Читать книгу Integrating Sustainability Into Major Projects - Wayne McPhee - Страница 15

One of the most powerful tools to gain executive-level support for integrating sustainability into major projects is to demonstrate how sustainability can have a positive impact on project financing. This is true for industrial projects that rely on stocks, bonds, and debt financing, as well as government projects where financing could come from project-specific bonds, green bonds, or financing strategies like public-private partnerships (P3s). A strong sustainability program will help improve the project's access to capital, reduce the cost of borrowing money, and improve overall project profitability. Studies have shown that industrial firms “with better sustainability who disclosed their strategies to pivotal stakeholders enjoyed higher stakeholder trust and lower capital access restraints.”¹

Globally, financial institutions have recognized that one of the largest risks for major projects is environmental, social, and governance (ESG) risks and this has led to the adoption of standards for sustainability and ESG management. Financial institutions often perform extensive due diligence prior to providing capital to develop a project. It is now becoming increasingly common for institutions to require an ESG review as part of due diligence and to include regular audits after financing has been approved. This helps to ensure that ESG commitments are being met and that project risks are being managed on an ongoing basis.

A strong sustainability program and project team is essential to addressing ESG risks and providing concrete evidence to financial institutions and their auditors that these risks are being managed. A traditional view of projects may see sustainability and environmental programs as an unnecessary cost or an annoying delay in getting construction started. But most projects require outside financing, and with financial institutions requiring strong risk and sustainability management before making an investment, a well-integrated sustainability program is essential for many projects to proceed.