Sports stadiums and arenas have been in the greening business for almost a decade, which is a great thing. But do venues and teams know how much energy they’re saving, how much waste they’re diverting from landfill, and more? You would think so but measurement of greening lagged actual greening. Until Matt Ellis and Measurabl came along. GreenSportsBlog talked with Matt, the company’s founder and CEO, to understand how he got into the sustainability measurement business, where sports fits in and…what happened to the last “e” at the end of Measurabl.
GreenSportsBlog: When thinking about Measurabl, this adage comes to mind: “What gets measured gets managed. And what gets managed matters.” How did you get into the sustainability measurement space and why the big move into sports?
Matt Ellis: Well, Lew, we have to go back to 2008 to get to the beginning of the story. I was working in real estate in the San Diego area — I’m a San Diego guy, went to UC San Diego undergrad and San Diego State for grad school, my family was in the real estate business. I was working for CBRE at the time…
GSB: …When the “econ-o-pocalpyse” hit…
ME: Exactly! My business was not that strong, to say the least. I had plenty of time on my hands, walking around town, looking for deals. I saw plenty of decals on buildings, decals like “LEED ” and “ENERGY STAR.” I started to ask “why?” I found out sustainability drives higher occupancy rates, higher quality tenants, and higher rents, among other positive outcomes. Not long after that, CBRE management asked me to start and run a sustainability practice group.
Matt Ellis, founder and CEO of Measurabl (Photo credit: Measurabl)
GSB: Was that in the San Diego area or national? How did it go?
ME: National. Despite the economic collapse, we were getting calls consistently from our clients who were interested in how they could leverage sustainability in their real estate portfolios. By 2010-11, we had started to offer RECs, offsets, and the first carbon neutral leases. Eventually I became CBRE’s Director of Sustainability Solutions. As all this was happening, I noticed our sustainability efforts lacked one key thing: data. We needed better measurement tools so we could learn what worked and what didn’t, sustainability-wise. We needed to be able to benchmark on a number of metrics so we could measure progress over time. Every time we looked at measurement, we were told it was too hard, too costly.
GSB: Did you accept that?
ME: Not at all. In fact, I started to ask this question: “Can we provide meaningful sustainability measurement tools?” That would be a big deal. As I investigated this question, I realized that a software solution is what was was needed. We needed to gather environmental, social and governance (ESG) data, create benchmarks for buildings and then be able to sort all of this data. The goal is to know how buildings perform in terms of energy usage, carbon footprint, materials, waste, environmental certifications and more. Convinced that an environmental benchmarking and measurement software platform was indeed doable and valuable, I left CBRE and incorporated Measurabl in 2013.
GSB: How did Measurabl do out of the gate?
ME: We’ve done well the last couple of years, providing environmental benchmarking and measurement software to real estate investment trusts (REITS), asset managers like Black Rock, property managers like CBRE, and corporations like VMware, among others. They’ve found great value in it.
Matt Ellis at the whiteboard during the early days of Measurabl (Photo credit: Measurabl)
GSB: Congratulations! What is the Measurabl business model? What is a reasonable ROI for a client?
ME: We provide three Software as a Service aka “SaaS” plans: Basic, Pro, and Premium starting at no cost for the “Basic” plan and going to over $100/building/month for the most feature rich plan. Each provides for data management, benchmarking, and reporting and, depending on the level you sign up for, the client can achieve different ROIs which include cost savings from resource management and efficiency through to Investment Grade reporting which helps them secure lower interest rates on their loans and preferred access to capital from investors.
GSB: That sounds like a great deal for a property manager or building owner. What made you think of sports as a vertical for Measurabl?
ME: Sports makes sense for a couple of reasons for Measurabl. One is that over half of our workforce are athletes, mostly from the world of water polo, which I played at UCSD. And benchmarking sustainability metrics is kind of like how sports uses statistics: data stokes the competitive fire in athletes as well as in building or venue management. So we get sports culturally and from a data perspective. So it fits that Chase Cockerill from our business development team, an athlete himself, made a call to Jason Kobeda at Major League Baseball and Jason said “we get it, this is cool, this can help us take the game to the next level, literally” We established the relationship with MLB in April, right around Opening Day.
Measurabl’s CEO Matt Ellis (l) and business development executive Chase Cockerill at June’s Green Sports Alliance Summit in Atlanta (Photo credit: Measurabl)
GSB: WOW! That was super quick! Did all 30 teams buy in?
ME: Yes, the relationship is at the league level so all clubs and venues can access the software. So far about two thirds of the clubs are on board and the rest are ramping up. We’re providing them with data management and benchmarking on energy usage, water usage, carbon footprint, waste diversion, environmental impacts of upgrade projects, certifications and reports.
GSB: What kind of reports?
ME: For example, our software can generate a CDP report for the League. CDP is a well-known global standard for reporting carbon performance. We can also provide stadium level reports specific to each venue.
GSB: That has to be a huge time saver for the clubs.
ME: Absolutely. It is also a way to improve the accuracy of the data and therefore make more informed decisions. At the same time we talked to the Green Sports Alliance (GSA). GSA’s Erik Distler said “all of our members share a common set of needs around data management” so we then went on to form an exclusive, worldwide partnership with GSA to be their data management and benchmarking partner and platform.
GSB: That is terrific. How is the stadium or arena environment different from a high-rise office building in terms of benchmarking and measurement?
ME: The sports venue environment is generally more complex than a typical commercial building. Think of Mercedes-Benz Stadium in Atlanta. There’s the retail components, the exterior parking areas, the solar panels the field, boxes… Right now, we’re able to compare a venue’s performance, year-over-year by breaking the space down to its constituent parts and comparing that performance across like-kind spaces to create benchmarks.
GSB: What about comparing stadium vs. stadium, arena vs. arena?
ME: That’s the next step, and a big part of MLB and the Alliance’s leadership, which is to create a global benchmark for sports facilities. Comparing stadiums to each other, when all of them are unique, is tough. But that’s what we love about the sports world — whether it’s MLB, the NHL, NASCAR or the Alliance — they don’t accept “it’s too tough” to compare, and neither do we. Eventually, we hope to put all venues in a given sport on the platform and to create an “apples-to-apples” comparison that is meaningful. The more data, the more facilities, the more accurate the benchmark. It’s a “team effort” so to speak! The good news is the momentum is strong and roll out well underway.
GSB: I have no doubts. Does the Measurabl platform measure fan engagement and interest?
ME: We do reporting really well. The reports can be easily understood by fans. It’s up to the clubs to decide to tell the sustainability stories but we certainly advocate that they do so on a consistent basis.
GSB: We will check back with you after this season to see how the teams are doing on the fan engagement piece. Meanwhile, I have one last question: What happened to the last “e” in Measurabl?
ME: Ha! “Measurable” was too traditional – not “startup” enough, so drop the “e” and it was a home run.