New Carbon Trust guide helps make the low carbon business case 

As securing capital investment becomes more challenging, the Carbon Trust has developed a how-to-guide to help facilities managers, works engineers and environmental managers make an effective business case for investment in low carbon projects. 

The guide, Making the business case for a carbon reduction project, 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.

Developed in response to requests for further advice and support, 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.

Hugh Jones, Director of Solutions, Carbon Trust said:
“For any business there is a finite pool of resource, and the first priority for any investment will be to drive the business forward. It is therefore vital for managers to be able to make a compelling and robust business case for their low-carbon project which stacks up against other business priorities and which clearly articulates the ROI.

 “The new guide, which is based on valuable insight from those who are often responsible for making the decisions, provides step by step advice on how to pull together a successful business case from start to finish and avoid the pitfalls which ultimately lead to failure.”

The guide highlights the common mistakes made when presenting a business case including using unexplained jargon or unambiguous terms, failing to indentify and deal with risk factors, not using the appropriate financial appraisal methods and not giving a single clear recommendation.

Anna Zaka, Facilities Manager at Maxim Logistics based in Corby, West Midlands said:

"When I wanted to replace the lighting in our warehouse with more efficient bulbs and fittings, I trialled a range of technologies and considered several alternatives before presenting my case to the Managing Director for approval. Doing my research meant I had good comparative figures to hand on the costs and ROI and highlighting the additional benefits of a cleaner looking warehouse and a better working environment also helped me make a good case."

The guide is launched alongside a new online resource that helps a business through each step of planning a project.

Areas covered are:

• 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 using the new publication, online financial planning tool and suggested proposal structure
• Procurement – Once a project has been signed off what questions should a potential supplier be asked in terms of their qualifications and expertise?
• Produce Specification – How to agree a specification with a supplier that clearly defines the requirements and the objectives of a project.

To investigate the new project planning resource centre please visit www.carbontrust.co.uk/projectplanningtool.