term success of an organization. This has been Green Canopy’s process:

Schedule Space to Review Annually

A mission statement can start to fall flat as company and client needs evolve. To address this, create space with your leadership team to ask questions like:

• Does our mission statement still compel us to go to work in the morning?

• Does our mission statement still encompass all of our current and future plans, is it relevant?

• Does it reflect the organization’s theory of change? 

Generate Ideas with the Board and/or a Small Group of Long-Time Stakeholders

If the answers to the questions above reveal some necessary revising, bring your responses to these questions to your Board of Directors or small group of stakeholders who are invested in the future of your company. Enlisting the consulting services of LIFT Economy to facilitate this process helped Green Canopy ensure all group members had equal opportunity to participate:

1.  LIFT began by surveying the Board and a group of Stakeholders, identifying words and aspects that feel stale or missing

2. LIFT crafted test mission statements based on survey results to rotate around and generate ideas

3. Leadership came together with a group of board members and stakeholders to review, revise and create about three new test mission statements

Take These new Mission Statements to the Entire Team

Every January, the entire Green Canopy gathers together for an entire day to reflect on our mission and values — we call it our “Mission, Vision, Values Retreat.” Getting the whole team’s buy-in on the mission and values helps everyone speak the same language and take ownership of their work and the company. McCarthyConsulting helped facilitate this process so that everyone on our team has equal opportunity to participate.

1. Started with an ice-breaker game to get everyone loosened up and thinking creatively

2. Put up the new mission statements on the wall from the small group brainstorming

3. Gave everyone about five small sticky notes with 10 minutes to place their tags on the words or phrases from each that resonated with them, creating a heat map

4. Took 15 minutes to break up into about five groups (for a company staff of 30+) to write five new mission statements based on the heat map

5. Put the five new statements on the wall and gave everyone 10 more minutes to each place five more sticky notes on the statements and words that resonated with them the most

6. Collected the top three new mission statements based on the heat map

Circle Back with the Board and/or Stakeholders

1. Shared the top three new mission statements with the Board and Stakeholder group 

2. Discussed if one or a combination stands out among the rest based on the theory of change and the direction the company is heading

3. Gave everyone about 15 minutes and paper if needed to individually try out combinations

4. Came together to share and craft the final version (a whiteboard works well for this)

5. Shared with Green Canopy shareholders to vote on and ratify the new mission statement

Share with Staff and Stakeholders

Sharing the final results with staff and stakeholders gives an opportunity to buy-in to the direction of the company once again and fosters a new sense of pride and ownership in the work and company. 

Read more about our process for developing our theory of change, which greatly influenced this process and gave us clarity in our purpose and strategies. We also used a truncated version of this process at our “Mission, Vision, Values Retreat” to re-establish our corporate values for the year and how we want to operate as a team.

By Aaron Fairchild

I recently spent a couple of days at SOCAP18. After the conference, I had the opportunity to screen a soon-to-be-released Australian documentary called, 2040. 2040 is a beautiful “future-fit”, utopian depiction of a potential future made possible by incorporating carbon drawdown methods and technologies. 
 
The week before the screening a new environmental philosopher friend shared a concept she has written about extensively — the Precautionary Principle. She explained this by saying, “One can’t use uncertainty as a justification for inaction. One must use precaution to mitigate harmful outcomes even in the face of uncertainty.”
 
Appling this to positive impact investors could translate to: “Investors and their financial fiduciaries can’t use financial uncertainty as a justification for inaction. Given the urgency of our social and environmental challenges, investors must use precaution to mitigate harmful financial outcomes — And still identify ways to invest in positive social and environmental opportunities even in the face of financial uncertainty.”
 
Unfortunately, in the face of our pressing social and environmental problems, the Precautionary Principle is often used as a reason not to invest in opportunities that generate positive impact outcomes. Even given our good intentions, the traditional structures of finance don’t legally allow moral social and environmental convictions to negatively influence financial outcomes. If the financial outcome is uncertain, but the social and environmental outcomes are clear and measurable — the existing legal frameworks and institutional structures justify inaction in the face of uncertainty.
 
As my mental turntable plays the paradoxical precautionary blues, I see images of the amazing people in the theater moving to a rhythm of positive change, but are we a little off the beat? 
 
