Climate change is a pressing issue that affects world economies. At present, Earth is already 1.1 °C warmer than it was 200 years ago. This is because businesses continue to produce greenhouse gas emissions. These emissions contribute to the rapid increase in global temperature. Carbon emissions contribute the largest percentage of these emissions.
What does this mean for businesses? Well, corporate sustainability is now a primary focus of many businesses worldwide. Reducing carbon emissions can help slow down climate change. And businesses can achieve this by finding more sustainable means of production. Currently, world economies are working to achieve the net-zero carbon target by 2050. Achieving this goal can help safeguard a livable Earth.
Businesses continue to find ways to promote sustainability. Today, reducing carbon emissions will benefit the planet while also helping businesses thrive. Here are four business benefits of reducing carbon emissions.
1. Lower operating costs
The initiatives to reduce carbon emissions will result in lower operating costs. Carbon emissions can decrease by identifying areas of the business that consume excessive energy. By lowering a business’s energy usage, costs will also reduce.
For example, businesses can invest in LED lights to replace outdated fluorescent lights. These new lights can reduce energy consumption. Even with the high initial investment for LED lighting, it can help reduce costs in the long run. By reducing energy consumption, you also reduce the emissions produced by the energy.
Another example is switching to eco-friendly and reusable products. Many businesses are now setting up recycling systems in their offices. Recycling is a great way to reduce the production of raw materials. This in turn reduces the company’s carbon footprint.
For instance, large corporations usually use tons of paper to file reports. Instead of throwing out these papers after each use, companies can convert them into recycled paper or packaging. The corporation can then use these recycled materials for its daily activities. Often, these recycled materials cost lower than brand new paper or packaging.
2. Improve brand reputation
Corporate sustainability may have begun as a buzzword, but it is here to stay. Businesses can improve their brand reputation by joining sustainability efforts.
The NYU School of Business conducted a study in 2019 about consumers and sustainability. The study showed that consumers are likely to patronize businesses with sustainability initiatives. These initiatives include recycled packaging, upcycled products, and alternative energy sources, among others.
Consumers also value transparent businesses. Transparency about sustainability initiatives will help businesses gain the favor of consumers worldwide. Businesses can also release the actual data on how much carbon emissions they reduced through these initiatives. The data should show a comparison to previous years for more clarity.
Aside from consumers, employees are also looking for companies with sustainability initiatives. Company culture is an important aspect of the job search. Many employees search for a company aligned with their vision and values. These include protecting the environment.
3. Spark innovation
n any industry, opportunities and trends continue to change. Businesses need to adapt to changing trends to remain competitive in their industry. Reducing carbon emissions can spark innovation. Innovative businesses can become first-movers among their competitors.
The push for sustainability drives businesses to study and apply new practices. For instance, a clothing business can look for new material that is more sustainable than the traditional cotton used. This new material can help reduce waste while also lowering production costs.
A good example of these innovative practices is Nike. The famous company introduced the Flyknit sneaker which uses special yarn to produce. This yarn reduced their waste by a whopping 60%! Today, they market the sneaker as an environment-friendly option. It has become one of the company’s most popular sneaker lines.
Whatever industry you are in, you can innovate to meet the goal of reducing carbon emissions. Innovations will help you stay ahead of the competition. It will also help your business draw in more consumers.
4. Gain more investments
Another benefit of reducing emissions is the number of investments it can bring. Sustainability efforts have become part of investment considerations for many large investment firms.
Many established businesses are now implementing corporate sustainability measures. These measures can further grow their business with new investments. Even startups can attract investors through an environment-friendly and sustainable business plan. It doesn’t matter that the startup has only been in operation for a few years. If a business has corporate sustainability measures, it will bring in more investors.
Final Words
Going green has never been more important than it is today. World economies are continuously working towards the common goal of net-zero carbon emissions.
Businesses are now in a good position to reduce energy usage. Businesses with sustainability initiatives enjoy many benefits. Through these initiatives, businesses can attract more consumers compared to their competitors. While businesses enjoy the benefits of implementing sustainability measures, they are also helping the planet reduce carbon emissions and slow down global warming.
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