# How to spend more time on carbon reduction (and less on analysis & reporting) Carbon reduction plans often fall short. This article explores the key challenges and shares meaningful tips on dealing with data complexities effectively. Gain actionable tips and strategies to help your business reduce its carbon footprint, today. Author: Anna Kuppel Published: 2024-02-19 Source: https://www.coolset.com/academy/spend-more-time-on-carbon-reduction ##### Key takeaways Carbon reduction remains a major roadblock for many businesses, with even some of the world's biggest names failing to achieve their promised targets. Research from the NewClimate Institute revealed that despite net-zero pledges, 22 major multinational companies from Amazon to Nestlé are only on track to reduce a median of 15-21% of their full value chain emissions between 2019 and 2030. This issue highlights an urgent problem, not just for these global players, but for businesses at every level. For many, the journey towards meaningful carbon reduction often gets overshadowed by endless data collection and analysis – sidelining the real work of implementing sustainable changes. This article explores these challenges in more detail, reminds us why carbon reduction is worth the effort, and offers lots of useful tips and strategies to help your business reduce its carbon footprint – starting today. ## Why most carbon reduction plans fail to meet their goals Despite the best intentions, carbon reduction often hits a roadblock when businesses face the overwhelming task of managing scattered and inconsistent emissions data. ### Carbon emissions data analysis can take ages In many organizations, carbon emissions data is scattered across numerous departments and systems. You've got your energy management system tracking energy used by facilities and operations. Your supply chain management system logging emissions from your supply chain activities. Your travel and logistics platform documenting emissions from corporate travel, logistics, and transportation. Your financial system keeping tabs on energy costs and carbon offset purchases… As you can see, with so many siloed systems using different metrics, formats, and reporting standards, getting a precise understanding of your company's carbon footprint is a massive undertaking. In reality, most companies simply don't have the capabilities to manage data analysis on their own effectively. A recent study by Microsoft and Tata Consultancy Services (TCS) found that around 80% of the businesses surveyed admitted to failing to disclose operational emissions targets, as well as lacking the means to develop decarbonization initiatives throughout their supply chains. The culprit? It often comes down to poor data management and using crude spreadsheets to track emissions. #### How to overcome the challenge There are plenty of ways to make data collection, analysis, and reporting more manageable: ### Not all datasets are created equal Even after collecting data from every nook and cranny of your business, making sure that data is accurate, detailed, and relevant is a whole other story. For many businesses, inconsistency in the quality of emissions data can cause major issues. Some data may be up-to-date and detailed, providing clear insights into specific areas of carbon outputs. Other datasets may be outdated, incomplete, or lack the granularity for a detailed analysis. This can cause big headaches, especially for finance teams, as they must spend even more time verifying if the data is accurate and seeking out more reliable sources of information. Not only can delay proper analysis but it can also put a halt to any decision-making. Or worse, increase the risk of investing in initiatives that do more harm than good. Because after all, without quality data, it's impossible to develop effective carbon reduction strategies. #### How to overcome the challenge Here are some strategies your business can implement to address the variability in data quality: ## Why reduce your business's carbon emissions, anyway Before you toss the idea of carbon reduction in the "too hard" pile, let's take a moment to remember why we're doing it in the first place. Besides the clear environmental imperative, there are plenty of ways carbon reduction can be good for your business, too. ### Saving the planet Did you know that mid-market companies are behind a whopping 64% of industrial pollution in Europe? By reducing your carbon footprint, you can start to chip away at some of the harsh effects of climate change. ### Saving costs on hiring The results are in: Today's employees are drawn to companies that care about the planet. According to a study by IBM's Institute for Business Value (IBV), 67% of respondents are more willing to work for companies that prioritize environmental sustainability. ### Saving costs in general Diving into carbon reduction often means giving your business processes a makeover. From decreasing your energy consumption to reducing your reliance on fossil fuels, these changes tend to bring about better efficiency and, you guessed it, lower costs. Plus, implementing carbon reduction initiatives can also make you eligible for some nice government grants and incentives, too. Check out PwC's Government Incentives Scanner to see which incentives apply to your business. ### Saving yourself from fines Governments around the world are getting stricter when it comes to environmental regulations. In 2022, for example, more than 30 UK companies got slapped with fines for under-reporting emissions, failing to reduce energy use, and leaving energy audits incomplete. In Europe, the Corporate Sustainability Reporting Directive (CSRD) is now in effect, mandating more than 71,000 companies to report on their environmental impact as early as 2024! With potential fines looming, it's wise to start thinking about compliance as soon as possible. ## Growing companies: here's how you make carbon reduction work Here are some simple ways to achieve carbon reduction success – no matter your company's size. ## 5 ways to reduce your mid-market company's carbon footprint ### 1. Adopt renewable energy Tapping into renewable energy sources like solar, wind, or hydropower can cut down your carbon emissions drastically. From installing solar PV panels or wind turbines to switching to a green energy provider, you can reduce your reliance on fossil fuels and save on energy costs in the long term. ### 2. Improve energy efficiency Did you know that simply switching to LED lighting can help your business slash its electricity use for lighting by up to 80%? Even the simple act of updating your appliances, implementing a smart energy system, or motivating employees to turn off their screens before leaving the office can make a big impact. ### 3. Use sustainable transportation Choosing greener modes of transport is a key step in lowering your carbon emissions. Think about investing in electric vehicles for your company fleet, encouraging carpooling, or even offering perks for biking or using public transport. Limiting business travel by plane to essential trips only is also wise. Could you meet virtually or choose a destination accessible by train instead? These simple choices can cut down emissions, save costs, and support a healthier planet. ### 4. Reduce and recycle your waste Adopting eco-friendly practices like minimizing waste, launching a recycling program, or opting for reusables over single-use items can reduce your environmental impact substantially. With 88% of US and UK consumers choosing brands that make it easier for them to make environmentally friendly choices on a daily basis, these actions also help you draw in more customers. ### 5. Use the right decarbonization software Simply put, using decarbonization software is the simplest way to fast-track your carbon reduction success. BCG's Carbon Emissions Survey Report 2022 found that organizations with automated digital solutions for emissions measurement are 2.2 times more likely to measure emissions comprehensively and 1.9 times more likely to reduce emissions in line with their ambitions. Here's what to look for when choosing a tool: ## How decarbonization software helps you make the right decisions, faster Decarbonization software simplifies the process of analyzing your carbon footprint by pulling together data from various sources and offering actionable insights. It enables you to quickly identify areas with high emissions so you can implement effective reduction strategies in the right places – saving you time and boosting your environmental efforts. And best of all, it replaces those outdated, error-prone data collection methods (like spreadsheets) with a sleeker, more reliable, and automated system. But don't wait too long to make the switch. Failing to embrace this new technology could put you at risk of falling behind in terms of competitiveness, compliance, and future readiness. Ready to kickstart your company's carbon reduction journey? Coolset is here to help. Our user-friendly platform makes it easier than ever to measure, manage, and reduce your carbon emissions. Want to see how it works? Schedule a free demo today and take a meaningful step towards a more sustainable future for your business.