Business Performance Can Be Helped With Carbon Baseline

. The demands of today's economy and time require economists to also be scientists at the same time to be able to at least understand how carbon baseline is measured, as it will become a very important factor in determining business efficiency of today's new carbon economy.

These days, economists must also wear the hat of a scientist to a certain extent and understand the importance of carbon baseline measurement as it pertains to the very core of the business itself.

Business executives may no longer refer to energy efficiency in terms of utility costs alone, as society now demands that every company reveals the volume of carbon emissions associated with energy use. Carbon by itself is not yet classified as a commodity to be traded, although this could change fairly shortly, could one day soon have an attached value and be of equal importance on a balance sheet as well.

Carbon baseline would be a very important business metric. Unless an organization is aware of the amount of carbon emissions that is by definition responsible for, then it can not take action to modify and improve such a situation. Improvements will be called upon as there is a growing groundswell of opinion calling for sustainability in the corporate world.

The principle of sustainability requires companies to take ownership of their respective carbon footprint, together with the responsibility of not taking more what can be given."Sustainability is therefor a concept which requires a company to be able to survive without imposing too much to the world that surrounds it. Greenhouse gas emissions are detrimental to our atmosphere and are contributed by use of energy which emits carbon.

A carbon baseline can be measured according to direct and indirect emissions. As such, emissions can be broken down into three separate scopes. The third scope could be the largest scale and is broadly accepted to be that which relates to the emissions which are beyond the organization's control, like that which occurs during the supply chain or after sale. This will be traditionally the most difficult for the organization to account for.

An organization's assets would certainly use a specific amount of energy. Carbon is released into the air each time this energy is consumed. It is therefore essential that an organization is aware of the operation of each asset, how each performs and how each is responsible for making up a share of its overall carbon baseline.

We can see efforts around the world to force organizations to become sustainable. Some jurisdictions are implementing trading schemes to set economic barriers to the production of these become widespread, any organization that is not aware of its carbon baseline could be doomed to failure.

A company needs to adopt carbon baseline standards and would have to at least understand asset performance prior to taking any actions towards the company's sustainability. Many organizations are just becoming aware of this growing threat to their very survival, yet those who have initiated an early action could strive for a position of superiority over their peers.

by: Daniel Stouffer

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