Our CEO, Sari, spoke on Wednesday, October 26th, at the MPS Chief Growth Officers’ morning coffee event about how managers can take control of their company’s climate actions. Why should attention be paid to these actions? What benefits does it bring to the company? What mandatory elements already exist, and in which direction is regulation developing regarding climate reporting? 

According to an article by Harvard Business School, sustainability promotes the emergence of new innovations, reduces environmental and operational risks, and attracts and retains employees, among other benefits. In addition, by acting responsibly, a company can reduce production costs and stand out positively in a competitive market. A pioneering company can encourage others in the field to act responsibly, thereby amplifying its influence beyond its size. 

“When we start considering how own operations can be improved and how they can take into account people, the planet, and profit-seeking, innovations are created”, says the CEO of OpenCO2net, Sari Siitonen. 

It is possible to save money through climate actions

Often, taking control of a company’s climate actions also leads to a reduction in costs. In many companies, most of the emissions come from energy consumption. After calculating the carbon footprint, one of the first emission reduction targets is often switching to renewable energy and reducing energy consumption, which also lowers costs. 

The world is changing, keep up with it and preferably stay ahead 

A manager should prioritize the company’s climate actions because emission reduction targets are constantly tightening. Finland aims to be carbon neutral by 2035, and in the EU, emissions should be reduced by 55 % by 2030 compared to the 1990 level. As a result of these targets, legislation and stakeholders also set requirements for companies. In the EU, guidance on the Corporate Sustainability Reporting Directive (CSRD) is expected. CSRD initially sets reporting requirements for large companies, and by 2026, the directive will also apply to SMEs. This means that, at the latest, after the transition period, SMEs will also be required to report on their climate impacts as part of their broader sustainability reporting. 

More and more frequently, a company’s customers demand information about its carbon footprint, which is often the starting point for the company’s climate actions. In addition, financiers monitor companies’ sustainability practices due to the EU taxonomy, and a company’s sustainability efforts can affect, for example, the cost and availability of financing. 

What should be done then? 

On the journey towards a company’s carbon neutrality, the order should be as follows: the carbon footprint is determined according to the GHG Protocol standard, and emissions are reduced. Emission reductions should be a continuous part of the company’s operations, not a one-time measure. After implementing these emission reduction measures, the company may choose to offset the emissions it cannot reduce through a reliable service provider. Finnwatch has compared companies providing offsetting services in Finland.  

The most important step is to start. After conducting a carbon footprint calculation, integrating climate considerations into all decision-making processes, from strategy to product development, becomes easier. The company is also better prepared for future regulations and customers’ evolving sustainability requirements. 

OpenCO2net provides the necessary tools for companies from startups to large, listed corporations, that want to develop their sustainability. Our services are suitable for calculating the carbon footprint of individual products or the entire company. As a customer, you will have access to the company- and product-specific calculators, the CO2 Converter, emission monitoring, emission scenario tools, and the carbon handprint calculator. We can also create a customized calculator for your company.