Transforming Financial Instructions
With Innovative Digital Solutions
Reduce Corporate carbon Footprint with gecco2
Corporate Carbon Footprint and ROI
Transforming Financial Instructions
With Innovative Digital Solutions
Reduce Corporate carbon Footprint with gecco2
Corporate Carbon Footprint and ROI
EN
Understanding and improving a company’s carbon footprint is essential not only for regulatory compliance but also for achieving a competitive edge.
This page summarizes our key findings on the impact of Corporate Carbon Footprint (CCF) on Return of Investment of companies (ROI) and presents actionable insights through real-world use cases and digital solutions.
The Corporate Carbon Footprint (CCF) is the total amount of greenhouse gas (GHG) emissions caused directly or indirectly by a company’s activities.
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This includes emissions from:
• Production processes
• Energy consumption
• Supply chain activities
CCF is typically categorized into three scopes. Managing Scope 1, Scope 2, and Scope 3 emissions can lead to improved customer trust and better alignment with global sustainability goals.
Direct emissions from owned or controlled sources.
(e.g., process emissions)
Indirect emissions from the consumption of purchased energy.
(e.g., heating or cooling)
All other indirect emissions across the value chain.
(e.g., business trips or waste)
The world is in a state of climate emergency, and efforts must be made to keep the planet safe. The emission of greenhouse gases is significantly altering the composition of the atmosphere. The average world temperature has risen between 1.1 and 1.2°C.
We can no longer stand by and watch as the consequences of global warming have become irreparable.
Studies show that businesses with comprehensive carbon reduction strategies experience an increase in profitability due to energy savings, tax breaks, and stronger market positioning.Â
Properly managing and reducing CCF offers significant opportunities to boost your Return on Investment (ROI).Â
Here’s how:
European climate law makes reaching the EU’s climate goal of reducing EU emissions by at least 55% by 2030 a legal obligation.
EU countries are working on new legislation to achieve this goal and to make the EU climate neutral by 2050.
Brands that embrace carbon reduction attract and retain more loyal customers.
To accomplish the net zero emission corporates should anticipate the regulation.
Reducing emissions often correlates with decreased energy consumption, which leads to substantial cost savings over time.
Consumers and investors are increasingly drawn to companies that demonstrate a commitment to sustainability, improving brand value and customer loyalty.
Based on our study, 67% of customers would stop buying from companies that are not transparent about their environmental impact.
Anticipating regulations like carbon neutrality targets ensures you avoid fines, which can be costly, while positioning your brand as a market leader.
66% of consumers now prioritize sustainability in their purchasing decisions.
31% of the customers are ready to leave a brand for a more sustainable product or service even if they will pay more.
Companies that take proactive measures in carbon management often drive innovation, whether through new technology investments, efficient production processes, or smarter resource use.
To reduce greenhouse gas (GHG) emissions, it requires a systematic and comprehensive approach that involves all levels of the organization, including management, employees, and suppliers. To do so, we propose the following steps:
Track all direct and indirect emissions to identify key sources and areas for improvement.
Establish clear, measurable goals to reduce emissions in alignment with sustainability benchmarks.
Identify and implement technology-driven strategies to minimize your carbon footprint.
Continuously review and update your emissions data to ensure progress and adapt as needed.
One of our most successful projects at ILI.DIGITAL, Gecco2, involved a collaboration with Volksbank Digital Solutions. We integrated digital solutions to help small and medium-sized enterprises track their environmental impact.
Using Gecco2’s carbon monitoring and reduction strategies, SMEs can cut down its emissions, enhanced its sustainability reporting, and improved operational efficiencies.
The project demonstrates the potential of digital tools in not only enhancing sustainability efforts but also improving financial returns.
The key takeaways include:
• Reduction in operational emissions by 20%.
• Improved sustainability tracking and reporting using real-time data.
• Strengthened public image as a leader in sustainable banking.
• Increased operational efficiency, helping companies align with EU’s regulatory frameworks like Fit for 55
Artificial Intelligence (AI) is revolutionizing sustainability practices, enabling companies to analyze vast datasets, optimize operations, and reduce emissions.
A 2022 paper in Nature Climate Change estimates that cloud and hyperscale data centers are responsible for 0.1%-0.2% of global GHG emissions.
AI has the potential to unlock insights that could help mitigate 5%-10% of global greenhouse gas (GHG) emissions by 2030.
The potential for AI to significantly reduce global GHG emissions far outweighs its relatively small contribution to those emissions, highlighting its crucial role in advancing sustainability. Here’s how AI can enhance your company’s sustainability efforts:
AI helps businesses forecast energy consumption patterns and optimize processes to minimize carbon output.
By analyzing supply chain data, AI identifies inefficiencies and suggests greener alternatives that reduce emissions.
Automate carbon reporting processes, ensuring accuracy and compliance with regulatory frameworks.
The CCF measures the total greenhouse gas emissions a company is responsible for, including direct and indirect emissions from production, energy consumption, and the supply chain.
Reducing your CCF leads to lower energy costs, tax benefits, improved brand reputation, and a stronger market position, ultimately boosting your company’s ROI.
The twin transformation refers to integrating digital technologies with sustainability initiatives to streamline operations, reduce emissions, and enhance overall efficiency.
AI can analyze energy usage, optimize supply chains, predict emission patterns, and automate sustainability reporting, leading to significant emission reductions.
Data is crucial for tracking, analyzing, and improving carbon emissions. Accurate data allows businesses to identify inefficiencies and implement targeted reduction strategies.
Digital twins simulate real-world processes, allowing companies to optimize operations, reduce emissions, and improve resource efficiency without affecting real-world productivity. Read more on our insight about Sustainability →
IoT devices, carbon management software, and predictive analytics platforms are powerful tools for monitoring and reducing your company’s emissions.
Businesses can engage employees by offering sustainability training, creating rewards for eco-friendly behavior, and encouraging initiatives that promote green practices in the workplace.
Energy, manufacturing, retail, transportation, and financial services industries can see the most significant impact from carbon footprint reduction in terms of cost savings and regulatory compliance.
Yes, even small businesses can reduce costs and improve their market position by implementing CCF strategies, and digital tools make these initiatives more accessible.
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