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Axosomatic

Strategies &

Implementations

How carbon emissions reduction 

maximizes business growth.

Axosomatic Featured Insight

Carbon Emissions Reduction vs Return On Investment

Reducing your carbon emissions not only protects the environment, but it can also maximize your business growth. Our research shows that for every 1 tCO2e emission reduced, an organization could reduce its operational cost by AED 50K per annum, on average.

This insight aims at demonstrating the relationship between limiting carbon emissions,

business growth and return on investment.

The Problem

"GHG emissions blanket the earth and cause global warming and climate change. The world is now warming faster than in any point in history. This poses a risk to all kind of life on earth". UN

The above statement is supported by the planet temperature anomalies during the last century. Temperature anomalies refer to deviations from the long-term average temperature for a specific location or the entire Earth. These anomalies are typically expressed as the difference between the observed temperature and a baseline temperature, which is often the average temperature over a specified historical period.
To determine temperature anomalies, a baseline period is selected. This period is often a 30-year average of temperatures measured over a certain period in the past. There are positive and negative anomalies. Positive anomalies are when the observed temperature is higher than the baseline average, and negative anomalies are when the observed temperature is lower than the baseline average. The below chart shows the temperature anomalies between the period of 1851 and 2023. 
It is observed that the planet temperature anomalies are continuously increasing since 1977 and the trend is to continue rising if we don't act and limit the GHG emissions.
TA 2
The Causes of Temperature Anomalies
Temperature anomalies can be influenced by a variety of natural and human-induced factors, such as Greenhouse Gases Emissions (GHG Emissions), Deforestation, Natural Climate Variability, and others. GHG Emissions, a human-caused activities, is the burning of fossil fuels (coal, oil, and natural gas) that releases greenhouse gases such as carbon dioxide (CO2) and methane (CH4) into the atmosphere. These gases trap heat, leading to a warming effect known as the greenhouse effect.
Impact of GHG Emissions on the Environment
Greenhouse gas (GHG) emissions have significant impacts on the environment, contributing to climate change and influencing various ecological systems. The most important impacts are:
  1. Climate Change: Greenhouse gases trap heat in the Earth's atmosphere, leading to an increase in average surface temperatures. This warming contributes to changes in weather patterns, rising sea levels, and more frequent and severe extreme weather events.
  2. Sea Level Rise: Increased global temperatures lead to the melting of glaciers and polar ice caps. Additionally, warmer water expands, contributing to rising sea levels. Sea level rise poses a threat to coastal ecosystems, communities, and infrastructure.
  3. Extreme Weather Events: The increase in global temperatures contributes to more frequent and intense extreme weather events, including heatwaves, hurricanes, floods, droughts, and wildfires. These events can have devastating impacts on ecosystems, agriculture, and human communities.
  4. Ocean Acidification: Oceans act as a sink for carbon dioxide (CO2). As the concentration of CO2 in the atmosphere increases, oceans absorb more CO2. This process leads to ocean acidification, which can harm marine life, particularly organisms with calcium carbonate shells or skeletons.
The Net-Zero Emissions Target
To reduce the temperature anomalies, the UN developed a Framework Convention on Climate Change (UNFCCC) to stabilize greenhouse gas concentrations in the atmosphere at a level that prevents dangerous human-induced interference with the climate system. The consequence of this framework is birth of the Paris Agreement.
The Paris Agreement, adopted in 2015 and entered into force in 2016, builds on the UNFCCC and the Kyoto Protocol. It sets out a global framework to limit global warming to well below 2 degrees Celsius above pre-industrial levels, with an aim to limit it to 1.5 degrees Celsius by 2050.
To achieve this target, countries have agreed to develop strategies and implementations to reduce the GHG emissions. COP28 will mark the first Global Stocktake where countries shall assess progress towards the Net-Zero Emissions Target.
NZT2
The Obligation
To achieve the objectives of the Paris Agreement towards the Net-Zero Emissions target, it has become imperative that organizations, of all sorts, must develop GHG emissions reduction plans in line with the Paris Agreement. Challenges exist, but there are solutions that can be adopted to overcome the challenges. 
GHG Emissions & Reporting
GHG emissions consist of gases that contribute to the warming of the Earth's surface, causing climate change. The most common gases monitored are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases (HFCs, OFCs, and SF6). 

GHG emissions reporting is grouped in 3 scopes: 1, 2, and 3. When an organization fully complies with GHG emissions report, business growth ensues.

GHG Scopes a
How Carbon Emissions Reduction Maximizes Business Growth
Every change in methodology requires justification, in terms of advantages and disadvantages. This is an established fact. However, when we discuss limiting carbon, or GHG emissions, the established scientific fact is that not limiting the emissions will lead to global catastrophes.
For any organization leader, business or education, the strategic question is: What Is the Return on Investment? The benefits are many, such as improved organizational efficiency and reputation. But, what about the business growth? 
Business growth, by definition, is how to make a business bigger and more successful. This can be done in many conventional and direct ways, such expanding market share and improving internal quality, etc. In comparison, when it comes to limiting carbon emissions, business will grow and be successful in unconventional and indirect ways. Let's take the business and educational sectors in the UAE, as an illustrative example.

Most businesses are service providers, whose clients, among other, are schools and universities. With this in mind, the question becomes: How Carbon Emissions Reduction Maximizes Business Growth of service providers, schools, and universities in the UAE?

For schools and universities, business growth means more students, and this will happen when the organization has better standing in terms of accreditation and education quality. When schools and universities incorporate sustainability issues in their curriculum and activities, their ranking will improve.

But competitive organizations go further. They develop plans to reduce their carbon footprint to demonstrate further commitment to sustainability and environmental responsibility.

Assessment of carbon emissions and development of reduction strategies and implementations lead to operational efficiency and cost reduction, energy efficiency, enhanced education rankings, nationally and internationally, which will lead to increase in student enrollment and retention. Of course, there are other metrics that the educational organizations must enhance, simultaneously, for the business growth to happen. 

For the service providers, limiting their carbon footprint will lead to the same benefits mentioned above. The business growth ensues when the provider fully complies with the GHG Standard. Not doing so, will force the educational organization to establish a business relationship with a provider that complies with GHG Standard and have implemented a plan to reduce the scope 1 and scope 3 emissions.

The Return on Investment

At Axosomatic, we help our clients reduce their carbon footprint and operational cost. For every one metric ton of CO2e reduced, our clients save between AED65 and AED110 per month. The annual monetary saving ranges between AED55,000 and AED1.3 million.

Carbon Equivalency

Carbon Emissions Equivalency

One metric ton of CO2 emitted in the atmosphere (tCO2e) is equivalent to 0.233 of gasoline-powered passenger car driven for one year, or 4126 kilometers driven by and average gasoline-powered passenger car, or CO2 emitted from consuming 450 liters of gasoline or 393 of diesel, or carbon sequestered by 165 trees for one year from seedling to adult, or 1.2 acres of forest. For every 1 tCO2e emission reduced, an organization could reduce its operational cost by AED 50K per annum, on average. 

LEARN MORE

How we help organization reduce carbon footprint
We help organizations assess their carbon footprint, according to GHG Standard, develop strategies and implementations to reduce the emissions and increase their business growth, enhance process productivity, and more.
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