WARSAW, Jan. 31, 2023 /PRNewswire/ -- While C-level executives discuss taking climate action to improve the company's reputation and save money, small business owners worry they don't have the right resources to meet carbon footprint reporting regulations.
Entrepreneurs need rights tools.
According to UN baked SME Climate Hub, 68% of small business owners worry they don't have the right resources to take climate action. Lack of knowledge, money, and time are the primary causes SMEs lag behind in the sustainability race.
"We made standard-compliant carbon footprint calculation and reporting accessible to all business owners regardless of their budgets. Cutting carbon emissions with Plan Be Eco is time and cost-efficient. All companies can now get achievable reduction plans." says Aga Maciejowska, CEO at Plan Be Eco.
According to Eurostat, there were 30.1M active businesses in the EU in 2021, and almost 90% were SMEs. Most of them participate in supply chains of larger companies as contractors and subcontractors and, sooner or later, will be asked to report their carbon footprint.
High carbon emissions are a business risk.
When financial institutions decide on the size of interest rates, several risk factors are considered.
"Environmental risk used to be considered only from the perspective of the environment itself. But business with high carbon emissions is risky, and this risk can't be neglected by tech startups looking for investments." comments Aga Maciejowska.
This point of view is reflected in recent studies. According to PwC, 80%+ of investors consider ESG factors when making investments.
Carbon footprint reduction measures the quality of management.
Researchers from Maastricht University and Hermes Investment Management published a paper concluding companies cutting carbon emissions by 1% annually save $1.3 million in interest costs. Although financial institutions don't include carbon footprint as an official indicator for interest rate calculations, well-managed companies get better results, both financially and non-financially.
Carbon footprint reporting is obligatory across the whole supply chain.
European Union released a directive mandating large companies to report on their carbon footprint in 2024. With the new CSRD directive, the number of reporting companies has increased almost ten times. Each company must calculate scopes 1, 2, and 3 across the supply chain, meaning smaller contractors must comply.
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