With data, you can steer toward buying carbon offsets. This is also an area infested with charlatans. Overall, this approach benefits neither society nor business. At the very least, your false statements open the door for regulatory action, and reputational damage continues. In any case, such an approach to carbon neutrality comes at a cost, and that cost is getting higher and higher.
There’s a better approach, and it’s changing the way companies achieve sustainability, whether it’s a mid-sized SME, a global plc, or a public institution like a university. At its heart is the proven concept that sustainability (going green) can be self-funded. And start with Scope 3 emissions. We will look at his chain of supplies.
Broadly speaking, 80% of emissions are in the supply chain, and across the range of suppliers, 80% of these emissions are identified as originating from the top 20% of suppliers. Overcoming this could end the debate about buying carbon offsets.
Combining a Purchase of Goods and Services (PG&S) audit with carbon accounting provides immediate quality carbon report data covering at least eight of the Scope 3 criteria. Your reports will exceed the most stringent standards, giving you an instant competitive edge and some cool marketing news.
However, this is important. This same PG&S audit will not only enable consultants and her analysts to identify easy-to-achieve carbon reduction measures, but will also expose inefficiencies in procurement strategies.
Assume a turnover of £50m and operating costs of £5m. Now consider that procurement optimization can save you an average of 8.3%. Your business can add £415,000 to your annual revenue without cost of goods sold.
Clients who embrace PG&S’s approach to sustainability are reaping rewards while freeing up money to advance clean energy initiatives such as solar and air-sourced heat pumps. This is a more responsible approach to carbon reduction than carbon offsetting.
If you would like to consult with us, please feel free to contact us.