Managing the Trade-Offs between Vapor Intrusion Risk and Energy Efficiency
Indoor air quality has become a significant concern for communities across the country, particularly in areas with older infrastructure and a long history of industrial activity. Protect Environmental, a Louisville, Ky.-based company with an office in Ann Arbor, specializes in radon and chemical vapor- intrusion management to help identify and reduce these risks. Its services include testing, system design, and long-term management, with the goal of creating safer and healthier buildings. SBN Detroit interviewed CEO Kyle Hoylman about the challenges facing Southeast Michigan, how construction trends and climate factors influence air quality risks, and what it will take to make the region a model for risk management. Q: How susceptible is Southeast Michigan to radon or vapor intrusion issues compared to other regions? A: Geologically, the state doesn’t have unusually high natural radon potential compared to some areas, but the issue is still significant. Roughly 27% of all buildings tested in Michigan show elevated levels of radon. The region’s soft sand and dunes can create preferential pathways for gas movement. Combine that with a long industrial history—many older manufacturing facilities were built before we knew what we know today—and you have conditions that increase both radon and vapor intrusion risks. Q: How have recent construction trends affected radon and indoor air quality risks in this region? A: Modern construction emphasizes energy efficiency. We’ve done a lot to tighten the building envelope—doors, windows, insulation—to reduce energy use. The unintended consequence is reduced air exchange. In the past, a building might have one to one-and-a-half air changes per hour. Now we see 0.1 or 0.15. That knocks down airflow, prevents outside ambient air from coming in, and increases reliance on mechanical systems. The thermal stack effect then plays a greater role, drawing soil gases into buildings and putting occupants at higher risk. Q: Southeast Michigan has a mix of historic housing, aging schools, and new commercial developments. How does this variety of building types shape the challenges and opportunities for mitigation? A: There’s a misconception that new buildings or buildings without basements can’t have radon problems. That’s not true. Three things are needed for radon intrusion: a source, a pathway, and an influence that draws gases in. Sources can be natural or industrial. Pathways can be cracks, utility lines, or porous soils. Influences might be mechanical ventilation or thermal effects. For example, in a school cafeteria, a large exhaust fan can create negative pressure and pull gases in. In homes, the stack effect in winter pulls more soil gas indoors. Commercial buildings add complexity because HVAC systems balance fresh air with energy costs. All of these factors shape risk, regardless of building type. Q: How do you see radon and vapor intrusion fitting into broader conversations about environmental justice in Southeast Michigan? A: This is a big concern. Many people are exposed to contaminants in buildings they don’t own or control. HUD requires radon testing and mitigation in some housing programs, but not all. Fannie Mae and Freddie Mac allow partial testing—sometimes just one unit per building—which can mischaracterize exposure and lead to inequities. In reality, 100% of units should be tested. Otherwise, you can have people in the same facility experiencing very different risks. Environmental justice means ensuring all residents—especially vulnerable populations in public or assisted housing—are equally protected. Q: What role can builders, architects, and developers play in designing for prevention rather than remediation? A: Prevention should be standard. The most cost-effective approach is to install passive soil gas control systems during construction, conveyance piping that allows for ventilation if needed. This adds very little cost upfront and can easily be converted to an active system later by adding a fan. Codes should require this in all new construction. Q: As climate change impacts weather patterns and soil conditions, what long-term effects could that have on radon or vapor intrusion risks? A: Soil moisture and composition will shift. As soil expands or contracts, new pathways for gas movement can be created. Climate also impacts building pressure. In Detroit winters, a 70-degree indoor space next to 5-degree outdoor temperatures significantly increases soil gas entry. We see different impacts between heating and cooling seasons, which is why building characterizations should account for both. Q: How do commercial and institutional facilities—like hospitals, universities, or municipal buildings—approach mitigation differently from residential projects? A: The characterization process is the same—you assess the building, identify sources, pathways, and influences. But mitigation can differ. In homes, we often use sub-slab depressurization. In commercial environments, many buildings already have mechanical ventilation systems with fresh air. Increasing that airflow can help control vapor intrusion. So while the tools are the same, the strategies differ. Q: What would it take to make Southeast Michigan a model for radon risk management, and who needs to be at the table? A: A strong regulatory framework is essential—one that protects occupants and requires qualified professionals to do the work. Schools and daycares should be required to test. Commercial buildings should test every five years, with results shared with occupants. Building codes must include soil gas control in all new construction, not just in high-risk zones. And stakeholders need to include indoor air advocates, health organizations, state officials, builders, and community groups. There’s also a financial argument: Michigan sees roughly 8,000 lung cancer cases annually, about 1,000 of which are linked to radon. That costs taxpayers around $400 million a year. Preventing exposure is far less costly than treating disease. Ultimately, proactive management saves lives and money. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Ann Arbor’s Climate Strategy
In 2020, the City of Ann Arbor adopted A²ZERO, a climate action strategy designed to achieve community-wide carbon neutrality by 2030. The plan outlines a framework for embedding sustainability into city operations, economic growth, and everyday decision-making, while also emphasizing equity and long-term resilience. One of the most visible efforts under A²ZERO is the Bryant project, a first-of-its-kind initiative to transition an entire neighborhood—home to more than 250 households—toward carbon neutrality. The project combines energy efficiency upgrades, renewable energy, and community-centered planning to create a scalable model for neighborhood-scale decarbonization. Leading the A2ZERO program is Missy Stults, Ann Arbor’s sustainability and innovations director, who helped steer the A²ZERO plan’s rapid development and continues to guide its evolution. SBN Detroit interviewed Stults about how the plan is shaping the local economy, what other cities can learn from Ann Arbor’s approach, and the challenges and opportunities that lie ahead. Q: How is sustainability fueling the local economy in Ann Arbor, and what benefits are you seeing from the A20 plan? A: We’re working to institutionalize sustainability as part of the culture, and we are seeing it manifest in