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Can a company really achieve 2-4 times ROI from a Net Zero Strategy? Yes.


Written by charlie8180

The typical ROI (return on investment) for a #netzerostrategy can vary significantly depending on the specific measures implemented, the industry, and the size of the SME. 


However, studies have shown that SMEs can achieve an average ROI of 2-4 times their investment in sustainability initiatives.

For example, a study by the Carbon Trust found that SMEs that implemented energy efficiency measures achieved an average ROI of 2.5 times their investment. Another study, by the World Resources Institute, found that SMEs that switched to renewable energy sources achieved an average ROI of 4.5 times their investment.

In addition to these direct financial benefits, SMEs can also achieve non-financial benefits from their net zero strategies, such as improved reputation, increased customer loyalty, and enhanced employee morale. These non-financial benefits can also contribute to the overall ROI of a net zero strategy.

Here are some examples of specific ROI calculations for net zero strategies:

  • Energy Efficiency: An SME investing in LED lighting can achieve an ROI of 3-5 times the investment, due to reduced energy costs and longer bulb lifespan.

  • Waste Reduction: An SME implementing a recycling program can achieve an ROI of 2-4 times the investment, due to reduced waste disposal costs and increased revenue from selling recyclable materials.

  • Water Efficiency: An SME installing water-efficient fixtures can achieve an ROI of 2-5 times the investment, due to reduced water bills and potential tax incentives.

  • Renewable Energy: An SME switching to solar panels can achieve an ROI of 5-10 times the investment, due to reduced or eliminated electricity costs and potential government subsidies.

These are just a few examples, and the actual ROI for a net zero strategy will vary depending on the specific circumstances. However, the potential for significant financial and non-financial benefits makes net zero strategies a worthwhile investment for SMEs.

If you would like to find out more or you need help with your net zero strategy please schedule a call to chat with us now.