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Metrus Impact Report
Investing in Energy as a Service
We are leading the way to a sustainable, low-carbon future by bringing energy efficiency and clean energy projects to life.
Executive Message
Dear Stakeholders,
As we publish our fourth annual Impact Report, we continue to remain steadfast in our belief that meaningful climate action requires meaningful climate disclosure. In climate impact speak, “trust and verify” translates to “measure, verify, and report.” It is worth focusing on why disclosure matters and how it is material to different stakeholders.
For Metrus, disclosing the climate-related impact of our portfolio provides a north star for our business that validates the solutions we offer, the partnerships we establish, and the project-level investments that we make. For each project Metrus finances, we: (1) verify that it results in a net drop in scope 1 and scope 2 emissions, and (2) calculate a CarbonCount for each individual project to quantify the GHG reduction impact of each dollar that we invest. If a project is not climate-positive, we won’t finance it.
For corporations, climate-related data is critical information on two levels. First, it provides needed insight into where and how they can meet sustainability goals and improve the efficiency and resiliency of their business operations. Second, it puts a spotlight on material climate-related risks that can impact the financial performance of their business which is important for investors and corporate decision-making.
A growing number of governing bodies, regulatory agencies, and global organizations make disclosure a prominent requirement of assessing the impact of measures that are undertaken to address climate change. The SEC recently passed a climate disclosure rule to ensure that investors have access to material corporate climate-related data that could influence investment decisions. While other entities such as Europe’s Corporate Sustainability Reporting Directive and the State of California have established more rigorous disclosure requirements, the SEC's rule (notwithstanding ongoing legal challenges) is still a watershed moment in its reach and its acknowledgment that climate change carries significant risks, and that climate impact and financial performance are intertwined.
With this edition of the Metrus Impact Report, we are expanding our reporting to include atmospheric pollutants. While climate change caused by GHG emissions gets the most attention, burning fossil fuels also creates sulfur and nitrogen compounds that pollute our air and water, with devastating consequences for public health and safety. Reporting on the atmospheric pollutants from our projects is consistent with our goal of safeguarding the environment and supporting health and wellness by promoting sustainable energy.
At Metrus, we see an important transition underway as climate planning is linked to finance planning. This requires expanding our business model to incorporate new financing solutions (which will be built into future impact reports). Specifically, financing sustainable cooling and heating projects is a new and growing part of our business and reflects increased demand for efficient and cleaner cooling and heating systems and the need for private sector investment.
Metrus is proud to play a part in the momentous—and urgent—transition to sustainable energy. This Impact Report, which provides financial and environmental data from 2023 to quantify the real impact of the work we do, is a meaningful example of how we are fulfilling that role.
Thanks,
About This Report
This report is structured to present the performance of the projects in our portfolio through three different lenses, followed by a summary of our commitment to climate action and responsible investing.
Metrus has operational Sustainable Energy Services Agreement (SESA) projects in 34 states, encompassing more than 940 sites.1 Our portfolio consists of over 30 different types of energy efficiency measures and technologies.
Energy Efficiency Measurements (EEMs)
79% of Metrus projects involve multiple measures, which is consistent with our efforts to bundle upgrades with varying economic and technology profiles to achieve scale. Although 97% of Metrus SESAs include LED lighting upgrades, 48% of all CO2 savings this year originated from non-LED lighting measures. The non-LED lighting measures include deep retrofits to compressed air systems, boilers, chillers, cooling towers, and building automation systems. This performance reflects Metrus’s expertise in executing complex, multi-site, multi-measure, SESAs.
Annual Performance
Over the last decade, our realized savings have exceeded the expected savings (as projected in an initial energy audit) each year. On average, our portfolio performs at 101.5% of its expected savings.2
CO2 Savings per $1,000 of Investment
Metrus measures the efficiency of its investment portfolio in reducing CO2 (metric tons) by using CarbonCount™ as a scoring tool.3 Higher ratios mean greater carbon reduction per $1,000 of investment.4 The data below represents the average scoring for Metrus projects located within 21 different regional eGrid zones.5 Our investments in the SPNO and SRMW zones have the highest CO2 efficiency ratings due in large part to the higher carbon content in the midwestern power grid.
