Tracking environmental impact for a business is not only important to ensure that they help in conserving the planet, but also to improve their reputation, reduce costs and comply with environmental regulations.
As climate change becomes the taking point for a common man on the street, the business cannot do away with its environmental obligations by finding loopholes. Compliance with environmental regulations is strictly observed by regulatory bodies, rating agencies, researchers, financial companies, think tanks, investors, consumers, and different other stakeholders.
There are many environmental regulations that businesses are required to comply with and failure to comply with these regulations can result in fines, reputational damage, and a even possibility of an environmental disaster.
Consumers are increasingly concerned about the environmental impact of the companies they do business with. In addition analysts, research houses, and think tanks have detailed provisions in their business reports that talk about the Environment, Social, and Governance (“ESG”) factors and environmental policies of the companies. The ‘E’ in the ESG disclosures is highly significant for investors for making climate-related considerations in asset valuation and assessing the company’s stability in the climate-change future.
Benefits of tracking Environmental Regulations
Tracking, and monitoring the environmental impact is not only important from a regulatory perspective but has many advantages.
- Enhance their reputation in the eyes of customers who value sustainability. The companies can present their environmental initiatives as a part of their marketing strategy to attract more consumers.
- Determine areas where they can reduce waste, cut energy usage, and save money. This can help improve their bottom line and make them more competitive in the long run.
- Identify potential environmental risks and take undertake necessary steps to mitigate the likely future climate-related disruptions.
- Ensure that business reports talk favorably about environmental initiatives.
- Protect the planet for future generations and ensure that they are operating in a sustainable manner.
How can technology help business track their environmental footprint?
Gone are the days, when businesses have to depend on manual notes or spreadsheets to track their work. In the era of digitization, there are specialized software products that make tasks not only easier but more efficient. Companies either develop their own digital assets for their needs or leverage the ones that are available in the market.
Irrespective, of whether you create one on your own or purchase it from outside, let us look at some software products that are designed to work for the environment.
Energy Management: One of the biggest requirements for any business is energy and power. Whether it is for running machines, computers, lights, or air-conditioners, every enterprise needs power. To track and analyze energy usage, energy management software is increasingly used in organizations. By monitoring energy consumption, businesses can identify areas where they can reduce energy waste, lower their carbon footprint, and ultimately save money.
Carbon management: For companies in the manufacturing space, carbon management software can track and manage their greenhouse gas emissions. Carbon management software products can help companies set goals for reducing their carbon footprint, track progress toward those goals, and identify areas for improvement.
Supply chain management: While it is easier to track the environmental damages that are caused by your own company, doing the same across your supply chain is not easy. Sustainable supply chain management software can help businesses track environmental impacts and Scope 3 emissions throughout the supply chain. Companies can then identify areas where they can reduce waste, cut emissions, and improve their overall sustainability.
Water Management: Water is another important area for businesses to track, especially the ones working in food & beverage, fashion, chemicals, IT, manufacturing, etc. By identifying areas where water is being wasted, businesses can reduce their water usage, cut costs, and improve their sustainability. Water management software can help organizations track and manage their water usage.
Compliance management: Finally, companies also need to ensure that all the environmental regulations are followed based on the local laws of the region where they operate. Environmental compliance software can help businesses ensure that they are complying with environmental regulations. This software can help companies track regulatory requirements, manage permits, and report on compliance.
These software products can help businesses collect, store, and analyze vast amounts of environmental data, which can be used to derive insights and trends that would be difficult to detect otherwise. This can help businesses make more informed decisions, take corrective action in case of anomaly and help them stay competitive in today’s fast-paced marketplace.
Therefore, using technology to monitor environmental regulations is not only needed to make the government and stakeholders happy but for has the potential to transform the way that businesses operate.
You may also like our article on the use of water by the Software Industry. Read here.