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Why Businesses Are Becoming Carbon Neutral To Take Climate Action

Climate changes and climate change are a subject that a lot of us are concerned about. It’s hard to ignore visualizing the devastation effects that climate change has on the world and its inhabitants. Growing awareness and pressure from outside have led to more businesses making efforts to lessen their impact on the climate and eventually be carbon neutral. For many companies, being carbon-neutral is the primary step in their journey to becoming net-zero. There are many easy options that your company could effectively implement to fight this fight. We assist our clients to understand the long-term and short-term advantages for their businesses of making climate-friendly decisions by becoming carbon neutral, and even achieving net-zero. This article will discuss five important reasons to be carbon neutral , and guide you start your towards net-zero.

1. Customers are showing an increasing preference for brands that are carbon neutral

Environmental concerns are becoming more influential in the buying choices of consumers which is causing a radical shift in business and consumer buying habits. Today consumers expect more than just the best quality. They choose brands that reflect their ideals and operate in a transparent manner.

Today, the majority of customers are more open to changing their relationship with brands. If they consider sustainability as a key aspect 70% of them are willing to pay an amount of 35% to purchase eco-friendly and sustainable brands. In this regard, businesses which thrive are those that are who are willing to change their strategies. Being climate-friendly can help them draw customers. As a result they’re also more likely to achieve competitive advantages.

We’re seeing similar demands for greater transparency in B2B procurement , with 50% of buyers assessing the social and environmental performance of their suppliers. Furthermore that more than three out of four large firms already have the term “sustainable” in their contract for purchasing. Microsoft is one example. It has a specific code of conduct which requires suppliers to report the carbon footprint of their suppliers. Microsoft is dedicated to continually cutting down its carbon footprint as well as that of its competitors within the market.

2. Employers want employees who are responsible and think about their actions.

The present generation of employee talents is evaluating possible job offers on the basis of the company’s positive social and environmental sustainability impacts. Furthermore positively Planet customers are notifying job applicants whether the business is committed to sustainability and carbon-neutral.

An earlier Deloitte survey revealed recently that millennials are seeking meaningful jobs and desire an impact on society. But, they would be reluctant to accept an employment opportunity unless the company is committed to solid Corporate Social Responsibility (CSR) policies. Furthermore, the majority of them would rather take lower wages than working with an environmentally and socially unsustainable firm.

In 2025, millennials will account in 75% of world’s workforce. This means employers must be more cognizant and responsive to their needs in order to keep the best talent.

3. Sustainability in your business can help increase the amount of money you earn and lower your expenses

Businesses often ask if sustainability “undermines or improves financial outcomes”. But, as per studies conducted by non-profit organization CDP businesses that diligently prepare and manage climate change get an 18% better ROI than companies which don’t. Furthermore, businesses that use sustainability-based products grow 5.6 times quicker than alternatives that are not sustainable.

Global consulting firm McKinsey has found that the focus on social, environmental and corporate governance (ESG) goals can significantly cut expenses. Implementing sustainable practices can help combat rising operating costs (such as the cost of raw materials as well as the actual cost of carbon or water). Energy efficiency improvements can, for instance, significantly cut energy expenses, and result in the internal return (IRR) that is 48% in the average.

4. Investors are seeking forward-looking companies that are not too hesitant to take the first step.

Many companies are unsure if sustainability “undermines or improves financial outcomes”. But, as per research conducted by the non-profit organization CDP businesses that diligently prepare and manage climate change get an 18% better ROI than companies which don’t. In addition, companies that have environmentally sustainable goods are growing 5.6 times quicker than alternatives that are not sustainable.

The global consultancy McKinsey has also found that the focus on social, environmental and corporate governance (ESG) objectives can dramatically lower expenses. The adoption of sustainable practices helps reduce the cost of operating (such as the cost of raw materials as well as the actual costs of carbon or water). A higher efficiency in energy use for instance, could significantly cut energy expenses, and result in returns on investment (IRR) that is 48% in the average.

5. It’s only a matter time before climate-related regulations significantly influence how you conduct your business.

Regulations relating to climate change are changing and will be beneficial to companies that are able to incorporate sustainable business processes. While some businesses are still able to freely disclose information about their sustainable practices Non-financial reporting is obligatory for large businesses. According to EU laws, for instance is a requirement for public-interest firms who employ over 500 workers to release details about the environmental and social impacts of their business activities.

Businesses must plan for greater regulation in the coming years because of the increasing pressure from many organizations to make it compulsory for small and medium-sized companies to adopt and demonstrate sustainability methods of operation.

It is vital that companies prepare for the mandatory rules on environmental reporting particularly for publicly traded companies as they’ll become among the very first that will be subjected to the disclosure rules. Thus, businesses must remain ahead of the curve and stay aware of the regulations, since it is essential for maintaining competitive advantages. Additionally, failing to stay on top could cause penalties or legal problems.

Sustainability is a long-term program.

The decision of where to begin in the process of adopting sustainable practices can be difficult and daunting, however we hope to ease your mind and made it easier to realize the advantages your business can reap by going green. Green practices can save you both time and expense while also attracting customers who are loyal as well as the best talents of the future. This is a great chance to become a pioneer in your field, so take this bold step to achieve that competitive edge. Being more sustainable is a process and now is the perfect opportunity to start.