Page 130 - The Green Building Bottom Line The Real Cost of Sustainable Building

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GREEN IS THE COLOR OF MONEY

DENIS BLACKBURNE

SUMMARY

In this chapter, Denis Blackburne, CFO of Melaver, Inc., first considers the
costs of gaining green expertise, looking at the cost of the learning curve
and how a company can learn from some of the more expensive mistakes
made by Melaver, Inc. From there, Blackburne examines the various ways
a company could not only recoup its initial investment in going green but
actually could profit handsomely from it. Section two of the chapter looks
at the short-term, tangible cost reductions likely to be realized by a green
company, primarily from reductions in operational expenses, insurance
premiums, and loan underwriting.
The third section looks briefly at the longer-term, intangible cost reduc-
tions associated with reduction of risk and liability. The fourth section con-
siders the short-term, tangible ways a green company can create revenue
and value, with particular attention given to capturing market demand for
green through additional green project development and consulting work.
Also addressed is the enhanced value that accrues to a sustainable portfolio.
The fifth section contains an assembly all of the financial pieces of data
into an analysis of the cost and benefits of developing green expertise. In
the sixth section, all of the financial data on the fictionalized company
Green, Inc. from this and previous chapters are assembled and synthesized
to provide an overall (and quite healthy) financial picture of the green bot-
tom line of a sustainable real estate company. In the concluding section,
Blackburne considers the intangible value of a green company, conclud-
ing that perhaps such a company’s “X” factor—its reputation, image and
culture—comprises the greatest value of all.

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