How can companies begin to address the importance of the global climate crisis?
The 5th of June was World Environment Day, the United Nations Day for encouraging worldwide awareness and action to protect our environment. Organisations have a crucial role to play in protecting the environment and reducing their Carbon footprint. Climate change and reducing organizational impact should be at the top of all of our agendas.
So how can companies begin to address the importance of the climate crisis?
Mike Azlen, CEO of Carbon Cap Management explains in an exclusive interview, the importance of reducing emissions and the actions companies can take to improve supply chains and reduce their ecological footprint.
By bettering their understanding of the climate risks at hand, key stakeholders can learn about the challenges at hand and understand how they need to be addressed. Both Senior Managers, as well as employees, should be involved in understanding where we’re at. At a senior management level, it is important to know where your carbon footprint is, and what are you doing about it.
2. Take Action
Once there’s a better understanding, companies can take action in reducing their impact. The actions and steps needed will differ across various industries and companies, as the Carbon footprints and supply chain issues will vary.
3. Customise approach
Companies will have to customize their approach as to how they deal with the challenges of climate change and how they reduce their Carbon footprint and impact.
World Environment Day: Key takeaways on carbon emissions
To do our part in spreading awareness about World Environment Day, we’ve recapped some key takeaways from the CarbonCap presentation by Mike Azlen at our Global Expansion Conference which took place on 25 May 2022 in London.
1. Globally, we’re emitting 40 billion tonnes of Carbon/year – about 150 million tonnes of emissions/day.
2. The amount of emissions for 1 passenger’s air travel from London to New York is about 2 tonnes of CO2
3. At our current run rate, we have a mere 8 years before we reach the 1.5-degree increase threshold set by The Paris Agreement.
“It is generally accepted that the best way to correct a market failure is to place a price on the externality that reflects its the true cost. In the case of climate change, this requires putting a price on a tonne of Carbon that reflects the net cost to society” – CarbonCap
4. There are 2 ways to put a price on Carbon
5. There are two markets today that contribute to off-setting Carbon
6. There is hope: the cap and trade system implemented in the US in the 1990s has reduced Carbon emissions by 81% today
There are many actions companies can take to reduce their Carbon footprint. Expanding companies who are looking to enter new markets should consider the physical risks that climate change could pose for them depending on the locations they are considering as well as the regulatory environment and policies that may impact your expansion.
The 2030 United Nations Sustainable Development Goals are often a good starting point for companies who are looking to improve their sustainability practices and reduce their Carbon footprint.
Governments that offer incentives for green and climate-friendly initiatives
Currently, many countries offer sustainability incentives for companies that are investing in green and climate-friendly initiatives. The United Kingdom is an example of a country that provides incentives for this. The United Kingdom is a signatory of the 2030 United Nations Sustainable Development Goals.
The 2030 sustainable development agenda places emphasis on responsible business conduct to reduce the impacts of climate change. Sustainability within the business context is sometimes defined as the management of environmental, social, and governance issues and is considered to be extremely important in a wide range of areas, including new product development, reputation building, overall corporate strategy, and regulation, particularly environmental.
UNSDG Agenda 2030
- The United Nations 2030 Agenda for Sustainable Development which includes the 17 related Sustainable development goals (SDGs) has been introduced in 2015, and the United Kingdom has been a member of this agreement which is aimed at creating a more sustainable future with improvements and focus on the environment, economy and social aspect of society. The UK is committed to ensuring that the SDGs are fully embedded into each Government department through various departmental planning processes.
- In 2019 the UK announced a Voluntary National Review which aims at reporting on how far the monarchy is progressing on delivering the 17 SDGs.
A large amount of funding is available for companies who invest or are involved in the green/sustainability sector. Most of the UK government grants are allocated towards SMEs across various sectors. This includes:
- The UK government has issued green grants for renewable energy businesses, sustainability grants, energy efficiency grants, sustainable innovation, and green jobs.
- The grants are distributed across the various regions of the UK. Some grants include; – the Low Carbon Revenue Grants in Warwickshire – the Business Energy Efficiency Program in Worcester County, Energy for business in Nottinghamshire – LCR Future Energy for SMEs in Liverpool and West of England Green Business Grants A Circular Economy Investment Fund sponsored by Zero-Waste also exists, which is typically given to SMEs.
- In Wales, government-funded ‘’Eco grants’’ are given to businesses/projects who will acquire, restore, and enhance nature.
- The Department of Agriculture Environment and Rural Affairs in Northern Ireland grants various funding and grants for businesses as well.
- In November 2020, the UK government announced a stipend of GBP 134 million dedicated to funding Cleantech. This will be granted via the Sustainable Innovation Fund. This funding is aimed at assisting green growth projects to develop ern technologies thus creating jobs, reducing climate change, and driving productivity.
Discover what other countries offer incentives for green and climate-friendly initiatives by subscribing to Centuro Connect.
In conclusion, it is clear that all companies have a role to play in reducing their carbon footprint and improving their sustainability practices. Education is an important tool in this, and receiving expert advice can help to achieve optimal outcomes in the actions taken.