CO2 Tracking: Why Measure and Manage Carbon Emissions?

In July 2024, new European Union Corporate Sustainability Reporting regulations came into operation. This follows the introduction of a new 2040 climate target in February. The measures include an EU plan to reduce net emissions by 90% by 2040. They also provide a more clear and consistent structure for companies to report on their sustainability efforts.

Understanding your carbon footprint

When it comes to CO2 tracking, the old adage that ‘you can’t manage what you can’t measure’ has never been more apt. The extent of future climate change depends on what we do now to reduce greenhouse gas emissions. 

Unless you truly understand the extent of your carbon emissions, the measures you take are like shutting the gate after the horse has bolted. 

In simple terms, companies need to understand their carbon footprint to properly disclose the risks and opportunities. 

By doing so, not only do they become better-informed about their full carbon impact, they also take ownership of the fight against global warming.

Why CO2 tracking is an opportunity 

In every sense, CO2 tracking is no longer ‘nice to have.’ It’s now a key pillar of the environmental, social and governance (ESG) frameworks that companies are increasingly bound to by European Union law.  

And because many member states are falling behind in meeting their 2030 emissions targets, companies must adhere to an ever more stringent set of EU standards. 

This includes reform of the EU Emissions Trading System (ETS) that makes polluters pay for their greenhouse gas emissions by acquiring carbon allowances.  

A new 2030 target for ETS emissions of minus 62%, with companies signing up to a corporate net-zero standard of halving emission before 2030.  

To track their carbon footprint, companies need to gather meaningful data on their emissions sources, such as energy use and travel. This includes data on fuel consumption and the distance travelled by their vehicles. 

In fact, for businesses and investors, improving their environmental sustainability is a strategic opportunity. This is because it: 

• Encourages responsible resource management  
• Helps reduce and mitigate wasteful spending 
• Makes a business more attractive to customers  
• Positively impacts long-term growth 
• Offers green employee benefits

Role of new and emerging technology

In the past sustainability initiatives have been focused on investor and public relations. In some cases, they have been little more than a corporate social responsibility exercise.

Now, with such a low tolerance of outdated practices from investors, consumers and legislators, the sustainability agenda is transforming entire business models.

Of course, there are skeptics who claim the investment required to fight global warming is undermining the competitiveness of European businesses.

While the transition required by companies can be demanding, as we enter a new era of data-driven solutions for CO2 tracking and reporting, it need not be too daunting.

Carbon tracking allows companies to calculate their carbon footprint in detail. In turn, they can disclose the impact of their green initiatives more reliably.

How to calculate carbon footprint

If you want to decrease your environmental footprint, you must have a CO2 tracking process that works.

Carbon tracking tools help businesses measure, analyse, and manage their carbon footprint, providing a broad understanding of the quantity and impact of their emissions.

Purpose-built CO2 tracking software collects data from various emission sources, which is then used to access an accurate picture of a company's carbon emissions.   

Beyond measurement, the intelligence provided helps:  

• Identify key opportunities to reduce emissions
• Develop strategic sustainability initiatives and track their progress.

Setting your emissions target

The first step is to establish an emissions baseline that is reliable, transparent and straightforward.

After all, to measure progress in achieving your carbon reduction target, without a baseline, you don’t know how far you’ve come.

Your emissions baseline can be specific to one project, or can aim to standardise emission levels or rates over multiple projects.

It’s important to set a realistic emissions reduction target as this is the single biggest objective of a company's sustainability strategy.

 As well as making sure they adhere to recognised carbon accounting and sustainability measurement standards, your goals must be measurable.

Failure is not an option

The pressure from regulators to capture and report CO2 emissions will continue to grow.   

As of now, the ETS is the cornerstone of the EU's climate change strategy and its primary tool for cutting greenhouse gas emissions.

It requires industrial facilities and aircraft operators to have an authorised monitoring plan for measuring and reporting yearly emissions.

With European Union carbon emission rules becoming more rigorous, companies are obliged to disclose sustainability information in more detail.

As the world advances towards a low-carbon future, companies that fail to reach their emission objectives may suffer fines or other penalties.

There is also a far higher degree of reputational risk for those that don’t. That’s why being able to track your carbon emissions with high precision is now critical for organisations.

What CO2 tracking means for your business

The need for greater transparency and more precise reporting, as well as more stringent rules and targets compels businesses to get to grips with their emissions.

To that extent, CO2 tracking is now a critical part of the transition to a low-carbon economy.   

New software solutions are already improving the accuracy and efficacy of carbon tracking, making it simpler for businesses to reduce carbon emissions.

For example, our expense management solution helps to streamline the process of expense report compliance with accurate data on your carbon footprint.  

Thanks to advanced CO2 emissions tracking for mileage expenses it’s getting easiest to be eco-conscious.

Capture & report on mileage CO2 emissions

With different options to capture CO2 exhaust for mileages, the features include modules that:    

• Provide the exact emission per mileage bases on the license plate
• Allow users to choose which vehicle type for CO2 emission per mileage. 

In essence, CO2 Tracking from Mobilexpense goes beyond reporting regulations by bringing complete visibility of CO2 emissions to companies and their employees.

Users can save time and avoid errors with features for pre-filling and syncing license plates. This ensures that carbon emissions data is as accurate as possible.

Closing thoughts

Mobilexpense ensures that our clients have all the data they need, both the ‘sourced drivers data’ (the actual vehicle types, distances, etc) and the calculated emission data.

We also ensure that organisations are compliant with both local and EU reporting requirements.

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