How many times have you heard, “In order to attract more capital, the social and environmental enterprise must prove its ability to create market-rate returns. We need proven strategies.”? This thinking may lead to a slip-and-slide of marginalized outcomes in the pursuit of “market-rate” returns. Furthermore, the Precautionary Principle can create a disincentive to invest in positive social and environmental outcomes in uncertain market cycles or in investments labeled “concessionary.” In uncertain markets or uncertain categories, investors may justify putting the pursuit of positive outcomes on the shelf in favor of “proven” and more certain downside protection investment strategies.
 
According to Paul Hawken in the film 2040, 80% of the world’s agriculture is grown by small farm holders. However, in 2018 small farm holder investments are flat to down. Unfortunately, this is not an anomaly. Small to medium enterprise investments are flat to down, and renewable energy investments globally are flat to down as well. I recently learned of these alarming statistics on the Impact Alpha podcast, Getting to Yes. The decline observed in this podcast may be a result of investor’s growing uncertainty in the financial markets. Are we employing the Precautionary Principle? This may forecast a potential disturbing trend for urgently-needed investments in social and environmental solutions as the US economy advances into a market cycle already long in the tooth.
 
Understanding how we may be employing the Precautionary Principle helps clarify that even as we face urgent need to invest in social and environmental solutions, our desire for positive social and environmental outcomes often are left waiting on the side in the face of financial uncertainty. It is a difficult paradoxical dance to pull off. If true, I have three recommendations:

1. Engage and collaborate with the impact entrepreneurs.When the social and environmental outcomes are clear, measurable and convincing, but the financial outcomes are uncertain — engage! Offer to work directly with the social entrepreneur or fund manager to help craft precautionary strategies within the investment opportunity that mitigate potentially harmful financial outcomes. Assess the investment opportunity thoroughly, do your due diligence and collaborate to mitigate harmful financial performance while maintaining the positive social and environmental outcomes. 

2. Change the legal framework of professional financial organizations to align to the Benefit Corporation structure. Benefit Corporations structurally embed expanded fiduciary obligations to include social and environmental considerations.

3. Work with a separate advisory committee or due diligence team. As an individual investor that is not constrained by the fiduciary obligations of professional wealth management, consider working with a separate advisory committee or due diligence team or conduct personal due diligence on impact investments.

 
After the 2040 film screening, I left the theater in a crowd full of optimism and inspiration. Even with the Precautionary Principle burrowed deep within the financial structures and investment psyche of America, I am optimistic that by becoming more aware of how and why we make decisions— and the structures within which we make them— we will continue to learn how to better align capital to the future we envision. 

Every year since 2013, Green Canopy has hosted the Green Genius Broker Awards at the Built Green Conference. The awards honor Real Estate Brokers who have excelled in marketing and selling certified Built Green homes in the Snohomish and King Counties. The Green Genius Awards judging panel is made up of experts in the building and real estate industries who look at both quantitative and qualitative data on the brokers including:

- The number of certified Built Green homes sold on the Northwest Multiple Listing Service (NWMLS)
- The number of Built Green homes with the certification documents uploaded to the NWMLS
- The number of Built Green home benefits included in the marketing remarks on the NWMLS
- The level of knowledge and focus on Built Green building displayed in external marketing platforms like the broker website and social media

This year, there were four awards given: 2018 Listing Agent of the Year Award, 2018 Listing Office of the Year Award, 2018 Selling Agent of the Year, 2018 Selling Office of the Year. This year's winners:
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GREG STAMOLIS | LISTING AGENT OF THE YEAR

Greg Stamolis, Managing Broker at Windermere Ballard, sold 16 certified Built Green homes with all listings including the certification documents on the NWMLS. Greg is a Seattle native, has been a licensed Real Estate Agent since 1990, has a business degree from Central Washington, continually gives back and helps expose the benefits of green building and lifestyle practices on his website. Outside of selling homes, Greg enjoys climbing mountains, is a husband, a parent and nature-lover.

WINDERMERE CAPITOL HILL | LISTING OFFICE OF THE YEAR

The Windermere Capitol Hill Office sold 36 certified Built Green homes the past year, three with the certification documents uploaded to the NWMLS. Owner, Pat Grimm says,"I see green building and sustainability as an extension of the values that I hold dear and do my best to promote in the office... another consistent, reoccurring theme as to how my values show up is respect. I love the respect that green building and sustainability demonstrates to our community and future generations."

TUSHAR GARG | SELLING AGENT OF THE YEAR

Tushar Garg, Owner and Broker at Flyhomes, sold eight certified Built Green homes, two with the certification documents uploaded to the NWMLS. Tushar is excited about sustainability and green homebuilding as he fell in love with Seattle because of the surrounding nature. His business, Flyhomes, is unique in that the brokers and team members come from all different backgrounds helping to find different solutions and generate new ideas.

