Most Executives are Just 'Blowing Smoke' When They Talk about Emissions

Carbon footprint, greenhouse gas emissions, smokestack emissions: If you are foggy about the definition of these terms, but will be responsible for “capturing” and reporting on them for your business, you are not alone.

On Jan. 25, Livermore, Calif.-based Epicor Software (News - Alert) Corporation, a software solution provider, announced the results of its first-ever carbon accounting survey of nearly 1,000 manufacturers worldwide—shedding light on a “dirty” little secret. Despite forthcoming legislation mandating carbon accounting, most companies are just “blowing smoke” when they talk about environmental impact.

In fact, the survey revealed that:

·         Fifty-eight percent of companies surveyed had not heard of the term “carbon accounting,”

·         Fewer than 25 percent could accurately describe what the term means, and

·         Fully 80 percent of companies surveyed don’t monitor their carbon footprint.

They should educate themselves quickly. Last November, Australia’s plan to tax carbon emissions cleared its final political hurdle and three months before that, on August 31, the California legislature passed a bill establishing the most extensive carbon dioxide (CO2) emission controls yet in the United States. Unquestionably, there is momentum building behind government mandates for corporate energy management.

“It’s quite worrying to think that a third of all companies don’t know whether they are under legal obligation to report emissions and we want to take this opportunity to urge the industry as a whole to take responsibility and help educate businesses about energy management,” said Chris Purcell, product marketing manager for Epicor. “Businesses should prepare now for carbon accounting.”

He explained, “Carbon reporting will happen, irrespective of any personal opinions about global warming. Those businesses that prepare now for the reporting that will be legally required of them in the near future will have a clear competitive advantage over laggards. Energy management is not a distraction [from] a company’s core business. Businesses can gain cost and energy savings from sustainability investments and the growth of emission trading schemes will only increase the need for companies to understand how carbon accounting will impact their bottom lines.”

The survey, which was conducted by Epicor during August and September 2011, revealed that although the CEO is the person most likely to be responsible for a company’s green strategy, 50 percent of companies surveyed don’t have any C-level involvement at all in their carbon accounting initiatives.

More specifically, 85 percent cannot report the level of carbon their company has consumed in each of the last six months, and nearly 70 percent believe that they accurately account for less than 25 percent of their company’s carbon consumption.

But not all companies are in the dark. Epicor customer HARBEC Inc., a contract injection molder and precision manufacturer located in upstate New York, recently decided the company needed to implement a more accurate and credible solution than its manual system to reach its goal of being carbon neutral by2013.

“Ultimately we needed a monthly report of how we’re doing in terms of sustainability metrics,” said Bob Bechtold, president and founder of HARBEC. “Those metrics are as serious to us as other common business metrics, like financial reporting.”

HARBEC also is in the process of pursuing certification for the newly released ISO 50001 energy management systems standard, which requires systematic documentation of carbon emissions usingsolutions such as Epicor Carbon Connect—software that provides organizations with transparent, auditable control of and reports on resources consumed and expended by an organization (including energy, water, waste, transport, carbon, and natural gas).

Bechtold added, “Many companies claim to be environmentally friendly with little or no substantiation, but this new certification and solution will give HARBEC the competitive advantage of actually proving that we are a leader in sustainability…. Any company can compensate for its carbon emissions by purchasing offsets, but this solution will enable HARBEC to efficiently and accurately track our carbon footprint, helping us to manage it toward zero through efficiencies and smarter power generation.”

“Pursuing a green agenda and increasing operational cost savings are not mutually exclusive tasks,” said Purcell. “We urge all companies to move the green agenda higher up on their corporate social responsibility (CSR (News - Alert)) priorities. By being prepared in advance, companies can avoid potential penalties for not adhering to legislation, and also realize the strategic advantages that include operational cost savings and additional revenue streams.”

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO East 2012, taking place Jan. 31-Feb. 3 2012, in Miami, FL. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. For more information on registering for ITEXPO registration click here.

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