It is the private sector that’s frequently targeted when trying to find the causes of climate change. Reduce your carbon emissions appears to be the gist of the year however, how can companies begin to tackle such a hazy job? What is the best way to measure improvement? In 1954 Peter Drucker wrote the basis of his response: “what gets measured, is controlled.”
If a business really would like to be more sustainable the first step it must begin by analyzing the current state of affairs and begin tracking the carbon footprint of its operations.
The measurement of carbon emissions isn’t an easy job. Companies that do not have carbon-reducing and measuring programmes are now an exception from the norm. Apple, Facebook and even oil giants such as Shell and BP all have reports about their carbon dioxide emissions. This isn’t solely because CEOs care about the environment.
Lower CO2 = lower costs
The process of identifying the CO2 emission and quantifying it is a great way to determine excessive energy usage and other inefficiency. The reduction of GHG emissions usually goes along with a greater efficiency and efficiency in the company’s processes.
The retail giants worldwide Walmart have utilized carbon-based measurements to pinpoint the most inefficient areas (Credit UpstateNYer)
Walmart discovered by its GHG emissions that it uses an enormous amount of energy for the cooling and heating on their properties. Due to this, they have installed about 10.000 high-efficiency roof 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.
Connect to the carbon market
In addition to savings in internal costs, ever businesses are required to pay for each tonne CO2 they release. This is known as the CO2 emission trading.
In the world, the carbon pricing system of 57 has been put into place, including 28 as the Emission Trading System (ETS) and 29 carbon tax. The value of the traded global marketplaces in 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 are converted into allowances and businesses can purchase or sell the allowances in accordance with their carbon emissions.
The other type, the carbon tax, an agreed price that you are required to pay for each carbon emission unit. In both carbon pricing it is mandatory to determine your emissions. Many believe that these programs are the only way to effect a significant change.
At a broader level there are more carbon pricing schemes are being developed, and prices of GHG emission are increasing as well as the business sector beginning to implement internal carbon pricing programs that are its own. Monitoring and reducing carbon emissions isn’t just an obligation as a matter of business, but also an chance to stay ahead of your competitors. This information is available only it is a matter of measuring its carbon emissions. This is the first step in surviving the transition to a sustainable market.
It’s the season for transparency
Another reason you should reduce and measure your carbon emissions is to improve your brand’s image. Customers, whether they are business or private, value whom they deal with.
Sustainable conscience is on rising, as evidenced by the polls, streets or business marketplaces. According to Euromonitor International’s most recent sustainability report, 54 percent of consumers around the world believe that buying ethically makes a the difference. 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 in emissions is so essential that even the industries that are most polluting are required to disclose the extent of their (vast) impact. In the race to be the most sustainable companies major airlines like Easyjet as well as Delta have announced plans to assess and reduce their carbon footprint.
The market that is sustainable isn’t going anywhere.
Sustainability awareness is a trend that will likely to grow and increase in importance. In terms of business: there is an increasing market for sustainable products and services, as shown in the sustainable sales graph for the U.S (see below). Due to the attraction of these consumers through the entire supply chain of B2B, the demand for sustainable options will grow. By assessing and reducing CO2 emissions you will be able to provide scientifically-supported and reliable statements regarding the sustainability of your business.
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Consumers aren’t the only ones who are concerned about how they perceive a firm. In Deloitte’s Millennial survey, employees do not only are concerned about the environment, they are attracted by companies that are eco-friendly. Sustainability is now an option in the current battle for talent. Employees who share the same values as the organization tend to stay in the company and remain engaged.
For investors there is an increase in awareness of the importance of sustainability. Oxford University found that more than 80% of the mainstream investors are now looking at the term “ESG” – environmental, social and governance information when making investment decision.
This means that new companies have a better chance to get investment opportunities when they integrate environmental indicators into their business plans. Being a reputable company gathering environmental data could be a new way to analyze performance of the product or market.