Financial case for a sustainability project

From the lecture power point on Financing and Assessing:

1) Describe an example (your own, not one of mine) of how making the financial case for a sustainability project can overcome resistance to the project.

From the Lifecycle Cost Analysis overview and Stanford example:

2) Even if a sustainability project might bear a higher up-front (capital) cost, explain how it can be justified over the long-term.

From the ROI and Payback Period videos:

3) What is a reasonable ROI % and Payback Period for a new capital investment? How might those answers vary for a for-profit vs. a not-for-profit organization?

From Confessions:

4) Chapters 10 and 11 continue with the theme of assessing progress on sustainability goals and specific initiatives, but also introduce the HUMAN component of sustainability, including addressing ways they care for their own employees and for the communities they are a part of of. Describe one example of how Interface is addressing the “People” or “Social Equity” component in the “Triple Bottom Line” of Sustainability?

Answer preview

The ROI percentage and payback period vary between for-profit and not-for-profit organizations. For-profit organizations prioritize the profitability and financial returns of the project to be implemented. Therefore, these organizations tend to choose projects with higher ROI percentages and lower payback periods (below 3 years). Profit-making companies are generally driven by the goal of generating profits for their shareholders (Shakouri et al.,2017). On the hand, not-for-profit companies are driven by other objectives like meeting their missions rather than maximizing financial returns. Therefore, ROI and payback period varies with specific circumstances, including long-term suitability, community benefits, and social impact.

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