We recognize the urgency of global environmental issues, which not only affect the environment but also have significant implications for human life. These impacts include heat stress, irregular rainfall, water scarcity, increased natural disasters, and ecosystem disruptions, all of which are direct consequences of climate change.

Climate change refers to a long-term shift in temperature and weather patterns, occurring over several decades or even longer. This transformation manifests in various ways, including rising temperatures and altered precipitation patterns, leading to increased dryness or wetness, among other climate-related phenomena (UN, 2024).

The impact of climate change on both human well-being and organizational operations is profound. These effects include disruptions in production due to extreme weather events, damage to infrastructure from natural disasters, and vulnerabilities in supply chains that can lead to delays and increased costs. Additionally, employee health and safety are at risk, with potential issues such as heat stress, respiratory problems, and other health concerns.

Recognizing these challenges, companies has been committed to addressing the impacts of climate change through proactive measures. Below are some of the actions being taken as part of this commitment.

1. Calculating Carbon Footprint and Assessing Opportunities for Reduction

Companies have begun conducting comprehensive annual carbon footprint calculations, evaluating greenhouse gas emissions—including carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), and others—across their operations. This process includes both direct emissions (Scope 1) and indirect emissions (Scope 2 and Scope 3). Data for these calculations utilizing both primary and secondary sources such as Operation, Health, Safety, and Environment (HSE), Human Resources (HR), Procurement, and Finance sources. 

Various carbon calculation methodologies, such as the cradle-to-grave and cradle-to-gate approaches, track the carbon impact from material sourcing through distribution and eventual return to customers. These emissions are standardized and converted into metric tons of carbon dioxide equivalent (tCO2-e), providing a consistent measure of a company’s carbon footprint. This approach enables a holistic view of environmental impact, informing decisions to reduce carbon emissions.

The results of these carbon footprint calculations are analyzed to monitor and track emissions contributions. This analysis is crucial for identifying trends, patterns, and significant changes, supporting efforts to identify opportunities for future improvement. Additionally, this analysis informs business decision-making, helping prioritize initiatives that will have the most significant impact on reducing the overall carbon footprint.

2. Setting Carbon Reduction Targets

In alignment with the global carbon reduction goals established during COP 21 in Paris, companies around the world are taking proactive steps to set their own carbon reduction targets. These targets are designed to contribute to the broader international effort to combat climate change, as outlined in the Paris Agreement adopted by 196 nations in 2015, represents a unified global commitment to addressing climate change by limiting the rise in global temperatures. Companies recognize the critical role they play in this global endeavor, as industrial activities and corporate operations are significant contributors to greenhouse gas emissions. By setting and striving to meet ambitious carbon reduction goals, businesses not only demonstrate environmental responsibility but also position themselves as leaders in the transition to a low-carbon economy.

The Paris Agreement, as a legally binding international treaty, has set forth clear objectives for mitigating climate change. One of its primary goals is to limit the increase in global average temperature to well below 2°C above pre-industrial levels, with a more aspirational target of capping the temperature rise at 1.5°C. Achieving these targets requires substantial reductions in greenhouse gas emissions across all sectors of the global economy. In response, companies are developing and implementing strategies that align with these objectives, including enhancing energy efficiency, transitioning to renewable energy sources, and innovating in areas such as carbon capture and storage. By doing so, they contribute to the global effort to prevent the most severe impacts of climate change, ensuring a more sustainable future for both the planet and their business operations.

3. Implementing a Comprehensive Emission Reduction Strategy

To achieve these carbon reduction targets, companies are implementing various strategies, including:

• Energy Efficiency Improvements: Investing in energy-efficient equipment, such as LED lighting and other energy-saving technologies, to reduce overall energy consumption. This not only enhances energy efficiency but also contributes to long-term cost savings and environmental sustainability.

• Adopting Renewable Energy: Prioritizing the adoption of renewable energy sources, such as solar, wind, and hydro energy, in facilities and offices to reduce carbon footprints. By supporting global initiatives that prioritize renewable energy, companies are actively contributing to the transition to cleaner, more sustainable power.

• Carbon Offset and Carbon Capture, Utilization, and Storage (CCUS): Engaging in carbon offset programs and adopting CCUS technologies to mitigate emissions that cannot be eliminated through other means.

• Transportation Optimization: Encouraging eco-friendly commuting options, such as carpooling, public transportation, and the use of electric vehicles, to reduce transportation-related emissions.

• Exploring Additional Initiatives: Continuously seeking and adopting new initiatives to enhance resilience and adapt operations to the challenges of climate change, ensuring business continuity and contributing to global climate action.

4. Raising Awareness Among Stakeholders

Achieving sustainability goals requires a unified understanding of the urgency of climate change among all stakeholders. This includes employees, customers, investors, and other partners. By fostering awareness of the environmental challenges, companies can align efforts to mitigate climate risks and promote sustainable practices.

Engaging stakeholders through open communication, education, and collaboration helps them understand their critical role in the collective response to climate change. This commitment drives meaningful action, fosters innovation, and builds a more resilient and sustainable business for the future.

Bibliography

UN. (2024). What Is Climate Change.

UNFCC. (2024). The Paris Agreement.