Funding Sustainability Projects in a High Interest Rate Environment
Article from MHI Solutions Magazine
With record-breaking hot temperatures this summer, the focus on climate change, emissions reduction and sustainability will likely face renewed pressure. This focus could engender increasingly stringent environmental regulations for the supply chain, material handling and logistics industries. We expect these regulations will increasingly promote emissions transparency, the adoption of renewable energy and the transition to zero-emission vehicles. Mandates to improve non-renewable resource utilization and transform facilities, fleets and entire corporate entities will also cost money.
In the long run, many sustainability initiatives can help generate significant cost savings. For example, zero-emission vehicles offer potential long-term cost savings because they generally have lower operational and maintenance expenses than conventional vehicles. Reduced fuel costs, potential government incentives and decreased maintenance requirements contribute to overall cost reduction. As technology advances and economies of scale improve, the costs associated with zero-emission vehicles are expected to fall further, making them more financially feasible.
Another example of long-term cost savings would be the installation of renewable energy assets. Solar, wind and other renewables usually require significant upfront investments. Fortunately, there may be opportunities to seek partnerships, government incentives or pools of capital dedicated to green energy that you can access to defray some of those upfront costs.
