Sales and Fulfillment

How can carbon footprint analytics enhance your brand’s reputation and customer loyalty?

During the Paris Climate Agreement at the UN Climate Change Conference (COP21), 196 countries agreed to limit the global rise in temperature to 2°C by the end of this century compared to pre-industrial levels. Supply chain and logistics contribute significantly to global carbon emissions and must be at the forefront of eco-friendly business practices.

By adopting carbon footprint analytics, businesses not only reduce bills but also build their brand reputation and customer loyalty. However, reducing and analysing the carbon footprint is not an overnight process. It takes a strategic approach with the right technology and transformation partner.

This article covers several ways businesses can reduce their carbon footprint, including a carbon-zero logistics process.

5 Ways to reduce the carbon footprint of a business

With increasing emphasis on environmental sustainability, businesses are minimising their direct or indirect carbon footprint. With over 44% of consumers likely to buy from sustainable brands, businesses see both short-term and long-term benefits –

Set targets to reduce carbon footprint

A business must set long-term and intermediate goals to lower its carbon footprint. Rather than setting lofty, unattainable goals, begin by setting short-term goals and focusing on the low-hanging fruit. This could include assessing and reducing energy consumption and setting up carbon footprint analytics processes. Once you achieve the short-term goals, take a step further to target intermediate ones, such as reducing business travel and switching online.

Knowing the areas of improvement and setting small goals is the first step towards a long-term carbon reduction strategy. By breaking larger goals into smaller attainable targets, businesses set themselves for consistent success.

Reduce energy usage

Energy consumption at offices and warehouses accounts for the bulk of a company’s carbon emissions. From energy-efficient lighting and climate control to sustainable construction, there are several ways a business can reduce its bills and showcase its commitment to consumers.
Some of the ways to achieve this are using ENERGY STAR-certified electric equipment, auto-adjustable thermostats, energy-efficient construction that uses natural light and climate regulation and switching off the lights and other unused equipment at the end of each day. For large-scale operations that are spread across different locations, you can leverage technology to identify, monitor, and optimise energy consumption.

Regulate business travel

By reviewing and regulating business travel policies, you can significantly reduce expenses and carbon emissions. Emissions due to business travel include flights, hotels, rental cars, and leisure activities. According to the Environmental Protection Agency (EPA) data in 2022, business aircraft account for 9.8% of all turbine aircraft operations in the US. Global aviation accounts for 2.5% of global carbon emissions and has contributed to 4% of global warming to date.

Businesses can reduce emissions due to business travel by using the following ways without compromising on efficiency and productivity –

• Allowing employees to work from home wherever possible.
• Switching from physical business travel to online meetings and only allowing flights wherever necessary.
• Using hybrid or electric vehicles within or outside the company’s campus.

Carefully select the suppliers

By evaluating the supplier's sustainability practices before onboarding, you can do the carbon footprint analysis of finished or raw materials in the supply chain. If sustainability is not an essential component of your supplier selection process, you may be unknowingly funding carbon emissions throughout the value chain.

Retail or manufacturing businesses that source from several suppliers must review their carbon emission data and choose those with an ISO 14001 certification. The certification helps organisations reduce their environmental impact.

Revamp the logistics

Businesses with large supply chains often do not have the visibility of their carbon footprint. Be it road, rail, ship, or air transportation, businesses with diverse supply chains need a bird’s eye view of their logistics chain. Some of the ways to lower the emissions are to choose strategically placed warehouses and use technology to optimise the logistics network to save fuel.

The role of technology in reducing the carbon footprint

Technology such as the Internet of Things (IoT) and analytics give you a 360-degree view of the logistics and supply chain, and artificial intelligence (AI) and machine learning (ML) help us optimise the process. From sourcing raw materials to energy consumption and from transportation to distribution, a complete overview of the carbon emissions allows the business to evaluate their emissions at each step.

How can Infosys BPM help?

Infosys BPM is at the forefront of carbon footprint management, providing robust solutions to help businesses tackle their environmental impact. Leveraging advanced analytics, Infosys BPM’s Carbon Footprint Analytics solution delivers a comprehensive overview of carbon emissions across the entire value chain—from raw materials to energy consumption and transportation.
With extensive experience in process mapping, domain expertise, and cutting-edge business intelligence, Infosys BPM assists enterprises in:

• Baseline Data: Identifying, understanding, and measuring carbon emissions from multiple data sources.
• Insights: Offering analytics-based insights to address high emissions, identify root causes, and analyse influencing factors.
• Operational Efficiency: Providing recommendations to enhance operational efficiency and minimise carbon footprint.

Infosys BPM’s approach ensures businesses not only meet their sustainability goals but also enhance their overall operational performance. Explore how Infosys BPM can drive your carbon footprint reduction strategy and elevate your environmental stewardship.

Read more about carbon footprint analytics at Infosys BPM.