Remote Work in the Decarbonization Journey
Decarbonization has become a critical business pathway—a necessity driven by a convergence of new regulatory frameworks, investor expectations, consumer demands and the pressing realities of our planetary boundaries. And as businesses examine their entire value chains for opportunities to reduce their carbon footprint, among the many approaches available, remote work stands as a valuable tool available to many organizations that can help achieve a significant impact.
The Forces Driving Decarbonization
Regulatory bodies around the world are tightening rules around emissions, with policies like the EU’s Emissions Trading System, the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the Carbon Border Adjustment Mechanism (CBAM) leading the charge. Across the Atlantic, the US SEC is also stepping up its demands for transparency in corporate emissions reporting. These policies are sending a clear message: companies need to act now to reduce their carbon footprints.
Beyond regulatory pressures, the investment community is also increasingly seeing a significant financial component to decarbonization. An overwhelming majority of investors—77%—believe that companies committed to sustainability are more likely to succeed in the long run. This sentiment is echoed by consumers, who are voting with their wallets. Products marketed as sustainable have driven a third of all growth in the consumer-packaged goods sector, despite making up only a fifth of the market. Where we see a sustainable innovation approach, we’re also seeing business success.
Remote Work: A Net Zero Strategy
As the business value of decarbonization increases, more and more companies are committing to Net Zero targets. According to the Science-Based Targets Initiative, the number of companies setting Net Zero goals has surged by 40% in recent years, with over 1,000 firms already having made the commitment and nearly 2,400 more planning to do so in the near future. However, only 18% of companies that disclose emissions data are on track to reach net zero by 2050. Half of those companies continue to increase their emissions, and one-third have not been able to cut emissions in accordance with their goals.
In this context, remote work, applied appropriately to the business setting, emerges as a useful implement in a company’s decarbonization toolkit. While in-office presence may be experiencing a resurgence, achieving decarbonization goals – and avoiding the associated taxes, fines or additional resource costs – requires a diverse and opportunistic approach.
In a recent webinar with global staffing talent leader Andela at a Sustainable IT forum, we explored how remote work can be a valuable tool in advancing a company's decarbonization efforts. Learn about how decarbonization strategies can benefit from remote workers 54% lower emissions [as compared to 5-day-a-week commuters] here.
By reducing the need for daily commutes, energy-intensive office spaces, and business travel, remote work when captured through the lens of a company's emissions has the potential to add significant value. In fact, it is particularly effective in addressing Scope 3 emissions, which often account for the majority of a company’s carbon footprint and include indirect emissions across the entire value chain. Remote work can lower 7 out of the 15 categories listed under Scope 3 emissions, with business travel and employee commuting being the most obvious (Categories 6 & 7), but also less demand for supplies and services consumed in the office environment (Category 1), less purchasing of capital investments like equipment, furniture and fixtures (Category 2), less waste generated in offices (Category 5), lowered frequency of deliveries to the office (Category 9) and a reduced need for physical office space (Category 13).
Although Work From Anywhere (WFA) policies are not a panacea—since they can sometimes shift carbon emissions elsewhere—they do offer considerable potential when implemented thoughtfully. Consider, for example, remote or hybrid employees living in areas with lower carbon intensity being able to bring their locale’s carbon profile to a company’s overall emissions reduction goals. And as might be expected, generally, remote workers do have a significantly lower carbon footprint compared with onsite workers.
Putting Remote Work into Action for Carbon Reduction
To fully harness the decarbonization potential of remote work, it should be understood through the company’s carbon accounting framework. This begins with the centralization of data sources, bringing together information from HR, energy usage, travel, and other relevant areas into a unified source of truth. Ensuring the quality, security, and scalability of this data is essential, as is the integration of carbon accounting tools that are synchronized with the company’s reporting cycles.
As data is collected and refined, it becomes informative for setting and tracking key performance indicators (KPIs) related to carbon reduction, including those directly influenced by remote work policies. Conversely, tracking emissions related to return to office (RTO) policies can help a company assess where to be strategic about where to deploy remote work or in-office approaches. And finally, carbon accounting and other sustainability reporting should be designed for continuous monitoring and adaptation, allowing for regular updates that reflect the latest data and trends.
Check out our recent webinar with global staffing talent leader Andela at a Sustainable IT forum, where we explored how remote work’s 54% lower emissions can be a valuable tool in advancing a company's decarbonization efforts. Watch here.
Realizing ESG’s Full Potential
As businesses seek opportunities to reduce emissions, incorporating detailed carbon accounting into a thoughtful sustainability approach can be a valuable addition to your future. Partner with us to see how to move your sustainability strategy forward.