Environmental performance is interwoven into each of our projects. We prepare annual reports that detail project-level CO2 savings broken out by scope 1 and scope 2 emissions to facilitate customer reporting under SBTi.6 This is also our second year of reporting on Metrus’ annual reduction of sulfur oxides (SOx) and nitrogen oxides (NOx), atmospheric pollutants caused by burning fossil fuels.
Lifetime CO2 Savings Across Our Portfolio
811,327
That’s the equivalent of 28,308 cars being taken off our roads each year.8
2024: Annual CO2 Savings
69,624
9
Direct emissions that occur at an organization’s location (e.g., natural gas-fired furnaces, oil-fired boilers, etc.)
2,729
annual metric tons of CO2 saved
Indirect emissions that are generated elsewhere in service to an organization (purchased or acquired electricity, steam, etc.)
66,895
annual metric tons of CO2 saved
2024: SOx and NOx
In addition to reducing greenhouse gases, our efforts to accelerate the transition to a sustainable, low-carbon future directly reduce atmospheric pollutants such as sulfur oxides (SOx) and nitrous oxides (NOx). In 2024, Metrus reduced SOx emissions by 36 metric tons and NOx emissions by 53 metric tons. These reductions are helping to achieve the levels set forth in the EPA’s National Ambient Air Quality Standards (NAAQS).
53
36
2024: Total Annual Energy Savings
Our projects include a wide range of energy efficiency improvements that generate both electric and thermal energy savings.10
In 2024, our portfolio saved a total of 763,579 MMBtu of energy. That’s equivalent to 131,652 barrels of oil.11
210,987,833
436,884
763,579
131,652
2024: Total Water Savings
According to the EPA, office buildings, hospitals, hotels, and schools, among other commercial and institutional facilities, use 17% of the public water supply, making the sector the 2nd largest consumer in the country.12
Metrus has projects with water efficiency measures across private sector business, higher education, and healthcare customers. According to the EPA, each American uses an average of 82 gallons of water per day at home. So, the 77,345,253-gallon reduction in water consumption is equivalent to the water used by 2,584 Americans for an entire year.
77,345,253
2,584
University of Northwestern Ohio
CarbonCount = 0.31
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Amazon
CarbonCount = 0.XX
Daimler Trucks North America
CarbonCount = 0.41
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A holistic look at our overall carbon impact, including Metrus’ own emissions.
While we maintain a low energy profile within our own built environment, we take responsibility for the impact of scope 3 emissions for assets that we own and install on behalf of our customers. Our goal with this report is to provide complete transparency into the energy savings and environmental impact of our business as well as our project investments.
Our Scope 1 Emissions
Metrus generates no direct emissions from fuel combustion.
0
Our Scope 2 Emissions
For its office space, Metrus purchases utilities that produce emissions.
18
Our Scope 3 Emissions / Travel
For employee travel and commuting, Metrus generates a nominal amount of emissions.
176
Our Scope 3 Emissions / Assets
Metrus’ project assets consume energy and produce CO2, albeit more minimally than the equipment they replaced.
30,335
Total
30,528
Our Net CO2 Savings
69,624
-
30,528
=
39,096
Metrus is committed to accelerating and scaling climate action by financing, owning, and operating sustainable energy projects.
Sixteen years ago, we introduced a groundbreaking finance solution that enables companies to decarbonize and reduce their environmental impact with no upfront cost. We remain steadfast in our mission to drive climate action by championing energy efficiency projects and accelerating the transition to a sustainable, low-carbon energy future. We’re living at a pivotal time when investment, innovation, and decisive action can make a real difference in the shape of tomorrow and we’re fully committed to driving progress and being accountable.
