Where to Start with Corporate ESG and Climate Efforts
- Keywords:
- esg
The record-high heat in much of the U.S. this summer has further amplified conversations around climate change. These discussions are coming on the heels of a multiyear focus on environmental, social and governance (ESG) issues. Addressing ESG is not only table stakes for large public corporations; it’s increasingly becoming a topic of concern for businesses of every size.
We’re hearing from companies that a younger generation of employees are demanding more from their employers around ESG. We’re also seeing how the benefits of a strong ESG proposition can help companies tap into new markets and expand existing ones. In addition to gaining customers and attracting and retaining talent, ESG initiatives may improve a company’s financial performance by reducing increasingly expensive inputs and creating more sustainable operations.
More companies, for example, are pursuing ambitious carbon reduction efforts to achieve carbon neutrality. Carbon markets play a crucial role in curbing the effects of climate change and fostering a sustainable future. Determining a company’s carbon footprint is the first step to pinpointing emission hotspots and reduction opportunities. A company’s corporate carbon footprint, or CCF, is the total amount of greenhouse gas emissions that are directly or indirectly related to a company’s activity.
Companies can implement a range of actions to reduce their carbon footprint and contribute to environmental sustainability. One growing solution is utilizing advanced software systems that can measure, qualify and aggregate a company’s greenhouse gas emissions. Implementing energy management software can help companies monitor and optimize energy usage in offices, data centers and manufacturing facilities, leading to significant energy savings. Additionally, the adoption of cloud-based platforms enables remote work and collaboration, reducing the need for physical office space and lowering energy consumption.
Furthermore, supply chain management software can aid in sourcing materials from eco-friendly suppliers, optimizing transportation routes and reducing emissions associated with logistics. By leveraging data analytics, companies can identify inefficiencies and implement targeted strategies for emission reductions.
Overall, these types of software solutions empower companies to make data-driven decisions, streamline operations and promote sustainable practices, making a substantial positive impact on their carbon footprint while potentially boosting their bottom line.
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Steven Suckow and Bri Kolbus
Steven Suckow, ESOP Practice Director, BMO Corporate Advisory and Bri Kolbus, Specialist, BMO Corporate Advisory
The record-high heat in much of the U.S. this summer has further amplified conversations around climate change. These discussions are coming on the heels of a multiyear focus on environmental, social and governance (ESG) issues. Addressing ESG is not only table stakes for large public corporations; it’s increasingly becoming a topic of concern for businesses of every size.
We’re hearing from companies that a younger generation of employees are demanding more from their employers around ESG. We’re also seeing how the benefits of a strong ESG proposition can help companies tap into new markets and expand existing ones. In addition to gaining customers and attracting and retaining talent, ESG initiatives may improve a company’s financial performance by reducing increasingly expensive inputs and creating more sustainable operations.
More companies, for example, are pursuing ambitious carbon reduction efforts to achieve carbon neutrality. Carbon markets play a crucial role in curbing the effects of climate change and fostering a sustainable future. Determining a company’s carbon footprint is the first step to pinpointing emission hotspots and reduction opportunities. A company’s corporate carbon footprint, or CCF, is the total amount of greenhouse gas emissions that are directly or indirectly related to a company’s activity.
Companies can implement a range of actions to reduce their carbon footprint and contribute to environmental sustainability. One growing solution is utilizing advanced software systems that can measure, qualify and aggregate a company’s greenhouse gas emissions. Implementing energy management software can help companies monitor and optimize energy usage in offices, data centers and manufacturing facilities, leading to significant energy savings. Additionally, the adoption of cloud-based platforms enables remote work and collaboration, reducing the need for physical office space and lowering energy consumption.
Furthermore, supply chain management software can aid in sourcing materials from eco-friendly suppliers, optimizing transportation routes and reducing emissions associated with logistics. By leveraging data analytics, companies can identify inefficiencies and implement targeted strategies for emission reductions.
Overall, these types of software solutions empower companies to make data-driven decisions, streamline operations and promote sustainable practices, making a substantial positive impact on their carbon footprint while potentially boosting their bottom line.
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