Why Carbon Emission Disclosure is Vital for Economy Growth


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Carbon emissions are a global problem that world economies are facing together. The continuous rise in global temperature is destroying the environment. It is affecting people’s health and livelihood. As the temperature of the world is rising, the living conditions of the planet continue to worsen as well. 

Climate change is sparing no nation. Today, carbon emission disclosure has become more than a buzzword. But what is it and why is it important for the economy?

How do carbon emissions affect global economies?

Data from the WHO shows that more than four million premature deaths occurred in 2016. The cause of death? Poor air quality. Additionally, it is predicted that by 2060, this number can reach almost 10 million deaths. 

The health of people around the world is affected by poor air quality due to a high level of greenhouse gases. Poor health conditions lead to a lessened ability to work. With fewer people able to work, global economies are also affected. This situation puts extreme pressure on healthcare systems. In third-world countries, this is a nightmare situation! 

Global trade is also affected by climate change. It has worsened the conditions of agricultural fields. Crop yield is either less or of poorer quality than before the temperatures began to rise at an alarming rate. Devastating calamities such as typhoons and floods have also happened more often than before. The decline in agricultural production has led to global food insecurity. This has affected low-income countries the worst.

Because of these conditions, economies have joined sustainability efforts to reduce carbon emissions. Initiatives such as carbon taxes and renewable energy sources are some of the top strategies used to combat climate change.

Why is carbon emission disclosure important?

Carbon emission disclosure is the voluntary process of revealing an economy’s carbon emissions. Today, many businesses and countries perform carbon emission disclosures themselves. This disclosure is in line with the efforts to achieve a net-zero carbon target by 2050.

Several organizations measure carbon emission disclosures. The most popular of which is the Global Reporting Initiative (GRI). The UK-based Carbon Disclosure Project (CDP) also rates companies’ carbon emission disclosure.

Economies can also keep track of carbon emissions by using carbon accounting tools. Yes, you read that right. You can measure your company’s carbon emissions on your own!

Carbon accounting measures a company’s greenhouse gas emissions. It also measures the market value of these carbon emissions. The process provides key insights to improve sustainability strategies. These strategies prepare businesses for the future. World economies are also using carbon accounting tools to keep track of their greenhouse gas inventory. This inventory will help create policies that will reduce their carbon footprint.

Keeping track of carbon footprint has three main benefits, as listed below.

1. Set realistic sustainability goals.

For an economy to grow, it needs to set achievable targets based on the current trends. Without baseline data, economies won’t be able to create policies that will benefit them. Thus, the first and arguably most important reason for carbon emission disclosure is to gain the ability to set realistic goals. 

Sustainability goals will ensure that world economies can combat the effects of climate change. These goals will help them reduce carbon emissions in the years ahead. Some examples of sustainable practices include the following:

  • Use of renewable energy sources (solar, wind, hydroelectric, etc.)
  • Proper food and waste recycling
  • Promotion of public transportation to reduce the carbon footprint of vehicles

2. Attract more investments.

Carbon emission disclosure is a sign that economies are serious about the climate change problem. Disclosing your carbon footprint means you are ready to adopt sustainable practices. This readiness is attractive to investors. This is because corporate sustainability can determine a business’ longevity.

Today, investors are selective about the type of investments to consider as resources are diminishing. Businesses with a sustainability goal will attract more investors. Additionally, sustainable business practices are becoming important to consumers as well. With a high consumer preference, more financiers will be interested in investing in your business.

3. Improve consumer confidence.

Corporate sustainability is now one of the critical success factors of any business. Consumers are becoming more environmentally conscious. This means that most consumers are seeking to do business with companies that are aligned with their values.

By implementing sustainable practices, businesses can entice more customers. Carbon emission disclosure also provides transparency that many consumers value. 

What if your business has a high carbon footprint? You can still improve consumer confidence by disclosing your carbon emission. But you must also disclose your business strategies to reduce the said emissions.


Global leaders, multinational companies, and other organizations all talk about sustainability. Even climate change groups have thrown the word around quite often.

Today, sustainability refers to the proper management of available resources. Proper management will ensure continuity and growth. With natural resources depleting, economies must transition to sustainable measures. These measures should maintain a livable planet for future generations. And this all begins with carbon emission disclosure.


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