Illustrating the Financial Benefits of Green Chemistry

Abstract

This technical note forms the basis of a discussion on the economic value added of green chemistry principles. Students can learn how to increase NOPAT by increasing sales; increase NOPAT by decreasing operating expenses; reduce WACC, driving down risk by decreasing risk perceived by capital providers; and reduce invested capital. A grid showing green chemistry principals and how adhering to each might affect the bottom line provides an excellent context in which to discuss business strategies.