multiple ways. Tech entrepreneurs are innovating around clean energy and mobility. In the circular economy, businesses are repurposing materials or finding second lives for decommissioned electronics—like harvesting valuable parts from old phones. I see this as a movement by which people make choices not just because they’re profitable, but because they’re right, and we’re making them more convenient. Over time, that mindset fuels business innovation and economic resilience. Q: What differentiates A²ZERO from other cities? A: First, the speed. We built this plan in 82 days. Second, we never pretended it would be perfect – we focused on what was possible and necessary. We talk about the planning being a living framework for our work, something that is directional but not the directions for where we need to go. Third, we anchored it in three pillars: equity, sustainability, and transformation. Equity is the center of the work (not just a lens we look through). Sustainability means it must last well beyond any of us. Transformation acknowledges that the systems that created this crisis cannot be the systems that solve it. Lastly, we also didn’t shy away from costs. It would have been easier to gloss over the investments needed, but we were transparent. That honesty has required us to be bold and very vulnerable, and I think that differentiates the Ann Arbor process. Q: How has the strategy evolved since its 2020 adoption? A: Constantly. Telework is a good example. The original plan was written in 2019, just before the pandemic. Telework wasn’t part of it – then suddenly it became central. The plan is directional, and we adapt to cultural, political, and financial moments as they come. Another example is tree planting. Our goal was to plant 10,000 trees later in the plan, but in 2020, we pulled that forward because it was work we could do during the pandemic. We’ve now planted 11,000 trees. That’s the beauty of a living document – It allows us to be nimble while staying aligned to the overall direction. Q: If you could think freely – blue-sky style – what environmental innovation or policy would you love to see Ann Arbor implement next? A: If a flood is happening, the first thing you do is turn off the faucet before you clean up. We need that mindset here. We need building codes and regulations that stop allowing new buildings that pollute. We need aggressive codes that require polluters, such as manufacturers and industrial operators- not individuals – to take responsibility for the pollution they are creating. That kind of systemic shift is essential. Q: What key lessons can other cities learn from the Bryant project? A: The importance of trust. It’s something you can’t underestimate. The community has to determine the end goals. And you have to show up consistently, even when the answers aren’t easy. Early on, people asked, “What if Bryant gentrifies?” We didn’t have an answer – but we said that out loud and committed to figuring it out together. Persistence and vision matter. People need hope, but hope without action is empty. In Bryant, we’ve paired hope with concrete steps – like stabilizing utility bills through energy efficiency improvements- and that sequencing is critical. Now the project has momentum, and we are looking at things like installing networked geothermal. Q: Given recent setbacks—like reduced federal funding and legal barriers—what’s your strategy for sustaining progress? A: Force and persistence. There’s no option but to keep doing this work. Well, the only option is complacency, and that won’t happen. Success begets success. Our goal is to institutionalize sustainability so deeply that it doesn’t matter who is in my role – this will be part of Ann Arbor’s DNA. It’s important to note that local governments have historically had do this without much federal support. The Biden administration was an outlier. We are used to working under challenging conditions, and we will continue regardless. Q: What are some recent wins or innovations? A: In November 2024, voters approved creating the nation’s first sustainable energy utility—an opt-in utility that is supplemental to the existing investor-owned utility, and a utility that only offers energy from renewable energy sources. That’s transformative. In Bryant, we’ve secured $18 million, including a $10 million federal geothermal grant we hope is finalized soon. That would be one of the first large-scale demonstrations of an alternative heating and cooling model in the country. We’re also piloting a circularity initiative with returnable containers, which could scale into broader partnerships. I’ll stop there. There’s much more being done, but these are some good examples of the transformation that’s happening. Q: How are you tracking outcomes? A: We use a mix of metrics. Some update automatically every day into a reporting dashboard we have; others are annual. We’re close to releasing the 2024 annual report. But we also recognize that not everything that matters can
Powering Smarter Battery Futures
Troy-based Ancor’s roots are in automotive compliance and labeling, but the company has expanded into smart-technology solutions for healthcare, retail, and automotive, including smart battery tracking to stay compliant with local and global regulations. One of its developments is BattCor, a next-generation platform designed to create a real-time “digital twin” of an electric vehicle battery, enabling real-time monitoring, predictive analytics, and improved lifecycle management—from first use through recycling or repurposing. SBN Detroit interviewed CEO Jose L. Flores about the evolution of battery management systems and the challenges and opportunities in electric mobility. Q: Tell us about Ancor Automotive and BattCor. A: Ancor began 50 years ago as a data management and labeling supplier for OEMs. Three years ago, we launched an innovation hub—now our Innovation Solutions Division to expand into tech-forward and sustainable solutions – just as the EV revolution accelerated. We saw a clear gap: while automakers focused on vehicle production, very few addressed battery lifecycle, repurposing, or compliance at scale. BattCor was built to solve that. It’s a digital twin that provides real-time battery health insights and predictive analytics, helping optimize charging, extend lifespan, and even return energy to the grid while consolidating siloed data into unified platform for compliance, sustainability, and better decision-making. BattCor isn’t just a product—it’s how we’re helping organizations future-proof their energy strategies through data-driven decision-making. Q: How is the evolution of battery management systems (BMS) reshaping what’s possible in electric mobility and energy storage? A: The next frontier is taking BMS from reaction to prediction. And this extends well beyond automotive. Once a battery’s primary life in a vehicle is over, it can still serve as stationary storage—for example, in healthcare facilities or other industries with high energy demands. That second life is an untapped opportunity. But there are challenges. Recycling EV batteries is still a complex and not widely understood process. In the EU, for example, regulations already require a minimum percentage of recycled materials—13% recycled cobalt, among other components. To meet that, you need full visibility into a battery’s history and condition. That’s where centralized, accessible data becomes essential. Q: What are the biggest technical or infrastructure challenges