PROJECT-LEVEL BUSINESS CASE
“Senior leaders and decision-makers in business need to see a rigorous cost-benefit analysis, and a projected payback period with return on investment, before approving any major capital investment – and this includes sustainability initiatives. The “Sustainability ROI Workbook” frames the business case for environmental and social initiatives. It is a useful tool that provides key metrics for use in decision-making and helps to demonstrate how sustainability initiatives help businesses create financial value.”
– Gordon Beal, Vice President – Research, Guidance and Support, Chartered Professional Accountants of Canada (CPA Canada)
The Sustainability ROI Workbook is a “book” cleverly disguised as an Excel workbook. It is a tool that helps build a business case for any sustainability-related project. The comprehensive, fill-in-the-blanks Excel workbook is the book.
Watch this clever, short, animated video by Sustainability Illustrated for a quick overview of the workbook: The Sustainability ROI Workbook.
CFO-friendly
When seeking Chief Financial Officer (CFO) approval for a sustainability-related project, proponents need to ensure that their proposal includes cost-benefit information required in a standard capital expenditure (CAPEX) request. The workbook includes the traditional return on investment (ROI) financial analysis of costs and benefits ― hence, its title. Plus, it includes a Project Appraisal Tool that helps CFOs make better-informed resource allocation decisions in the more turbulent 21st century business environment.
Sustainability champion-friendly
The workbook helps users identify, quantify and monetize all potential direct and indirect costs and benefits associated with a sustainability project.
- Superset of potential benefits: Users are prompted to estimate how their project directly or indirectly contributes to over 25 possible benefits from sustainability projects.
- Sample project: The tool includes a sample project that illustrates how the calculations work and the worksheets interact. Users replace the example text and data with their project’s information.
- Just-in-time explanations and guidance: Dozens of just-in-time, pop-up comments provide guidance on how to estimate requested information. Examples of other companies’ experience with a line item are also available in the Sustainability Business Cases Master Slide Deck.
- Automatic ROI calculations: The workbook automatically does the return on investment (ROI) calculations for the project: its payback period, the internal rate of return (IRR), and the net present value (NPV) of its future cash flows.
- Includes risks of not doing the project: In addition to quantifying potential risks associated with doing the project, the workbook monetizes over 25 potential risks of not doing the project.
To expedite its use by the global legions of sustainability champions, the Workbook is a self-published, free, open-source resource. Users are encouraged to create tailored versions for specific sectors, users, other technology platforms, other languages, etc. To access the workbook, click here. You can do this an unlimited number of times.
There are a couple of companion tools that may also be of interest. They were originally in appendices in the workbook, but have been removed and saved here for those interested in these supplementary resources:
Feedback: The tool is being continuously improved. Your suggestions are welcome. Please send your ideas to bobwillard@sustainabilityadvantage.com. Thanks.
Sustainability ROI Workbook LinkedIn group
This group is for anyone interested in engaging with others to exchange ideas on how to use and leverage the Workbook to legitimize integrated thinking and integrated decision-making in the C-suite.
Project-level business case slides
Master – Sustainability Business Cases slide set is one of six slide decks available to Master Slide Decks subscribers. It includes an overview of the project-level business case and backup on the potential opportunities that could be captured and risks that could be avoided if the company were to implement the sustainability project. The deck is updated quarterly.
