It is the private sector that’s frequently looked at when looking for those responsible for climate change. The reduction of carbon emissions seems to be the gist of the year But how do businesses begin with this elusive mission? What is the best way to measure improvement? In 1954 Peter Drucker wrote the basic idea behind the solution: “what gets measured, is controlled.”
If a company truly would like to be more sustainable the first step to do is to analyze the present situation and then begin taking a look at the carbon footprint of its operations.
The measurement of carbon emissions isn’t an easy job. Companies that do not have carbon measuring and reduction programs have become an exception from the norm. Apple, Facebook and even oil giants such as Shell and BP all have reports about their carbon dioxide emissions. It’s not solely because CEOs care about the environment.
More CO2 = less cost
Recognizing the CO2 emission and quantifying it is a great way to pinpoint excessive energy use and other inefficiency. Reduced GHG emissions generally go together with a greater efficiency and efficiency within a company’s operations.
The world’s retail stores Walmart have employed carbon measurement to pinpoint the most inefficient areas (Credit UpstateNYer)
Walmart recognized by its GHG emissions that it uses lots of energy in the cooling and heating in their facilities. This is why they put in around 10,000 high efficiency rooftop cooling and heating units. These units save the emission of 614 000 tons CO2 each year. It also resulted in EUR8 million in savings on costs.
Get access to the carbon market
In addition to Internal cost savings, ever businesses are required to pay for each tonne CO2 they release. This is known as the CO2 emission trading.
In the world, 57 carbon pricing schemes have been put into place, including 28 as the Emission Trading System (ETS) and 29 carbon tax. The value of global traded market of CO2 (CO2) allowances increased by 250% between the years 2018 between 2018 and 2019, reaching record-breaking levels that was EUR144 billion. In an ETS an ETS, a certain number to tonnes CO2 can be converted into allowances and businesses can purchase or sell the allowances in accordance with their emission.
Another format, called carbon tax, is the set amount you are required to pay for each unit of carbon emissions. Both carbon pricing it is mandatory to determine your emissions. Many believe that these programs are the only way to effect a significant change.
In a general sense increasing carbon pricing plans are being developed, and prices of GHG emission are rising as well as the business sector setting up internal carbon pricing programs that are its own. Monitoring and reducing carbon emissions isn’t just an obligation and a business chance to stay ahead of your competitors. This information is available only when your business measures its carbon emissions. This is the first step towards surviving the shift to a sustainable market.
Visit this website for more information on how an emissions calculator can be beneficial to you.
It’s the season for transparency
Another good reason to reduce and measure your carbon emissions is to improve your image as a brand. Customers, whether they are business or private, value the people they deal with.
Sustainable conscience is on rising, as evidenced by the polls, streets or business marketplaces. According to the latest Euromonitor International sustainability report, 54 percent of consumers around the world believe that buying ethically makes a an impact. Clients are looking for ways to lower individual and collective carbon footprint, minimise waste, buy green products and get services from environmentally-friendly companies.
Transparency regarding emissions has become so essential that even the industries that are most polluting reveal the extent of their (vast) impact. In a bid to become the most sustainable airlines major airlines like Easyjet as well as Delta have announced plans to assess the extent of their carbon footprint.
The market for sustainable growth isn’t going anywhere.
Sustainability awareness is a trend that will likely to grow and increase in importance. In terms of business, there is a rising market for sustainable consumer goods and services, as shown in the sustainable sales graph of the U.S (see below). Due to the attraction of these consumers, across the entire supply chain of B2B, the demand for sustainable options will increase. By assessing and reducing CO2 emissions you are able to provide scientifically-supported and reliable statements regarding the sustainable performance of your business.
Consumers aren’t the only stakeholder that is attuned to how they perceive a firm. In Deloitte’s Millennial survey, employees do not just care about the environment, but they are more inclined to work for companies that are eco-friendly. Sustainability in the workplace has become an effective weapon in the current battle for talent. Employees who are able to identify with the values of the business are more likely to remain in the company and remain driven.
On the other hand, for investors there is an increase in consciousness of sustainability. Oxford University found that more than 80 percent of mainstream investors are now considering the term “ESG” – environmental, social, and governance – data when making investment decision.
It means that companies that are emerging have a better chance to secure investments when they incorporate environmental factors into their business plans. If you are an established company collecting data on the environment could give a different perspective to analyze performance of the product or market.