Five reasons corporate executives need to embrace carbon management
There are good reasons why interest in commercial carbon management is on the rise. Here are five.
1. Carbon management helps the bottom line
.Energy consumption and transportation are often a company’s two largest greenhouse gas emission sources. They are also important cost centers at large firms, with annual bills totaling hundreds of thousands or millions of pounds.
Carbon management gives businesses a fresh perspective for understanding and tackling these costs. Our clients have benefited from 20% savings on energy costs in the first year of a carbon management program from quick-win behavior change and efficiency measures. Revamped company travel policies that focus on the vehicle fleet and business flights can yield similar first-year savings. We have helped firms finance longer term measures that result in on-going savings, with no direct investment cost.
All of this matters because every £1,000 of cost savings goes directly to the company’s bottom line. That means greater profits. The company would need to increase turnover by a much greater amount to achieve the same bottom-line benefit. Carbon management is great news for the finance director.
2. A low-carbon workforce is a happier workforce
.When Carbon Clear conducted a staff survey on attitudes to climate change on behalf of a client, managers were surprised at the enthusiastic response from employees. Individuals increasingly expect their employers to demonstrate good environmental behavior through a well-structured carbon management program that harnesses employee knowledge, helps individuals reduce their own emissions, and reports results on a regular basis.
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Employee engagement in climate change initiatives are a two-way street. Companies that involve their employees in their carbon management program tend to generate better ideas and implement them more effectively. It is the front line employees who have day to day knowledge of company facilities, logistics operations, procurement systems and more. Our clients who put together green teams are able to tap into this knowledge to reach their carbon targets while improving employee morale. Carbon management is great news for the HR Director.
3. Get ahead of the competition
.Sustainability has become yet another way for businesses to stand out from their competitors. Our annual FTSE 100 carbon maturity survey shows more and more large companies taking carbon management seriously. This is true especially in the highly competitive retail and financial service sectors, with firms such as Sainsbury, Marks and Spencer, Kingfisher, Barclay’s, Deutsche Bank and Cooperative Group developing increasingly sophisticated programm to tackle their climate change impact. Companies that integrate carbon management into their everyday business operations are able to use their green credentials to win awards, enhance their brand and stand out from the crowd. Carbon management is great news for the Marketing Director.
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4. Delight your key customers
.More and more large corporates at the top of supply chains are taking climate change seriously. They expect their most important suppliers to follow suit. Our work with the CDP confirms this trend, as firms such as Wal-Mart and Coca-Cola request increasingly detailed carbon reporting information from their suppliers. Companies that measure, report, reduce and offset their greenhouse gas emissions make it easier for their key customers to achieve their own carbon management objectives and demonstrate that they are committed to a long term partnership. Carbon management is great news for the sales director.
"Carbon management is great news for the sales director."
5. Tackle legislative compliance costs
.While prospects for a global climate change treaty seem distant, national and regional moves to reduce emissions continue to move forward. In the UK, companies must deal with the EU Emissions Trading Scheme (EU ETS), the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), Mandatory Greenhouse Gas Reporting, Part L Building Regulations and a host of other measures. My team is even helping firms deal with the need to address EU regulations aimed at the climate impact of their senior executive’s flights on private aircraft. Without fail, we have found that those firms that already have put in place robust carbon management programs are better able to comply with current and impending government legislation. In fact, our experience with the CRC has shown that some firms that take swift action to tackle their carbon footprint are able to avoid the legislation entirely. Carbon management, then, can be great news for the Company Secretary and the Compliance Officer.
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Corporate carbon management is critical to the fight against climate change, but it is much more than an environmental issue. Carbon management makes clear business sense, and has become integral to long-term corporate success. And it is here to stay with more and more companies taking action to manage all aspects of their emissions. Done properly, carbon management can be great news for senior executives and employees alike.
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