Haven't started calculating your company's CO2 emissions yet? Here are two good reasons!
Climate accounting is growing in popularity among Denmark's growing businesses. It has gone from being something for those companies whose owners were thinking about the consequences of climate change to almost common practice.
Not yet started calculating your company's CO2 emissions?
There are many good reasons to get started:
🤝 Investors' expectations
💰 SMEs can get government grants for green initiatives
📉 You can save on operating costs
😍 Customers will be more positive about your business
✅ You'll be ahead of legislation
🔗 You're part of a value chain
Today we'll highlight a few of them. Because it's not just about being good for the climate - it can also create tangible value for your business!
"Investors are willing to pay a 10% premium for a company with a positive ESG and climate track record."
- McKinsey
Investors and banks expect it
Climate change is affecting markets and economies around the world. For many investors, taking the environment and climate change into account has already become a central part of their investment strategy. Over the past decade, there has been an increasing focus on how investors manage the risks and opportunities associated with climate change.
As a result, many have started investing directly in green solutions, and investment opportunities that are not a direct green solution must be screened for environmental and climate impacts. In other words, investments are directed towards green investments:
- The UN's Principles of Responsible Investment (PRI) is steadily increasing in popularity and at the time of writing it has been signed by 76% of large investment funds.
- 450 financial institutions have joined The Glasgow Financial Alliance for Net Zero (GFANZ). That's approximately 40% of the world's investment capital that has actively committed to finance and support companies working with climate reporting and Net-Zero goals.
- BlackRock, one of the world's largest investment firms, has started pushing for companies in their portfolios to provide greater transparency of their climate impact.
A McKinsey report also found that investors are willing to pay an average premium of around 10% for a company with a positive ESG and climate history - and according to the report, 25% of respondents will pay as much as 20% extra! So it's not small change we're talking about.
But it's not just that interest has increased: With new requirements and standards like the SFDR, financial institutions are increasingly required to provide information about the carbon footprint of their investments - so it's a good idea to get a handle on your carbon footprint if you want to be in the best position to raise new money.
Green loans
Keeping track of your carbon footprint isn't just smart if you want to raise money - it also applies if you want to borrow money. In recent years, it has become significantly more advantageous to take out "green" loans. This can either be to implement green solutions or interest rates that are directly ESG-dependent.
SMEs can get government grants for green initiatives
We've mentioned it before and now we're doing it again: Right now is a great time to start!
Because while you might not be convinced yet, let's try this: As an SME, you can have the cost of your carbon emissions inventory paid for you!
Every year, money is awarded from pools such as SME:Green and the CO2 Pool, which you can use to finance your climate accounts and action plan. Applications for the CO2 Pool will open on February 27, 2023 and SME:Green will open for applications in spring 2023.
If you can see the benefits of taking decisive climate steps now, let us know! We're happy to help you create your climate accounts, draw up an action plan and write an application for a pool that suits you, free of charge and without obligation.