in deploying advanced battery systems at scale? A: The first challenge is data chaos. Without integration, insights are either lost or stuck in silos. The second is alignment. We don’t yet have a clear, universal path to compliance, and different stakeholders are moving in different directions. Infrastructure is another question – can the current grid support widespread EV adoption? Are the right regulations in place? Too much of the industry is still operating in silos, and that fragmentation makes it harder to scale sustainable, intelligent solutions. Q: From a sustainability perspective, how can smarter BMS influence circularity and lifecycle efficiency? A: When BMS technology incorporates predictive analytics, it enables smarter charging and discharging behavior, batteries charge more efficiently and avoid unnecessary wear. Smart charging – avoiding constant charging cycles – extends battery life and reduces resource consumption. That’s key for sustainability. The longer we keep batteries in the field, the fewer raw materials we need to extract. Q: How is demand for better battery intelligence changing? A: It’s growing rapidly. From a manufacturer’s standpoint, being able to demonstrate that your batteries last longer and perform better is a strategic differentiator. Effective management not only preserves value for the consumer but also reduces warranty issues and improves brand reputation. Q: What barriers still need to be addressed for mass adoption of advanced BMS platforms? A: Infrastructure is a major barrier. Some cities have robust charging networks, but many don’t. Beyond that, we need the grid to operate as a two-way street—able to receive energy from EVs as well as supply it. What we need now is alignment—not just across tech providers, but across regulators, utilities, and OEMs. The question is: can the rest of the ecosystem move with the same urgency as platforms like BattCor. Q: Battery safety is critical in EVs and aviation. How is the industry shifting its approach? A: Battery anxiety is real. With predictive monitoring, we can catch early warning signs like rising temperatures before they escalate. If parameters are trending toward failure, action can be taken immediately. This proactive approach can dramatically reduce the risk of catastrophic events and improve confidence in the technology. Q: Looking ahead 5–10 years, what’s the most transformational potential of battery intelligence? A: We’ll see an entirely new level of autonomy in how vehicles and buildings manage energy. Imagine a car that decides when to charge based on grid demand, or a building that balances its energy use based on stored battery health. We could see vehicles and the grid collaborating to optimize distribution, reduce strain during peak hours, and even stabilize the system during emergencies. Ultimately, companies will seek unified platforms that can integrate sustainability, compliance, tracking, and predictive analysis in one place. There are players who excel in one or two of those areas, but very few that can bring it all together. That’s where Ancor is focused, and BattCor is our blueprint for that future. We’re not just participating in the next wave of battery innovation. We’re helping lead it. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Building with Purpose
MassTimber@MSU is a cross-disciplinary initiative at Michigan State University dedicated to advancing mass timber construction and manufacturing in Michigan. Collaborating with partners across construction, forestry, development, and state agencies—including the Michigan Department of Natural Resources—the initiative leverages MSU’s land-grant mission through research, teaching, stakeholder engagement, and policy development to build a sustainable mass timber future for the state. SBN Detroit interviewed Sandra Lupien, Director of MassTimber@MSU, about the environmental, economic, and design implications of mass timber and the growing momentum behind the material in Michigan and beyond. Q: What is the MassTimber@MSU initiative, and what inspired its creation? A: MassTimber@MSU is a collaboration across MSU’s School of Planning, Design and Construction, Department of Forestry, and MSU Extension. We work with partners across the state—including construction professionals, foresters, community and development organizations, and state agencies like the Michigan Department of Natural Resources—to advance mass timber construction and manufacturing in Michigan. Our approach reflects MSU’s land-grant mission: research, teaching and curriculum development, stakeholder engagement, and policy exploration that could support mass timber adoption. Since I started in this role in July 2021, momentum is growing. There are now more than 65 mass timber projects in the pipeline in Michigan. The STEM Teaching and Learning Facility on MSU’s campus, which is the second building in the state to use cross-laminated timber (CLT), helped demonstrate what’s possible. And we’re now seeing serious interest from prospective producers who are looking to locate in Michigan. Q: What are the environmental benefits of mass timber in terms of sustainability, carbon reduction, and climate resilience? A: This is exactly what drew me to mass timber. It’s a tool in our toolkit to reduce carbon emissions, support sustainable communities, and help foster healthier, more resilient forests. Globally, the built environment accounts for about 39% of greenhouse gas emissions—28% from building operations and 11% from construction materials like concrete, steel, and glass. These materials are essential, but they’re energy-intensive to produce. Wood, by contrast, is a renewable resource that stores carbon. When we use wood in construction, we’re not only lowering a building’s embodied carbon footprint—we’re also locking that carbon into the structure itself. At MSU, the STEM Teaching and Learning Facility contains roughly 3,000 cubic meters of mass timber, which stores about 1,856 metric tons of carbon dioxide equivalent. That’s comparable to removing the emissions from 4 million miles driven by an average car. Mass timber buildings, in this way, become carbon storage banks. On the forestry side, we know that many forests evolved with low-intensity natural fires that helped maintain healthy densities. Today, many of our forests are overcrowded, which makes them vulnerable to pests, disease, and catastrophic wildfire. Because of past logging practices and fire suppression, we have an obligation—and opportunity—to steward forests more sustainably. When we do that, we can produce wood that extends the climate benefits of trees, especially if that wood would otherwise decay or burn. Q: How are MSU students and faculty engaging with mass timber—from design to research to real-world application? A: There are three main academic areas deeply engaged with mass timber: Construction Management, Forestry and Biochemistry, and Civil and Environmental Engineering. We have undergraduates, master’s students, and Ph.D. candidates working with faculty on projects across those disciplines. In Construction Management, Professor George Berghorn is developing mass timber curriculum modules that can be used nationally in engineering and construction programs. In Forestry, Professor Mojgan Nejad is doing incredible work on developing bio-based adhesives and coatings for use in mass timber—replacing fossil-fuel-based polyurethane with lignin-based alternatives. She’s actively working toward