The impact of climate change has accelerated and now is a global emergency going beyond national borders. From a carbon footprint to carbon tax, climate change can hurt the economy. This is a real issue and requires real coordinated solutions at an international level. Now is the right time for businesses to start planning how to combat climate change. This can be done with the help of their accountants and senior management team. Here we discuss how accountants can help combat climate change.
Accountants Can Help Combat Climate Change – Overview
The current global GDP is roughly $87.55 trillion. A study from August 2015 found that an increase of 4.5°C in global temperatures could shrink the global domestic product to $72 trillion. The Paris Agreement has played a role and aim to create a global framework by limiting global temperature increase to below 2 degrees. 189 countries have signed the agreement.
Economists and business leaders emphasize switching to less carbon-intensive production and consumption methods. Additionally, a carbon tax has been put in place that sets a price on carbon emissions. It also defines a tax rate on the carbon content of fossil fuels.
To improve resource efficiency, it is important to offer products and services which are less carbon dependent. An internal analysis can help in exploring untapped opportunities to evaluate the alternatives and achieve targets by reducing all greenhouse gas emissions to net-zero by 2050.
The plan depends on your organization.
There is no “one-size-fits-all” approach to fight climate change. If you are an outsourcing firm, back office operations will generate carbon emissions more than other lines of business. Make policies and encourage your team to follow them.
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