Illustrating the Financial Benefits of Green Chemistry

1 ROIC (Return on Invested Capital) increases if, a) costs decline, revenues stay constant, b) costs stay constant, revenues increase, or c) costs decline and revenues grow. 2 WACC (Weighted Average Cost of Capital) is comprised of opportunity cost of capital for the lender + firm risk + industry risk + project risk. Managers can only control firm and project risk. 3 ROIC/ROCE/ROA/ROI are similar financial tools that can be adapted to the approach here. This crib sheet is intended for managers to support sustainable decisions regardless of the tools that their firm uses. Green Chemistry Principle ROIC increase? WACC decrease? NPV Positive? Positive Externality?