6 Biggest Business Benefits of Reducing Your Carbon Footprint

Last updated: May, 2023

6 Biggest Business Benefits of Reducing Your Carbon Footprint

Businesses are now in a spot where ignoring their carbon footprint can backfire on their profitability.

Think about it.

Energy bills are eating into your bottom line. Customers choose a competitor over you because you’re not green enough, and new regulatory laws come with hefty fines.

It’s a lot.

But here’s the good news.

Implementing a business emissions reduction plan isn’t about dodging these headaches. It’s about grabbing new opportunities, increasing your profits, and making your business stronger and more resilient.

Need some convincing?

Here are the biggest business benefits of reducing your carbon footprint.


The Business Benefits of Reducing Your Carbon Footprint

What can businesses do to reduce global warming? Let’s explore how going green can do more than just save the planet – it can transform your business for the better.


Lower Operating Costs

Let’s talk money first. 

Cutting down on carbon emissions is a financial diet for your business. 

By switching to renewable sources or using less energy, you’re reducing your energy bills by getting smarter with energy use. 

And it works.

According to the Department of Energy & Climate Change, the average business can reduce its energy bill by up to 25% by installing efficient measures such as:

  • Replacing light bulbs with LEDs (these are 30% more efficient than fluorescent lights).
  • Using motion sensor lights to avoid forgetting to turn off the lights.
  • Installing dimmer switches to reduce the amount of electricity bulbs use.

That’s a significant amount of money you can reinvest into your business or, better yet, use to fund more green initiatives. 


Meeting Customer Demands

Your customers are active participants in preventing climate change and are using their wallets to drive change.

Just take a look at these environmentally conscious consumer statistics:

  • 84% of customers say poor environmental practices will alienate them from a brand or company.
  • 55% of consumers will pay more for eco-friendly brands.
  • Carbon-labeled products made $3.4 billion in sales in 2021 – double that of the previous year.

By reducing your business emissions, you’re aligning your brand with these evolving consumer preferences, setting your brand up for enhanced customer loyalty, and attracting a market segment that prioritizes eco-friendliness.


RELATED: How to Make Your Company Carbon Neutral: A Step-By-Step Guide

Employee Engagement and Satisfaction


Employee engagement and satisfaction go hand-in-hand with emissions reduction.

Here’s why.

Today’s workforce expects more than a paycheck from their employers. They want to work for companies that align with their morals and values, especially concerning environmental issues.

There’s more.

Your employees also expect you to lead the way in education. 

70% will be more loyal to a company that helps them contribute to solutions to climate change issues.

How do you do that?

You need to drive behavioral change at scale with awareness training and using tools to make your reduction plan tangible.

Like Emission Sentri.

It’s a powerful tool for tracking your carbon footprint while involving your team in the process of reducing it. You have a real-time sustainability insights dashboard, personalized AI recommendations for employees, and upskilling opportunities with emission reduction certifications.

With hands-on involvement, your employees are no longer watching from the sidelines but are active players in making your business greener.


RELATED: 5 Sustainability in the Workplace Ideas


Investor Attraction and Company Growth


Looking to attract investors? Your company’s commitment to environmental, social, and governance (ESG) plays a major part.

By prioritizing sustainability, you’re more likely to attract investments from ESG-focused funds and socially responsible investors.

Let’s look at the benefits of ESG from an investor’s perspective:

  • ESG is a competitive edge: Companies with ESG initiatives adapt quickly to changing socioeconomic conditions and environmental concerns. It allows them to identify strategic growth opportunities that others might overlook.
  • ESG mitigates risk: Focusing on ESG forces companies to think about the long-term sustainability of their business over short-term profits. This increases investors’ confidence that the company will provide consistent returns for the next decade. 
  • ESG has better financial results: According to McKinsey, ESG companies enjoy faster growth and higher valuations by a 10 to 20% margin.


RELATED: How Can Carbon Footprint Affect a Business? [Hint: It Reduces Your Profitability]

Reputation and Brand Value

In the eyes of the public, a business that actively works towards sustainability is a brand with a conscience. 

And that directly impacts your profitability.

According to a study by Cone Communications, 87% of consumers are more likely to buy from a brand that advocates for social or environmental issues.

Let’s look at Apple’s commitment to make all their products carbon-neutral by 2030.

The Apple Watch is made with 30% recycled materials, shipped 50% or more without airplanes, and powered by 100% clean electricity.  By embracing renewable energy, sustainable design, and responsible supply chain ethos, Apple positions itself as an environmentally conscious brand to consumers and investors alike.

Risk Management

As a business, you face various climate change risks like supply chain disruptions and environmental regulations. By proactively managing and reducing business emissions, companies can better prepare for any change.

Take Tesla as an example. 

By focusing on sustainability and reducing reliance on fossil fuels, Tesla has positioned itself as an industry leader and sidestepped potential financial and reputational risks associated with traditional automakers.

This proactive approach to carbon management is more than just good for the environment; it’s a smart business strategy. 

It ensures long-term operational stability and resilience, allowing companies to stay ahead in a rapidly changing business climate where sustainability is increasingly important.

Stepping Towards a Sustainable Future

Reducing carbon emissions does more than help the planet. There are tangible business benefits of reducing your carbon footprint.

From lowering your operating costs to attracting top-tier talent, and mitigating future risks, there’s more reason to go green than ever before.

Ready to start reducing your business emissions at scale?

Drive Emissions Reduction through Employee Engagement

Engage with your employees on your emissions reduction commitment and progress through multi-channel insights, awareness training, intelligent recommendations using Generative AI and more.