On a previous blog about GHG Audits and Climate Change, it has been highlighted that economic growth and business activity is one of the most important drivers of increases in CO2 emissions and thus climate change. Corporations have a huge contribution in GHG emissions and therefore have an ethical obligation to reduce their carbon footprint. However, there are additional reasons for companies beyond the climate change fight. Below are presented 6 simple reasons why companies should adopt regular carbon audits and carbon footprint measurements. These reasons are significant for every company in any sector.
- Legislation & policy – In most developed countries, companies are obliged to follow legislations regarding their energy efficiency and carbon footprints. The Energy Efficiency directive of the EU requires from member states to implement legislations and set regulations in the business sector regarding Energy efficiency and GHG emissions. A recent example is Energy Savings Opportunities Scheme (ESOS) which is compulsory for every company which has 250 or more employees or an annual turnover exceeding €50m and a balance sheet exceeding €43m in the United Kingdom. Although ESOS is an energy audit is strongly related to GHG emissions. Other energy audits which are strongly related to GHG emissions reduction are the ISO 50001 Energy Management and the CRC Energy Efficiency Scheme (although are not compulsory).
- Reduce operational costs – cost savings and efficiency. Measuring Carbon footprint will help companies to identify environmental hotspots in their business activity. Companies recently have saved significant costs and achieved efficiency targets through measurement and reporting of their products and services carbon footprints.
- Clients demand for environmental data – Clients have become aware about current environmental problems and many of them adopt eco-friendly behaviours. The demand for credible environmental data and sustainable techniques from clients is continue to rise. The Nielsen Global Survey on Corporate Social Responsibility, conducted in 2014, found that 55% of consumers in 60 countries worldwide are prepared to pay more for products and services provided by companies that are committed to positive social and environmental impact. Companies therefore can win new sales by having environmental data on their products and services.
- Competition. Companies can get ahead of the game by introducing carbon footprint in their products and services. Recently, many CEOs and the boards have catalysed many significant carbon reduction projects, with 93% of multinationals now addressing their own carbon emissions in order to exploit reputational gains.
- Enhanced green image / brand .The adoption of Carbon footprint in a company’s product/service can definitely enhance its green image across the society. See Carbon Zero certification.
- Increasing investor pressures. The increase awareness regarding CO2 emissions and their impacts to the climate and the planet makes more and more investors to expect companies to be taking actions on reducing their carbon emissions.