CFOs in dark about carbon management spend

News Article - 31 August 2010
Category: Environment

Research by the Carbon Trust Standard suggests CFOs at the UK's largest companies believe all businesses will soon be legally required to measure carbon output. Yet many are not clear how to prepare for these regulations in a sustainable and cost-effective way.

The Carbon Trust Standard surveyed 200 UK CFOs at companies involved in six key sectors - retail, professional services, financial services, technology and communication, fast moving consumer goods (FMCG) and leisure and entertainment. All have 500 employees or more.

When questioned over carbon measurement responsibilities, 72% of respondents said that such measures would soon be mandatory. 40% believe this will happen in the next decade, whilst 16% think it will be in the next five years.

The survey also revealed that many CFOs are unsure how to approach carbon-related responsibilities. 48% do not have clear corporate carbon-reduction targets and 16% do not know if the company has a target or not. 74% of CFOs admit their company does not currently measure carbon output in any way.

In relation to the impact of the low carbon economy on business opportunities, 43% of CFOs take a positive view, but the differences between industries is considerable. Technology and communications firms are the most positive; 88% of finance heads believe the low carbon economy will create new opportunities. Amongst retailers, only 31% are positive; this drops to 22% for professional services firms.

When asked to identify the strongest drivers towards a low carbon economy, the opportunity to increase efficiency and cut costs through reduced energy usage came top for 97% of respondents. A further 95% identified the need to comply with carbon legislation. Other drivers identified included a desire to meet customer and employee expectations as well as the benefits of protecting corporate reputation.

CFOs concerned about the effect of carbon management on financials must consider how the two can be combined in a sustainable and cost-effective way. Measuring carbon emissions throughout the business is an essential first step to integrating carbon management with financial goals.

Access accounting software allows companies to measure carbon emissions throughout all departments and break the information down in numerous ways, including by staff member. By showing where the most carbon intensive activities lie, CFOs can focus carbon reduction efforts on areas which offer the largest financial savings.

For more information on Access financial software, please call us on 0845 345 3300.

Article keywords: carbon accounting, business news, the access group, green business, carbon reporting, Carbon trust

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