REDFIN SEATTLE | SELLING OFFICE OF THE YEAR

The Redfin Seattle office sold 24 certified Built Green homes this past year, with all 24 NWMLS listings including the certification documents. Redfin continues to move the needle forward both in their business model and in green real estate. They've blogged about "The top 10 Neighborhoods for Green Homes" and continue to highlight the benefits of Built Green homebuilding.

Congratulations to all of the 2018 Green Genius Award Winners!

The 2018 Green Genius Awards were presented and made possible by:

For Immediate Release

SEATTLE, WASHINGTON & PORTLAND, OREGON (October 4, 2018) – Green Canopy Inc., a deep green urban residential developer, general contractor and fund manager, today announced the first closing of Cedar Fund providing $12 million in development capacity. Cedar Fund is the Company’s fourth single-family real estate fund designed to build resilient net zero ready micro-communities in Seattle, WA and Portland, OR. With the first close complete, Cedar Fund intends to acquire three initial properties currently in pre-development, and construct 25 homes.

As a mission-driven Certified B Corp, Green Canopy is compelled to create market-driven solutions to the challenges facing the high-growth cities of Seattle and Portland, including resource scarcity and global warming, urban sprawl, and limited access to neighborhoods of opportunity. In response, Cedar Fund will acquire, develop, manage and market third-party certified green built, net zero ready residential homes over the course of a 5-year fund cycle.

Cedar Fund will focus on efficient land use through infill development, multiplying the number of homes in established, walkable neighborhoods. With an emphasis on access to essential services including schools, grocery stores and transportation. By building more resource efficient homes on less land, Cedar Fund will help preserve the Pacific Northwest identity which is interwoven with farms, forests, wild lands, and salmon streams.

“I am excited and inspired by the commitment of our initial 18 Cedar Fund Limited Partners who have expressed deep faith in our mission and potential to transform the real estate market towards more regenerative and inclusive communities and environments,” says Aaron Fairchild, CEO.  

About Green Canopy
Green Canopy, Inc. and wholly owned subsidiaries Green Canopy Homes, LLC and Green Canopy Capital, LLC have offices and teams in Seattle and Portland. Green Canopy Homes began building in 2009 and has successfully sold over 140 third-party certified, green homes earning over $100 million in gross revenues.

Green Canopy has successfully developed a disruptive and specialized business model for urban infill homebuilding at scale. Development projects are built on small, medium and large, non-contiguous lots in walkable urban neighborhoods. The Company has an integrated process and established systems for feasibility, design, estimating, construction project management, sales, owner services and fund management. Since inception the Green Canopy Team has focused on creating an authentic, disruptive and widely recognized brand. 

The Company’s mission is to build homes, relationships and businesses that help regenerate communities and environments. By committing to the deep work of its mission, Green Canopy believes a future is possible where net zero energy homes are the norm, these good homes are affordable, wildlands are preserved, communities are resilient and vibrant because they are inclusive, and people who want to invest in that future earn profits.

For more information contact: 
Susan Fairchild, Director, Investor Relations & Impact
206.792.7280
susan@greencanopy.com

Green Canopy had the pleasure of being a part of the 2018 Annual Starbucks Sustainability Fair. This year’s fair was an opportunity to introduce the 6,000+ Partners working at the Starbucks Support Center to community resources aligned to the Partners For Sustainability mission: to educate, engage and empower Starbucks Partners to make sustainable change. Here are a few Partners we got to meet at the Green Canopy booth:

"I’m a bit of an eco-enthusiast... I was intrigued in talking about the ways that architecture impacts home temperature and how the local climate, the lot and the orientation of the structure on the lot can be leveraged to reduce a home’s carbon footprint." — Brian L.

"I'm a project manager for Starbucks in the Design & Construction Services.  I love the idea of a zero energy home, especially in our region of the US.  When utility bills can vary so hugely, it's nice to know that not only would I be keeping them steadier for our month-to-month energy costs, I would be helping to sustain resources and working against a large ecological footprint." — Nicole M.

