According to the U.N. climate science panel, carbon emissions need to decrease by approximately 45% by 2030, in other words “net-zero” to mitigate the nearly unavoidable effects of climate change. Though a daunting goal, striving towards this goal will help limit global warming, promote overall health across humanity, and much more. But how can we, as businesses, contribute to this effort while still turning out a profit? The answer lies in data.
Without data, our awareness of issues regarding climate change would not exist. The same is true, however, in terms of finding solutions to address this situation. Data encourages action and change, and provides companies with an accurate, detailed, dependable, and secure foundation from which to efficiently approach net-zero. By focusing on creating a comprehensive data strategy that effectively aligns with your company’s net-zero goals, tremendous strides can be taken to create a more sustainable world. Not to mention, shifting to a net-zero data strategy often provides your business with a competitive advantage over others, which will be discussed later.
With that being said, the process of doing so is not easy. For companies with no prior history of implementing sustainable systems, change is required across the board, from product sourcing and development, to marketing and shipping. By collectively addressing all areas of your company, assessing their respective environmental impact, and effectively instituting change, you will surely be successful in reaching your net-zero goals. That being said, success can take upon different interpretations in this scenario. While some companies are firm in their aspirations of reducing their impact on the climate, others are more inclined to participate in the net-zero movement for individual profit. While neither option is necessarily better than the other, it is important to consider your own company’s reasoning for achieving net-zero, as this will likely influence the way in which you approach this goal.
Steps to take towards achieving net-zero
So how exactly can we utilise data in such a way to achieve net-zero? Below, we have highlighted three important steps that your company should consider.
1. Data democratisation:
In order to approach sustainability across the board, your company must prioritise the understanding, unification, and accessibility of its data. This will require some form of digital services platform that will promote increased data access to company data for all employees. By doing so, energy consumption and emissions levels can be tracked at a much more efficient rate. Moreover, both technical and non-technical employees will be able to freely report on any fluctuations in these areas, allowing for quicker decisions to be made and more insights to be uncovered.
For a more in-depth explanation into the process of data-democratisation, please take a look at our prior Democratisation blog.
2. Establishing a protocol to enhance communication:
By establishing a stable protocol within your company to work towards net-zero, business operations will be able to take place at a much more efficient pace. As mentioned in the section above, data democratisation will allow not just business executives to view company data, but all employees. A result of this is increased responsiveness to fluctuations in emissions. However, to allow for increased responsiveness, a set protocol must be established for employees to communicate with one another. By doing so, changes will be detected more frequently and business decisions can be made in a more timely and precise manner.
3. Leadership:
While simply reporting on emissions changes will promote sustainability, what is truly needed is a company-wide support for achieving net-zero. Company executives should be responsible for making sustainability a central part of operations, as by doing so, employees in every sector will feel more empowered to consider the environmental impact of their decisions. Those with a sufficient background in climate change, sustainability, and economics should be selected as company leaders. With such individuals in charge, business decisions can be made in both an economically sound and environmentally conscious manner.
Benefits of aiming for net-zero
With all the steps needed to achieve net-zero, why should your company even consider this goal? To answer that question, we have outlined below a few important benefits to keep in mind for companies willing to take the risk.
1. Reputation/Customer Retention:
With more and more consumers favoring sustainable businesses over others, along with an increase of regulations from legislators, demonstrating your company’s support for achieving net-zero is sure to boost marketability.
2. Profit:
In the short run, making the switch to net-zero may prove costly for your company Over time, however, operational costs will decrease and energy costs will be saved due to the gradually increasing price of fossil fuels. Not to mention, switching to net-zero will provide your company with new revenue streams, ultimately helping to boost profits.
3. Security:
Similar to the benefit mentioned above, with a decreased reliance on one single source of revenue, your company will be more resilient to possible failures or system breakdowns.
To conclude, approaching the goal of net-zero is an especially difficult task that may or may not ensure the success of your company in the long run. While the endeavor is risky, it is important to remember that the true significance behind participating in the net-zero movement is not to ensure the success of one or two individual companies. Rather, it is to ensure the health of human life across the world. With that in mind, the benefits are still plenty for those willing to make the switch. Nevertheless, all businesses vary extensively from one another, and deep consideration should be carried out prior to making this important decision.
About the author: Mark Roychowdhury is a Copywriter Intern at ei² niche consulting for #data #insights #performance www.eisquare.co.uk