According to the United Nations, climate change is a worldwide emergency that transcends national boundaries. Help nations transition to a low-carbon economy, it is a problem that calls for coordinated solutions at all scales and international cooperation. The time is now for businesses to begin making plans to tackle climate change. Exploring business opportunities through internal analysis is crucial for increasing profits. By accomplishing the goal of lowering all greenhouse gas emissions to net-zero by 2050, these studies would aid in evaluating the options and cutting carbon emissions as much as possible.

Generating more profit with fewer resources—since every additional resource increases the cost of the final good or service—not only lowers greenhouse gas emissions but also improves the business model’s efficiency.

Businesses can create long-lasting infrastructure by being sustainable, and you can only do so if you account for the risk of climate change in your business plan. Make sure that every process effectively addresses the present environment change while increasing profitability to create a sustainable business.

Companies may require to advise their corporate clients on the potential financial impacts of the move to a low-carbon economy by improving resource productivity, and inspiring new products and services which are less carbon dependent.

By incorporating their knowledge of the organization’s strategy, risk profile, and operational imperatives into their decision-making, businesses can create value on three levels.

Motivate Level

Accountants and management might assist at this stage by pointing out potential dangers and business opportunities. Organise a meeting with top management and the operations team to discuss the comprehensive matrix and bring up the pressing issue of how climate change will affect business.

Plan and implement Action

It’s time to consider potential solutions now that dangers and possibilities have been thoroughly analysed. Varying methods to stop climate change have different costs. Budgeting for goods and services that may be impacted by climate change can help to streamline the business To make minor adjustments to the backend process, a step-by-step strategy must be used. For example if the businesses in the financial sector consume a vast amount of paper in terms of contracts, amendments, etc, introducing digitalization can help to cut down the paper usage. If printing is necessary, print on both sides and try to incorporate a QR code at the end so that anyone may scan it and access further information on their devices. Also, it is advisable to educate your clients on climate change action plans.

Assess Performance

After implementation, it’s crucial to evaluate the results and progress. Designing, data management, and internal process control are some of the metrics that businesses might develop. Metrics will make it simple for any organisation to set goals and assess performance. A thorough picture of performance information and financial reporting in relation to the climate change action plan can be obtained via internal and external audits conducted by your accountant and the management.

As a provider of accounting outsourcing services, AcoBloom International works to both prevent and reverse climate change. We also speed up our workflow to create valuable and measurable solutions for the worldwide accounting sector.

You can also read: Role of accountants in helping to reverse climate change