The Green Canopy Crew enjoyed meeting so many thoughtful Starbucks Partners while finding new and old friends who are using business as a force for good in the world. Here is just a snapshot of those we met:

• Washington Wild

• International Living Future Institute

• Be Zero

• Zero Hour Seattle

• Carriage Houses

• Seattle Zero Waste

• Lime Bike

• The Works Seattle

• Washington Green Schools

• Seattle EcoWomen

The physical beauty of our Pacific Northwest region combined with a booming tech industry continues to draw people to our high-growth cities of Seattle and Portland. Daily, we feel and see this change with more traffic on the roads, more cranes on the skyline, homeless encampments in what seems like every nook and cranny, and an overflow of cars at our favorite trailheads.

Green Canopy launched in 2009 to combat and lessen the negative impacts of climate change and resource scarcity through in-city homebuilding. Nearly 10 years later, we find ourselves in the epicenter of rapid change. As a mission-driven Certified B Corp Company, Green Canopy inherently feels a responsibility to lean in further to the challenges we are experiencing in our high-growth cities: resource scarcity and global warming, urban sprawl, and housing crisis of affordability and access.

The Company recently paused to examine the broader purpose of our work as an urban infill residential developer and fund manager — going through a process to define our Theory of Change. A Theory of Change is a visual road map to creating the change we want to see in the world and provides a target to which we align our strategies, outcomes, and goals. We began this process with guidance from Jane Reisman, a Social Impact Advisor with over 29 years of experience in strategy and evaluation. The benefits to developing Green Canopy’s Theory of Change became clear early on and continue to bring stakeholder alignment, shared language, and metric alignment.

Green Canopy’s Theory of Change was recognized as a model for transformation in the impact investing community through a case study funded by the Rockefeller Foundation: “The case study provides an illuminating example of how investors can adapt Theory of Change to serve their impact management needs. By demonstrating the relevance and transferability of this tool for articulating, measuring, and managing impact, the hope is that this case study can contribute to strengthening other investors’ approaches, in turn contributing to building the evidence base for the “impact” of impact investments.”

The 2017 Green Canopy Impact Report takes the first step towards aligning our current metrics to our Theory of Change. Our intent for the coming year is to reassess and refresh the metrics to ensure we continue to make progress towards achieving our Theory of Change as well as to further align with common industry standards.

We believe in a better future and the Green Canopy Team — with our partners and communities — is doing the deep work to help us achieve this vision.

Thank you for being an integral part of our
community!

Susan Fairchild
Director of Investor Relations & Impact

The book Drawdown maps, measures and models the 100 most substantive, existing solutions to reverse global warming. The analysis identifies clear opportunities for the building sector to help play a role in drawing down carbon from the atmosphere (Rooftop Solar #10, Electric Vehicle #26, LED Lighting #33, Heat Pumps #42, Walkable Cities #54, Net Zero Energy #79). The Seattle Master Builders Association’s Built Green Program demonstrated this potential in the 2017 report, which found Built Green 4-Star and 5-Star homes were 33% and 40% more efficient respectively than comparable code-built homes.

2017 marks an important pivot point for Green Canopy as the company completed our first Net Zero Energy Home. Net zero energy homes produce enough energy to offset their energy consumption needs over the course of a year through solar energy and ultra-efficient systems. This represents the future of the Company as we rotate our entire pipeline to build only Net Zero Energy Homes in the coming months and years ahead.

“Our Net Zero Energy program is the result of a culmination of 10 years of system, process and team development... This is not the end of our sustainability journey, but it is a very important next step.” — Sam Lai, Cofounder

​FIRST NET ZERO ENERGY HOME COMPLETED | 100+ IN PRODUCTION | 728,112 POUNDS OF CARBON MITIGATED IN 2017

Green Canopy builds good homes that are affordable by utilizing best-in-class materials and construction methods. Our homes use non-toxic materials and finishes, fresh air ventilation systems, and Blueskin technology to provide a weatherproof structure with high air quality. In 2017, all Green Canopy’s homes were certified to Built Green or Earth Advantage standards.

In addition, the Company reviewed and assessed the “Red List” of commonly used harmful building materials. Of the 65 materials listed by Miller Hull and the Living Future Institute, Green Canopy identified 30 materials the Company was already compliant with, and immediately removed 12 additional materials in our supply chain. We are working to find alternatives for the final 27 materials.

Green Canopy’s program with the Washington State Housing Finance Commission (WSHFC) has allowed the Company to sell 11% of its total sales at more affordable and accessible prices compared to standard market rate homes. In 2017, Green Canopy built an average of 5 homes for each project site, where there typically was one — offering more homes at a lower price-point in urban communities and adding walkability to schools, parks, transportation and amenities.

