Making the business case
Measuring and managing your carbon-footprint can create value for a company in many ways but as with any investment of time and resources it requires a tailor made business case for each organisation. The following elements of value will assist you when building your business case:
Cost savings
Reducing carbon means saving energy, fuel and cost. As part of your business case you could determine your current cost base and estimate what a 5% reduction in travel or electricity usage would produce as a net cost saving. (Note: As part of the pilot and early adopter programme we will be producing case studies of the scale of cost savings realised by participating companies who are willing to share that data).
Market appreciation
What are your current or prospective customers looking for? Consider the scale of business you do with the current industry. Place a commercial value on this and estimate the increased likelihood of winning this business in the future.
Regulatory requirements
Review the major regulatory frameworks that apply to you e.g. Ofwat’s approach to sustainability in the water industry, or DEFRA’s carbon reduction commitment. Decide what impact these frameworks will have on your business, and what that means for how and when you need to get ready with your response. Weigh up the benefits of early action versus the costs of a delayed reactive response.
Build and protect reputation
Reducing your environmental footprint enhances your company reputation. Work with your colleagues in public relations to understand current measures of your corporate reputation. What have been the highs and lows of your reputation as an organisation? What are the risks and opportunities perceived by your leadership? Include these arguments in your business case.
Create competitive advantage
As an early adopter you will create advantage. Consider your position with respect to winning new business and estimate how the additional advantage your certification will bring.
Create value for your internal Stakeholders
Take soundings with key employees. Connect across different departments. What support can you find amongst professionals with responsibilities for: corporate responsibility; safety health and environment; and human resources? How will the CEMARS programme help them: meet strategic CR objectives; support existing policies or targets; or attract and retain high quality employees?
Create value for your external stakeholders
Since the Pensions Act was modified in 2000 all UK occupational pension funds are required to disclose in their Statement of Investment Principles (SIP) the extent to which ethical, social, and environmental issues affect investment decisions: http://www.socialfunds.com/news/article.cgi/1045.html
This reflects a historic change in attitudes from investor communities. How will your investors view your initiative in measuring your carbon-footprint? What information are they already asking for? Contact your investor relations professionals to gather and understand this information.
There are many other elements that could make up your business case. If you think of other important factors or if you would simply like to discuss your business case with us contact us at: carbonreduction@achilles.com.