Our Partnerships
$300 million
The Department of Energy’s Better Buildings Challenge is a partnership of businesses, manufacturers, cities, states, universities, and school districts committing to improve the energy efficiency of their buildings by at least 20% over 10 years. Metrus was one of the first financial allies to join this program. After exceeding our first two commitment goals, we’ve recently reupped our target to $300 million.
$200 million
The America Is All In initiative (formerly We Are Still In) is a diverse coalition of U.S. leaders who support halving U.S. emissions by 2030 and reaching net zero emissions by 2050. As part of this ongoing initiative, Metrus increased its financing commitment from $100 million of sustainable energy projects to $200 million and is now 43% of the way towards its new target.
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In 2021, Metrus became a signatory to the internationally-recognized Principles for Responsible Investment (PRI), publicly demonstrating our commitment to responsible investing, at a global level. We join an international cadre of investors and asset owners who believe that an economically efficient, sustainable global financial system is a necessity for long-term value creation
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In 2023, Metrus joined Mission Efficiency in their pursuit to accelerate the transition towards energy efficient economies worldwide. Mission Efficiency is a collective of actions, commitments, and goals from a coalition of governments, organizations, and initiatives coming together to drive progress on energy efficiency, and Metrus is providing strategic support on key issues in the US.
The Cool Coalition is a partnership of proactive governments, businesses, and civil society organizations that aims to accelerate progress toward efficient and climate-friendly cooling. Metrus joined the coalition in 2023 in order to promote the adoption of environmentally friendly cooling technologies and to facilitate equipment upgrades through its Energy as a Service financing solution. As part of the first-ever Global Cooling Pledge announced at COP28, Metrus has committed $100 million in sustainable cooling projects.
Other key partnerships
Diversity, Equity, and Inclusion
Metrus is dedicated to creating a work environment that reflects our commitment to diversity, equity, inclusion, empowerment, and anti-racism. We respect and learn from different viewpoints and lived experiences. We welcome, support, and benefit from the perspectives of people who differ in race, culture, ethnicity, gender identity, physical ability, religion, and sexual orientation. We believe that having diverse employees, business partners, and community relationships is vital to delivering our services and achieving our mission of bringing energy efficiency and clean energy projects to life. At Metrus, diversity of thought and experience is respected and viewed as essential to excellence.
References
1) Sites are unique locations that may be incorporated in multiple projects.
2) Performance is determined by measured and verified savings using Efficiency Valuation Organization International Performance Measurement and Verification Protocol (IPMVP): https://evo-world.org/en/products-services-mainmenu-en/protocols/ipmvp. Each calendar year may not align with a project’s annual period; therefore savings are weighted between calendar years based on the project’s substantial completion date.
3) Hannon Armstrong’s CarbonCount™ was used to calculate CO2 (metric tons saved annually) / $1,000 invested: https://www.hannonarmstrong.com/esg/carboncount/.
4) Each $1,000 investment represents the cost of installing the energy efficiency upgrades in that eGRID region.
5) U.S. EPA eGRID regional emissions data: https://www.epa.gov/egrid/power-profiler#/.
6) U.S. EPA eGRID Scope 1 and 2 Emissions: https://www.epa.gov/greeningepa/greenhouse-gases-epa.
7) All conversions into CO2 are based on U.S. EPA eGRID regional emission data: https://www.epa.gov/egrid/power-profiler#/.
8) U.S. EPA Greenhouse Gas Equivalencies Calculator: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator.
9) This total includes 18,618 metric tons of avoided CO2 through assets that Metrus has financed but does not own.
10) Savings in 2024 are determined by measured and verified savings using IPMVP when available. Otherwise, expected savings are included. In instances where the calendar year may not align with a project’s annual period, savings are weighted between calendar years based on the project’s substantial completion date.
11) Electricity, natural gas, and fuel oil savings were individually converted to MMBtu, and total MMBTU was converted to equivalent barrels of oil using data from the U.S. EPA: https://www.epa.gov/energy/greenhouse-gases-equivalencies-calculator-calculations-and-references#oil.
12) U.S. EPA WaterSense: https://www.epa.gov/watersense/types-facilities.