commercialization. We’ve also done economic research to analyze supply chains and survey demand, which helps inform developers and policymakers. And beginning Spring 2025, we launched a new course focused entirely on mass timber, led by Dr. George Berghorn and tailored for both undergraduate and graduate students. Q: From an economic perspective, how could mass timber help revitalize Michigan’s forestry sector and rural economies? A: We’ve modeled the economic impacts of launching a 50,000-cubic-meter-per-year mass timber manufacturing facility in Michigan. The results are exciting: such a facility would contribute $152 million to the state’s GDP and support 318 jobs. There’s a strong need to find new uses for Michigan wood. With the paper industry in decline and other traditional markets shifting, mass timber presents an opportunity to create high-value products that support Michigan jobs and rural economies. Q: How does the initiative align with Michigan’s climate goals or sustainable development strategies statewide? A: The MI Healthy Climate Plan, which outlines the state’s climate goals, directly mentions mass timber three times—as a key strategy for reducing emissions in the built environment and managing natural lands sustainably. The City of Lansing’s Sustainability Action Plan also highlights mass timber, and East Lansing has even amended its zoning ordinance to incentivize developers to use mass timber and build LEED-certified projects. It’s encouraging to see this kind of policy support—it sends a signal that mass timber can and should be part of Michigan’s climate solution. Q: What does Michigan’s existing forest resource look like, and how does sustainable forestry tie into your vision? A: Healthy, resilient forests are the foundation of everything we do. In Michigan, about 70% of our forest resource is hardwood and 30% is softwood. Most mass timber products currently certified for use in the U.S. are made from softwoods. That said, Michigan does have suitable softwood species. For example, red pine was certified for structural use because the Michigan DNR prioritized using Michigan wood in a customer service building in the Upper Peninsula. That’s a great example of state leadership driving local wood utilization. As the industry evolves, there’s potential to expand the species we can use in mass timber production. Q: Looking ahead five to ten years, what’s your boldest vision for the impact of the Mass Timber Initiative? A: I’d like to see commercial buildings—everything from multifamily housing to community centers to industrial facilities—considering mass timber from the outset, not as a novelty but as a viable, mainstream option. Mass timber
Aligning Business with Sustainability
Comerica Inc. was founded in Detroit in 1849 and remains rooted in Southeast Michigan, even as its headquarters now sit in Dallas. With 4,300 employees in the region and a strong presence across the state, the bank continues to play an active role in environmental responsibility and community impact. SBN Detroit interviewed Scott Beckerman, Senior Vice President and Director of Corporate Sustainability, about the bank’s climate strategy, operational footprint, and the role financial institutions play in driving sustainable progress. Q: Comerica has deep roots in Detroit, even as its headquarters are now in Dallas. How does that legacy influence the bank’s sustainability priorities in Southeast Michigan and beyond? A: Comerica is really proud of our 175-year legacy in Detroit, and over half of our employees are here. As a lifelong resident of the Detroit area myself, I recognize the unique environment of this region. So naturally, there is a certain connection to our desire to protect and preserve this special environment. But we also know that environmental issues aren’t just local – they are global in their nature. I think the connection here is that we understand the importance of issues in the near-term and at the local scale but also recognize the importance of the global scale. For issues like climate change, that means our future success depends on the actions we are taking today, both here in the Detroit area and across the country. Q: What are the most pressing environmental or climate-related risks Comerica is working to address within its operations and client services? A: Our commitment is around three main areas: Reducing our own environmental footprint, embedding sustainability into our business, and supporting our customers’ needs. For our own footprint, we are focused on reducing water consumption, waste generation, resource consumption, and greenhouse gas emissions. Since 2012, we’ve reduced our GHG emissions 61%, – on our way to a 65% reduction target by 2030 and moving toward our north star of 100% reduction by 2050. For water, we’ve decreased our consumption by 48% and have also seen a 41% reduction in waste. On the resource consumption side, our focus is paper usage and since 2012 we’ve decreased that by 89%. For our customers, we want to ensure they have access to the financial products and services they need to address the challenges they face. Maybe for a homeowner, that is a home equity loan to make their home more energy efficient or add solar to their roof. For a business, that may mean providing the financing to upgrade the efficiency of their equipment or capital improvements to a building to make it more climate resilient. Q: Comerica has made commitments to reduce operational emissions and increase energy efficiency. Can you walk us through the key strategies being used to reach those goals — and how success is measured? A: Our primary drive has been a focus on energy efficiency. With roughly 400 buildings in our portfolio, this is no easy task, and no two buildings are alike. We’ve deployed a host of efficiency measures from lighting to advanced building controls to really working on driving down energy consumption, which is the largest contributor to our greenhouse gas emissions. The other important thing is to right-size our real estate footprint while still serving our customer needs. A lot has changed with the digitalization of banking, and we simply don’t need the same amount of space that we needed in the past. So being smart about the amount of real estate we occupy has also helped us drive down our overall energy consumption. At the same time, we recognize that the shift to a digital world is not without its own set of issues, including GHG emissions, so we work with providers to ensure the majority of our technology and data center needs are powered by renewable energy. We’re also investing in renewable energy solutions across our footprint, focused on local impacts, including piloting solar projects and REC (renewable energy certificate)-backed electricity programs in Michigan and Texas. Q: What role does Comerica’s sustainability team play in engaging business units across such a large organization? How do you ensure consistency in implementation? A: First, we center our sustainability program on value creation. What I mean by that is that our sustainability initiatives need to be generating value by reducing risks or costs, spurring innovation, and supporting revenue growth. If we do all that well, it enhances our reputation and brand which delivers additional value. While it may be cliché, I think it’s true that sustainability really is the ultimate team sport. We are successful with our programs because we have the buy-in and support from colleagues across our organization. We