The Benefits of GHG Reporting
You might be thinking, why should my business report its greenhouse gas emissions?
GHG reporting is not only beneficial when it comes to helping the environment, but it’s also incredibly beneficial to your business. In fact, in 2022 more than 8,000 facilities and suppliers submitted their GHG reports.
Here are the main reasons you should do the same:
1. To save the environment
First and foremost, GHG reporting is one step you can take to help save the environment. How? As mentioned earlier, your GHG reports give you an accurate depiction of exactly what greenhouse gas emissions your organization is responsible for and how much is released into the environment. Once you gain this transparency, you’ll be able to come up with a plan of exactly what actions you can take to help reduce these emissions and make better decisions in the future.
2. To reduce company costs
Completing your GHG reports is a positive decision to help your company reduce costs. With clear insight into exactly how your business is responsible for greenhouse gas emissions, you can begin to clearly see what the company is spending money on and what you can do to reduce this. Perhaps alternate sources of energy or a reduction in business travel throughout the year can be considered. There are many alternatives you can assess to help reduce your business’s overall GHG emissions.
3. To make yourself more attractive to investors and consumers
85% of asset managers share that ESG is a major priority for their businesses. It’s no secret that companies with strong sustainability initiatives and GHG reports are much more attractive to investors nowadays. Why? The answer is three-fold.
The first reason is because these companies are seen to be less risky because they have the processes and steps in place to make strong, sustainable decisions. The second reason is because it shows investors you are thinking long term about how you can guarantee your organization’s existence in the future. Lastly, investors see higher returns with businesses who have a strong ESG performance. In fact, 63% of the time, ESG-related propositions have a beneficial impact on equity returns. Keep your investors happy and attract more with dynamic GHG reporting.
What about potential consumers? 76% of consumers state they will not buy from organizations which do not respect the environment or their employees, while 88% say they would be loyal to companies which have strong ESG initiatives. This is nothing new, as people are more attracted to businesses who have a strong mission to help others or the environment. Showing the public that your organization cares about the environment through various ESG-related initiatives and strong sustainability reporting can give your business a competitive edge in your industry.