Carbon Accounting and your business

Political and social pressures have led to global organizations setting greenhouse gas emissions reporting standards. Standards such as the United Nations Taskforce for Climate Related Financial Disclosure have made headlines in Australia with the Treasury Department announcing policies to align Australian accounting standards with these policies. Furthermore, the International Sustainability Standards Board, an organization within the International Financial Reporting Standards Foundation, has announced more prescriptive requirements for reporting to TCFD standards. As part of their second consultation paper, the Treasury Department has included these ISSB updates in future policy plans affecting reporting standards for many Australian businesses. Carbon accounting refers to the analysis of business operations and how they relate to the emission of CO2 culminating in a calculated carbon footprint. Larger businesses tend to have a larger carbon footprint. More intensive operations also tend to have a larger carbon footprint. The key figure emerging from this analysis will be emissions per unit of production eg kgCO2e/kg of beef.

How does this relate to your business?

Incorporating carbon accounting and emissions modeling into your operations makes your business both more approachable for modern consumers and businesses and better prepared for incoming policies. Earlier incorporation of this analysis helps you to find ways to reduce your emissions per unit whilst lowering the dollar cost of reducing emissions.

How can you reduce your carbon footprint?

Emissions analysis is also an efficiency analysis of your business. Therefore, the primary target for reducing emissions should be the lowest cost per unit of CO2. This may include renewable energy solutions. More efficient machinery will also reduce emissions whilst still ensuring usability in remote locations. For emissions that can’t be avoided, working with a reliable partner on the acquisition and retiring of carbon credits can be a dependable and cost-efficient way of ensuring Net Zero needs are met.

The importance of reducing net carbon emissions

Guaranteeing market access is becoming a fundamental driver of emissions accounting and decarbonization planning. Financing organizations and governments face pressures from all sides to account for and reduce their emissions. These obligations are flowing first through to large companies who are then passing on these requirements to their suppliers. As such, maintaining access to these customer bases is coming with more and more stringent requirements to account for and reduce product-associated carbon emissions. Furthermore, government regulations for larger firms ($50m revenue plus) will soon spread these requirements for accounting further across the economy leading to a greater demand for organizations and suppliers with carbon accounting data available for their customers.

“Equipoised is here to give you options. You are in control.”

‍

Find the original post here

Or learn more at https://www.linkedin.com/company/equipoisedgroup/

‍