With growing awareness around climate change, businesses are taking steps to measure and address their greenhouse gas (GHG) emissions. Once companies assess their emissions, identifying the most polluting activities allows them to target solutions effectively.
The world will gather at Baku, in Azerbaijan, from 11 to 22 November 2024, for the 29th annual international climate change conference known as the Conference Of Parties (COP 29). One of the key issues that is expected to be deliberated on, is the role of businesses in reducing global warming.
By adopting sustainable practices, businesses can transition towards a net-zero future and lead by example in tackling climate change. Fossil fuel consumption, particularly oil, coal, and gas, is a major driver of global warming, responsible for 75% of total greenhouse gas emissions and nearly 90% of global carbon dioxide emissions.
In Ghana, German international cooperation agency GIZ is supporting the Association of Ghana Industries to promote the adoption of energy efficiency and renewable energy among industries. This initiative, it is hoped will contributing to the fight against global warming.
Key industrial sectors such as manufacturing, construction, and mining contribute heavily to emissions due to their reliance on fossil fuels for producing essential materials like cement, iron, steel, electronics, and plastics. Additional emissions stem from mining activities and industrial processes, while sectors like agriculture and transportation further contribute to environmental impact.
To address these challenges, businesses are focusing on carbon reduction strategies, which include shifting to renewable energy, improving energy efficiency, and implementing water-use and material efficiency. Encouraging eco-friendly behaviours, such as carpooling and public transportation, can also reduce a company’s overall carbon footprint. Moreover, many corporations are setting ambitious goals, with around 300 companies committing to emission reductions aligned with climate science, and over 100 pledging to operate on 100% renewable energy. Leading companies, such as Microsoft, have even embraced operational carbon neutrality.
The main sources of GHG emissions globally are electricity and heat production (31%), transportation (15%), manufacturing (12%), agriculture (11%), and forestry (6%). By enhancing access to energy-efficient materials and carbon-neutral options, companies can better protect resources and reduce demand for emissions-intensive goods.
Businesses play a crucial role in addressing global warming by reducing emissions and embracing sustainable practices. They can contribute to climate finance by investing in renewable energy projects, supporting carbon offset initiatives, and integrating climate vulnerability assessments into their operations and future investments.
By prioritizing transparency and accountability, companies not only mitigate climate risks but also create value for stakeholders, positioning themselves at the forefront of global sustainability efforts. By setting emission reduction targets, scaling up energy efficiency, and fostering renewable energy adoption, companies can make meaningful strides in combating climate change and financing a sustainable future.
