According to Our World in Data, since the Industrial Revolution, humans have contributed an estimated 1.5 million tonnes of carbon dioxide into the atmosphere. From famines to air pollution, the impact is apparent on our beloved Earth. The same institution also reports that, iIn Hong Kong, carbon emissions have seen a large decline from 2019, dipping from 5.6 tonnes to 4.22 tonnes in 20210.
In October 2021, the government announced Hong Kong’s Climate Action Plan 2050 in an effort to combat climate change, offering its collective solution to global warming. The aim is to further lower the footprint value, over 26% to 36% by 2030. Its decarbonisation strategies include switching to net-zero electricity generation, establishing greener buildings and transport, and promoting waste reduction.
A significant driver of this initiative lies in the hands of local companies.
To encourage corporations to be more mindful of their carbon footprint, the government set up a Carbon Footprint Repository for Listed Companies in Hong Kong. Here, companies disclose their carbon audit results, which strategically pushes them to reduce their emissions. GovHK states that over 80 listed companies have joined this initiative, as of January 2022.
Encouraging a carbon-neutral approach allows the region to lower its carbon emissions. Before understanding how you can make a difference with your carbon footprint reduction strategies, learning about what causes excessive carbon emission levels is a good starting point.
What causes carbon footprint in business?
Carbon footprint refers to the total volume of greenhouse gases emitted, measured in carbon dioxide units. In the business sense, it is an organisation's total emissions, otherwise called corporate carbon footprint.
From its definition, it is clear why carbon footprint is bad — the greater your footprint, the larger adverse impact you make on the environment. As a business owner, implementing solutions to reduce the effects of global warming, be they small or large scale, can introduce a lasting impact on the environment.
A business’ carbon footprint can be influenced by several factors. These include:
- Continuous reliance on costly fossil fuels to generate power
- Heavy electricity usage
- Lack of carbon-neutral operation processes (i.e. transportation, office buildings & warehouses, etc.)
The World Economic Forum also noted that the supply chain can account for over 80% of greenhouse gas emissions. This makes it evident that the vendors you work with also have a significant part to play in your overall corporate carbon footprint.
How does carbon footprint impact a business?
If you’re thinking why businesses should reduce their carbon footprint, consider the impact it would make:
1. Economic impact of corporate carbon footprint
When you have a high corporate carbon footprint, it is evident that you are paying more for energy. Instead of unnecessary expenditure, channel this capital to fund other areas of your business that matter more, from revenue-making developments to sustainability projects.
2. Political impact of corporate carbon footprint
In Hong Kong, environmental law is managed across specific statutes. For instance, the Air Pollution Control Ordinance regulates air quality while the Motor Vehicle Idling (Fixed Penalty) Ordinance prohibits idle vehicles from running to reduce air and noise pollution. The Environmental Impact Assessment Ordinance oversees the permits involved to carry out certain projects to manage adverse environmental effects. Enforcements are typically performed by the Environmental Protection Department, with sanctions that include fines and cancellations of permits. Complying with such regulations is necessary to operate lawfully in Hong Kong.
Share
