When seeking funding, environmental and sustainability professionals must clarify how their role and the proposed project fit within the business' strategy. This article provides a checklist for those seeking funding for sustainability and environmental projects. The suggested questions will assist non-executive directors in evaluating sustainability-focused proposals.

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Are your sustainability projects resonatingwith the
business?
by TURLOUGH F GUERIN FGIACompany Secretary, Bioregional Australia Foundation and Chair, Ag Institute of Australia
Environmental and sustainability professionals and managers (ESPMs) are required to
develop business cases in support of proposed projects, programs and initiatives (PP&Is)
they propose as do other parts of a business. Often what is overlooked by these
professionals is a clear understanding of the financial business models of the
organisations for which they work. Also, they tend to use language they are familiar with,
i.e. that known to ESPMs, rather than the language and nuances understood by those in
the business with commercial and governance responsibilities.
Understanding the business model is one of the critical issues for ESPMs to understand. What is needed
by the ESPMs is business thinking, formed through asking business-focused questions, that will enable
these ESPMs to determine whether their PP&Is are aligned to the business' core objectives and whether
these PP&Is should be funded and progressed. Non-executive directors need to be aware of these
challenges that specialist managers and executives face as they pitch their proposals for funding or
When seeking funding, environmental and sustainability professionals must clarify how their role and
the proposed project fit within the business' strategy.
This article provides a checklist for those seeking funding for sustainability and environmental projects.
The suggested questions will assist non-executive directors in evaluating sustainability-focused
proposals.
Page 1 of 5
board acceptance.
Purpose
While the author recognises the challenges that ESPMs face when developing and proposing projects
for funding, such professionals need to learn the language of business and be prepared to uncover the
business model. Focused questioning can enable this. This can then enable alignment between
sustainability and business objectives.
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2. 43Governance Directions February 2020
board acceptance.
Purpose
While the author recognises the challenges that ESPMs face when developing and proposing projects
for funding, such professionals need to learn the language of business and be prepared to uncover the
business model. Focused questioning can enable this. This can then enable alignment between
sustainability and business objectives.
The questions in this paper have been organised around the successful business text and training
program, Business Think, as well as from the author’s experience of working in sustainability roles.
Barriers to getting sustainability on board
The existence of the UN Sustainable Development Goals, government or industry initiatives in ESG, or
corporate commitments to sustainability doesn’t mean these proposals will get internal support. They
must meet an organisation’s requirements or hurdles for funding.
There are many reasons why environmental and sustainability projects are not adopted. It’s a multi-factor
challenge however if the business’ core purpose is not considered, then it is likely the project won’t be
adopted. The lack of a clear and compelling financial business case for environmental and sustainability
PP&Is is a key reason for why these PP&Is are overlooked and not funded or supported.
Knowing the right questions for the business
While the following questions apply to any business situation, they have been prepared for an audience
of ESPMs because of the author's experience, and focus of this article. Even if answers cannot be
obtained, these questions are, as a minimum, a way to start conversations with the finance, commercial
and executive functions of their organisations. They are also meant for ESPMs to ask of themselves and
their teams.
1. Know the objective of environmental and sustainability projects, program or initiatives:
For your organisation to take environmental and sustainability PP&Is seriously, you will need to
decide on and understand the objective, scope and the end in mind of the proposed project,
program or initiative (simply referred to as PP&Ithroughout this article). These could include the
following questions, which should focus on your rationale for identifying and running this particular
PP&I:
The lack of a clear and compelling financial business case for environmental
and sustainability PP&Is is a key reason for why these PP&Is are overlooked
and not funded or supported.
What is the burning platform or the compelling reason to act or change?
Do you have a compelling argument for this project, program or initiative?
Is it in line with the organisation’s business strategy?
What would this PP&Ienable the company to do and achieve?
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2. Ensure the right people are involved: This should include who you think is needed from the
business’s perspective. The right people don’t necessarily mean those people in the business that
you think support the environmental and sustainability PP&Is. These questions include:
3. Ensure diversity of thinking and get curious: Ask questions and gather perspectives from your
company’s collective intellectual and wider diversity. These could include the following questions:
4. Focus attention on the vital few issues: After the questioning in section 3 (above), there is a
need to focus on the organisation. Make sure you are not guessing at what is likely to work best.
These could include the following questions:
5. Convert the soft evidence into hard evidence that the business can measure: You need to
get soft evidence for why the project is important. Collect the soft evidence to prove that the
business problem or opportunity exists. These could include the following questions:
6. Convert the hard evidence into a financial equivalent: With these questions, you ensure that
you calculate the impact of the proposal and/or project on the business. To get hard evidence,
Is the decision to do the PP&Isitting at the right level [of authority] in the business or
organisation?
Are you considering, and where necessary, working delicately and sensitively with the egos of
others to keep dialogue open?
Have you checked your ego at the door?
Are you getting senior executive and or board input?
Are you being sufficiently curious? Or have you jumped to a solution too soon?
Why work on this project and not another?
Do your suppliers and customers think the PP&Iwould be worthwhile?