also support sustainability through colleague education, regional Green Teams, and volunteer-driven community programs. Q: In your view, what’s the biggest challenge for banks — especially legacy institutions like Comerica — when it comes to embedding sustainability into the core business model? A: For any business, there are a ton of ever-evolving business priorities, based on things like the market, customer needs, regulatory requirements, and changing technology. So, if you approach sustainability as an add-on to the traditional business priorities, then it can get pushed aside by pressing traditional business needs of the moment. But if you embed sustainability into your core values and it becomes a part of how you do business, then it becomes a long-term source of business stability. At Comerica, we have a core value of being “A Force For Good,” which means we’ve worked to embed sustainability into how we do business. Since the establishment of our sustainability office in 2008, that means we’ve significantly reduced our environmental footprint and delivered tens of millions of dollars of cost savings. Q: Where do you see the greatest opportunity for Comerica to lead — whether through lending practices, investments, community partnerships, or internal operations? A: Our length of time in this space has given us a real advantage in terms of long-term impacts. During that time,
Identifying Opportunities for Improved Efficiencies
The Energy Alliance Group of North America focuses on helping businesses implement sustainable energy solutions by identifying opportunities for improved efficiency and connecting clients to funding and technology. Based in Ann Arbor, Michigan, the company collaborates with commercial and industrial property managers to reduce energy consumption, enhance operations, and achieve long-term cost savings. SBN Detroit interviewed Scott Ringlein, founder, principal, and Chief Strategy Officer, about energy efficiency in Southeast Michigan, the role of financing and audits, and the importance of long-term thinking when it comes to sustainability. Q: What are the biggest energy efficiency challenges facing commercial and industrial buildings in Southeast Michigan? A: Misinformation is one of the biggest challenges. Every building has the opportunity to implement energy efficiency improvements, and there is money available to make it happen. These improvements offer a return on investment, but many building operators and owners either don’t believe the numbers or assume they don’t apply to them. The truth is, utility costs are ongoing and only getting higher, so the only way to gain control is to improve your building’s efficiency. Q: How can businesses identify when it’s time to upgrade or retrofit their energy systems A: Start by knowing what you have—what systems are in place, their expected lifespan, and their maintenance history. If you’re seeing frequent repairs and higher maintenance costs, it’s time to look at alternatives. Then evaluate how much more efficient a new system could be and what kind of energy savings it could deliver. If the numbers make sense, that’s the signal to move forward. Unfortunately, many businesses struggle with that last step—deciding to invest. Q: What misconceptions do you commonly encounter around cost recovery or energy savings? A: Many building owners don’t believe the projections—even when we show them data that supports a positive cash flow within one or two years. They tend to focus solely on ROI and forget that utilities never go away. You’re always going to pay for water, electricity, gas—whatever it is. And the utility companies have no vested interest in lowering your costs. So even if you’re skeptical, you’re still going to be paying more year after year unless you act. Q: How has the financing landscape changed for energy upgrades—especially for nonprofits or small businesses? A: We’ve been in this space since 2012, and the financing options today are better than they’ve ever been. Tax credits will come and go, but there are more long-term tools now than there were a decade ago. Michigan has been a leader in this area. Programs like Michigan Saves were the first of their kind in the U.S. We’re also a state approved for Property Assessed Clean Energy (PACE) financing, although it’s underutilized here compared to states like California. Still, the options are out there—you have choices, and you can take control. Q: What role do energy audits play in long-term planning, and how often should they be conducted? A: Audits are essential. You need to know where you stand—what equipment you have, how efficient it is, and what condition it’s in. It’s surprising how many clients have never even been on their own roof, where all the major equipment is housed. There are different levels of audits. A Level 1 audit gives you a basic understanding of what you have and where you’re spending your money. A Level 3 audit goes deeper and is useful when you’re preparing to make major decisions—like process changes or equipment replacement. A challenge is that many companies don’t take the time for a comprehensive audit until it’s too late. Smaller organizations may lack the staff, and larger ones may lose visibility due to scale. But without that baseline, long-term planning is difficult. Q: How do Southeast Michigan’s climate swings shape energy strategy in the region? A: As an organization, we don’t use climate change as the primary argument for doing the right thing. Climate change is happening, but we believe the conversation around energy efficiency should be happening regardless. You’re spending money on utilities – and there are better systems and more efficient ways to operate. We also need to think long-term. In the U.S., we don’t treat these upgrades as long-term investments the way they do in Europe or Asia. There, the systems are central to the building’s value and are maintained accordingly. Here, we often focus too much on short-term costs instead of building for performance and sustainability. Q: What advice do you have for businesses looking to reduce costs and improve operations going forward? A: Real-time monitoring of building systems from a central location gives you visibility and control. Beyond that, the cost of implementing technologies like LED lighting, heat pumps, solar panels, and combined heat and power (CHP) systems has become very feasible. There are also integrated systems now—solar light poles with battery storage and surveillance, for example—that operate independently of utility companies. The key is maintenance. These systems don’t last forever if they’re neglected. But with built-in monitoring and upkeep, they can be powerful tools for cutting costs and improving resilience. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Designing for Longevity
