Businesses have a critical role to play in the worldwide fight against climate change. The global transport industry, for instance, accounts for 23% of total greenhouse gas emissions, with freight and logistics being the biggest contributors. If the world is to reach the Paris Climate Agreement target of limiting global temperature rises by 1.5°C above pre-industrialization levels, businesses need to take accountability for their carbon footprints and start taking action now.
Fixing the planet is good business
While it’s critical for the future of our planet that businesses take control of their emissions, sustainability initiatives can also have a positive impact on the business. Sustainable brands may enjoy enhanced consumer brand perception, and even more loyal customers. Companies with higher ESG scores attract better talent. Sustainable brands are more likely to gain access to investments, funds, tax credits and rebates. As climate change threats grow, stakes rise for businesses and consumers, impacting their purchasing choices significantly.
Businesses around the world are already making an impact
Between 2015 and 2020, companies with “science-based targets” cut their emissions by 25%, demonstrating that brands can make considerable impact by following clearly defined guidance and frameworks. For organisations looking to embark on a carbon reduction journey, guidance is available in the form of the Science Based Targets Initiative. SBTi equips businesses with best practices in line with reports from the IPCC (the UN body assessing the science related to climate change). These paths to reduce emissions allow businesses to work toward common global goals and ultimately lead the way to a low-carbon future for the planet.
How can businesses start to reduce their carbon footprint?
If companies are to successfully reduce their impact on global warming, there are three steps that should be followed:
- Phase 1 -Measure the current carbon footprint of the business and wider supply chain
- Phase 2 - Reduce the amount of carbon being emitted, for example by having a fleet operator switch to electric vehicles.
- Phase 3 - Organizations must first clearly understand their current carbon footprint before starting reduction and offsetting activities.
Getting started: how can businesses measure their carbon emissions
Before an organization can get started with reduction and offsetting activities, they must first be able to paint a clear picture of their current carbon footprint. It’s important to understand that there are three different “scopes” of emissions.
Offsetting lets companies balance emissions by investing in third-party managed environmental schemes.
Continuing along the path to carbon reduction and offsetting
Carbon reduction can be achieved in many ways, spanning simple recycling initiatives and switching to clean energy, to overhauling suppliers for more sustainable alternatives.
Once — and only once — reduction measures have been decided, businesses should look into offsetting. Offsetting lets organizations balance emissions through third-party initiatives, effectively addressing residual emissions for businesses.
How technology is playing a key role in carbon footprint management
Technology breaks down many barriers to starting and managing the end-to-end carbon reduction process. It consolidates diverse business data, simplifying carbon initiatives to be more accessible, cost-effective, and agile.
Technology offers a holistic view of costs and opportunities, enabling better and faster decision-making across the entire business. This ensures rapid value and optimal user experience, allowing companies to run efficiently while benefiting from sustainability initiatives.
The Freyt World Initiative
Freyt World has partnered with Pledge to enhance sustainable logistics through the new Freight Emissions Calculator. This tool helps freight forwarders measure and reduce their carbon footprint, meeting consumer and governmental net-zero emissions demands. The calculator offers an easy way to adopt sustainability practices, providing both compliance and new revenue opportunities. By integrating automated emissions tracking, Freyt World supports proactive environmental responsibility, making sustainable logistics accessible with just a click.
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