It is the private sector that’s frequently looked at when looking for the causes of climate change. Reduce your carbon emissions appears to be the motto of the year however, how can companies begin with this elusive mission? What is the best way to measure improvement? In 1954 Peter Drucker wrote the basis of his solution: “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 their carbon emission.
You can use an emissions calculator to work out your carbon footprint.
The measurement of carbon emissions isn’t an easy job. Large companies that don’t have carbon measuring and reduction programmes are now an exception from the norm. Apple, Facebook and even oil giants such as Shell as well as BP all provide information about their carbon dioxide emissions. It’s not solely because CEOs care about the environment.
Lower CO2 = lower costs
The process of identifying as well as quantifying the emissions of CO2 is a great way to pinpoint excessive energy use as well as other inefficiency. The reduction of GHG emissions usually goes together with a greater efficiency and efficiency in the company’s processes.
The world’s retail stores Walmart have employed carbon measurement to pinpoint the most inefficient areas (Credit UpstateNYer)
Walmart discovered by its GHG emissions that they use lots of energy in the cooling and heating on their properties. This is why they put in around 10.000 high-efficiency roof cooling and heating units. These units save an average of 614000 tonnes CO2 emissions per year. This has also resulted in EUR8 million in savings on costs.
Get access to the carbon market
Alongside the savings in internal costs, ever businesses are required to pay a fee for each tonne CO2 they release. This is known as the Carbon emission trading.
In the world, 57 carbon pricing schemes have been implemented, with 28 of them as the Emission Trading System (ETS) and 29 carbon tax. The value of the traded global market in CO2 (CO2) allowances increased by 250% between the years 2018 between 2018 and 2019, reaching an all-time high that was EUR144 billion. In an ETS an ETS, a certain number of tons of carbon dioxide are transformed into allowances, and businesses can 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. Both carbon pricing models it is mandatory to determine your emissions. Many people believe that these programs are the only solution to bring about a genuine 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 setting up internal carbon pricing programs that are its own. Monitoring and reducing carbon emissions isn’t just a requirement and a business chance to stay ahead of rivals. This is possible, however it is a matter of measuring its carbon emissions. It’s the first step towards surviving the transition to a sustainable market.
The new trend is transparency.
Another reason you should reduce and measure your carbon emissions is to improve your image as a brand. Customers, whether business or individual, are concerned about whom they deal with.
The concept of sustainable conscience is on the increasing, as seen in the polls, streets or business marketplaces. According to Euromonitor International’s most recent survey on sustainability, 54 percent of consumers around the world believe 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 regarding emissions has become an essential requirement 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 airlines major airlines such as Easyjet as well as Delta have come out with plans to quantify and reduce their carbon footprints.
The market for sustainable growth isn’t going anywhere.
The awareness of sustainability 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 of 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 increase. By assessing and reducing CO2 emissions you will be able to provide scientifically-supported and trustworthy statements about the sustainable performance of your business.
Consumers aren’t the only stakeholder that is concerned about an image that is created by a business. In Deloitte’s Millennial studies, employees don’t only are concerned about the environment, but they are attracted by companies that are eco-friendly. Sustainability is now an option in the current battle for talent. Employees who are able to identify with the values of the business are more likely to remain at the top of their game and stay driven.
On the other hand, for investors There is a growing consciousness of sustainability. Oxford University found that more than 80% of the mainstream investors are now looking at “ESG” – environmental social, and governance – data when making investment decision.
It means that companies that are emerging are more likely to secure investments when they incorporate environmental indicators into their business plans. If you are an established company collecting data on the environment could be a new way to analyze markets and product performance.