One of the main goals of carbon accounting is to manage GHG-related risks and opportunities.
Risks: regulatory risks, supply chain costs and reliability risks, litigation risks, reputation risks
Opportunities: efficiency and cost saving opportunities, increase sales and costumer loyalty, improve stakeholder relation, company differentiation
💡 Customers favor companies that have implemented a Corporate Social Responsibility (CSR) strategy
💡 Employees are more loyal to a company that supports CSR initiatives / Employees are more likely to work for a company with a CSR strategy
According to the GHG Protocol, companies frequently cite the following business goals as reasons for compiling a GHG inventory:
Managing, understanding and identifying GHG risks and reduction opportunities
Identifying risks associated with GHG constraints in the future
Identifying GHG-related risks in the value chain
Identifying cost-effective reduction opportunities
Identifying new market opportunities
Setting GHG targets, measuring, tracking and reporting progress and performance overtime
Participating in mandatory reporting programs
Participating in government reporting programs at the national, regional or local level
Public reporting and participation in voluntary GHG programs
Voluntary stakeholder reporting of GHG emissions and progress towards GHG targets
Reporting to government and NGO reporting programs, including GHG registries
Improving corporate accountability
Eco-labelling and GHG certification
Participating in GHG markets
Supporting internal GHG trading programs
Participating in external cap and trade allowance trading programs
Calculating carbon/GHG taxes
Engaging value chain partners in GHG management
Partner with suppliers, customers and other companies
Expanding GHG accountability, transparency and management
Reducing energy use, costs and risks and avoid future costs
Reducing costs through improved supply chain efficiency and reduction of material, resource, and energy use
Enhancing stakeholder information and corporate reputation through public reporting
Meeting needs of stakeholders (investors, customers, employees, civil society, government)
Improving relationships through demonstration of environmental stewardship
Gaining recognition and credit for early voluntary action