Many business leaders have already learned about the physical risks of climate change as they grapple with record temperatures, wildfires, droughts and floods. Others are discovering new risks in the changing marketplace as governments, investors and consumers place new demands on them.
These disruptions will intensify over the next decade. For years, companies have been urged to reduce their carbon emissions, but a commitment to carbon reduction and clean technologies is quickly becoming the norm for Canadian businesses.
Some of Canada’s largest companies are leaders in the new carbon-positive economy. For example, in 2019, Maple Leaf became the world’s first food company to become carbon neutral. It then joined forces with CN, health products company Celestica and other like-minded companies to create a coalition of like-minded businesses with a common goal: to reduce carbon emissions, set science-based targets, be good stewards of resources and monitor their climate impact.
As an entrepreneur, you have ways to reduce your emissions, play a leadership role in the fight against climate change and support the transition to a low-carbon economy, all while gaining a competitive advantage for your business.
What are the benefits of reducing emissions for your business?
A commitment to reducing carbon emissions is good for business. As large corporations seek to remove carbon from their supply chains and become net-zero, companies that fail to act could be left behind. Companies that look for ways to reduce their carbon emissions are better positioned to compete.
Additionally, customers want action to address climate change. A 2021 BDC report found that 80% of consumers are willing to pay more to reduce their environmental footprint. Reducing your emissions can be promoted to customers and consumers to highlight your commitment to the environment. Showcasing how your company is working to reduce its climate burden gives you a competitive advantage. In a world where consumers are increasingly concerned about corporate social responsibility , you can stand out by taking action to reduce your climate impact.
Government regulation is becoming increasingly stringent as lawmakers seek to transition to a climate-positive economy. By staying ahead of regulatory mandates, your business won’t be disadvantaged by a sudden change in policy.
Finally, by taking a leadership role, you position your company as a player in the global fight against climate change, and you encourage others to do the same.
There are four ways to have a positive footprint in your business
Canadian businesses of all sizes are taking a leadership position in the global fight against climate change. In its 2021 report, BDC found that 84% of Canadian businesses see it as their responsibility to protect the environment and are already taking action. At the same time, 91% of business leaders say it is possible for a business to be profitable while reducing its environmental footprint. Here are four ways to move your business forward.
1. Encourage commitment to reducing emissions across the company
Get everyone in your company involved in reducing your nurse database carbon footprint . Be clear about your commitment to reducing carbon emissions and why. Meet with your employees and customers to explain your goals and solicit their feedback. When employees are working toward the same carbon neutrality goals, it’s easier to achieve quick wins and create team synergies to reduce your emissions faster.
Much of the work that needs to be done is changing behaviors, which is why employees have a critical role to play in your reduction success.
Consider ways to measure the carbon footprint of your business operations so you can track your progress. Natural Resources Canada has created the Greenhouse Gas Emissions Equivalencies Calculator that can quickly give you a snapshot of your impact on the environment. Once you have a baseline, you can find practical ways to monitor and reduce your emissions.
Another good place to start is the B Corp (Certified Beneficial Enterprise) Assessment Tool . This tool consists of a questionnaire that measures your company's performance on environmental, social, and governance criteria.
Don’t hesitate to seek outside advice to determine how your company can reduce its emissions. The cost of consulting services is often far outweighed by the energy and resource savings.
2. Buy from environmentally conscious companies
Supporting other innovative businesses is one of the most important contributions entrepreneurs can make to the transition to a low-carbon economy.
Review your marketing structure, the packaging you use, your travel choices, or even the coffee you provide to employees. In almost every area, you have low-carbon, carbon-neutral, or carbon-negative options that can help reduce your emissions.
Maple Leaf, Air Canada, and Shopify are three well-known Canadian brands that have committed to reducing their carbon emissions. By considering your carbon footprint when selecting suppliers, you can easily commit to carbon neutrality and reduce your environmental footprint.
3. Consider Canadian cleantech options
Canada is the world leader in cleantech innovation, ranking second behind the United States and ahead of the United Kingdom and Germany, according to the prestigious 2021 Global Cleantech Innovation Index .
This year, 11 Canadian cleantech companies made the World’s Top 100 list. Of these 11 companies, eight are backed by BDC. One of these rising stars is Halifax-based CarbonCure Technologies, which also received the prestigious Carbon XPRIZE in 2021 for its innovative technology.
Used in cement, CarbonCure's technology captures carbon dioxide, transforming buildings into carbon sinks. This cement is available at the same cost as existing solutions.
Cement and concrete, which are among the most polluting materials in the world, account for 8% of global carbon emissions.
By purchasing from companies like CarbonCure, your organization can reduce carbon emissions in construction projects without increasing costs, not to mention the fact that you are reducing emissions and supporting innovation in Canada.
4. Look for carbon offset tools for your business
Carbon offsetting is another eco-friendly tool for your business. Large companies like Shopify, Microsoft, and Amazon all have carbon offset programs, but you don’t have to be a large company to get involved in a program. There are offset programs for individuals, as well as businesses of all sizes.
What is carbon offsetting?
For every ton of carbon dioxide produced by a company, individuals or businesses can participate in programs that reduce or capture carbon dioxide emissions from the atmosphere through initiatives such as investments in renewable energy, sequestration or other recognized programs.
Carbon offsets don't reduce your emissions, but they can help you "neutralize" or counteract the carbon you emit in your business operations by financially supporting operations that reduce emissions.
There are simple, straightforward carbon offset programs for individuals and small businesses. Other carbon offset programs are more complex and require a salesperson, broker, and manager to implement the program. Spend some time researching offset programs to make sure you choose the one that will be best for your business.
Not all carbon offset programs are created equal. Ask your trade association or others in your network about which options are best for your business. Look for Canadian options that support local innovation, or purchase from larger Canadian companies that already have offsets in place.
