Carbon monitoring is an investment, so we understand that you want to understand the benefits it will have for your business – in particular, if it will make you more profitable.
Well, we have good news! There is proven evidence that making your business more sustainable through initiatives like carbon monitoring does have a long-term impact on your bottom line.
Not convinced? Check out some statistics shared by the Carbon Disclosure Project Worldwide (CDP). With regards to financial performance, sustainable businesses or businesses planning on reducing their carbon footprint experienced an 18% higher ROI than those who aren’t, and a 67% higher ROI than those who refuse to declare their emissions data.
Here are a few of the other ways carbon monitoring can make you more profitable.
Reduced Energy Bills
One of the immediate ways that carbon monitoring makes your business more profitable is by reducing your expenses.
With the continued rising cost of energy bills, any savings you make will help your business become more profitable. Carbon monitoring helps you to track both regular wastage and unnecessary spikes in your energy usage. By identifying areas of improvement and acting on them, you will be able to feel the benefits of savings immediately.
These savings are possible across all businesses – even ones that traditionally have high energy costs and small margins. Our client, Eddy’s Food Station traditionally experienced very expensive energy bills due to their usage of refrigeration and heating appliances. However, after monitoring their carbon usage we switched them to a flexible buying contract as opposed to utilising just one energy supplier, and as a result, they have started saving 35% on their monthly energy bills.
Remove Energy Wasters
Another key area where carbon monitoring can make you more profitable is it allows you to pinpoint places where business performance could be improved.
For example, if the data shows that a piece of equipment is not performing efficiently, replacing it with a new model could help streamline your operations, which can boost profitability.
Or perhaps areas of your premises are being lit or heated at unnecessary times, and you could reduce wasted energy by installing smart technology.
This ultimately helps you make sure that your operations and production are running as smoothly and cost-effectively as possible.
Win New Business
With sustainability becoming a pressing concern for partners and clients alike, demonstrating your commitment to reducing your carbon footprint will give you a competitive advantage and credibility.
No matter what industry you operate in, it is likely that prospective customers will expect you to demonstrate your desire to have a more positive impact on the environment. For example, a study undertaken by Deloitte found that 32% of consumers were prepared to pay more for goods and services if it meant brands reduced their carbon footprint.
Not to mention the fact that in some industries, proving your environmental commitment is essential to large contracts. The UK government have enforced a Procurement Policy Note, which means that any company that wants to submit a bid to work on a major government contract needs to not only publish their own ‘Carbon Reduction Plan’, but also commit to achieving Net Zero by 2050.
Make Long-Term Investments
Finally, by saving money and gaining new business, you not only become more profitable, but you have the opportunity to reinvest in other key areas of your business, further boosting your performance.
For example, investing in new energy sources for your business, such as renewables and solar panels, may include an upfront cost, but will result in long-term savings for your business. This will also provide additional security, as the use of fossil fuels continues to wind down and the world turns to greener energy sources.
In conclusion, does carbon monitoring make me more profitable
We hope this blog has helped you see that while carbon monitoring is an investment for your business, there is no doubt that it will make you more profitable in the long run.
Alongside improving your bottom line, carbon monitoring will reduce your energy bills, streamline inefficiencies, and allows you to invest in technology that will carry your business towards a Net Zero future.
If you are ready to improve your business’s environmental footprint and set yourself up for a greener future, we would love to help.
You can find out more about Utili-Tay’s Carbon Monitoring Services here.