article thumbnail

Old Buildings Are U.S. Cities’ Biggest Sustainability Challenge

Harvard Business Review

The good news is that an increasing number of cities have made commitments to aggressive climate and sustainability goals , a trend we anticipate accelerating following the recent UN agreement in Paris. Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them.

NPV 8
article thumbnail

Is Your Business Biased Against Innovation?

Strategy Driven

Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. One problem is that NPV calculations tend to compare today with some future state.