The Importance of Carbon Emission Analysis in Building Company Reputation
What is Carbon Emission?
Carbon emissions refer to the release of carbon dioxide (CO₂) and other carbon-containing gases, such as methane (CH4), into the atmosphere. Carbon emissions can occur naturally through processes such as the respiration of living organisms and volcanic eruptions.
How is the Carbon Emission Process Formed?
Natural carbon emissions are part of the global carbon cycle and are typically balanced by other natural processes, such as the absorption of CO₂ by plants through photosynthesis and the storage of carbon in soils and oceans. However, carbon emissions are also produced from human activities (anthropogenic), such as the burning of fossil fuels in industrial activities and agriculture. These anthropogenic emissions have occurred uncontrollably and have exceeded the natural capacity to absorb carbon, resulting in imbalances and climate change, leading to global temperature rise, altered weather patterns, ice melt, and rising sea levels. It is reported that the energy generation sector, including electricity and heat production, is the largest contributor to global emissions, followed by transportation, manufacturing, construction (primarily cement and similar materials), and agriculture.
The manufacturing industry often produces large amounts of carbon emissions through the burning of fossil fuels for production processes, such as operating machinery and using energy for raw material processing. Additionally, companies involved in deforestation, either directly or indirectly, contribute to carbon emissions as tree cutting reduces the natural capacity to absorb CO₂ from the atmosphere. Agricultural activities carried out by companies, such as the use of chemical fertilizers and unsustainable land management, can also increase the release of greenhouse gases, including methane.
How to Control Carbon Emissions?
As carbon emissions are currently occurring uncontrollably and causing various negative impacts on the Earth, countries around the world are implementing various regulations and policies to control carbon emissions, including carbon taxes and emission targets that companies must comply with. Failure to adhere to these regulations can result in fines and loss of operating permits. Nowadays, consumers and investors are also increasingly paying attention to companies’ commitment to environmental sustainability, making it risky for companies deemed irresponsible in managing carbon emissions to lose support and trust.
Therefore, it is crucial for companies to conduct carbon emission analysis. By understanding their emission profile, companies can identify the largest sources of emissions from their daily activities and seek ways to reduce them, such as improving energy efficiency, using renewable energy sources, or implementing more environmentally friendly production innovations.
Transparent carbon emission analysis allows companies to build a good reputation among consumers, investors, and other stakeholders, and attract interest from parties supporting sustainability.
Carbon emission analysis requires a deep understanding of various technical and regulatory aspects related to greenhouse gas emissions and cannot be performed by just anyone. Professionals involved in this analysis must have in-depth knowledge of emission measurement methodologies, applicable environmental regulations, and the tools and software used to calculate and report carbon emissions. Errors in the analysis can result in inaccurate data, leading to incorrect decisions and causing legal issues for the company. Therefore, carbon emission analysis should be conducted by trained and experienced environmental experts or sustainability consultants to ensure that the results are valid, meet standards, and effectively support the company’s efforts in managing emissions.
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REFERENCE
Almutairi, H. (2013). Carbon tax based on the emission factor.
Davutluoğlu, O., Yavuzdeğer, A., Esenboğa, B., Demirdelen, Ö., Tümay Ateş, K., & Demirdelen, T. (2024). Carbon Emission Analysis and Reporting in Urban Emissions: An Analysis of the Greenhouse Gas Inventories and Climate Action Plans in Sarıçam Municipality. Sustainability, 16(10), 4184.
Hannah Ritchie, Pablo Rosado and Max Roser.(2020). Breakdown of carbon dioxide, methane and nitrous oxide emissions by sector” Published online at OurWorldInData.org. Retrieved from: ‘https://ourworldindata.org/emissions-by-sector’ [Online Resource] at 17 August 2024.
Rausch, S., & Reilly, J. (2015). Carbon taxes, deficits, and energy policy interactions. National Tax Journal, 68(1), 157-177.
