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The Carbon Trust’s Dominic Burbridge outlines the dos and don’ts of trying to gain board approval for low-carbon projects
As any sustainability manager knows, the greatest barrier to getting a green project up and running is usually found in the board room.
Gaining management approval for environmental initiatives can be hard at the best of times, and has become particularly difficult in recent months as companies have become loath to authorise capital projects, even when they can deliver substantial medium- to long-term savings.
But that does not mean green executives should give up. The Carbon Trust has recently launched a new guide to help managers maximise their chances of securing approval for new projects, which outlines the common mistakes people make pitching to the board and offers advice on impressing the boss.
BusinessGreen.com caught up with Dominic Burbridge, hospitality sector leader at the Carbon Trust and one of the people behind the new guide, to get his top tips on how to ensure green project proposals stand the best chance of getting a thumbs-up.
Bridge the credibility gap
“There is a need when presenting a proposal to bridge the credibility gap. The people with the good green ideas tend to work in technical areas and understand the benefits of a sustainability initiative, while those who make the final investment decision are more likely to be commercially focused and have a less clear understanding of the benefits. You need to remember that when making your case, and provide details of not just the technical benefits of a project but where it fits into the wider business.”
Use the right language
“When you start to talk about capital costs, discounted cash flows and return on investment you immediately have far more credibility with the board than if you just present an idea. Equally, you do not want to use technical jargon that most people will not understand, and you should be aiming to focus on the business benefits.”
Look for loans
“Before going to the board, research whether there are grants or loans available to help fund the project. At a time when competition for capital is very high, you need to make a good case, and identifying where you can help raise some of the required capital before you even ask for approval can only help.”
Look at alternatives
“A common mistake is that people go to the board and say, ‘this is what we should do’. That will inevitably create more questions than answers and you need to have looked at a number of different options for getting the same result and be able to explain why the project you are proposing is the best course of action. If you are aware of the alternative options then it becomes clear that the whole project has been well researched.”
Get the costings right
“There is a temptation to boil it down and say a project ‘costs x and delivers y in benefits’. But you need to be more sophisticated than that and realise that there are often multiple layers of benefits that need to be recognised. For example, full lifecycle costs should include the lower maintenance costs and improved operations associated with newer kit, as well as the internal resources that you will require. People often forget that when you are going to buy new green equipment, such as more efficient air conditioning for example, you are replacing equipment that would have had to be replaced at some point anyway, so you should be looking at the marginal cost of the energy efficient option as well as the overall cost.”
Run a pilot
“If possible, run a pilot project first. Before and after data that shows quantifiable environmental, cost and business benefits will really help back up your claims that the project is worthwhile.”
Be prepared
“A successful pitch needs preparation. When you are talking to the board, less is more, and you want to try to minimise your air time. You want to set out the key benefits, outline the tangible and intangible benefits in descending order of importance, and let them know how much it will cost. That should be it, and then you need to be in a position to answer any questions.”
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