Utilities Tech Outlook Weekly Brief
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Utilities Tech Outlook
Identifying and quantifying CO2 emissions aids in the detection of excessive energy consumption and other inefficiencies. Lowering GHG emissions usually goes hand in hand with improving a company's process efficiency and cost-effectiveness.
Fremont, CA: If a company truly wants to become more sustainable, the first step should be to try to understand its present situation and begin tracking its carbon emissions.
Measuring carbon emissions is a difficult task. Many companies that do not have carbon measurement and reduction programs have become the exception rather than the rule. Apple, Facebook, and even oil companies like Shell and BP report on their CO2 emissions. This is not just because these CEOs are environmentally conscious.
Less CO2 = less costs
Identifying and quantifying CO2 emissions aids in the detection of excessive energy consumption and other inefficiencies. Lowering GHG emissions usually goes hand in hand with improving a company's process efficiency and cost-effectiveness.
Having Access to the Carbon Market
In addition to internal cost reductions, an increasing number of businesses are being forced to pay a fee for each tonne of CO2 emitted. This is referred to as the carbon emission trading system.
Worldwide, 57 carbon pricing systems have already been implemented, 28 in the form of an Emission Trading System (ETS) and 29 in the form of carbon taxes. Between 2018 and 2019, the value of traded global markets for carbon dioxide (CO2) allowances increased by 250 percent to a record high of €144 billion. An ETS converts a maximum number of tonnes of CO2 into allowances, which companies can buy and sell based on their emissions.
A carbon tax, on the other hand, is a fixed price one must pay per unit of carbon emission. Companies must measure their emissions under both carbon pricing systems. Many people believe that these systems are THE solution to bringing about real change.
On a broader scale, more carbon pricing initiatives are emerging, prices for GHG emissions are rising, and the private sector is implementing its very own internal carbon pricing systems. Monitoring and reducing carbon emissions is becoming a legal requirement and a business opportunity to stay ahead of competitors. However, all of this is only available if a company measures its carbon emissions, which is the first step in surviving the sustainable market shift.
Transparency is Important
Another compelling reason to begin measuring and reducing a company's carbon footprint is to improve its brand image. Customers, whether businesses or individuals are concerned about who they do business with.
As evidenced by the streets, polls, and business circles, there is a growing awareness of the importance of sustainability. According to the most recent Euromonitor International sustainability survey, 54 percent of global consumers believe that ethical purchase decisions make a difference. Clients are looking for ways to reduce their individual and collective carbon footprints, reduce waste, purchase green products, and obtain services from environmentally friendly businesses.
Transparency about emissions has become so common place that even the most polluting industries now reveal their footprint. Major airlines such as Easyjet and Delta have announced comprehensive plans to measure, decrease, and offset their respective carbon footprints in an effort to become the most sustainable carriers.
