Companies from different trades are now embracing carbon management for their production and also in their fleet management in response to rising energy costs, supply, and public concerns over the impacts of climate change. Let us see why many organisations are now managing their carbon impact.
The world has changed rapidly in the past few years as the risks of climate change have shifted from theory to a business compulsory action. Individuals feel a responsibility to look at companies who will provide them with lower-carbon emission services.
Many businesses take this as a decision factor when choosing a vehicle leasing company. According to Carbon Trusts reports, 90% of UK consumers want companies to reduce their emissions by at least 3% a year in line with the government’s 2050 targets. 77% of the respondents want them to publically disclose of their carbon emissions. Companies that fail to meet these standards and consumer expectations risk short and long-term damage to their brands.
Environment preservation is an important issue for many employees. A recent study conducted by Sky revealed that attitudes of university and MBA graduates showed that 79% state vision and values of company as an important factor when searching for potential employers. Organisations that don’t meet employees’ expectations may lose competitiveness in the recruitment market.
As a signatory in the Kyoto Protocol, the UK government has agreed to reductions of its own carbon emissions. The Climate Change Act of 2008 sets out a legally binding responsibility for the UK in reducing its carbon emissions by 80% by 2050. Carbon legislations were passed in order to meet these objectives such as the EU ETS and the CRC Energy Efficiency Scheme to provide a framework of financial incentives for companies to reduce emissions. Companies who fail in compliance may risk penalties and fines.
An increasingly economic case and need for carbon management as energy and resources prices rise, so do operational costs. Companies who fail to take advantage makes profitability vulnerable. Large companies look beyond the boundaries of their carbon impact. Many businesses now include carbon performance criteria in their supply chain partner. Businesses wanting to supply others risk losing out to their lower-carbon competitors.
The approach to carbon management for many companies is treated as a way to manage costs in the face of the increasing energy and transportation prices. Through identifying of the most carbon-demanding parts of the business, companies can focus on the efficiency and begin to reduce energy usage. Long-term risks for the business can be further minimised when taken into the reporting and decision-making. Carbon management initiatives start inside the organisation who acts on an ethical point of view towards the environment. Involving and educating the staff regarding this company initiative can stimulate innovation and cost saving measures.