This article was written in conjunction with BEM Services.
This summer, we have seen record high temperatures and concerns about rising energy prices for the winter, which has led to further discussions surrounding climate change. As the Financial Times has put it, ‘climate change [is being] shoved in our face’.
Climate change affects all of us. But how does this critical issue impact your business?
Understanding the carbon footprint of your business
You may already be taking steps to ensure your business is as energy-efficient and climate-friendly as possible. Or, perhaps you are curious about what you can do to help reduce the carbon footprint of your business. You might also be worried about costs and how not only climate change but also the action required could affect your income.
The first step is to calculate the carbon footprint of your business. Your carbon footprint is a measurement of the greenhouse gases you produce. All businesses, from sole traders to multinational companies, have a carbon footprint. Some examples of what contributes to this calculation include:
- Fuel consumption – this could be from your business premises and any vehicles used by the company. Other factors could include employees commuting to the workplace, deliveries, and more.
- Energy consumption – this will refer to electricity used by the company in the workplace.
- F gas (fluorinated greenhouse gas) consumption – some equipment found in the workplace (such as air condition units, refrigerators, and fire equipment) requires topping up with F gas.
For some businesses, the environmental impact will be lower, due to the size of the premises, the number of employees, the nature of the business, and a host of other factors.
Some examples of the ways to reduce your carbon footprint for business
Even a small change can make a big difference. Here are several ideas for reducing the carbon footprint of your business:
- Set up recycling facilities in your place of work and use recycled materials wherever possible.
- A busy commercial office block encourages employees to commute on foot, by bicycle or via public transport or car pool.
- Carry out an energy-saving assessment – this is a must for ALL types of businesses.
- A manufacturing site could invest in renewable energy sources like solar and wind power to save on emissions and running costs
- Reduce the carbon footprint of your supply chains. Businesses need to take into consideration all stages of their supply chains and adopt creative approaches to sustainability. Existing supply chain contracts will most likely need to be looked at and potentially renegotiated, incorporating specific contractual provisions which govern environmental sustainability. At Nelsons, we can assist with reviewing contract terms. Where appropriate, an approach can be made to address any terms or obligations that prove prohibitive to continued supply. Any such discussions need not be confrontational and can lead to productive, strengthened business relationships.
- Invest in quality machine parts and consider the equipment’s energy requirements (equipment that uses renewable energy, instead of fossil fuels). It is also important to maintain your equipment effectively, thereby hopefully extending the life of the equipment.
- Invest in green energy and office equipment. Additionally, or alternatively, invest in your own renewable energy sources. For example, solar panels.
- Introduce a hybrid working or fully remote working policy for your members of staff, if this is suitable for your business. Nelsons advise organisations of all types on appropriate policies and procedures to adopt to provide structure and fairness for managers and employees.
- Invest in hybrid or electric fleet vehicles and company cars.
- Introduce a fuel card – this allows you to monitor how much fuel your vehicles are using and assess if the most efficient routes are being used.
- Encourage employees to car share with one another and/or sign-up for the Cycle to Work scheme.
- Encourage workers to hold virtual meetings with colleagues, clients, or suppliers instead of in-person meetings which involve travel.
What are the benefits for a business reducing its carbon footprint?
Reducing your carbon footprint is good for the planet, but is it good for your business? Here are some benefits to combatting climate change in your workplace:
- Reducing emissions through online meetings, electric vehicles, renewable energy and more can significantly cut costs in the long term.
- Climate change action is often demanded by consumers and can promote your business and its values.
- It can also attract employees who value businesses that show their commitment to the environment.
- Future-proofing your equipment, premises, vehicles, and more will save businesses money further down the road.
- Market volatility caused by climate change – such as rising gas prices – can be avoided with a focus on green solutions.
Want to know more?
If you require any legal guidance or support in relation to the subjects discussed in this article, please get in touch with Simon Key, Partner in our expert Dispute Resolution team, on 0800 024 1976 or via our online enquiry form.
BEM Services provides energy-saving assessments for businesses across the United Kingdom. For more information about what BEM Services can offer your business, visit their website.
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