Climate change, driven by human activities, poses significant global risks, with rising greenhouse gas concentrations leading to potentially irreversible consequences. While individual actions matter, organizations play a far greater role, with just 100 companies responsible for 70% of global emissions, according to a 2017 report by the Climate Accountability Institute.

This underscores the critical role organizations play in addressing climate change. This paper explores the steps organizations must take to measure, report, and manage their carbon emissions. Understanding the impact of emissions on both the planet and business is essential, as is grasping the concept of a carbon footprint and how to quantify it.

How Are Emissions Affecting The World & Businesses in General?

Carbon emissions have far-reaching effects on both the environment and business operations. They drive climate change, leading to increased capital expenditures for emission control systems and compliance with regulations like cap-and-trade. Under this system, a cap on emissions is set, and companies can trade permits, incentivizing efficiency and cost-effective reductions. While this fosters innovation, it can also lead to rising operational expenses and fluctuating market prices, affecting overall revenue.