Sustainability efforts and cutting carbon emissions are often wrongly associated with more effort, friction and higher costs. The opposite, in fact, can be true.
If nothing else, having better energy efficiency is just one intuitive way that businesses save on both. This is done through upgrading HVAC systems, as well as building smart technologies, identifying inefficiencies as well as having a modern design. But below are some more specific strategies.
Transitioning to electric vehicles
Making the transition away from fuel-powered vehicles towards EVs can be a tricky investment to gauge due to its high upfront costs. The factors come down to whether grants are on the table, but more importantly, how old the existing fleet is. But by moving towards EVs, businesses can benefit from lower fuel consumption. In fact, employees can even use an EV fuel card for their charging costs, which can be lower, and it streamlines the accounting too.
Waste reduction
Waste reduction is a straightforward calculation of how helping the planet also helps the company’s finances. One way to do this might be through improving manufacturing yields, meaning that raw materials are used efficiently and with less waste. This needn’t be only for large businesses, but even small e-commerce companies – the key lies in tracking processes more closely and creating KPIs.
Sustainable packaging can perhaps be less straightforward, as sometimes it can be more expensive than plastic. Though, the idea is about minimal use of materials, not just the type, and so using less is a straightforward money-saver.
Product redesigns that utilise circularity—extending lifecycles and recyclability—can help achieve both. One successful example was HP redesigning its products to be fully recyclable, while Bank of America cut paper consumption by 32% over five years.
Operational network optimisation
Optimising logistics and distribution networks is something companies can work towards regardless, but a second driver can be in cutting emissions. Route optimisation is a core way of cutting fuel, and it can be an excuse to monitor and track more employee data. For example, measuring their route efficiency through IoT devices can help inform where improvements in efficiency can be made – this can be unpopular, but less so when cutting emissions is the goal.
LED lighting
Upgrading your lighting systems is a cheap and accessible starting point that will immediately reflect in lower overheads. Fluorescent bulbs are inefficient and can even be more dangerous compared to energy-efficient LED lighting, which require far less maintenance.
Additional facility improvements like solar panels may amplify these savings, but these calculations are less straightforward.
Getting started
Businesses looking to improve their emissions and cut costs should begin by setting clear targets. Tools like Marginal Abatement Cost Curves (MACCs) can help identify the most cost-effective measures that are in the context of your operations. ESG software solutions are not only a way to help monitor this, but they provide the transparency that customers want, meaning it provides a reputational boost. Credible carbon credit programmes can be an option, but nothing beats cutting emissions by cutting costs, rather than throwing the money (and the problem) elsewhere.