Three level approach for businesses in climate change

Climate change is a global emergency that goes beyond national borders as per United Nations. It is an issue that requires coordinated solutions at all levels and international cooperation to help countries move toward a low-carbon economy. It’s the right time for businesses to start planning to combat climate change. To gain more profit, it is important to explore opportunities for businesses by running internal analyses. These analyses would help to evaluate the alternatives and reduce the carbon emission in the possible sense by achieving the target of reducing all greenhouse gas emissions to net-zero by 2050.

It not only reduces greenhouse gases emission but also increases the efficiency of the business model by gaining more profit in fewer resources because every additional resource can add more cost to the end product/service.

Businesses should build the infrastructure which will last for years by transforming the business into a sustainable one and that only can happen when you include climate change risk in your business plan. To make a sustainable business, ensure that all processes address current climate change adequately while growing the profits.

Companies may require to advise their corporate clients on the potential financial impacts of the move to a low carbon economy by improving resource productivity, inspiring new products and services which are less carbon dependent.

Companies can take a three-level approach to add value by embedding their understanding of the organization’s strategy, risk profile and operational imperatives into their decision making.

Motivate Level

In this stage, Accountants and the management can help identify risks and opportunities a business can strike with their call to action. To gain the detailed matrix, do an analysis meeting with the operations team as well as with higher management to raise the critical question on climate change impacting business.

Plan and implement Action

After a detailed analysis of risks and opportunities, now it’s time for evaluating possible solutions. Alternative approaches to reverse climate change comes with different costs. Cost estimation can help to streamline the operation by budgeting products and services that can be affected by changing climate.  A step-by-step approach must be taken to bring small changes to the backend operation. For example if the businesses in the financial sector consume a vast amount of paper in terms of contracts, amendment, etc, introducing digitalization can help to cut down the paper usage, If printing is required, use double-side printing and try to embed QR code at last which any user can scan and read more information in their devices. Also, it is advisable to educate your clients in climate change action plans.

Assess Performance

Assess the progress and performance is very important after the implementation. Businesses can develop several metrics which include designing, data management and internal process control. It will be easy for any business to set targets and evaluate results with the help of metrics. Internal and external audits by your accountant and the management can give a complete picture of performance data and financial reporting in regards to the climate change action plan.

AcoBloom International as an accounting outsourcing company not only supports but takes steps to reverse climate change. We also amplify our workflow to develop meaningful and assessable solutions to the global accounting industry.

You can also read: Role of accountants in helping to reverse climate change

Write your thoughts in the comment section on how you are dedicating the efforts to climate change.

Source: https://www.acobloom.com/2021/03/businesses-in-climate-change/