Carbon accounting is a tool for assisting businesses in achieving net zero emissions.
However, businesses that use carbon accounting discover that it gives them a competitive edge in addition to combating climate change.
Companies that use carbon accounting, discover unexpected – and underutilised – business benefits that allow them to reduce the risk, conquer the accuracy gap, and get more efficient.
So, what’s Carbon accounting?
It measures the environmental impact of a company’s operations.
It allows businesses to remain legally compliant, risk-averse, and free of greenwashing.
It enables competitive advantages such as increased brand equity and decreased inefficiency.
Here are its advantages:
a. Reduce the risks
We tend to think of greenwashing as malicious and intentional. In traditional examples, a company tries to dupe consumers into believing it is doing good for the environment when in fact it is doing harm.
However, many businesses are unknowingly greenwashing. Unintentional greenwashing occurs when a company believes it is environmentally responsible and communicates as such. However, they are unaware that their environmental efforts are less effective or comprehensive than they believe.
Unintentional greenwashing frequently begins with the first step in a company’s climate action: calculating its carbon footprint.
b. Helps businesses conquer the accuracy gap
One of the five most common greenwashing traps is the accuracy gap, because any action based on incomplete information will yield incomplete results. As a result, the accuracy gap is a business’ liability, and comprehensive, accurate carbon accounting is a risk mitigation requirement.
While many businesses are driven by compliance and risk reduction, savvy businesses are using carbon accounting to go beyond box-ticking by creating business value and seizing opportunities involving consumers, employees, and investors.
Climate branding is important to consumers, employees, and investors.
According to IBM, 77% of consumers believe it is at least moderately important for brands to be environmentally responsible.
According to Census wide, Two-thirds of employees prefer to work for a company with strict environmental policies.
c. Getting more efficient
By quantifying the operational footprint of your company, you can locate inefficiencies
Carbon accounting, when used appropriately, will open your company’s doors to the circular economy.
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