Carbon Reporting Benefits
Carbon reporting has benefits and is increasingly a must do. Whether your company is complying with mandatory reporting requirements from governments or companies you work with, or beginning to set your own carbon goals, reporting provides many benefits for your business, including:
Compliance with mandatory reporting schemes
There are more than 90 mandatory reporting schemes globally, such as the United Kingdom’s Streamlined Energy and Carbon Reporting (SECR), which require businesses of various sizes to report their carbon emissions. By reporting carbon emissions, businesses will avoid penalties for non-reporting and be better prepared for increasing legislation.
Respond to customer requests
While not all governments have implemented mandatory carbon reporting, the world’s largest companies are setting goals around their carbon emissions. And with 90 percent of a retailer’s emissions originating in their supply chain, many are requesting carbon data from their vendors. According to the Carbon Disclosure Project (CDP), more than 115 organizations are already requesting carbon data from more than 11,500 suppliers. Companies of all sizes benefit from understanding and report their carbon data to prepare for future requests.
Prepare for carbon taxation
Carbon tax, which is a fee on fossil fuel users, is currently part of 57 carbon pricing schemes that are implemented or scheduled and may tax up to 20 percent of global carbon emissions. Carbon reporting helps businesses understand the cost implications and identify ways to reduce the tax burden.
Get a better picture of overall consumption
You can’t manage your carbon if you don’t measure it. Through measurement you can identify your biggest source of emissions, and implement plans to reduce your carbon, which can result in cost savings, the ability to meet current and future regulations, and meet customer requests. Carbon reporting translates these achievements into real business results with the added benefit of building good-will in the marketplace.