Why Greenhouse Gas Emissions (GHG) Reporting is a Game Changer for Corporations
This is the fourth post in the series. To read the previous post follow the link below:
4. Corporate Social Responsibility (CSR), Consumer Trust, and Brand Reputation
Corporate social responsibility, the idea that corporations have a responsibility to ensure they have a positive impact on people, the planet, and society at large, is increasingly seen as a core component of a company's identity and purpose. By reporting GHG emissions, a company demonstrates its commitment to CSR. It shows stakeholders, including employees, customers, and the community, that the company is dedicated to contributing to global efforts to fight climate change. This commitment can improve employee morale, attract talent, and foster positive community relations.
Patagonia, an outdoor recreational clothing company, has a long history of CSR excellence. The company has acknowledged that approximately 95% of its GHG emissions come from its supply chain and materials manufacturing. Patagonia reports its GHG emissions and has set ambitious targets in line with standards established by the Science Based Target Initiative (SBTi). Their commitments include to reduce absolute Scope 1 and Scope 2 GHG emissions 80% by FY2030 from a FY2017 base year. To decrease absolute Scope 3 GHG emissions from purchased goods and services, upstream transportation and distribution, business travel and downstream transportation and distribution 55% by FY2030 from a FY2017 base year. Patagonia's transparent reporting and strong commitment to reducing its carbon footprint have strengthened its reputation as an environmentally responsible company, attracting environmentally conscious consumers and top talent passionate about sustainability.
Consumers today are more environmentally aware and prefer to support companies that are committed to reducing their carbon footprint. By publicly reporting GHG emissions, corporations can build trust and loyalty among consumers who value sustainability. This can differentiate a brand in a crowded market, fostering a positive public image and potentially leading to increased sales and market share. A 2024 survey found that 80% of consumers are very or somewhat concerned about the environmental impact of the products they buy, up from 68% in 2023 and 66% in 2022. The same survey found that a majority of consumers were interested in offsetting the carbon footprint of products.
#CorporateSocialResponsibility, #ConsumerTrust, #BrandReputation, #Sustainability, #ClimateAction, #GHGReporting, #Patagonia
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About ECOthink Group
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3wLeon thank you for sharing your experience and knowledge with us on these important issues. What about the Chevron decision?