It is the private sector that’s frequently targeted when trying to find the causes of climate change. The reduction of carbon emissions seems to be the gist of the year But how do businesses begin to tackle such a hazy job? What is the best way to measure the progress? In 1954 Peter Drucker wrote the basic idea behind the solution: “what gets measured, is then controlled.”
If a company truly would like to be more sustainable the first step to begin by analyzing the present situation and then begin taking a look at their carbon emission.
The measurement of carbon emissions isn’t an easy job. Companies that do not have carbon-reducing and measuring programs have become one of the few exceptions to the norm. Apple, Facebook and even oil giants such as Shell and BP all provide information about their carbon dioxide emissions. It’s not only because the CEOs are concerned about the environment.
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Lower CO2 = lower costs
The process of identifying as well as quantifying the emissions of CO2 is a great way to determine excessive energy usage 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 utilized carbon-based measurements to pinpoint the most inefficient areas (Credit UpstateNYer)
Walmart recognized through GHG emissions that it uses lots of energy in the cooling and heating in their facilities. This is why they have installed about 10,000 high efficiency rooftop cooling and heating units. They save an average of 614000 tonnes CO2 emissions per year. This has also resulted in EUR8 million in savings on costs.
Connect to the carbon market
Alongside the savings in internal costs, ever companies are being forced to pay a fee for each tonne CO2 they release. This is known as the Carbon emission trading.
Globally, 57 carbon pricing schemes have been implemented, with 28 of them as the Emission Trading System (ETS) and 29 carbon tax. The value of global traded market in CO2 (CO2) allowances rose by 250% between the years 2018 through 2019 and reached record-breaking levels that was EUR144 billion. In an ETS the maximum amount to tonnes CO2 are converted into allowances and companies are able to purchase or sell the allowances in accordance with their carbon emissions.
The other type, the carbon tax, the set amount you are required to pay for each carbon emission unit. In both carbon pricing it is mandatory to quantify your carbon emissions. Many believe these systems as the best way to effect a significant change.
In a general sense there are more carbon pricing plans are emerging, the prices in GHG emissions are rising while the private market is beginning to implement internal carbon pricing mechanisms that are its own. Monitoring and reducing carbon emissions isn’t just a requirement as a matter of business, but also an chance to stay ahead of your competitors. This is available only when your business measures its carbon emissions. It’s the first step towards surviving the shift to a sustainable market.
The new trend is transparency.
Another good reason to begin calculating and reducing the carbon emissions of your business is your image as a brand. Customers, whether they are business or private, value whom they deal with.
Sustainable conscience is on rising, as evidenced by the polls, streets as well as business circles. According to the latest Euromonitor International survey on sustainability, 54 percent of the global population believes that purchasing ethically made 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 in emissions is an essential requirement that even the industries that are most polluting reveal the extent of their (vast) carbon footprint. In the race to be the most sustainable companies major airlines like Easyjet as well as Delta have announced plans to quantify the extent of their carbon footprints.
The market that is sustainable isn’t going anywhere.
Sustainability awareness is a trend that will likely to grow and gain importance. In terms of business: there is an increasing market for sustainable products and services, as shown by the sustainable product sales graph for the U.S (see below). Because of the pull of these consumers through the entire B2B supply chain the demand for sustainable options will grow. By assessing and reducing emission of carbon dioxide, you will be 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 an image that is created by a business. In Deloitte’s Millennial studies, employees don’t just care about the environment, but they are attracted by businesses that are conscious of the environment. Sustainability in the workplace has become an option in the current battle for talent. Employees who share the same values as the business tend to stay in the company and remain engaged.
On the other hand, for investors There is a growing 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 – 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 gathering environmental data could give a different perspective to analyze markets and product performance.