We all know the story by now; the greenhouse effect on earth stems from the emission of GHG emissions released primarily by burning fossil fuels, as well as landfills, agricultural systems, industrial and waste management processes, and more. Without concentrated efforts towards greenhouse gas emission reduction, the globe is not only in danger of suffering increased levels of damage but suddenly needing to cope with an entirely new set of issues, entering the territory of climate disasters and constant risk to public safety.
Of course, the environmental importance of curbing GHG emissions can’t be overstated. Still, the reality is that environmental protection is just one part of why businesses need to work to address this critical concern now. Regulatory compliance demands it, with the recent SEC recommendations on Scope 3 reporting acting as a seismic shift in the industry. For another, stakeholders also demand these improvements, with customers, investors, and top-tier employee talent signaling a clear preference for sustainability and a smaller ecological footprint.
Benefits of Reducing Greenhouse Gas Emissions – Impacts on the World
First, let’s start with the most obvious benefits of reducing greenhouse gas emissions. The effect it has on the world we all live in. Consciously decreasing the emission of greenhouse gases during standard business processes impacts our global environment in multiple ways, including:
1) Air Quality
As temperatures rise and emissions increase in volume and density, the Paris Agreement notes air quality will worsen Paris Agreement states air quality is sure to worsen. With the degradation of air quality comes decreased accessibility of outdoor spaces and consequential damage to clean land and water, and we will be facing unprecedented challenges in trying to continue with personal and professional routines that have become our norm. When households, businesses, and people, in general, strive to reduce greenhouse gas emissions, air quality will improve and result in an across-the-board increase in the health of our entire planet – from our bodies of water to our internal bodily systems.
2) Economic Growth
In conjunction with improving public health, the global economy will benefit from a cleaner environment through reduced GHG emissions. Clean, green energy is more appealing economically than ever, with a 19-44% difference in price between new natural gas generation and new coal generation in the US. The reduction of electrical use within homes and businesses, longer-lasting electric and fuel-efficient vehicles, and reduced waste from natural gas are only a few of the factors that will push the economy towards more tangible success than it has seen in recent years. Corporations will witness significant ROI on investment into clean energy, and with more time and funding to dedicate towards product development and improvement, as well as increased organizational credibility through openness with stakeholders around their sustainability efforts, both sales and consumer satisfaction will rise.
Such investments to reduce greenhouse gas emissions will increase transparency with stakeholders and fulfill growing local, national, and global laws and regulations, including Scope 3 legislation from the SEC in the United States and the Corporate Sustainability Reporting Directive (CSRD) in Europe.
3) Slowed Climate Change
Finally, arguably the most impactful aspect of greenhouse gas emission reduction is the overall slowed climate change and environmentally beneficial practices that will be implemented. Climate change is the central cause of increased droughts, sea-level rise, drastic weather events, such as forest fires, and all the subsequent devastating effects of these events on humanity and our development in every sense. Reducing GHG emissions is the number one key to working towards a cleaner, greener, safer, and healthier society around the globe.
Key Benefits of Reducing Greenhouse Gas Emissions to Your Organization
In addition to these tangible global, large-scale benefits, organizations can benefit from the positive impacts of greenhouse gas emission reduction. The biggest benefits of reducing greenhouse gas emissions include:
4) Cost Savings
When it comes to cost savings, the simple reduction of energy usage shrinks your organizational carbon footprint and your operating expenses. In 2016, Energy Star released a report – when Intelligent Energy Optimizers LLC (IEO) supplied LED lighting to replace the existing fluorescents and HIDs at Kimberly–, Clark Berkley Mill, an investment of $350,000 by the owner resulted in annual savings of $160,000 with total ROI in just over one and a half years.
5) Improved External Relations
The spending power of consumer populations holds immense sway in the process of influencing organizational action. The method of commitment to accountability in the arenas of broader sustainability and greenhouse gas emission reduction is a huge credibility boost in the eyes of the public. When your organization takes direct actions toward reducing carbon dioxide and greenhouse gas output, the causal increase in quality and depth of relationships with potential partners and external business connections is invaluable.
6) Improved Stakeholder Relations
Alongside the deepened relationship with the public, the impact of transparent sustainability metrics and performance holds immense potential to deepen invaluable relationships with stakeholders. More investors than ever are diverting capital away from carbon-heavy, secretive companies and turning towards those who choose to be open, proactive, and honest with managing greenhouse gas emissions within the sustainability world and beyond. Many organizations now use ESG software and solutions to analyze and change company policies to match environmental, social, and governance demands.
7) Regulatory Compliance
With a 20-fold increase in global climate change laws since 1997, ensuring proactive regulatory compliance is more prevalent in the minds of organizational leadership, public spheres, and stakeholders than ever before – and it’s only rising in importance. Regulatory bodies and reporting frameworks such as GRI (Global Reporting Initiative), CDP (Carbon Disclosure Project), and SASB Standards help organizations across the globe to stay transparent and take responsibility for their impacts on the planet. Implementing an effective strategy to reduce greenhouse gas emissions and documenting and reporting on progress in that area is vital for organizations to continue operations and reduce fines.
Ways to Reduce Greenhouse Gas Emissions
When it comes to reducing these GHG emissions, there are several paths you can take – and the more angles you approach while working to solve the challenge of effective greenhouse gas emission reduction, the more effective your final efforts will be.
- Cut initial consumption of energy
- Replace fossil fuels with cleaner, greener alternatives
- Work towards higher energy efficiency rates
- Purchase carbon offsets
- Monitor and reduce Scope 3 emissions
Cut Consumption
Simply decreasing the amount of energy and supplies your organization uses during its daily operations can significantly impact the effectiveness of greenhouse gas emission reduction programs. You can install motion sensors to control lighting, reduce unnecessary paper waste, eliminate plasticware from your office, and encourage employees to work remotely to reduce overall energy consumption. An energy treasure hunt is also an engaging way to encourage your employees to participate in workplace sustainability initiatives.
Clean Fuel Alternatives
With electric vehicles, innovations in solar energy, and countless more options available within the scope of moving away from fossil fuels and coal as primary sources of energy – as well as substantial subsequent benefits when it comes to ROI and environmental protection – there’s no downside to working towards using only clean fuel. Have discussions with your sustainability team and business leaders to learn how your business can invest in and implement cleaner energy sources.
Energy Efficiency
When the reduction of operating costs and emission reduction hinges on the simple act of investing in more energy-efficient equipment, the decision is simple. Committing to the installation of more energy-efficient systems throughout a company’s functioning areas, whether retail, production, warehouse, or something entirely different, is the way to go.
Carbon Offsets
A carbon offset is a reduction in emissions of greenhouse gases made to compensate for emissions caused by your company. The money to purchase these offsets is used to finance projects – forest preservation, energy efficiency efforts, and landfill methane capture – that would not have been built without that investment and funding. Read more about carbon offsets and how to purchase them.
Now that you’ve explored the benefits of reducing greenhouse gas emissions, supporting the environment we live in and pushing towards the next level of excellence within your organization is more accessible than ever before. While efforts to reduce greenhouse gas emissions once were optional, now they’re mandated. Don’t let the rest of the business world pass you by – invest in energy-efficiency and sustainability efforts for your organization and join the march towards universal greenhouse gas emission reduction today with emissions management software.
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