Climate protection

Seven reasons how sustainability affects pay off

Climate protection can also pay off financially for companies.
IMAGO / Illupics
Climate protection can also pay off financially for companies.

Climate protection pays off for companies. The significantly higher energy costs make investments in energy efficiency measures all the more worthwhile.

Companies must keep an eye on costs in everything they do. This also applies to the reduction of emissions. Does climate protection therefore pay off for companies? The auditing and consulting firm KPMG answered this question back in 2015. At that time, the experts looked at the costs of climate reporting for companies on behalf of the CDP and WWF organizations.

Study: Climate protection pays off for companies

As part of the study, 15 different scenarios were created for companies with 250 or more employees in industry, trade, services and logistics. The result: In 13 of the 15 scenarios, the energy savings achieved through climate protection were at least sufficient to cover the costs incurred. In many cases, these were even significantly exceeded.

"Corporate climate protection pays off," emphasizes climate protection expert Axel Kölle from the Center for Sustainable Corporate Management (ZNU) at Witten/Herdecke University. "Even more so in light of the overall political situation. Fossil energy prices are rising so fast that it is now even more profitable to invest in energy-efficient processes and renewable energy sources."

Numerous reasons why climate protection pays off for companies

But cost savings from greater energy and resource efficiency are just one reason for companies to turn to climate protection - even if it is perhaps the most obvious one. After all, climate and energy are closely linked.

Companies with climate protection management also identify business opportunities in a low-emission economy sooner. By continually working to reduce emissions, they discover where problems still need to be solved and what new products and services other companies might need.

Companies that practice climate protection become fit for the future

By aligning the company with a low-emissions economy, the organization becomes fit for tomorrow's world, possibly even with offerings that will be in high demand at that time. In doing so, executives improve their company's future viability. This is not only environmentally sustainable, but also economically viable.

Climate legislation will foreseeably have to be tightened further in order to achieve the Paris climate targets and prevent uncontrolled global warming. Those who do not wait for potentially radical political decisions, but act in good time, make their company resilient to tougher climate legislation.

Companies with a climate protection strategy have advantages when it comes to financing

The stricter requirements for sustainability also affect banks. They can improve their greenhouse gas footprint primarily by putting fewer loans into emissions-intensive companies. Consequently, an effective climate protection strategy for companies improves their chances of obtaining (favorable) financing.

Prices in European emissions trading have risen considerably in recent years. Companies that have to buy certificates feel this directly in their balance sheets. On the other hand, companies with surplus certificates benefit from the higher selling prices. Climate compensation is also likely to become more expensive in the coming years. Those who reduce emissions effectively avoid cost shocks.

Exemplary companies can benefit from greater social acceptance. They are well-liked by increasingly critical consumers, are more likely to be heard politically, and can shine when recruiting skilled workers.