Carbon Footprint is one of the major environmental concerns of the world, owing to the harm humans are causing to the environment with pollution of all sorts and microplastics having penetrated our food-chains. With July being celebrated as “Plastic Free July” all over social media, and communities, it gives us a good opportunity to highlight the role of endearing CAs in tracing an organization’s carbon footprint.
Here is how a CA is the right professional to help reduce the Carbon Footprint on the earth.
- Understanding of Environmental Regulation & their Application:
CAs are obviously well versed with the regulation framework of company law, thus they can help save you from any legal complications in case you are violating any of them with the practices and processes in your industry. A CA can find legal flaws (violation of environmental laws) in your company, provided you trust your CA and disclose all your processes to them.
- Reporting on Environmental Sustainability:
CAs can, just like regular auditing, audit your company on sustainability, and eco-friendly practices and give you a detailed report including the environmental regulations that you’re violating. That is the first and foremost step of an organization towards reducing carbon footprint and, it cannot be initiated without help from a CA.
For example, Textile industries have to follow certain regulations on HOW and HOW MUCH of their used colored dyes they can discharge into water bodies.
- Guidance on finances for Eco-friendly practices:
CAs are the masters of accounting, book-keeping and taxation, thus; they can help organizations with managing costs associated with applying eco-friendly technology and practices, and managing associated investments, taxation and logging of your finances.
They could even help you find investors and authors/officers for a particular technology or implant in your premises.
- Assessment and Mitigation:
A CA can assess risks associated with your newly strategized practices for sustainability. They can mitigate the possible losses (owing to the changing climatic conditions) by employing contingency plans like insurance coverage to reduce risks and ensure profits for the company/brand.
For example, how many watts of, or how large a unit of solar panel is allowed or should be implanted to ensure reduced carbon footprint while reducing the costs that the company bears.
- Monitoring and Accountability:
CAs are the torch-bearers of sustainability and eco-friendly practices in the industrial sector. They do this by promoting a working culture which formulates any brand/business with the environment in mind.
If organizations and stakeholders with those organizations are completely honest with their CAs, there’s a great potential for a substantial reduction in the overall carbon footprint.