Developing an ROI for Sustainability-Part 1
One of the biggest challenges that business leaders face regarding sustainability is-how to implement a sustainably focused business strategy while at the same time protecting or growing the bottom line. There is a perception, largely based on past history, that the costs associated with developing and implementing a sustainability program out way the benefits. More and more studies are showing just the opposite to be true. I have highlighted some of them in previous posts. Quantifiable bottom line benefits can be demonstrated for high visibility and low visibility programs. Although they sometimes require a longer term view (and in today’s economy when results are measured increasingly on quarterly let alone annual basis that can be challenging) the results can be shown.
The path to developing a case for the ROI of sustainability can be developed on a departmental or on an organizational basis. For this to happen effectively however, it is critically important to get buy and leadership from operational managers. Leadership is the first and most critically important step in the process. Once leadership develops the vision and commitment to create a sustainability plan than the process of weighing the return, developing a business case and creating project budget can begin. Over the next 3 posts I will look at the ROI of some very specific technologies and show how properly implemented, they can help business leaders reduce costs, minimize risks and deliver direct bottom line benefits. I will look at alternative energy solutions including wind and solar, carbon footprint analysis and recycling and in each case show a strong business case for each.
-FR
Recent Comments