Organisations are increasingly keen to understand their Carbon Footprint – i.e. the total greenhouse gas emissions. Reasons for wanting to understand their footprint vary. Some organisations wish to quantify their impact as a first step to taking action to reduce it. Others may require an accurate figure so that they can disclose it in published material, company reports or use as the basis for a carbon offsetting strategy.
What are some of the associated risks that may affect business?
- Energy prices are expected to increase significantly over the next few years and remain volatile.
- Legislation* from UK and Europe as governments attempt to manage the climate change agenda.
- Investor and consumer pressures as stakeholders choose to invest in, and buy from, environmentally conscious companies.
Restriction of the availability of raw materials, higher material prices and increases to insurance premiums due to changes in weather patterns are also risk factors.
* e.g. the CRC Energy Efficiency legislation, due to be introduced in April 2010 is a ‘cap and trade’ scheme designed to require an organisations to manage carbon emissions. The scheme sets allowances and places value on each tonne of carbon.