Climate change can seem to be intimidating and going 100% sustainable is surely a long journey. However, many companies are realizing the importance of carbon management and are taking active steps toward reducing their carbon footprint. This blog explains what is carbon management and lists its many benefits.
Firstly, what is carbon management?
Carbon management is a systematic approach which focuses on reducing annual greenhouse gas emissions in order to improve a business’s environmental performance. It involves tracking and measuring a business’s carbon emissions and taking the necessary steps to minimize them in a cost-effective manner.
What are the key benefits of carbon management?
Prioritizing carbon footprint reduction has innumerable benefits for companies across industries and can help them achieve a competitive edge. Some of its key benefits are listed below –
First and foremost, adopting sustainable practices to reduce carbon footprint not only helps businesses save costs but also multiplies their profitability. For example, in 2018, Unilever revealed that its most sustainable brands grew 46% faster than the rest of the business and delivered 70% of its turnover growth! Paul Polman, Unilever CEO said: “The fact that our sustainable living brands are continuing to deliver growth shows that this is a business model that works.”
- Customer-centric approach:
Next, most consumers are now environmentally responsible and take into consideration a company’s commitment to sustainability before buying from them. They expect businesses to be transparent about their environmental and social initiatives and prefer companies that align with their values. Hence, taking active steps toward carbon footprint reduction also helps organizations establish trust with their customer base and gain a competitive advantage.
- Relationship with stakeholders:
Thereafter, a company’s sustainable goals not only help attract consumers but also strongly influence other stakeholders like employees and investors. It enhances a company’s brand image to a great extent. Research suggests that 76 percent of employees consider a company’s social and environmental commitments when deciding where to work. Similarly, investors too are looking forward to supporting future-oriented and innovative business models.
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- Legal compliance:
Lastly, while many companies voluntarily disclose their sustainability-focused initiatives and reports, it is only a matter of time that incorporating sustainability into business practices becomes a mandatory requirement by law. In fact, non-financial reporting is already compulsory for many publicly listed companies. Therefore, it is of paramount importance that companies understand its importance and take the necessary measures in time to survive and thrive.
In conclusion, carbon management undoubtedly comes with many benefits and great growth opportunities for businesses across industries.
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