With changing regulations and customer expectations as well as rising production costs, small businesses may need to prioritize climate action to maintain a competitive advantage. To help them do this, Normative has launched a carbon calculator, available for free through the SME Climate Hub. The calculator helps SMEs measure their emissions and identify emission hot spots, establishing a baseline towards halving emissions before 2030 and reaching net-zero by 2050. The tool will enable SMEs to build more sustainable and competitive businesses that are resilient for the long term, and help meet global climate targets.
Large corporations’ value chains consist of up to 90% of their total emissions. Small business suppliers have a crucial role in meeting shared global climate targets. However, many of these small businesses do not have the resources to measure and manage their emissions accurately. In a recent survey by the SME Climate Hub, 63% of respondents said they did not feel they have the right skills to take the most robust climate action.
The Business Carbon Calculator enables SMEs to measure their carbon footprints and identify emission hotspots. Businesses input easily accessible data – such as the size of their facilities or their spend on electricity, heating, and gas – into a quick, simple-to-use form. The resulting footprint information establishes a baseline from which to take action through the suite of tools and incentives on the SME Climate Hub.
Small businesses that choose to invest in reducing their emissions can see numerous short and long term business advantages, including increased efficiency and reduced operating costs, branding benefits, reduced business risk, legislative compliance and improved access to capital. Overall economic benefits could also be seen when climate action is prioritized.
Additionally, businesses and their value chains have a key role to play in achieving Paris-aligned climate targets. The latest climate science makes clear that to avoid the worst impacts of climate change, the global temperature rise must be limited to 1.5°C, a goal many companies have begun working towards. That means cutting global emissions in half before 2030 and reaching net zero emissions before 2050, which can only be achieved by measuring and reducing emissions in an accurate and systematic way, Normative says. The SEC is also considering mandating climate risk disclosures by public companies in order to ensure proper measurement.