In our previous post, we highlighted the reasons why corporations should become carbon neutral and start taking steps to become more sustainable. Not only will it save the environment, but it will also increase your revenue as you differentiate yourself in the market and help you reduce operational costs as well.
Laws and regulations are also about to change, favoring companies that are carbon neutral. In recent discussions prior to the launch of the Carbon Border Adjustment Mechanism (CBAM), the European Union highlighted stricter laws and regulations that will be implemented to reduce carbon leakage. The use of this new mechanism highlights how it is ever-more important for corporations to strive to achieve carbon neutrality, especially those in emerging economies to ensure that their exports are still competitive.
However, being carbon neutral does not need to be expensive. There are many ways in which corporations can improve their sustainability credentials. Corporations, even those from emerging economies, can consider reducing their environmental impact by shifting into a more circular economy rather than a linear one. A few steps to adopting a more circular flow of production and consumption include using less (natural) resources, reusing, and repairing materials that can still be used, which would in turn reduce the waste produced as well as lower the carbon footprint of your organization.
Calculating carbon emissions
To reduce emissions, there first needs to be a proper calculation of how much carbon footprint a corporation produces. According to the GHG Protocol, Scope 2 and 3 emitters have an advantage in the pursuit of reducing emissions as they can streamline their operations and cut emissions wherever possible. Scope 2 emitters can focus on cutting down on the amount of electricity they purchase, while Scope 3 emitters can focus on streamlining their corporations’ activities to reduce consumption and waste of products.
As such, at MVGX, we have designed a Carbon Management System (CMS) to help corporations calculate their carbon emissions. The process is simple: we first determine your corporation’s carbon footprint using our robust reporting systems. By using as many data sources as possible, we can provide you with an accurate and detailed calculation of your corporation’s carbon footprint. The calculated carbon footprint of your corporation will be sent to the British Standards Institution (BSI) for verification. This would be your corporation’s first step to reaching carbon neutrality because if you don’t know where your major sources of carbon emissions are, then it would be hard to effectively reduce them.
For example, during the calculation of our carbon footprint for 2021, we found out that most of our carbon footprint came from our servers. As such, we were able to use that data to go to our service provider and work with them to switch to more efficient cloud services.
Reduce where possible
The use of smart sensors can help corporations identify areas where emissions can be reduced. These smart sensors provide in-depth data insights that help to reduce emissions by allowing corporations to monitor their resource usage and waste patterns. For instance, waste-collecting companies can use smart sensors to detect how full bins are and when they should collect the waste. This prevents them from making unnecessary trips, hence reducing their fuel consumption. Companies can also start switching to hybrid or electric vehicles to further cut down on their carbon footprint. In addition, companies can also use smart sensor-based lighting and smart HVAC (heating, ventilation, and air conditioning) systems to reduce their emissions. By employing smart sensors in your corporation, you can save both time and money whilst reducing your carbon footprint.
In addition to smart sensors, corporations can also make a switch to use energy-saving products such as LED lighting or installing window films for temperature control, preventing excessive heat or cold temperatures in the office so as to reduce the amount of energy required to cool or heat up the office. These steps would help your corporation cut cost and reduce your carbon emissions.
The use of Public-cloud Enterprise Resource Planning (ERP) tools can also help corporations to monitor their supply chain operations and minimize their emissions. ERP tools help corporations identify areas where emissions could be cut by consolidating real-time operational data on the platform, allowing the corporation to quickly estimate the emissions for different sections of the company. Your corporation can also design plans to minimize your environmental impact through carbon footprint estimation.
As mentioned earlier, we found out that our major source of carbon emissions was from our servers and this might be the same of most businesses today. Data centers in Singapore use up about 7% of the electrical output in the city, and therefore, businesses might want to utilize data centers that have implemented more sustainable features.
Corporations can also consider switching their energy source to renewables. Some power companies do provide green pricing, whereby customers are given the choice to pay a small premium in exchange for electricity obtained from clean and renewable energy sources. By choosing to switch to renewable sources of energy, your corporation would also see a reduction in carbon footprint.
If possible, corporations can also invest and generate their own sources of energy. According to Forbes, solar PV panels are the most common type of renewable energy for businesses as they are easy to install and are not too expensive. The implementation of solar panels can help your corporation save up to 75% of what you pay for electricity. Although it can be pricey at first glance, an investment in solar panels is definitely a good investment in the long run as it saves costs while enabling your corporation to become carbon neutral.
Neutralize via carbon credits
Besides the abovementioned ways toward carbon neutrality, companies can also neutralize their carbon footprint through the purchase of carbon credits. As there will be areas in which the emissions cannot be removed, carbon credits will be useful in offsetting these emissions.
Carbon credits allow corporations to compensate for their greenhouse gas emission in a transparent manner. Unlike what Greenpeace mentioned, offsetting is a great way for corporations to give back to the environment in an indirect manner, provided that the carbon credits used are of high integrity and that double-counting does not occur. At MVGX, our Carbon Neutrality Tokens (CNT) uses blockchain technology, offering an immutable and continuously updated record of carbon performance. Since none of us can stop doing business, carbon credits give us the opportunity to make our businesses more sustainable by investing in green projects and their infrastructure to ensure actual impact on the environment.
As mentioned earlier, MVGX has a CMS that can help corporations attain carbon neutrality in a hassle-free manner. After calculating your company’s carbon footprint, we will issue you Carbon Neutrality Tokens (CNT) to offset your carbon emissions and a carbon neutrality report will be generated. Finally, after the BSI has reviewed the carbon neutrality report, your corporation will receive the verification of the PAS2060 standard of carbon neutrality. We will also issue your corporation with an NFT with all the above certificates and carbon neutrality processes. With this Carbon Neutrality Certification, corporations would have met the CBAM regulations and do not have to worry about being taxed.