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Why businesses should report on their carbon emissions

25 January 2024

Carbon reporting software

Why carbon reporting is so important in 2024

While many businesses have looked at decarbonisation and environmental sustainability as an ethical choice, it’s increasingly becoming important beyond that. With the net zero by 2050 target increasing in pace, 2024 will be a year when carbon reporting becomes more essential for businesses across the UK.

Governments, investors, and consumers are demanding transparency on the steps an organisation is taking to mitigate climate action, and crucial to satisfying those stakeholders is carbon reporting. Here are the dominant reasons why carbon reporting is a crucial tool in 2024.

Dealing with regulation

There are new changes for Energy Savings Opportunities Scheme (ESOS) coming in 2024 as Phase 3 ends and Phase 4 begins. Although not confirmed, there’s speculation that it will be combined with Streamlined Energy and Carbon Reporting (SECR) which will increase the number of businesses that must comply. All will also likely have to submit more data and in more detail, hastening the need for a solution such as carbon reporting software.

If your business trades in the EU, then 2024 also marks the first reporting year for the Corporate Sustainability Reporting Directive (CSRD), which will require large companies within the EU to disclose their emissions, including those throughout their supply chains. This is set to be a pivotal moment for sustainability reporting by setting a global standard for transparency.

Meeting investor appetites for sustainability

We’re in a sustainable investing boom with ESG becoming more and more of an influencing factor. Assets under sustainable management are expected to reach $50 trillion by 2025 with investors increasingly prioritising companies with clear climate strategies.

Carbon accounting provides crucial data for assessing climate risk and making informed investment decisions. A combination of transparency and progress on decarbonisation are factors in calculating ESG scores, making carbon reporting a fundamental decision if you want to attract future investment.

Further stakeholder pressure from consumers and employees

It’s not just governments and investors that demand better decarbonisation action. Customers are becoming more environmentally conscious, actively seeking out brands with strong sustainability practices. Transparent carbon reporting builds trust and attracts eco-conscious consumers, with sustainable products achieving on average 2.7 times faster growth.

Driving employee engagement through sustainability is becoming important to attract and retain staff. A growing number of employees want to work for companies aligned with their values. Sharing carbon data demonstrates a commitment to climate action and attracts and retains talent.

Saving money

Last of all, carbon reporting is allowing more and more businesses to save money. By utilising it to identify efficiency opportunities, accurate carbon data helps businesses pinpoint areas of high emissions, allowing them to implement targeted reduction strategies and lower their carbon emissions. Utilising less energy will often mean lower bills, saving money for your organisation.

Our carbon reporting software platform Pulse Net Zero also integrates with our energy management software Pulse, allowing you to oversee all your energy concerns within one platform. This opens the possibility for even further opportunities to make savings on your energy spend.

While carbon reporting might have once seemed like a compliance burden, in 2024, it's becoming a strategic advantage. It's about accountability, transparency, and driving positive change. Companies that embrace carbon reporting stand to gain the trust of investors, customers, and employees while paving the way for a more sustainable future.

Need further reading on carbon reporting? Check out 7 advantages of carbon reporting software.

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Carbon Reporting Made Simple

Want to discover more about how carbon reporting can improve your business? Our guide breaks down everything you need to know - download your copy of Carbon Reporting Made Simple today.

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