How carbon accounting helps businesses save money

Running a business in today’s economic climate is no mean feat. With surging interest rates, global uncertainty and rising energy costs, businesses are tightening their belts. As business owners focus on survival, many overlook sustainability and mistakenly view it as another expense. However, reducing business carbon emissions is good for the planet and your pocket. The secret weapon to unlocking these savings? Carbon accounting.

What is carbon accounting?

Carbon accounting is the process of measuring and reporting your business’s greenhouse gas emissions. This can be from direct sources, e.g. on-site fuel combustion, or indirect sources, like purchased electricity or employee transport. By understanding your business’s carbon footprint, you can identify emission hotspots and implement strategies to reduce these emissions, leading to both environmental and financial benefits.

‍Click here to learn how carbon accounting works.

How carbon accounting software helps reduce business costs

Data-driven decisions

Carbon accounting software provides businesses with real-time data on their emissions. With this detailed insight, companies can identify the major carbon contributors and prioritise carbon reduction efforts more efficiently.

Energy-efficiency

By targeting the biggest carbon culprits, businesses can significantly reduce energy consumption, leading to a direct decrease in utility bills.

Compliance

As environmental regulations become stricter, businesses with comprehensive carbon accounting practices are better positioned to avoid potential fines and penalties. Plus, they are more equipped to adapt to future regulatory changes, ensuring a more sustainable future and potentially lower compliance costs.

Brand value

A reduced business carbon footprint can enhance a company's reputation. With consumers increasingly preferring eco-friendly brands, a commitment to sustainability can translate into increased sales and customer loyalty. 

Tax breaks and incentives

Governments across the globe are offering tax incentives to businesses that take steps toward carbon reduction. Businesses that leverage carbon accounting software can report their progress towards sustainability goals. 

Resource management 

Managing resources more efficiently can lead to cost savings in manufacturing and production processes. Plus reducing waste also lowers disposal costs and could help you create revenue streams from selling recycled products. 

Climate risk

Preparing for and adapting to physical climate-related risks, such as extreme weather events and supply chain disruptions, can help businesses avoid costly damages, increasing costs and potential losses. This knowledge can also help you pick supply chain partners that are more resilient and will protect your ability to trade. 

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With rising consumer demand for eco-conscious brands and increasing regulatory scrutiny, prioritising carbon accounting isn't just an ethical choice—it's a strategic one. 

Ready to cut carbon + costs?

Cogo’s Business Carbon Manager is more than a carbon calculator. We’ve conducted extensive research to better understand the challenges SMEs face when taking climate action. This knowledge has helped us build a product that fulfils SMEs' unique needs. We provide businesses with personalised action plans and engaging features to help them reduce their carbon footprint and save on costs.

Who can use the tool?

Kiwibank Business Banking customers in New Zealand can access Cogo’s Business Carbon Manager now. If you're not a Kiwibank customer, don't fret, we're launching on Xero marketplace later this year. Sign up here to be the first to know when we launch.

If you’re an Australian business and you use Xero accounting software, you can access Cogo’s Business Carbon Manager.

And in the UK, we are launching our Business Carbon Manager on the 5th of September via the Xero marketplace. Sign up to stay up to date with the latest developments and get notified when we go live.