Floyd, founded in Detroit in 2013, is a furniture company focused on creating modular, long-lasting pieces designed to reduce waste and rethink traditional home furnishings. Known for its clean, adaptable designs and commitment to sustainability, Floyd has grown from a single product to a full line of beds, sofas, tables, and storage solutions—all centered around durability and ease of assembly. SBN Detroit interviewed co-founder Kyle Hoff about how Floyd approaches sustainable design, the role of modularity in extending product life, and what the furniture industry can learn from systems thinking. Q: Sustainability is increasingly central to how products are designed. What does a “buy once, use forever” philosophy mean in practical terms when it comes to furniture? A: We always start with the idea that the best thing you can do is not buy something at all. But when you do need to make a purchase, it should be something that lasts—and adapts. That concept informs every decision: from materials to how a product is serviced and how it fits into someone’s life now and in the future. It’s not just about quality materials, but also adaptability. Can a product work in an apartment today and a family home down the road? That’s where design has to carry more responsibility. Q: Many pieces today are built for short-term use. What does “built to last” look like in design and production? A: It begins at the concept stage. Our product team works in-house in Corktown and starts by asking, “What problem does this solve?” For example, our bed frame was designed nine years ago to be a long-term, flexible solution—and it’s still an evergreen product. We’ve continued to expand on that initial product with compatible add-ons: a headboard, underbed storage, a bedside table, and a taller version. These aren’t trend-driven changes; they’re part of a system that evolves with people’s needs. Q: How should sustainability be considered in material sourcing—beyond just using recycled inputs? A: It’s a layered process. While recycled materials are great, they still have to last. A short lifespan defeats the purpose. The first priority is creating products people want to keep. That starts with durable, high-quality materials—like natural woods or wool, which we’ve leaned into recently. We also think about serviceability. If something breaks, can a part be replaced instead of the whole product? That changes how you source and design from the beginning. Q: Durability often comes with trade-offs in cost or complexity. What are the challenges in balancing sustainability with accessibility? A: Durability doesn’t have to mean expensive. It’s really about thoughtful design. A lot of mass-produced furniture is made quickly, designed for trend cycles, and lasts maybe a year or two. We try to offer long-term value—something people will keep—not luxury pricing. It’s a similar mindset to brands like Patagonia: not the cheapest, but a high return on use over time. We focus on lasting connections and construction that can stand up to real life. Q: Modularity is a growing design focus. How does that relate to sustainability and evolving lifestyles? A: It’s critical. If someone moves or their life changes, modularity lets them keep a product and adapt it. That reduces waste. A twin bed that can become a king, or a sofa with replaceable upholstery—that flexibility allows furniture to evolve with people, rather than going into a landfill. We think a lot about systems: not just selling one thing but offering pieces that can grow or change over time. Q: How do you measure the environmental footprint of your products—and improve it? A: We survey how long people use our products and how their use changes. That lifecycle data is an internal benchmark for us.We also evaluate serviceability—whether a product can be fixed instead of replaced. It’s about holding ourselves to a different standard: not just how a product is made, but how long it’s truly used. Q: Are there new materials or partnerships that stand out in your sustainability work? A: Yes—there’s a fabric company in Denmark called Kvadrat we’re working with that’s doing really thoughtful work around long-lasting, sustainable textiles. They’ve created a surface material called “really,” which is made from post-consumer garment waste. That’s an exciting example of circular design—giving textile waste a second life in new forms. Q: What changes would you like to see across the industry in terms of sustainability? A: There’s a big opportunity to focus on lifespan. Most companies aren’t incentivized to do that—they want to sell more furniture. But designing for longevity, building modularity into the system, and standing behind products long-term can shift that mindset Sustainability shouldn’t just be about natural materials or recycled content. In our view, the biggest impact is in keeping products out of landfills. That comes from design choices made long before a product reaches a home. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Rethinking Thermal Energy in Commercial Buildings
PowerPanel, headquartered in Oxford, focuses on sustainable energy technology with a particular emphasis on hot water systems and thermal energy capture. The company designs and manufactures modular solar hybrid systems that integrate both photovoltaic and thermal components into a single unit. Its goal is to offer energy solutions that are more efficient, durable, and economically viable for a range of commercial and industrial applications. SBN Detroit interviewed Garth Schultz, founder and president, and Oliver Buechse, who leads strategy and organizational development, about energy planning, misconceptions around renewables, and how Michigan’s engineering legacy could help shape the future of sustainability. Q: What is the impetus behind PowerPanel—what are you looking to achieve? Garth Schultz: Our work is driven by two goals – decarbonization and energy savings. We’ve developed a photovoltaic-thermal (PVT) module that combines solar electric and thermal capture in a single footprint. That means you can generate electricity while also capturing heat for domestic hot water or space heating, achieving a form of double decarbonization. We’ve paired that with a flexible hot water storage system. Water can store energy for long periods – up to 55 hours in some cases – so we’re using it as a thermal battery. The system allows for energy recovery from rooftop solar units or HVAC waste heat and redistributes it through a pump for heating needs. The components are designed for easy installation, using engineered foam and PVC linings. Oliver Buechse: By reimagining the infrastructure, we’ve been able to introduce solutions that are cost-effective, recyclable, and have longer life cycles. We’re focused on creating practical, adaptable tools for commercial facilities. Q: What are some of the most common misconceptions businesses have about adopting renewable energy, and how do these misunderstandings slow progress? Schultz: One major misconception is that renewable energy is always more expensive or only viable with significant incentives. In reality, for domestic hot water systems – especially in commercial settings – the return on investment can be very favorable. The payback period is often short, particularly when combined with existing energy efficiency measures. There’s also the belief that traditional systems are “good enough.” But if you compare life cycles, newer solutions like ours often last twice as long as standard replacements and provide better performance over time. Buechse: Another barrier is the perception that renewable adoption is driven by political pressure rather than economic value. When we talk to property owners or facilities managers, the conversation often shifts quickly once they understand the cost savings and operational advantages. Government incentives help reduce the upfront investment, but the benefits – lower utility bills, resilience, and future-proofing – stand on their own. Q: How has the conversation around energy efficiency evolved within Southeast Michigan businesses over the last decade? Schultz: There’s more awareness now. Internal sustainability