Businesses, non-profits and other organizations choose carbon offsetting for a number of different reasons. But they must all account for the cost and weigh it against the benefits to justify their offsetting decisions.
How can you show that progressive carbon offsets improve your company’s bottom line?
What Is The Bottom Line?
Notwithstanding the social and environmental benefits of your sustainability programs, finance executives, investors and other stakeholders often judge company performance by the bottom line.
Frequently used as shorthand for business success, the bottom line refers to a company’s net income – revenue minus expenditure – as it usually appears on the bottom line of the income statement.
Strategies to improve the bottom line focus on either increasing revenue or reducing expenditure.
Revenue may be increased by selling more products; improving product quality to reduce returns; increasing prices; or introducing new product ranges.
Alternatively, expenditure might be cut by sourcing cheaper products or materials; improving the efficiency of production or distribution; reducing the workforce; or outsourcing to cut the wage bill.
How Can Progressive Carbon Offsetting Impact The Bottom Line?
Projects that reduce greenhouse gas emissions are often very cost effective for businesses, resulting in greater energy efficiency, cutting utility bills and reducing climate tax liabilities.
Offsetting any remaining scope 2 and 3 carbon dioxide emissions can eliminate carbon tax bills that might otherwise be payable. Organizations in regulated areas or markets should check that any offsets purchased are compliant and compatible with their local scheme before investing.
Carbon offsetting does more than help companies achieve environmental compliance though.
It’s increasingly common for project tenders to require evidence of the bidder’s commitment to carbon reduction or even explicitly require an offsetting plan. A track record of carbon offsetting can put your company in the frame to win more business and increase sales turnover.
As part of your wider corporate social responsibility strategy, offsetting can be used as a marketing tool to improve customer retention, attract new clients and help attract the best employees to your business.
A 2013 survey found that fifty percent of global consumers surveyed are willing to pay more for goods and services from companies that have implemented programs to give back to society, an increase of five points (45%) from 2011.
Choosing socially responsible offsets creates a favorable impression of your business with customers, leading to increased sales, especially of premium-priced, green or eco-products and services – which helps to boost your bottom line.
By demonstrating a commitment to social and environmental issues, companies can show they care about the wider world, which is beneficial for employee morale and helps improve staff retention rates and minimize recruitment costs.
Investing in carbon offsets can also improve your supply chain resilience, helping to limit the cost of disruption and gain competitive advantage.
Choose A Progressive Carbon Offset Program For Better Business Performance
Investing in carbon offsets is primarily about reducing your greenhouse gas emissions and your impact on climate change.
Choosing a provider such as NativeEnergy means your offsets are always fully verified by an accredited third party, so the carbon reductions are guaranteed, genuine and permanent.
Additionally, NativeEnergy’s progressive offset projects deliver social and environmental benefits that can help you achieve your corporate social responsibility goals and improve your bottom line.
To find out how progressive carbon offsets can boost your business performance, contact us now.