Building the Sustainability Business Case
There is an extremely compelling business case for investment in sustainability management, yet some organisations still find it hard to clearly articulate the hard financial benefits and build a Return-on-Investment (ROI) model that makes sense for their business. This is mostly due to the “hidden benefits”, i.e. those benefits beyond simple environmental and compliance reporting risk, that are missing from the majority of such business cases.
Leading organisations that have invested in sustainability are seeing significant financial returns, including a reduction in environmental reporting risk (RC), a decrease in the consumption of natural resources known as the organisational metabolic rate (MR), and an increase in talent attraction and retention (T).
It is possible to quantify the benefits available by using the simple equation shown here.
As an example, let’s assume your organisation has £10m of energy costs, £22m of business travel costs, £3m in combined water & waste handling charges and a 5% employee attrition rate.
By analysing energy hot spots and introducing reduction campaigns, enabling employees to consider and suggest alternatives to business travel and providing employees with insight into their own individual environmental impact, savings of the order of magnitude of £5m per annum can rapidly be achieved with an average return-on-investment of less than 3 months.
- Download our guide to building a compelling Sustainability Business Case
- Download our guide to building a compelling Employee Engagement Business Case
CloudApps software is helping our customers to unlock this potential right across their business. Learn more about the business value that can be derived from implementing a sustainability strategy:
- Operational Efficiency & Compliance Reporting
- Organisational Sustainability
- Employee Engagement
- Product & Service Sustainability
- Sustainable Community
CloudApps are unique in solving the sustainability challenge both “top-down”, by enabling a core team to identify and implement sustainability initiatives, and “bottom-up” by giving each employee visibility to their team and their own impact, suggesting actions through an innovative desktop application. Find out how:
CloudApps allows every CFO to drive through a 5 to 10% operational cost reduction on a green agenda.
Larry Hirst, Former Chairman, IBM EMEA
