Going Green Boosts the Bottom Line

Incentives to "go green" can cut the cost of rehabs, moves, expansions, and new projects in ways most businesses don't even realize.

Profit-oriented businesses that give heed to protecting people or the planet do very well indeed. The reasons are three-fold: “Greened” companies cut their costs of doing business (electric bills and the like); attract new customers who want to do business with a company that cares; and may open an entirely new market.

Consider Tyga-Box Systems, which exists both to make a profit and eliminate waste. Tyga-Box is a New York-based company that started because its founders were disgusted by the hassle and waste of cardboard (read “trees”) that are inherent in most moves, whether residential or corporate. So they invented reusable plastic boxes on dollies that minimize both problems.

Or companies whose well-treated employees work hard to up the bottom line. Winning Workplaces rewards such companies each year. Its 2010 pool of finalists have an average business growth rate of 151% since 2007. With the economic turmoil of the last three years, that's says a lot about treating people well.

"It's not all new age theory; there are real, true bottom-line benefits to going green in whatever shape or form you can manage," says Susan Lanfray, marketing director at New York City-based ERE Accountants and Advisors.

The trouble is, Lanfray adds, most people don't know about all the incentives, grants, low- or no-interest loans, tax credits, tax deductions, and abatements available from the federal, state, and city governments as well as from utility companies.

To find all the benefits, a lot of research is required: Each level of government has its own offers and its own priorities for everything from changing light bulbs to using solar power. It's possible, Lanfray says, for a green rehab to be less expensive than a non-green one. In fact, an educational institution found that a gut-rehab of recently acquired property would be less expensive if done "green."

Interest in the triple bottom line – people, planet and profit – is widespread. ERE's “green bottom line” came about because clients wanted to be socially responsible. It was demand-driven, not a “nice to do

ERE's “accounting for the green bottom line” determines the bottom line for a building renovation, upgrade or other physical change. The calculation takes into consideration:
• Tax benefits and incentives
• Reduced operating costs
• Enternal rate of return for the incremental investment

These will vary depending on the project, and the incentives and tax benefits available at the time. Systems that can generate rebates, loan interest loans, tax credits and other incentives include:
• Interior lighting
• HVAC
• Hot water
• Building envelope: insulation, windows, roof

You may find that replacing the old boiler that was on its way out or investing in an approved energy-efficient system – such as solar or wind power   will provide you with heat and A/C, still save energy costs, and require a smaller initial outlay due to the tax credits, rebates, low-cost loans. and other incentives out there.

"There are a lot of rules," Lanfray says, "but the money is definitely there. It's a window of opportunity that will not last forever. Don't screw in a new light bulb until you see what incentives are available for lighting. It might cost far less than you think and you've taken an important step to meet your responsibilities." She adds that many of these incentives are on offer for a limited time. “It's a window of opportunity that will not last forever," she says, and urges companies to look into the benefits before incentive programs end.

It's a good time to look into these options now for another reason: Laws have been put in place to hold businesses responsible for their carbon footprints. Both New York State and New York City are keen on reducing carbon footprints and have put in place requirements for businesses. In fact, contrary to the "It's a California thing" image that going green brings to mind, New York state and city are leaders in emission reductions.

"There's been a real push by the state and the city, more than anyone would think possible," says Katherine Walsh, ERE director of business development. Hence, the rules, regulations, and incentives – at every level of government, in every state.