Finding the Value in Emissions

The US House of Representatives recently approved Democratic-sponsored legislation for a national “cap and trade” emissions trading scheme. Carbon trading was first promoted in the 1980s by the Reagan administration. It further gained support in the Clinton administration, as trading mechanisms were made a central part of the 1997 Kyoto Protocol. As the legislation moves on, there will undoubtedly be changes made; however, the results of any program will have definite impacts on business.

As a result, leading companies across the country and around the globe are developing strategies to reduce their ecological footprint as part of internal environmental policies or a corporate sustainability plan. With legislative penalties coming, these efforts are now driven by economic considerations as much as environmental concerns.

In a recent post, Energy Efficiency: Use Less = More Profits, we discussed how energy efficiency can be quick hit for many businesses seeking to reduce emissions and manage cost. More and more businesses are realizing the links the profitability.

For a sustainability plan to reduce emissions to be effective, the strategies need to consider the value in managing both direct and indirect sources. Greenhouse Gas (GHG) emissions are being consider across a company’s entire value chain. Businesses are addressing the direct emissions from internal operations as well as the indirect emissions controlled by third parties.

In our professional consulting, we view one of the first steps in an energy management plan is to address consumption. Reduction of energy and fuel consumption is a key component of a business sustainability strategy to reduce emissions. Our small business resources have also observed many companies switching to alternative energy sources to reduce their emissions.

With new legislation on the horizon, it has become critical for many companies to have a comprehensive carbon reduction strategy. Businesses must begin to understand both their direct and indirect exposure. Taiga Company offers professional consulting and small business resources to companies implementing business sustainability strategies to reduce emissions.