Dominick Brook and Akshay Honnatti, Area Development
Companies are setting increasingly ambitious goals in their environmental efforts. It is a shift driven by investor and stakeholder demands for environmental sustainability and social responsibility, as well as governmental regulations and environmental taxes. Conventional wisdom has been that environmental efforts increase the cost of doing business. In reality, the sources of funding are increasing, along with diverse types of financial incentives, giving organizations worldwide opportunities to offset the cost and increase the ROI of sustainability strategies.
Incentives are varied. Depending on the nature of the investment, they may take the form of grants; tax abatements or deductions; or utility discounts or rebates. Governments are taking a strong interest in environmentally sustainable economic development. Increasingly, agencies and tax authorities are offering incentives for organizations to invest in sustainable projects and technologies. Similarly, utility providers offer energy efficiency incentives to lower production demand and alleviate stress on the grid.