Manufacturers largely ignorant of carbon accounting 26 January 2012

More than half (58%) of companies have not heard of the term carbon accounting, Less than a quarter can describe what it means, and 80% do not monitor their carbon footprint regularly.

Those are top level findings of ERP software developer Epicor's first global carbon accounting survey, which reveals that, despite forthcoming legislation mandating carbon accounting, most companies still lag in their comprehension of carbon accounting, and its execution.

Other findings from the study suggest that one third of companies don't know if they are under legal obligation to report emissions; 50% of companies have no C-level executive involvement for carbon accounting; and 85% can't tell the carbon their company has consumed in the last six months.

The survey compiled responses from nearly 1,000 companies worldwide, with almost half (48%) from manufacturing industry, of which 42% were from organisations with 100 to 1,000 employees and $50 million in annual revenue, or less.

"It's quite worrying to think that a third of all companies don't know whether they are under legal obligation to report emissions, and we want to ... urge industry to take responsibility and help educate businesses about energy management," comments Chris Purcell, product marketing manager for Epicor.

"Businesses should prepare now for carbon accounting," he continues. "Carbon reporting will happen irrespective of any personal opinions about global warming – and those businesses that prepare now ... will have a clear competitive advantage over laggards."

Purcell also makes the point that not all companies are in the dark over carbon accounting. Epicor customer and contract injection moulder Harbec in the US, is one manufacturer that recently implemented an electronic carbon accounting system in the form of Epicor Carbon Connect to reach its goal of being carbon neutral by 2013.

"Ultimately, we needed a monthly report of how we're doing in terms of sustainability metrics," explains Bob Bechtold, president and founder of Harbec. "Those metrics are as serious to us as other common business metrics, like financial reporting."

Bechtold says that having credible documentation from a robust ERP solution allows the firm to quantify improvements.

"Any company can compensate for its carbon emissions by purchasing offsets, but this solution will enable Harbec to efficiently and accurately track our carbon footprint, helping us to manage it toward zero through efficiencies and smarter power generation, states Bechtold.

For Epicor's Purcell, there is a way to go on this one. He points to other survey results, which indicate that more than half of the world's companies think that carbon accounting has impacted their business positively, but nearly 70% believe they accurately account for less than 25% of their carbon consumption.

Brian Tinham

Related Companies
Epicor Software (UK) Ltd

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