Why measure GHG emissions?
Increasing awareness of the potential impacts of climate change on their activities is leading companies to assess and address the potential threats and opportunities. A growing number of companies measure the greenhouse gas (GHG) emissions generated by their activity and assess their exposure to physical climate change impacts as well as changing market conditions and consumer preferences as a consequence of climate change. Increasingly, the assessment and management of actual and prospective climate change related impacts has become an important element of corporate strategy and risk management.
At the same time, there is also an increasing demand from governments, investors and other stakeholders for corporate climate change-related information.Demand for climate change information from governments translates into mandatory or voluntary government schemes that, together with emerging non-governmental initiatives, require or encourage enterprises to measure and report their GHG emissions. These requirements may be part of environmental and other non-financial disclosure requirements, or of instruments that put in place a carbon price, such as carbon taxes and emission trading schemes.
Companies that have made the decision to become Sustainable
Many companies have made the decision that adopting sustainability will improve their operations in the long run. It will be necessary to measure the effects on the economy, society, and environment, as well as GHG emissions. Benefits could consist of:
Lower expenses for things like electricity, raw materials, and transportation.
Market differentiation: Customers frequently favor doing business with companies that have a solid environmental reputation.
Pressure from stakeholders – taking action early can lessen the effects of upcoming environmental regulations.
Supply Chain Pressure
Why quantify greenhouse gas emissions? Suppliers of sustainable companies are under pressure to incorporate sustainability into their own business practices. Environmental questionnaires (like the CDP Supplier Information Request) with inquiries like this are becoming more and more necessary.
Which GHG emissions do you and your organization measure and track?
Do you and your company have goals for lowering GHG emissions?
How far along is your organization in achieving these goals?
In the near future, small and medium-sized businesses (SMEs) may need to give their clients emissions data. Rarely do they have the administrative resources to handle these requests. It will be crucial for SMEs to automate the procedure as much as feasible.
Your organization may report this information and inform important stakeholder groups about your environmental condition by understanding your carbon inventory. This gives your company the chance to become transparent. Additionally, transparent carbon reporting presents your business to investors and other important stakeholder groups. This makes it possible for company operations and decision-making to be more effective.