In 2017 Green Canopy developed its fourth fund offering, Cedar Fund, which provides greater access and affordability to families earning 80% of area median income.

“The Cedar Fund puts us in a unique position to not only draw down carbon, but to also lift up our communities.” Aaron Fairchild, Chief Executive Officer

100% CERTIFIED BUILT GREEN OR EARTH ADVANTAGE | 6 AFFORDABLE HOMES IN PRODUCTION WITH WSHFC

Our Pacific Northwest identity is interwoven with our farms, forests, wild lands, and salmon streams. Green Canopy believes honing the ability to develop density in our urban infill walkable communities is essential to reduce sprawl and preserve our wild lands. Green Canopy has created the skill to selectively develop unique lots in our high-growth cities while consistently containing costs, providing a model for residential developers nationwide. For each project site, Green Canopy responsibly deconstructs and recycles the majority of the existing structure and replaces one home with an average of 5.

Green Canopy continuously strives to keep as much of the deconstructed home out of the landfill as possible. In addition to recycling and reusing, Green Canopy developed a partnership with 118 Design, a program that offers job skills to former gang members and recently incarcerated men from the 98118 zip-code. The 118 Design team salvages lumber from the deconstructed homes and repurposes the wood into urban-inspired furniture and wood-clad walls inside Green Canopy’s homes.

“My environmental ethic formed through hours and hours of playtime as a child in our Pacific Northwest mountains and forests. I am motivated to preserve these spaces so my daughters acquire the same sense of connection to our planet.” — Andy Wolverton | Chief Financial Officer
​
​90% OF ONSITE CONSTRUCTION WASTE RECYCLED | 95% OF DECONSTRUCTION WASTE RECYCLED

In addition to reducing operating costs and providing a healthier, livable space, a net zero energy home is generally more resilient. The shift to develop all Net Zero Energy Homes combined with efforts to transform the real estate market towards more sustainable and resilient housing will provide critical built environment infrastructure improvements.

Cities with strong social networks and social inclusion have also been shown to bolster resilience. Green Canopy is working to increase access and inclusivity to highly desirable neighborhoods through efforts including increasing density, partnering with the Washington State Housing Finance Commission to increase affordability, by launching the Cedar Fund and authentically engaging neighbors in Community Meetings. Before acquiring a property, Green Canopy invites surrounding neighbors to a Community Meeting to engage in an authentic dialogue around Green Canopy’s mission and the project design.

The Company also bolsters the resilience of high-growth cities through job creation. In addition to the 27 high quality jobs provided within the company, on average 95 jobs across the trades are utilized for every project site.

“I appreciate that you offer community meetings and a seemingly genuine interest in what matters to the neighborhood.” — Green Canopy Property

95 JOBS CREATED FOR EACH HOME BUILT | OVER 10 MEETINGS WITH POLICYMAKERS AND EDUCATIONAL TALKS GIVEN IN 2017

Impact investing is a rapidly growing industry powered by investors who are determined to generate social and environmental impact as well as financial returns. Green Canopy is an experienced fund manager and has earned a strong reputation for being engaged and transparent. The Company has successfully managed three real estate funds totaling around $45M AUM with over 100 investor accounts. Green Canopy routinely achieves financial and impact returns aligned with investor expectations. The third fund, the Birch Fund, has returned a total of $2.8 million to Green Canopy investors, with a realized annual return of 11.19% through Quarter 4 of 2017.

Green Canopy’s sophisticated approach to creating new financial vehicles for the impact investor is highlighted in its fourth fund offering — the Cedar Fund. The Cedar Fund was developed in response to the current challenges in our high-growth communities, bringing net zero energy homes to market alongside greater affordability and inclusivity for families earning 80% area median income.

“I’ve been happy with the reliable returns I’ve received with Green Canopy’s fund offerings. They’ve been a win-win: solid returns paired with environmental outcomes I value.” — Kathy Washienko | Investor

$2.8 MILLION RETURNED TO BIRCH INVESTORS IN 2017 | RAISING CAPITAL FOR 4TH FUND OFFERING — CEDAR

Deep work refers to the ability to focus, quickly master complicated information, and produce better results in less time. While Green Canopy hones this skill across all channels there are four areas of practice where the Company shines:

• Courageously innovating in the built environment: We are bringing net zero energy homes to market and creating greater inclusivity by integrating more affordable housing. Optimizing systems of cost control and vertical integration allows us to lean further into our mission and aspiration to build regenerative structures. 

