Environmental sustainability benefits your cleaning company and helps you stay competitive. Many companies report a GHG account annually, explaining their environmental impact and sustainable measures. It is not only becoming a requirement, but it also gives a significant advantage when attracting clients and investors. But what are the rules for reporting your company’s emissions, and what is an ESG report?
Understanding the Importance of GHG Account and Environmental Sustainability
Embracing environmental sustainability positions your business favourably in the eyes of investors, clients, and other stakeholders who increasingly value eco-conscious operations. It is not only valued, but is becoming a requirement with the so-called ESG reports. Environmental sustainability is the practice of using sustainable and renewable sources to counter climate changes. The point is to sustain and protect the environment, and not overheat the planet with fossil fuels. Focusing on environmental sustainability means having a GHG account, to show how your company minimises the CO₂ emissions.
All companies directly or indirectly emit CO₂, because they buy or sell products, or provide services. Companies need to account for this, which is done as a GHG account. GHG stands for greenhouse gas, and is a system and protocol for recalculating everything into CO₂ equivalents. It also includes water consumption and waste, which is recalculated into CO₂. The yearly amount of CO₂ is then a key number when evaluating your environmental sustainability. The point is to lower the key number, the amount of CO₂ emitted. Every number, each year, is compared with last year’s number, to see your progress with environmental sustainability. Lowering the number requires environmental actions for cleaning companies. One initiative could be reducing carbon emissions through ECO-friendly cleaning products.
The GHG account is a part of ESG reports, and having these long-term strategies and reports ensures your cleaning company’s future. ESG stands for Environmental, Social and Governance. It is a standard measure for companies when it comes to their impact on the environment, society, and their credibility. The ESG reports are done annually, and are used to encourage companies to invest and integrate the three components into their daily operations.
Four Competitive Advantages for Your Cleaning Company When Implementing GHG Account and Environmental Sustainability
Improve the Image of Your Cleaning Business
Environmental sustainability is the new black. By having a GHG account, you not only show clients and staff that your business is professional and strategy-based, but transparent, and therefore, credible. Setting environmental goals for your cleaning business is ensuring ethical business choices which are appreciated by current and future staff and clients.
Investment Opportunities
Alongside an improved reputation, your cleaning company will have more business opportunities, when focusing your business towards environmental sustainability. This is because investors invest in companies that focus on environmental sustainability. According to the British Business Bank, around two thirds of investors have ESG as a significant factor when investing in businesses. Which ultimately means that environmental sustainability, which is a part of ESG, can give you a competitive advantage when growing your business.
Staying Competitive even with Higher Service Prices
Another economic advantage to environmental sustainability is the potential of raising your cleaning service price, while still being competitive on the cleaning market. This is usually because environmental measures require different, and sometimes more expensive, cleaning products. For many clients, environmentally conscious cleaning companies are seen as luxurious, and equal to better service. If your business is a forerunner when it comes to environmental sustainability, a higher service price is easily accepted, and even expected sometimes.
Building Your Own Resilience
All these initial advantages are connected to your cleaning business’ resilience. Environmental sustainability prepares you for future climate changes. If you are already lowering your CO₂ emissions and incorporating other sustainable measures, you are well on your way to handling future issues that climate change will cause. Causes such as water-shortages or the disappearance of fossil fuels as a source. Business- and growth wise, clients and staff trust and believe in your cleaning business when you “go green”. Investors as well, they all appreciate your hard work for environmental action. This sets you up for many years of stability, and resilience in a changing market.
Green Guidelines: Navigating the GHG Account
All cleaning companies are under the ESG rules and regulations, but the smaller companies are influenced indirectly. Smaller cleaning companies may not have direct regulations, but they can be part of the value chain for bigger companies. This happens when their clients are large companies with mandatory GHG accounting. This means that the smaller cleaning company needs to have a GHG account for their big company clients.
The UK Government has implemented several ESG regulations which affect larger companies with over 500 employees or a £500+ million turnover. Most of the ESG regulations for small and medium-sized companies are then voluntary. There are many acts, disclosures and ESG initiatives, which require both time and money. Here are a few initiatives for environmental sustainability, that would be accessible for your cleaning company:
- GHG account for scope 1, 2 and if possible, scope 3
- Report your goals in resilience to climate changes and sustainability goals, both short and long term.
- Report your progress on reducing GHG emissions, with its setbacks and issues.
- Report subsequent environmental investments and recycling implementations.
- Consider having an environmental management system, a ISO 14001 certificate or EMAS.
This is not a complete list, and many initiatives are expectedly in the beginning phase. Listen to your client or other important stakeholders when it comes to your cleaning company and environmental sustainability expectations. That is the essential initiative to begin with and work from.
The Environmentally Sustainable Future for Cleaning Companies
Environmental sustainability is an essential part of ESG reporting and is measured and improved through the GHG account. Making the GHG account, and investing in environmental measures, ensures that your cleaning company contributes to a greener future. It overall secures the competitive edge for your cleaning business and ensures long-term success and resilience to not only climate changes, but also business changes in the UK.
Interested in doing environmental sustainability, but do not have the time? Then consider exploring our commercial cleaning software at CleanManager. Our digital solutions can help you manage your cleaning company and save time for more important things, like ESG.
Do you want to start your GHG account? Then check out our other article, A Quick Crafting-Guide for the GHG Account and Green Cleaning Practices.