2.3.2. Demonstrate ROI

Try these first

1. 1.

   What does ROI stand for?

   Hint

   Think about what this term means in financial terms.

2. 2.

   Name one financial benefit of sustainable construction.

   Hint

   Consider how buildings consume energy.

3. 3.

   What does ROI stand for?

   • Return on Investment
   • Rate of Increase
   • Return of Improvement

   Hint

   Think about what this term measures.

4. 4.

   True or False: Demonstrating health benefits is unnecessary when discussing ROI.

   • True
   • False

   Hint

   Consider all the benefits of sustainability.

5. 5.

   A sustainable building project incurred an initial cost of $800,000. Over the next three years, it saved$100,000 annually on energy and maintenance. Calculate the total ROI.

   Hint

   Make sure to calculate the total savings first before applying it to the ROI formula.

6. 6.

   Discuss how you would effectively communicate the ROI to a skeptical stakeholder who values traditional construction methods.

   Hint

   Consider their values and how to connect sustainability benefits to their priorities.