mandates are common, even in sectors where they didn’t exist 10 or 15 years ago. Businesses are looking at practical ways to improve efficiency, not just for compliance, but because it aligns with their operational goals. Buechse: We’re also seeing a shift where architects and developers are integrating energy solutions from the start. They want buildings that are good for the environment and good for people. It’s not just about meeting code, it’s about delivering healthier, more sustainable spaces that people feel good about occupying. Q: When it comes to energy planning, how can businesses expand their thinking beyond electricity? What parts of the energy equation are often overlooked? Schultz: Thermal energy is often underappreciated. If you look at the average building, around 85% of total energy use goes to heating, cooling, and hot water, not electricity. But we rarely evaluate that side of the equation as thoroughly. Buechse: There’s also a broader awareness now that utility bills don’t reflect the full cost of energy. Natural disasters, insurance premiums, environmental degradation – those costs are externalized. More people are recognizing that energy efficiency also means resilience and reduced long-term risk. Technologies like geothermal or air-source heat pumps are also gaining traction. The big shift we are working toward is using energy that’s already present in the environment – or being wasted – and recapturing it. Q: In a state like Michigan, what makes energy strategy particularly challenging or unique? Schultz: Michigan has a heating-dominant climate. That creates challenges, but it also opens opportunities. In summer, a PVT (photovoltaic) unit produces both peak solar electricity and peak thermal output. That surplus energy can be stored and used later to replenish geothermal systems or supplement heating needs during the cold months. It’s about layering different technologies together—solar, thermal storage, geothermal—to create a more flexible and reliable energy strategy. Q: What trends are you seeing among commercial and industrial businesses rethinking sustainability and energy use? Buechse: It goes back to integration. For example, hospitals need to cool their operating rooms, and they also need hot water for sterilization. If these things happen on completely different systems it’s inefficient and costly. But if you can tie them together, taking energy out of the operating room and using that same energy to heat another area or make hot water you become much more efficient. We’ve worked with breweries where waste heat from tank cleaning is now being reused within the process. That reduces overall energy demand and cuts operating costs. The best part? Many of these upgrades can be implemented as retrofits. They don’t require a complete rebuild, and they create local jobs in plumbing, HVAC, and construction. Q: What role can Michigan businesses play in shaping national or global conversations around sustainable energy? Schultz: Michigan’s manufacturing legacy is a huge asset. The expertise in design, tooling, and production, especially from the auto industry, gives us a unique advantage when it comes to developing and scaling new technologies. Buechse: There’s also a mindset here around solving problems and making things work. We don’t need to compete head-to-head with global solar manufacturers on commodity products. Instead, we can offer solutions with additional value—like thermal capture and storage—and use that to differentiate ourselves. The
Sustainability in Practice at the Detroit VA
The Detroit VA Healthcare System is implementing a systemwide sustainability strategy through its Green Environmental Management System (GEMS), designed to reduce waste, lower energy consumption, and improve operational efficiency. The program recently earned Practice Greenhealth’s “Top 25 Environmental Excellence Award.” Through coordinated efforts across departments and a commitment to innovation—particularly in high-resource areas like dialysis—the Detroit VA works to demonstrate how environmental stewardship and clinical care can go hand in hand. SBN Detroit interviewed Andrew Deppner, clinical nurse manager of the hemodialysis unit at the Detroit VA, to learn more about the system’s approach and what other healthcare institutions can adopt from their progress. Q: Why do you think sustainability is such a crucial part of healthcare today? A: Sustainability is relevant to all human operations today—we’re working with finite resources, and being good stewards of those resources is imperative. That’s especially true in healthcare. The population is aging, and we’re seeing more people living longer with chronic health needs. Meanwhile, healthcare itself is becoming more expensive. That means we need to be smarter about how we allocate and use resources. At the VA, we serve 9 million–10 million veterans every year with a workforce of nearly half a million staff members. The sheer scale of our operations means our environmental footprint is significant. So our responsibility is twofold: Providing top-tier care and managing the institution in a way that honors that care through sustainability. Q: Walk me through the structure of the GEMS program. How do departments collaborate to implement sustainability initiatives across such a large system? A: GEMS operates as a committee that meets quarterly to evaluate all relevant projects—whether it’s new construction, repairs, upgrades, or procedural changes. One of our key parameters for approval is sustainability. We always ask: Can this process or improvement be made more sustainable? We also assess best practices across the larger VA health system and use that insight to inform local decisions. That structure allows us to prioritize environmental responsibility across the board while tailoring solutions to our specific needs. Q: In terms of winning Practice Greenhealth’s Top 25 Environmental Excellence Award, what do you think sets the Detroit VA apart, and what might others learn from your example? A: Honestly, it comes down to our scale and our passion. We deliver a huge volume of patient care, so the impact of our sustainability efforts is magnified. But what truly sets us apart is that our team is fully committed. Stewardship isn’t just an initiative here—it’s a value we live by. That passion influences every decision we make, and it shows up in the way we approach both large-scale projects and day-to-day operations. If there’s one thing other systems can take away, it’s that passion drives results. When your team is genuinely invested in sustainability, it shows up in your outcomes. Q: How did your team reimagine the system to reverse the traditional water-use ratio in dialysis—and are other departments applying this kind of thinking? A: Traditionally, reverse osmosis (RO) systems in dialysis operate with significant water waste, which is 60% to 80% efficient. We are working at about 98% efficiency. We achieved this by choosing a high-recovery RO system over a standard one. That decision alone results in millions of gallons of water saved each year. When we received quotes from vendors, we made high-recovery RO our top priority, even though it required more investment and more work on our end. We believed it was worth it, and our team embraced the challenge. Q: What were some of the biggest challenges you encountered when trying to drive sustainability in a healthcare setting, and how did you overcome them? A: One challenge was our water room