Top 5 Reasons to Manage Carbon Emissions

A recent report by Groom Energy investigated the drivers for companies to invest in sustainability software. This post provides a summary of the results.

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Driver 1: Requests from top customers

With large supply chain owners like Walmart and Unilever now pressuring suppliers to report and improve their environmental performance, more and more companies are accepting this as the business norm.

As one large supplier of drink bottles said: “Justification for our investment in a comprehensive GHG inventory was easy. Walmart asked us.”

Driver 2: Improved company / brand image

This is especially important for organisations with a high public profile and a range of competitors, for example supermarkets, coffee shops and universities. The rise of the ethical consumer means that companies cannot afford bad eco-credentials.    

With a range of rating systems now established, for example the Dow Jones Sustainability Index, companies increasingly find themselves under public scrutiny.

Driver 3: Cost savings

Reporting emissions goes hand in hand with reducing emissions. Once a company knows how much it’s spending on energy each month it will want to find ways to reduce this cost.

Visibility into energy usage allows a company to realise the favourable payback periods of many energy efficiency technologies.

Driver 4: Investor pressure

Investors are increasingly demanding the same level of quality for environmental data as they are for financial data. This is demonstrated by companies such as Unilever which are leading the way in terms of comprehensive and integrated sustainability reporting.

In addition carbon emissions data is now displayed on Bloomberg terminals used by Wall Street investors while investment organisations such as EIRIS state that climate change is now a key issue.

Driver 5: GHG regulation

While legally mandatory carbon emission regulation only exists in a few countries, such as the UK, momentum in certain developing countries is on the rise. Developments in China are of particular interest.

Biggest challenge: collecting energy usage data

In many cases, 60 – 80% of a project’s total budget is dedicated to collecting data. Many organisations have no experience of data collection and can be overwhelmed by the variety of fuels, vehicles and buildings in their portfolio.

This is one reason why amee’s extensive emissions modelling is an important first step in understanding the wider business community’s carbon performance.  

You can read the full report here.

 

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