Why companies should limit GHG emissions
First, reducing GHG emissions can help a company reduce its environmental impact and improve its sustainability. By limiting GHG emissions, a company can help to mitigate the negative effects of climate change, such as rising sea levels, more frequent and intense natural disasters, and disruptions to ecosystems and biodiversity.
Second, reducing emissions can also be good for a company’s reputation and brand image. Consumers and other stakeholders are becoming increasingly concerned about the environmental impact of products and services, and they may be more likely to support companies that are proactive in addressing climate change.
Finally, limiting GHG emissions can also help a company reduce its operating costs. For example, using energy-efficient processes and equipment can save a company money on energy bills. In addition, governments and regulatory bodies around the world are increasingly imposing carbon pricing mechanisms, such as carbon taxes and cap-and-trade systems, which can create financial incentives for companies to reduce their GHG emissions.
How can companies limit GHG emissions?
There are a number of strategies that a company can use to limit its greenhouse gas (GHG) emissions across its value chain. Some options include:
- Improving energy efficiency: A company can use energy-efficient processes, equipment, and technologies to reduce its energy consumption and emissions.
- Adopting renewable energy: A company can switch to renewable energy sources, such as solar, wind, or hydroelectric power, which have lower GHG emissions than fossil fuels.
- Offsetting emissions: A company can offset its emissions by investing in projects that reduce or remove GHGs from the atmosphere, such as reforestation or carbon capture and storage.
- Reducing transportation emissions: A company can reduce its transportation-related GHG emissions by using more fuel-efficient vehicles, consolidating shipments, and using modes of transportation with lower GHG emissions, such as rail or sea.
- Engaging suppliers: A company can work with its suppliers to encourage them to adopt more sustainable practices and reduce their emissions.
- Setting GHG reduction targets: A company can set specific, measurable, achievable, relevant, and time-bound (SMART) GHG reduction targets and implement strategies to meet those targets.
- Disclosing GHG emissions: A company can publicly disclose its GHG emissions and progress towards reducing them, which can help increase transparency and accountability.
So what should companies do?
The push to decarbonize, together with the new requirements to disclose scope 3 emissions mean that companies need to take their value chains seriously. Businesses should learn from their peers, adopt best practices, and avoid pitfalls.
The Global Summit on Scope 3 Emissions Reduction will bring together key industry experts to learn more about reporting strategies & carbon data management in a small-scale, industry-driven event, on 20-21st April 2023 in Amsterdam, the Netherlands. The two-day, hybrid event features in-depth case studies of supply chain transformation, carbon accounting, and networking breaks dedicated to exchanging insights and expertise on tackling Scope 3 emissions. Visit future-bridge.eu and netzero-events.com or follow us on our social media to track other energy use and decarbonization events.