First Steps in Making the Business Case for Sustainability

Go to Course: https://www.coursera.org/learn/sustainable-business

Introduction

### Course Review: First Steps in Making the Business Case for Sustainability #### Overview The course "First Steps in Making the Business Case for Sustainability," offered by the Business School at the University of Colorado Denver, serves as a vital introduction for those looking to become change agents in the realm of sustainable business. Designed to equip participants with the necessary skills and knowledge, this course aims to empower professionals with the tools required to advocate for, and implement sustainable practices within their organizations. As the urgency of addressing climate change and social responsibility intensifies, this course provides a timely opportunity to become a leader in sustainable business change. #### Syllabus Breakdown **1. Introduction to Change and Change Agents** In the initial module, students are introduced to the concept of change agents—individuals who drive transformations toward sustainability in their business environments. The focus is on identifying the right changes to advocate for and understanding the essential components of a successful proposal. This foundation is crucial, as having backing from key stakeholders is critical for the success of any sustainability initiative. **2. Finding a Good First Project** This module discusses how to choose an appropriate first sustainability project. It emphasizes the importance of establishing a baseline for measuring the impact of changes—an essential skill for anyone looking to validate their proposals and demonstrate their effectiveness. **3. Financial Analysis for the Business Case** Understanding the financial implications of sustainability is paramount. This module introduces participants to **Net Present Value (NPV) analysis**—a standard financial tool used to quantify the potential financial benefits of sustainability initiatives. The ability to present a positive NPV when proposing a project enhances the likelihood of getting stakeholder buy-in. **4. Starting to Make the Business Case for Sustainability** In this section, students discover the tangible benefits of sustainability and the economic challenges that hinder sustainable practices. The course provides insights into **market failures** such as externalities and resource problems, equipping students with the vocabulary and knowledge to articulate non-monetary benefits, which can be equally persuasive in making a business case. **5. Sustainable Thinking** The course culminates in an exploration of various sustainable thinking frameworks, each of which offers a unique perspective on how to approach business challenges sustainably. The principles of life-cycle thinking, circular thinking, and systems thinking, among others, empower students to not only identify areas for improvement but also to explain their benefits effectively to decision-makers. #### Overall Impressions The course is well-structured, combining theoretical knowledge with practical applications. The modules not only provide foundational concepts but also bridge the gap between sustainability theory and real-world application. The diversity of topics ensures a comprehensive learning experience, making this course suitable for individuals from various professional backgrounds seeking to enhance their understanding of sustainable business practices. Participants will benefit greatly from the practical nature of the assignments and the emphasis on developing a sound business case for sustainability initiatives. As a change agent, the confidence gained through mastering both the financial and operational aspects of sustainability is invaluable. #### Recommendation I highly recommend "First Steps in Making the Business Case for Sustainability" for professionals in any industry interested in promoting sustainable change within their organizations. The course's focus on practical, actionable skills makes it an excellent choice for both newcomers to the field and experienced professionals looking to refresh their knowledge. In a world where companies are increasingly held accountable for their social and environmental impact, having the skills to advocate for sustainability is essential. This course not only equips you with the necessary tools and insights to drive change but also places you at the forefront of one of the most critical movements of our time—sustainability in business. Whether you are a manager, a team leader, or simply passionate about creating positive change, this course will enhance your ability to make compelling cases for sustainable practices, ultimately benefiting both your organization and the planet.

Syllabus

Introduction to Change and Change Agents

Welcome to the first class of Become a Sustainable Business Change Agent. This week we introduce you to several people who are making changes and talk about the class and the entire specialization. We also begin to think about what type of changes you should look for at the start of your change agent career. Finally, we discuss what a good proposal has to do to be approved. The proposal has to convince decision-makers that your change helps the company or organization. So you need to make sure that the right people support your idea, that the right person receives it and that you have made a sound case for the sustainability change you are proposing. During the next classes we will help you learn the tools to put together a powerful proposal and to identify the key people who will influence your idea being implemented. We hope by the end of this specialization you will have a proposal for a change in your company, or have the tools so when that opportunity arises you can be an agent of positive change.

This week we discuss what you should be trying to accomplish with your first sustainability change project and give you some ideas of the types of projects that are likely to be successful. We also introduce the notion of establishing a baseline so you can measure the effect of your change.

An important aspect of making the business case of change is to show the likely financial impact of the change. Ideally, we will find improvements that increase profits either by saving the company money or by increasing sales. To demonstrate these financial benefits we use a standard tool from financial analysis - Net Present Value analysis (NPV). The idea underlying Net Present Value analysis is that we estimate all the cash inflows and outlays associated with a project, then through a technique called discounting (or computing the present value) we shift all the cash flows into the present so they can be compared. You cannot compare an outlay made to day directly to a cash flow or profit to be received in two or three years. Combining the present value of the cash flows - adding the present value of benefits and subtracting the present value of outlays - gives us the Net Present Value. If the NPV is positive the benefits, adjusted for time, more than offset the costs and the project enhances the value of the company. If the NPV is negative then the monetary benefits do not more than offset the costs. But there may be non-monetary reasons for pursuing the project. This is where we begin to consider the reasons for companies becoming sustainable discussed in Week 2 of this module. The business case includes the financial impact and non-monetary sustainability impacts of the change.

In this module we cover two topics: The benefits for companies of being sustainable and aspects of our economic system that prevent/discourage companies form being more sustainable. The goal of the module is to give you the first tools for making the business case for sustainability. The benefits of sustainability will be important as you put together your proposal for change. If you work in the sustainable business arena very long you will need to know some of the vocabulary and economics that cause some of our environmental and social problems. These are market failures. We'll introduce three: externalities, common access resource problems and information failures.

The Business School at the University of Colorado Denver wants to help you become a change agent for sustainable business. We hope that with the skills and concepts you gain from this specialization that you will help your business reduce its social and environmental impact. Being a change agent is hard. It takes courage and passion and knowledge. To implement change also requires being able to make the case for that change in terms that people in your company or organization respond to and understand. We begin our journey to being a change agent by introducing sustainability thinking. Sustainable business requires a new way of seeing and thinking about how business operates. By beginning to think sustainably you will be better able to identify ways that your company can improve and explain those changes to decision makers. We will look at 6 ways of thinking related to sustainability: • Life-Cycle Thinking • Long-Term Thinking • Circular Thinking • Resilience Thinking • Systems Thinking • Context Thinking