How Top Companies are Reducing and Offsetting their Emissions

Businesses are a significant source of greenhouse gas emissions. Emissions from buildings (lights, heating and air conditioning, computers, photocopiers) along with emissions from industrial processes and product distribution – these are all ways that businesses contribute to climate change. When you add in emissions from staff commuting and business air travel the total climate impact from businesses is even greater.

Many businesses are responding to the challenge of climate change by implementing voluntary greenhouse gas management programs. These programs usually include steps to reduce energy use internally, such as using energy efficient lighting or managing their fleets more efficiently. Once energy use is reduced to the extent technically or financially feasible, carbon offsets can be purchased for some or all of the remaining emissions. By offsetting its emissions in this way, a business can claim that its product(s), service(s) and/or operations are carbon neutral.

There are many potential benefits for businesses that implement greenhouse gas management programs, including:

Cost savings: Because reducing greenhouse gas emissions usually goes hand-in-hand with reducing energy consumption, businesses can often realize substantial cost savings through greenhouse gas reduction programs. Some examples include heating and lighting upgrades that result in lower utility bills, switching to more efficient fuel sources, and staff awareness programs that lower consumption of electricity and other resources, like paper.
Competitive advantage: Businesses can differentiate their products or services in a crowded marketplace, increase market share and attract investors. Consumers and investors are increasingly seeking out businesses and products with environmentally friendly attributes. As well, larger businesses are moving to ‘green’ their supply chains, and suppliers to these businesses that can offer products and services with reduced greenhouse gas emissions can profit.
Operational efficiency: Reducing greenhouse gas emissions can also lead to improved operational efficiency. For example, better fleet management saves greenhouse gas emissions, and fuel expenses, but can also cut down on the number of kilometers driven and improve delivery times.
Gaining practical experience with greenhouse gas management: Businesses that get started now will be better prepared for a future, carbon-constrained economy, and will have the time to develop both the skills necessary for greenhouse gas management and a cost-effective strategy that suits their business, instead of simply reacting to future constraints.
Reduced exposure to market and regulatory change: Businesses that work to manage their greenhouse gas emissions now will face reduced risk of being adversely affected by market and regulatory changes as a result of climate change. While corporations with large emissions are likely to face regulations at both the provincial and federal levels, smaller businesses will also be affected, indirectly, by the rising costs of inputs like electricity and fuel, and costs related to transportation.
Increased employee retention rates and productivity: A business that shows leadership in an important area like fighting global warming can be a powerful motivator for employees, increasing their productivity, building loyalty and inspiring them to assist in innovating and adapting. The cooperation involved in managing and reducing greenhouse gas emissions can also increase teamwork across business units within an organization. Further, energy efficiency programs such as increasing the use of natural light can directly improve workplace conditions and increase employee productivity.