Why should my business consider calculating, reducing and compensating for CO2 emissions?
A sustainable approach to doing business and investing is becoming a pretty rational choice. And there are a few reasons for that.
The necessity to meet current and future regulatory requirements
At UN Climate Change Conference COP26, all the Paris Agreement signers submitted their updated commitments to reduce emissions. These targets clearly show the general direction of the international climate agenda and the decisiveness of governments to put pressure on businesses. It is getting immensely expensive for large companies of any country to neglect their environmental footprint. Smaller businesses see that it is beneficial for them to start calculating and reducing carbon emissions now so that they could be better prepared for future regulatory pressures that will inevitably come.
Meeting stakeholders’ demands
There has been a significant change in the perception of companies’ environmental efforts lately. Investors, shareholders, employees, and clients vote against polluters with their money. Investors and banks often demand companies to disclose their plans to achieve net-zero emissions. Consumers also punish brands for their environmental track record: they switch, avoid, or boycott buying certain products based on a brand’s sustainability and environmental policies. Recruiting or retaining high-performing employees has become extremely hard for businesses ignoring the climate agenda.
Profit of being environmentally friendly
Nowadays climate action is more and more often considered not philanthropy, but rather an investment. Regulators make sure it comes at a cost to be a polluter, and that creates competitive advantages for companies with smaller carbon footprints. Businesses mention that climate protection measures help drive innovations in their companies, make use of government incentive programs, reduce legal risks, prevent future costs (such as compensation of CO2 emissions at high prices or higher capital costs). And yes, caring about the environment definitely improves companies’ reputations.
Sustainability becoming mainstream
The 2020s for sustainability are what the 1980s were for computers: All of a sudden companies and organizations had to acknowledge that it was not just a fancy tech toy anymore. There could no longer be any future for those who would not adapt to the new reality.
Today if a business wants to survive, it also has to amend the strategy to include climate protection measures, redesign its business processes, educate its personnel, partners, suppliers, and customers. A desire to keep your company for tomorrow is enough to begin your journey to sustainable business today.
