How to make the business case for your low carbon project
Engineers and building operators must make a "compelling case" if they are to have any hope of getting the support of financial decision makers for low carbon investment in these increasingly difficult financial times.
The Carbon Trust has, therefore, produced a 'how-to-guide' called: 'Making the business case for a carbon reduction project'. It is based on research conducted amongst senior executives who have provided "valuable insight into what decision makers are looking for when considering whether to invest in a project", according to the Trust.
The guide covers the process of securing investment from start to finish and logically works through the steps of gathering data and evidence, building the case (including considerations of finance and risk), drafting the proposal, presenting it and then maintaining momentum.
"For any business there is a finite pool of resource, and the first priority for any investment will be to drive the business forward," said Hugh Jones, the Trust's director of solutions. "It is vital for managers to be able to make a robust business case for their low-carbon project, which stacks up against other business priorities and which clearly articulates the ROI."
The guide highlights the common mistakes made when presenting a business case including using unexplained jargon or ambiguous terms, failing to indentify and deal with risk factors, not using the appropriate financial appraisal methods and not giving a single clear recommendation.
The Trust has launched the guide alongside a new online resource designed to help businesses through each step of planning a project. To access the different services click on the named links below:
Defining your needs - once a potential project has been identified use the new 'How to Implement' guides to define a solution in further detail before approaching potential suppliers.
Developing the Business Case - Learn how to prepare a business case to justify your project to senior management and secure the financial and other resources required here.
Procurement - once a project has been signed off what questions should a potential supplier be asked in terms of their qualifications and expertise?
Produce the right specification - Learn how to agree a specification with a supplier that clearly defines the requirements and the objectives of a project.
To view the whole planning resource tool click here.