How can companies begin to address the importance of the global climate crisis?
19 March, 2024
Organisations have a crucial role in protecting the environment and reducing their Carbon footprint. Climate change and reducing organisational impact should be at the top of our agendas.
So, How Can Companies Address The Importance of The Climate Crisis?
There are many actions companies can take to reduce their Carbon footprint.
Expanding companies 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 their expansion.
The 2030 United Nations Sustainable Development Goals are often a good starting point for companies looking to improve their sustainability practices and reduce their Carbon footprint.
Mike Azlen, CEO of Carbon Cap Management, explains in an exclusive interview the importance of reducing emissions and how companies can improve supply chains and reduce their ecological footprint.
1. Education
By better understanding the climate risks, key stakeholders can learn about the challenges and understand how they need to be addressed. Senior Managers and 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 you are doing about it.
2. Take Action
Once there’s a better understanding, companies can take action to reduce 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 customise their approach to deal with the challenges of climate change and reduce their carbon footprint and impact.
Key Takeaways on Carbon Emissions
To help spread awareness, we’ve recapped some key takeaways from Mike Azlen’s Carbon Cap presentation 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 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 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
A diagram comparing the Voluntary and Regulated carbon markets, highlighting their differences in regulation and market size.
5. There are two markets today that contribute to off-setting Carbon
An infographic explaining Carbon Tax and Cap & Trade systems for managing greenhouse gas emissions.
6. There is hope: the cap and trade system implemented in the US in the 1990s has reduced Carbon emissions by 81% today.
UK Government Incentives for Green and Climate-Friendly Initiatives
Sustainability within the business context is sometimes defined as the management of environmental, social, and governance issues. It is considered extremely important in many areas, including new product development, reputation building, overall corporate strategy, and environmental regulation.
Many countries offer sustainability incentives for companies investing in green and climate-friendly initiatives.
The United Kingdom is an example of a country that provides incentives for this. It is a signatory of the 2030 United Nations Sustainable Development Goals.
The 2030 sustainable development agenda emphasises responsible business conduct to reduce the impacts of climate change.
UNSDG Agenda 2030
- The United Nations 2030 Agenda for Sustainable Development, which includes the 17 related Sustainable development goals (SDGs), was introduced in 2015. The United Kingdom has been a member of this agreement, which aims to create a more sustainable future with improvements and a focus on society’s environment, economy, and social aspects. The UK is committed to ensuring that the SDGs are fully embedded into each government initiative through various departmental planning processes.
- In 2019, the UK announced a Voluntary National Review that aims to report on how far the monarchy is progressing in delivering the 17 SDGs.
Government support
Much funding is available for companies that invest in the green/sustainability sector. Most of the UK government grants are allocated to SMEs across various industries. They include;
- BEIS Industrial Energy Efficiency Accelerator provides funds for companies willing to implement low-carbon technology
- Business rates relief – some businesses in England are eligible for a reduction in their business rates bill. The rules for business rates relief are different if your property is in Scotland, your property is in Wales, or your property is in Northern Ireland
- Capital allowances – businesses who are eligible can fully expense their plant and machinery costs and access 50% first-year allowances for special rate expenditure from April 2023 until 31 March 2026
- Clean Growth Fund invests in early-stage UK companies seeking investment capital for low-carbon activities
- The Energy Bills Discount Scheme runs for 12 months, from 1 April 2023 to 31 March 2024. The baseline discount, which is applied automatically, provides some support with energy bills for eligible non-domestic customers
- Energy Saving Trust’s ‘Transport for funding for businesses and local authorities’ for information on low carbon transport grants and loans available in the UK and Scotland
- Gigabit vouchers give up to £1,500 for homes and £3,500 for businesses to install high-speed internet in rural areas
- Green Economy allows SMEs to buy and sell low-carbon products and services to other businesses
- Green Skills Bootcamps are part of the Government’s Lifetime Skills Guarantee. They are designed to provide industry-relevant training and sector-based skills for eligible individuals or self-employed individuals.
- Industrial Energy Transformation Fund gives matching funds to businesses with high energy use from industrial processes matching funds – up to £30M for feasibility studies, efficiency measures and decarbonisation deployment.
- From 2022 to 2027, VAT will no longer be charged on some domestic energy-saving measures in England, Scotland, and Wales. Eligible measures include insulation, heat pumps, solar panels, wind turbines, and more.
- Workplace Charging Scheme gives businesses up to £350 per socket (up to a total of 40) to install electric vehicle charge points
- Wrap supports a voluntary agreement on food waste, which enables collaborative action across the entire UK food chain to deliver farm-to-fork reductions in food waste, greenhouse gas (GHG) emissions and water stress that will help the UK food and drink sector achieve global environmental goals
Discover what other countries offer incentives for green and climate-friendly initiatives by subscribing to Centuro Connect.
Conclusion
In conclusion, all companies have a role in reducing their carbon footprint and improving their sustainability practices. Education is an important tool; receiving expert advice can help achieve optimal outcomes in the actions taken.
Contact us for more information, and sign up to Centuro Connect today!
