It is expected to see companies discussing carbon accounting in terms of regulatory compliance. It seems like just a few years ago, most companies did not even think about their greenhouse gas emissions at all. Fossil fuels were heavily subsidized and used by almost every company in Saudi Arabia. So much so that when the Remedium founding team began its journey, our friends and family thought we were taking a massive risk. It seemed like climate action was not a priority, and that we were foregoing better career opportunities for the sake of passion.
Fast forward to today, and you will hear nothing but encouragement from anyone we discuss GHG emissions accounting with. This is primarily due to the paradigm shift happening from business as usual, to a more sustainable future ushered-in by the numerous, ambitious programs and strategies set fourth in the Kingdom.
The Remedium team was even more taken back by the reception we have received by companies in all sectors of business. Businesses that are currently not required by any regulatory body to monitor or report their emissions, but are choosing to do so on a purely voluntary basis. Companies following the climate ambitions of the Kingdom without being asked to do so reflects the widespread understanding that we all have a role to play in order to avoid the worst of climate change.
But then again, is it that big of a surprise that people care about climate change? It seems that we sometimes forget that most people would take action if they had options. It is only in the face of overwhelming challenges that people freeze, and are unsure where to start. However, it is worth arguing that when presented with options, most people would take action towards something as existential as climate change.
The good news is that your GHG emissions are a great indicator of your resource efficiency. That is one of the first conversations we have with our clients in order to encourage looking at emissions from a different perspective. Although there are a multitude of other factors that can affect organizational and operational efficiency, GHG emissions can serve as a litmus test for a company to know which areas can be improved. Some of these improvements can be simple, and bear little to no additional cost for the company to implement.
A personal favorite is the implementation of work-from-home policies that can reduce Scope 3 (employee commute) emissions, while potentially increasing job satisfaction. Such policies, if widely adopted, could have indirect effects on traffic congestion within a major city and further decrease emissions due to the inefficiencies of thousands of stalling engines during rush hour.
Reductions in emissions could come in the form of reducing your value chain (Scope 3) emissions. Supporting your local businesses can be less emissions intensive, and have other positive effects on sustainability that are not directly related to emissions.
Climate action is increasingly being tied to social impact. This can be seen in the additionality criteria of carbon offset projects, where social impact factors are increasingly considered, and not just climate impact.
This speaks to the concept that environmental sustainability is intrinsically tied to social welfare and sustainability. That is why we, as a community, need to further examine the social factors when making climate decisions for our companies.
Your local supplier might not always provide the material specifications you seek. However, when working with your local suppliers to provide your specifications, you are engaging your local community and enabling development. This could have a knock-on effect of reductions in emissions, and possibly even prices, while simultaneously supporting your local economy.
It is natural to compete in your local economy, we find this to be true in our line of work as well. However, when we hear about another carbon accounting firm, we reach out and speak to them. Our logic is that we probably need one-thousand carbon accounting companies in the region to service companies and address our regional climate challenges. Stepping away from the zero-sum mindset is one of the ways which communities can cooperate while simultaneously competing in a local market.
If more companies worked with local suppliers on meeting their product and commercial expectations, the community as a whole may realize social as well as environmental impact that bring us one step closer to a more sustainable future.