Are you involving all the critical stakeholders of the organisation?
Will the proposal or project help build these relationships or put them at risk?
Do you understand the business model of your organisation?
Are you getting to the underlying business issues?
What are the vital areas of the business related to this PP&Ieg procurement, talent management,
bid management, etc?
Can you now clearly articulate to the CEO/board why this is important?
If the risks [that the project is addressing] were to precipitate, would the officers of the
company/organisation be able to defend themselves? [Did you take all reasonable and practical
steps?]
Will the project comply with legal constraints and can you demonstrate that officers of the
company are discharging all of the relevant compliance obligations?
What new risks if any will it introduce into the business?
Will it enable the organisation to reduce its exposures to risk?
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4. 45Governance Directions February 2020
these could include the following questions:
7. Explore the ripple effect: Carefully consider who or what else in the company is affected by the
problem or opportunity. These could include the following questions:
8. Slow down for ‘yellow lights’: These questions ensure that you slow down to ‘take stock’. You
don’t want to push ahead with a PP&Ithat is doomed to failure. These could include the following
questions:
9. Treat the cause of the problem rather than the effects: When considering new PP&Is, identify
the cause producing the symptoms that are showing up. These could include the following
questions:
This is an extensive list of questions.
ESPMs should ask these of themselves during project planning and before presenting business cases to
seek funding approval. ESPMs are not expected to ask all of these questions but rather draw upon these
in discussions with other professionals in their organisation. By addressing these questions during the
process of seeking funds, it is hoped that these questions will help unblock projects that get stuck in the
corporate project approval pipeline.
What is the proportion of the organisation's spend associated with this PP&I?
What amount of revenue could it generate?
Will the required investment mean a reduction in OPEX or CAPEX?
How else will it likely impact on the organisation’s financials eg cash flows, balance sheet?
What would be the payback in years/months?
If the project is out of the budget process, how will impact it on the existing budget envelope?
What will be the financial benefits?
Has the board a clear understanding of what constitutes environmental, social and governance
responsibilities within the organisation and how will this PP&Iimpact on ESG policies and
position?
Has the board considered emissions and energy use and their risk consequences for the
business?
Will the decision to invest in the environmental and sustainability PP&Ideliver on the company’s
strategy?
Will the project help drive alignment of activity in the company with the core business strategy?
Will the PP&Iimpact other KPIs in the business? If so how are they likely to impact the business?
What has stopped the organisation from successfully doing something about this before now, or
what might stop it in the future?
Can you justify the decisions about this PP&Ito the business’ executive and board, and to
external authorities?
What are the impediments to your organisation executing the PP&I(s)?
Do you know the underlying cause of the problem or opportunity you are proposing to embark on?
Is the proposed PP&Igoing to address underlying symptoms or effects?
Will the proposed PP&Isolve the underlying problems being faced by the organisation?
By agreeing to this PP&I, will this introduce more complexity into the business?
Will the execution of the proposal streamline or simplify existing complexity in the business?
Governance Directions, February 2020
6. Convert the hard evidence into a financial equivalent: With these questions, you ensure that
you calculate the impact of the proposal and/or project on the business. To get hard evidence,
steps?]
Will the project comply with legal constraints and can you demonstrate that officers of the
company are discharging all of the relevant compliance obligations?
What new risks if any will it introduce into the business?
Will it enable the organisation to reduce its exposures to risk?
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Non-executive directors can help ESPMs to get their proposals aligned to the business, and by knowing
the questions these proposals should be answering, can help leverage the new value a sustainability and
environmental lens can bring to a business.
Summary
While there are usually many worthwhile PP&Is concepts in any organisation, only those that create new
value for the organisation and that meet that businesses' commercial and financial success criteria are
likely to be supported. This should be the case whether projects relate to environmental or sustainability
objectives or any other project or business objective.
In summary, ESPMs should seek to understand the drivers of commercial success of their organisations.
Understanding and talking the language of the business is central to this, along with a curiosity of why any
of their PP&Is should be supported. While this should be the case for any business or organisational
professional, it is particularly the case for ESPMs which can be seen as driving agendas separate to or
even contrary to commercial objectives.
Turlough Guerin can be contacted on 0439 011 434 or by email at austsecretary@bioregional.com.
Material published in Governance Directions is copyright and may not be reproduced without permission. The
views expressed therein are those of the author and not of Governance Institute of Australia. All views and
opinions are provided as general commentary only and should not be relied upon in place of specific accounting,
legal or other professional advice.
Governance Directions, February 2020
This is an extensive list of questions.
ESPMs should ask these of themselves during project planning and before presenting business cases to
seek funding approval. ESPMs are not expected to ask all of these questions but rather draw upon these
in discussions with other professionals in their organisation. By addressing these questions during the
process of seeking funds, it is hoped that these questions will help unblock projects that get stuck in the
corporate project approval pipeline.
Will the proposed PP&Isolve the underlying problems being faced by the organisation?
By agreeing to this PP&I, will this introduce more complexity into the business?
Will the execution of the proposal streamline or simplify existing complexity in the business?
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