This article will explain how companies can achieve carbon neutrality by applying a set of best practices and adopting compensation policies.
But let’s first start by explaining what is meant by the term carbon neutrality.
Carbon neutrality means zero emissions, i.e. achieving a state of affairs in which there is a balance between the emissions produced and the absorption of carbon.
The company that therefore wants to achieve this long-term objective must necessarily commit to creating a balance between the quantity of carbon dioxide (CO2) emissions produced in a defined period of time and the quantity of compensation that it is able to offer.
A noble objective is to reduce, eliminate or compensate for one’s greenhouse gas emissions, which only some companies are currently pursuing, since there are no legal obligations in this regard.
Revelis has respect for the environment and sustainability among its founding values, so much so that it has created various Artificial Intelligence solutions to make a company sustainable with AI, and in this perspective it is implementing a series of actions to achieve carbon neutrality.
Carbon Neutrality Parameters
Carbon neutrality for a company is a crucial goal to contribute to the fight against climate change. To achieve this goal, a company must consider various ESG parameters (Environmental, Social, and Governance).
Below, we have compiled a list of parameters to consider when striving to become carbon neutral:
- The company must measure and quantify its greenhouse gas emissions, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). This involves assessing both direct and indirect emissions, such as those from boilers, generators, industrial processes, vehicles, and energy production used by the company, following international standards like those from WRI/WBCSD (GHG Protocol) and ISO (ISO 14064-1).
- Develop and implement a plan to reduce greenhouse gas emissions through sustainable business practices, energy efficiency, and transitioning to low-carbon energy sources.
- Invest in renewable energy sources to power company operations and reduce reliance on fossil fuels.
- Improve energy efficiency in facilities and production processes to reduce energy consumption and associated emissions.
- Promote sustainable mobility among employees, such as through carpooling programs, company bicycles, or electric vehicles for company fleets.
- Use natural resources sustainably, including reducing water consumption.
- Adopt circular economy practices to reduce waste and the use of non-renewable resources.
- Engage employees in adopting sustainable practices and environmental education.
- Provide transparent reporting on greenhouse gas emissions, progress made, and future goals in compliance with ESG reporting standards.
- Consider the social impact of business activities, including workers’ rights, diversity, inclusion, and ethical business practices.
- Maintain a strong and responsible corporate governance structure that promotes the adoption of sustainable policies and strategies.
- Engage various stakeholders, including investors, customers, suppliers, and local communities, in ESG initiatives and the transition to carbon neutrality.
When it’s not possible to completely eliminate emissions, the company can consider purchasing certified carbon credits or investing in emission reduction projects to offset residual emissions.
Certified carbon credits are generated through projects in developing countries, where the benefits extend beyond the environment and also positively impact local communities.
These benefits can include improving health, education, local environmental conditions, biodiversity, air and water quality, and supporting economic development.
Fonte video: Multimedia Centre
The benefits of being a Carbon Neutral Company
Becoming carbon neutral today is a significant and meaningful choice that an organization can make. Achieving carbon neutrality through adherence to ESG principles not only contributes to the United Nations Sustainable Development Goals but also results in a multitude of benefits for the company.
Here are the main advantages for businesses:
- Differentiation from Competitors: setting a company apart from competitors.
- Gaining a Competitive Edge: carbon-neutral companies often enjoy a competitive advantage, as more consumers prefer to support environmentally responsible businesses.
- Establishing a Leading Position in the Sustainability Market: building a prominent position in the sustainability market.
- Enhancing National and International Reputation: being carbon neutral sends a strong signal of corporate responsibility and can improve the company’s reputation both nationally and internationally.
- Access to Markets and Investors: many financial organizations and investors seek to invest in companies with strong ESG practices, including carbon neutrality.
- Increased Attractiveness to Talent, Investors, and Customers: improved reputation leads to greater appeal to talent, investors, and customers.
- Risk Management: reducing dependence on fossil fuels and mitigating risks associated with energy price fluctuations can enhance economic resilience.
- Innovation: the pursuit of carbon neutrality can stimulate innovation within the company.
- Lower Environmental Impact: reducing greenhouse gas emissions and minimizing environmental impact contributes significantly to the fight against climate change and environmental conservation.
- Employee Engagement: adopting sustainable business practices can increase employee engagement and satisfaction, as many people take pride in working for a company that cares about the environment.
- Economic Advantages: lower operational costs through the adoption of more sustainable practices, such as energy efficiency and renewable energy use.
Achieving carbon neutrality requires constant commitment and the collaboration of the entire company. However, this commitment is rewarded with significant advantages.
Becoming carbon neutral offers numerous economic, environmental, and reputational benefits that can contribute to a company’s long-term success in terms of both sustainability and overall growth.