The European Parliament recently agreed to tighten climate laws. This means that more European companies and citizens will start paying for the CO2 they emit. It is an important step in the fight against climate change, but what does this mean for SMEs?
Below, we discuss what SMEs need to know about this tightening, highlight the impact of commuting on CO2 emissions and offer some practical tips on how to reduce them.
What does this mean?
The European Union has decided to reduce greenhouse gas emissions by 55% compared to 1990. This is a major step forward in the fight against climate change. An important part of this tightening is that polluting companies have to pay for CO2 emissions. The UK also has such a climate agreement; The Climate Change Act. This requires the UK government by law to reduce greenhouse gas emissions by at least 100% of 1990 levels by 2050. To achieve this, Streamlined Energy and Carbon Reporting (SECR) has already been in place in the UK since 2019. This requires companies subject to corporation tax to provide information on their energy consumption and greenhouse gas emissions in their annual reporting.
What do SMEs need to know?
Although the tightening of climate laws mainly targets large companies, SMEs may also be affected. It is important to understand that CO2 emissions from all companies, regardless of their size, contribute to climate change. Despite SMEs generally emitting less CO2 than large companies, the total number of SMEs is much higher than the number of large companies. As a result, SMEs account on average for 50% of total CO2 emissions.This means that if all SMEs do their bit, overall CO2 emissions can be significantly reduced. Therefore, it is important that you too, as an SME, take action to contribute to the fight against climate change.
Commuting
Did you know that a major contributor to many companies' carbon emissions is employee commuting? For organisations within the business services sector, business traffic can account for up to 70% of total CO2 emissions. Although the SECR scheme currently only applies to companies subject to corporate income tax, the government plans to extend the scheme to all companies. This would mean that in future, all companies, including SMEs, would be required to report information on their energy consumption and greenhouse gas emissions.
To prevent this reporting from revealing high CO2 emissions from your SME's mobility, you can take action now. Reducing CO2 emissions is a big process and it does not have to happen all at once. However, you can already make a big impact through various, general actions. Here are some tips:
- Limit business travel: A first way to reduce CO2 emissions from commuting is simply to limit business travel. Offering flexible working hours or working from home can reduce the need for commuting. Tot can lead not only to a reduction in CO2 emissions but also to a better work-life balance for employees.
- Encourage employees to use bicycles: Cycling is one of the most environmentally friendly modes of transport. Encourage employees to use bicycles for commuting or short business trips. For example, create bicycle parking facilities and offer employees compensation for buying a bicycle.
- Opt for sustainable transport alternatives: If business trips are unavoidable, opt for sustainable transport alternatives such as public transport or electric/hybrid company cars. Consider purchasing a shared car or using a car-sharing platform.
- Optimise logistics processes: If the company provides products or services, optimising logistics processes can help reduce CO2 emissions. For example, by planning more efficiently and ensuring a better load factor of the means of transport, the number of trips can be reduced.
CO2 Calculator
Our CO2 Calculator is a powerful tool that allows SMEs to measure and analyse their CO2 emissions. It provides insight into which activities make the biggest contribution to CO2 emissions, including commuting emissions. Then our Improvement Portal provides a number of manageable steps you can take to reduce your emissions. In the case of emissions from commuting, consider downloads with a home-work policy or a travel policy. By using the results of the CO2 calculator, you as an SME can take targeted measures that lead to a significant CO2 reduction.
Livemobility, our Ecosystem partner
Do you need more personal assistance in reducing your CO2 emissions when commuting? We would like to introduce you to our new Ecosystem partner Livemobility, a leading company in the field of mobility solutions. Livemobility offers innovative solutions to help organisations make their mobility more sustainable and efficient. We are delighted with this partnership and look forward to what we can achieve together in the field of sustainable mobility.
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