According to The Shift Project, a Paris-based climate think tank, the internet makes a bigger contribution to global pollution than the aviation industry. Internet-related emissions were 3.7% in 2023 and predicted to reach 5.5% by 2026. Data centers are a major source of internet emissions that often goes unnoticed. These massive facilities operate around the clock. Eventually, they start generating substantial heat and their lifespan and performance diminishes and even creates a fire risk.
Green hosting providers pass savings on to customers
It’s important to manage the temperature within data centers in regions with a predominantly hot climate. Businesses install immense cooling systems to maintain optimal conditions, leading to a surge in energy consumption. Users can reduce the environmental impact of web hosting by choosing a green hosting provider. Solutions for green web hosting involve implementing energy-efficient technologies, increasing the usage of renewable energy, and obtaining green certifications. Providers who take these actions, like GreenGeeks, contribute to a more sustainable web hosting industry.
Reduced emissions improve financial performance across the board
A recent research paper explored the relationship between corporate financial performance and carbon emissions reduction based on 14,866 observations from 2768 businesses in 35 industries and 36 countries and regions over the period 2002–2022. The authors reported that reduced carbon emissions improved financial performance, measured by return on equity and return on assets. The effect was stronger for businesses with higher emissions. They also found a positive relationship between country carbon regulations and companies’ financial performance.
Researchers concluded that companies could improve financial performance by making more efforts to reduce carbon emissions. They recommended that companies adopt customized sustainability strategies that account for industry, firm, and country-specific factors to maximize financial benefits across different sectors and regions.
Lower utility costs
The main financial benefit involves lower utility bills. Switching to a green tariff or installing renewable energy generators can help achieve this. Even examining how the company uses energy can result in lower energy consumption and costs.
Attracting investments
Investors looking for businesses with a long-term sustainable strategy may find net zero businesses an attractive option. They could also be attracted to businesses that are less dependent on fossil fuels, as supply problems are less likely to disrupt business operations. A company with a positive ESG record will lead investors to pay a 10% premium.
Appealing to more customers
Customers expect companies to make sustainable decisions, and environmentally friendly businesses are more likely to attract new customers. A recent survey showed that over three-quarters (77%) of consumers found it at least mildly important for brands to be environmentally responsible, and around 66% of employees are more inclined to work for a business with strong environmental policies.
Protection from unexpected increases in energy costs
Adopting alternative energy sources can help protect a business from unexpected increases in energy costs, and targeting net zero emissions can make it more resilient to market or other disruptions.
Ensuring compliance, now and forever
Your business might not be obligated to report its emissions, but legislation affecting climate impact reporting is expanding to include more enterprises. You ensure future compliance by using carbon accounting today.
Challenges
According to a recent Boston Consulting Group survey, businesses are prone to unintentional greenwashing. The average error rate in emissions calculations is estimated at 30% to 40%. Small businesses are a substantial source of emissions in the UK, accounting for half of all business-driven emissions. 76% of small businesses in the UK have not implemented a decarbonization strategy, while just over half (57%) are aware of the government’s net zero target for 2050.
Small businesses cite costs, vehicles, infrastructure, lack of appropriate technology, and the inability to find reliable data on net zero as some challenges preventing action.
FAQ
How can people reduce their carbon footprint online?
You can recycle or repair devices, unplug any you’re not using, write fewer emails, and play games or use apps offline.
What are the financial benefits of carbon credits?
Carbon credits give businesses a monetary incentive to reduce their carbon emissions. Those that can’t reduce their emissions operate at a higher cost. Supporters of the carbon credit system say that it leads to verifiable and measurable reduction.
