You're advocating for sustainable initiatives. How do you convince decision-makers of their ROI?
To sway decision-makers on sustainable initiatives, it's crucial to demonstrate their long-term return on investment (ROI). Here's how to build your argument:
- Quantify savings from resource efficiency and waste reduction.
- Present customer and market trends favoring eco-friendly businesses.
Curious about how others have championed sustainability in their companies? Share your strategies.
You're advocating for sustainable initiatives. How do you convince decision-makers of their ROI?
To sway decision-makers on sustainable initiatives, it's crucial to demonstrate their long-term return on investment (ROI). Here's how to build your argument:
- Quantify savings from resource efficiency and waste reduction.
- Present customer and market trends favoring eco-friendly businesses.
Curious about how others have championed sustainability in their companies? Share your strategies.
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1. Undertake transition risk assessment & present their financial impacts for the company - Regulatory risk from current & future ESG regulations, technology risk, reputation risk, market risk, competition risk due to transition to low carbon economy and its potential impact on company's Operating expenses, CapEx, Revenue, & Profitability. 2. Start with low hanging fruits - Do some research & come up with initiatives which are inexpensive but effective - e.g. circular economy related initiatives, energy efficiency and saving, car sharing. 3. Undertake external stakeholder survey including investors, customers, & suppliers and understand their sustainability related expectations from the company and record potential risk & opportunities.
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I’ve seen in the past how sustainable initiatives not only align with corporate responsibility but also deliver measurable ROI. By leveraging data analytics and IoT, we’ve optimized energy use in our data centers, resulting in significant cost savings. Additionally, sustainable practices enhance our brand reputation, attracting eco-conscious clients and talent. I focus on presenting these tangible benefits to decision-makers, emphasizing long-term gains that outweigh initial investments. It’s about showing how sustainability drives both financial performance and stakeholder value.
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Why would any business pay a waste hauler to "cart air" off their property? When it comes to ROI, waste reduction is the fastest, easiest switch to make for efficiency optimization. Businesses can work with their hauler, or a zero waste consultant like myself, to get a "right-sized" approach on dumpster capacity and frequency of weekly pickup. This will help meet actual business service needs, not the arbitrary needs a hauler THINKS your company might need, which causes over servicing and overcharging. This can start saving your company money in the 1st month of updated service terms. And, any cash savings can be routed to help offset the costs of new waste diversion programs, such as recycling and food waste composting.
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It can be challenging & rewarding at the same time when we are advocating for sustainable initiatives with its ROI. We can present our case with tangible benefits that it could reap on Investment with estimated years of breakeven plus showcase benefits of improving on brand reputation, savings from energy efficiency, cost reduction, increasing employee productivity & long term value creation that will ultimately attract investors and build trust in customers and other key stakeholders.
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From my experience, making a strong case for sustainability involves showing how it directly impacts the bottom line over time. By presenting real-world examples where sustainability has driven profitability, along with clear data on cost savings from resource efficiency, and emphasizing the growing market demand for eco-friendly practices, decision-makers can see the tangible benefits.
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