30 Dec Why does carbon accounting matter?
Carbon is an essential element driving to climate change, hence accounting for carbon is a primary requirement for good CSR practices.
What is carbon accounting and why does it matter? Carbon accounting can be simply defined as accounting for the amount of carbon your business is emitting. This may be from manufacturing, shipping or other factors. The process of carbon accounting is important so that your business can be eco-conscious and environmentally friendly. Often times, we assume that we are doing the best that we can by, say, using recycled paper or cutting down on waste in the break room. Those steps are important and should not be dismissed. They matter. However, having awareness about the amount of carbon emissions for which you and your business are responsible is every bit as important.
In order to account for your carbon emissions, you will need to do your due diligence by paying attention to what your business is doing on a day-to-day basis to either help or hurt the environment. There are government agencies that regulate these things for larger business, but smaller businesses may not be subject to such mandates. As such, it is the responsibility of the business owner or managers to consider their emissions of carbon.
How do you do that? You may not have the time or skill to really delve into carbon accounting on your own, and that is fine. All that is required is a desire to seek help. There is software that you can purchase to help you become aware of your carbon footprint, to account for it and be aware as a business owner or manager. There are also consultants who would be more than happy to help with this process. A small amount of research on the internet will surely lead you to these resources.
But why does it matter? Well, there are few answers to that:
- Your carbon footprint is ultimately a major performance indicator of your social responsibility results. Employees and customers alike know that carbon is the primary source of global warming, which in itself is one one the most critical danger faced in the 21st century.
- Carbon footprint is also important to your shareholders. Shareholders ultimately know that a business with high carbon emission is not only unlikely to survive by poor reputation but is also likely to be under poor management. Large carbon emissions are often synonym to lack of optimization and high ROI investment in other technologies.
- Firms who do not have basic carbon accounting are also likely to lack any other fundamental management KPIs.