• Creating new financial vehicles: Green Canopy creates investment opportunities that provide impact investors with a balance of social, environmental and financial returns. 

• Curating a culture of personal growth and peak performance: All Green Canopy team members participate in monthly leadership trainings to develop the necessary skills for building trust, authentic communication and deliberate engagement with other team members and key stakeholders. Team members are also peer-reviewed biannually through the lens of Green Canopy’s values — Cultivating Community, Authentic Communication and Excellence.

• Engaging, Educating, and Inspiring Stakeholders: Change and transformation only occurs when it is discussed. Using a holistic ecosystem approach, Green Canopy engages its many stakeholders in a variety of ways such as the real estate broker Green Genius Education and Award Program, multi-stakeholder Empower Happy Hours, Neighborhood Community Meetings, and the Green Canopy Subcontractor Loyalty Program.

“Green Canopy’s monthly Leadership Training has been instrumental in fostering a culture of engaged employees who are actively working toward maximizing their potential." — Ami Nieto 

8 PROFESSIONAL LEADERSHIP TRAINING SESSIONS GIVEN TO ALL EMPLOYEES | 63 BROKERS GIVEN GREEN BUILDING TRAINING

In the 2018 summer issue, Green Canopy CEO, Aaron Fairchild, was named to "Fast Company's Most Creative People in Business." 

"Your inclusion on the list is an acknowledgment of your innovative and impactful work. You join 99 other remarkable leaders striving to solve global and societal problems in novel ways," states Fast Company Editor-in-chief, Stephanie Mehta.

Fairchild responds, "I am grateful to be recognized by such an esteemed publication as Fast Company, focused on revolutionizing the current business paradigm and to be listed among leaders and businesses using innovation to catalyze the next economy — one that is more regenerative and inclusive."

The Green Canopy Team is honored to have a leader who inspires us to continue doing the deep work necessary to realize the future we believe in.

Green Canopy introduced the Company’s first Net Zero Energy Homes in Portland by holding a class with valued partners in the movement. New construction “Net zero” or “zero energy” homes are highly-efficient home powered by the sun and typically built to a higher certification standard — in this case Earth Advantage Platinum. With less than 10 ever transacting on the Portland Regional Multiple Listing Service in the last 20 years, zero energy homes are very unique. Real Estate Brokers and buyers are learning more about what zero energy is apart from the apparent solar panels. Benefits like: healthier, allergen-free air quality; comfortable, evenly-distributed heating and cooling; and smart, cost-saving technology.
 
The event was held in one of the two Green Canopy Net Zero Energy Homes. Introductions were given by Debbie Chase of First American Title who welcomed brokers with bites from Elephants Delicatessen. Green Canopy Cofounder, Sam Lai, explained the mission of the company and the desired outcome of regenerative communities. And Chris Dawkins and Brian Schmidt of Lightbox Portland shared stories about their lessons learned from building their zero energy project that sold last month in Northeast Portland.
 
To begin the class on zero energy, Peter Brown of Earth Advantage — green building certifier — divulged details on what makes up a zero energy home. For this certified Earth Advantage Platinum Zero Energy project, Earth Advantage visits the project site several times to audit the quality of building — something that is not done for code-built homes. It is tested on a range of performance metrics like efficient water and lighting fixtures, structural integrity, and the energy consumption versus production. Brown also explained that the performance of zero energy homes is dependent on the lifestyle of the occupant — a household of 8 would likely consume more energy than a household of 2. A lively discussion ensued about the accuracy of energy certifications when home occupants have significant impact on the energy consumption of the homes. One remark was how a car’s Miles Per Gallon may not precisely reflect a car’s performance due to user differences like the number of passengers in the car or a different driving styles.
 
Green Canopy Construction Program Manager, Ryan Nieto, answered questions on the home the group was sitting in. Brokers remarked on the simple design qualities that they appreciated like the high windows allowing natural light in while providing privacy from the street. Nieto discussed how living in a net zero or zero energy home is not a sacrifice for sustainability but rather a convenience and the way of the future: “Net Zero Energy is a lifestyle choice. We’ve built high quality, energy efficient, and healthy homes that empower homeowners to embark on their personal journey towards Zero Energy, without sacrifice comfort or livability while adding durability and value.” 
 
The class adjourned and attendees were invited to walk through the home with the green building experts. Interactive “tags” were placed near distinctive features for attendees to learn about the features and their respective benefits for homebuyers.