Decarbonizing Business: The Opportunity
February 12, 2024
Global climate change poses a huge challenge for business, and decarbonization presents an opportunity to lead.
2 min read
The urgency of addressing climate change is increasingly pressing, with the need to reduce carbon emissions becoming more critical every day. However, solutions for decarbonization exist today and, if implemented at scale, could significantly mitigate the impacts of climate change. In particular, two key areas for action are the built environment and the cold chain. Businesses have a unique opportunity to drive a low-carbon future and energy transition, leveraging their influence and resources.
The heating and cooling of buildings accounts for 15% of global greenhouse gas emissions, with the majority coming from fossil-fuel based heating. Fortunately, there is immense potential to reduce these emissions through readily available technology and simple solutions. Similarly, food loss and waste contribute to a considerable portion of greenhouse gas emissions, highlighting the need for action in transportation and storage practices.
Decarbonizing the built environment, especially improving HVAC systems, is crucial for overall decarbonization efforts. Businesses, with their vast real estate holdings and vehicle fleets, are uniquely positioned to lead this change. National and regional governments are increasingly setting net-zero targets, creating a demand for emissions reduction. Various governmental initiatives and standards are pushing for emissions reductions at every level, incentivizing action from businesses. Investors and regulators are increasingly requiring companies to disclose their climate risks, further pushing them towards sustainable practices.
Businesses play a vital role in driving decarbonization efforts through electrification, particularly in the built environment and transportation sectors. With the right incentives and support from governments and regulators, companies can lead the transition to a low-carbon future, benefiting both the environment and their bottom line. By seizing this opportunity now, businesses can help bend the curve on climate change and create a more sustainable world for future generations.
To learn more, download our white paper, Decarbonizing America: How Business Can Lead Through Electrification, co-developed with Reuters Events.
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