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Technical interview question about Sustainability ROI for Mid-Level Management Consultant

How would you assess the ROI of a sustainability initiative proposed by a client?

Management Consultant

Technical

Asked at

Roland Berger

Difficulty :

Medium

Explanation

This question evaluates your understanding of sustainability initiatives and your ability to measure their financial and non-financial impacts. Recruiters want to see your ability to assess both short-term and long-term benefits. Common pitfalls include focusing solely on financial ROI and neglecting intangible benefits such as brand reputation. A strong answer demonstrates a holistic approach, using metrics like cost savings, revenue growth, and stakeholder satisfaction. Preparation involves studying sustainability programs and their impact metrics.

Answer Example

I would use a comprehensive framework to assess ROI. First, I would calculate direct financial benefits, such as cost savings from energy efficiency or revenue from green products. Then, I would evaluate non-financial impacts, like improved brand perception and regulatory compliance. For example, I worked with a manufacturing client to implement a sustainable supply chain, resulting in a 15% cost reduction and a 30% increase in customer trust scores over a year.

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