construction project. We decided to partner with a smaller, less globally established engineering company. That meant we had to take on a larger share of the planning and preparation ourselves. The tradeoff was that we had more control over the sustainability aspects of the project, but it also required more time and resources. Despite the extra effort — more vendor coordination, more problem-solving — it paid off. We now have a highly efficient system that we believe in. It was more work, but we were willing to do it because the outcome aligned with our values. Q: How does the Detroit VA balance sustainability with the demands of clinical care, especially in high-intensity or resource-heavy departments? A: It starts with commitment. Everyone on our team is dedicated to serving our veterans. That shared purpose enables us to pursue ambitious projects without compromising care. I’ve been able to focus on our sustainability efforts because I trust my clinical team implicitly. Their professionalism and passion have freed me to work on these broader initiatives, and I know the patient care side is in excellent hands. Q: If you could share one key takeaway or piece of advice with other healthcare systems looking to follow your lead, what would it be? A: Plan ahead. You can’t foresee every variable, but the more proactive you are, the better your outcomes will be. Anticipate your resource needs early and map out the process thoroughly. If you do that, you’ll be in a stronger position to allocate budget and support before problems arise. Sustainability is about systems thinking, and that starts with good planning. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Reimagining the Pallet Supply Chain
Founded in Michigan, 3R Pallets is working to transform what can be an environmentally costly component of global logistics: the shipping pallet. The company creates reusable composite pallets made with recycled plastics and reclaimed plant fibers, designed to reduce waste and extend product lifespan, offering a scalable alternative to traditional wood and plastic models. SBN Detroit interviewed co-founder Kylee Guenther about innovation in the pallet industry, the environmental consequences, and the outlook for Southeast Michigan and beyond. Q: What was the impetus behind founding 3R Pallets? A: I’m the second-generation in my family to work in Michigan’s plastics industry—I literally grew up on the shop floor, learning from the bottom up. My dad worked on everything from one-gallon milk bottles to those little lemon-shaped juice containers. I was always fascinated by the engineering, but I was also concerned by the amount of waste I saw. As an adult, I became more focused on sustainability and how I could be part of the solution, so I decided to do something about it. That’s how 3R Pallets was born. Our goal is to disrupt the archaic wooden shipping pallet industry with the world’s most sustainable pallets. Not only are our pallets sustainable, but we help save our customers money. Traditional pallets damage and destroy product, cause production downtimes and need constant repair and endless reordering. With our drop in solution, we’re disrupting this space. We just graduated from TechStars and are the first company from Lansing to ever be accepted. It’s one of the most competitive and respected accelerators in the country. We’re also currently raising a $1.2 million pre-seed round to help onboard new customers, build inventory, and grow our team. Q: What do most people misunderstand about the scale and impact of pallet production? A: People just don’t think about them. Pallets are invisible to most consumers. They’re not something you interact with every day, so it’s hard to grasp the scale unless you’ve worked in logistics or manufacturing. Compare that to straws, bags, or plastic bottles—people have firsthand experience with those, so there’s a clear sense of impact. But over 90% of the goods we use were shipped on a pallet at some point. It’s a massive part of the supply chain that’s often overlooked. Q: With pallet use expected to increase in the next decade due to e-commerce growth, what are the biggest sustainability challenges facing the industry today? A: The first big challenge is access to materials. We’re already seeing lumber shortages in many places, and if demand doubles, costs will rise, and pressure on forests will increase. We can’t pretend there’s an endless supply of trees to meet that need. Plastic pallets are often seen as an alternative, but not all plastics can be used in pallet manufacturing. And recycling plastic isn’t a forever solution—it degrades over time. Our approach uses recycled plastic and reclaimed bamboo fibers which actually strengthens the material and increases how many times it can be reused or recycled. Q: Most wooden pallets are only used a few times before being discarded. Why has reuse or recycling been such a persistent challenge? A: The main issue is durability. Wooden pallets simply aren’t built to last. They break down after a few uses, especially when hit by forklifts or exposed to the elements. And if they’ve been fumigated, they often can’t be recycled at all. Our composite pallets can be used 50 to 60 times. They won’t degrade like wooden pallets and can be repaired or recycled when necessary. That’s a huge improvement in terms of both cost and environmental impact. Q: What is the typical lifecycle of a pallet from production to landfill, and where are the biggest environmental pain points? A: For wood, a tree is grown, cut down, milled, and nailed into a pallet. It’s sent to a distributor, then to a customer, used a few times, and if it’s damaged or treated, it goes to a landfill. Best case scenario is they enter a secondary market after being repaired and get a couple more uses. Plastic pallets are usually injection molded, often using virgin plastic. They might last for 30 to 40 cycles, then either get recycled or landfilled depending on their condition. Our pallets are different. They’re made with non-edible plant fibers with recycled plastic and molded into a durable product. They can go through 50 to 60 uses, and in many cases can be repaired or recycled again. That means fewer pallets are needed overall—and far fewer are discarded. Q: How does Michigan contribute to or feel the impacts of pallet consumption? A: We use a lot of pallets here—there’s no doubt about that. But Michigan also gives us a big opportunity because the automotive industry is one of the most forward-thinking when it comes to closed loopy supply chains. We’re already seeing traction in that space. Our value proposition is simple: help customers ship more goods with fewer pallets. That’s good for business and good for the planet. Q: How does the end-of-life of a pallet impact the total carbon footprint of a shipping operation? A: It’s huge. Most traditional wood or plastic pallets end up in landfills and producing new ones requires more energy and raw materials. That adds up. If you extend the life of a pallet and reduce the number of replacements needed, you lower emissions, reduce waste, and conserve resources. Our composite pallets are designed to be durable and recyclable, which makes the whole system more sustainable from start to finish. Q: What has innovation been like in the pallet industry? A: There truly hasn’t been a lot of innovation. Most of it is on the software side but the heart of shipping is still the pallet. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
