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Assessing Trade‐Offs in Investments for the Environment – The Case of a VOC‐Reduction Investment at AUTO Group

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  • Tobias Hahn
  • Frank Figge
  • Andrea Liesen

Abstract

This case focuses on the assessment of trade‐offs between different environmental features of investments. Using the example of a VOC‐reduction investment at a car maker, the case applies an innovative approach for the assessment of environmental investment projects. Since it is unusual that all environmental performance characteristics of investment projects will be in harmony, decision‐makers need to ascertain the overall environmental effect of different investments. This case transfers the logic of financial investment appraisal to the environmental assessment of investment projects. The analysis shows, in monetary terms, by how much each investment option outpeforms or underperforms environmental efficiency targets. With monetary figures, decision‐makers can balance conflicting environmental performances and identify the investment option that supports a company's environmental strategy best. The case provides a step‐by‐step explanation of the assessment approach and offers students and decision makers a novel perspective on the assessment of trade‐offs in environmental investments. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Tobias Hahn & Frank Figge & Andrea Liesen, 2012. "Assessing Trade‐Offs in Investments for the Environment – The Case of a VOC‐Reduction Investment at AUTO Group," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(2), pages 114-128, March.
    • Handle: RePEc:wly:corsem:v:19:y:2012:i:2:p:114-128
    DOI: 10.1002/csr.292
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