Global warming remains an increasingly critical issue, with data from the World Meteorological Organisation revealing 2023 as the hottest year, with temperatures soaring to 1.45 ± 0.12 °C. Amidst these rising temperatures, Cambodia emerges as one of the countries most vulnerable to the impacts of climate change. This vulnerability is evident through increased heat waves, droughts, and flooding events that have been distressing the nation.
Given these circumstances, it is necessary, especially for businesses in Cambodia, to adopt sustainable practices to mitigate their carbon emissions. One promising approach for businesses to promote sustainability in Cambodia and help further curb environmental degradation is through carbon insetting.
This sustainable business strategy not only helps reduce their carbon footprint but also provides numerous benefits. Read on to learn more about their advantages.
What does carbon insetting mean?
Carbon insetting is a strategy where businesses reduce their carbon emissions by making improvements within their own operations or supply chain rather than by supporting external environmental projects. For example, a textile manufacturer might invest in energy-efficient machinery within their production facilities or switch to electric delivery vehicles for transporting goods. This proactive approach boosts environmental sustainability in business by actively reducing carbon emissions directly at the source of operations.
What are the benefits of carbon insetting?
Learn about the benefits of reducing carbon emissions through carbon insetting for businesses in Cambodia.
1. Convenience of integration into business operations
Carbon insetting integrates directly into a business’s existing systems, enhancing sustainability without disrupting workflow. By identifying and targeting specific, high-emission processes like energy usage or logistics, improvements are made where they are most impactful. This straightforward approach allows businesses to continue their operations without any loss in productivity or efficiency, ensuring that sustainability upgrades enhance rather than hinder their daily functions.
2. Boosts energy efficiency and cost savings
Electricity prices in Cambodia are among the highest in South-East Asia, which can significantly impact business budgets that might otherwise be allocated to growth or innovation. By adopting carbon insetting strategies that include upgrading to energy-efficient machinery, businesses can reduce their energy consumption. This reduction in energy use leads to lower electricity costs, freeing up resources that can be reinvested into further business innovations.
3. Addresses direct and indirect carbon emissions
Carbon insetting targets both direct and indirect emissions from company-owned resources by engaging in improvements across the entire supply chain. This includes adopting sustainable business practices in areas such as material sourcing, production techniques, and transportation methods. By addressing carbon emissions at every level of operation, businesses can comprehensively manage their environmental impact, promoting sustainability from within their ecosystems.
4. Aligns with national sustainability goals
The Royal Government of Cambodia (RGC) has set a national goal to achieve net-zero emissions by 2050, a commitment that encourages businesses to transition towards carbon neutrality. By integrating carbon insetting practices, businesses not only align with Cambodia's national sustainability strategies but also ensure compliance with forthcoming regulations designed to support these goals.
5. Enhances brand reputation and attracts consumers
With the growing number of consumers and investors prioritising environmental responsibility, carbon neutral businesses are increasingly favoured in the marketplace. By adopting carbon insetting, companies can transform into recognised green businesses. This strategic shift not only aligns with consumer and investor expectations but also enhances brand reputation, attracting a loyal customer base and securing a competitive edge in the increasingly eco-conscious market landscape.
6. Empowers small and medium-sized enterprises (SMEs)
In Cambodia's competitive business environment, SMEs often struggle to keep pace with larger, more established companies. However, carbon insetting offers an affordable and accessible pathway that provides SMEs with a competitive edge. As mentioned earlier, adopting such sustainable business practices can attract both consumers and investors, as well as lead to significant cost savings, enabling them to compete more effectively.
Examples of carbon insetting
Find out the different ways how to reduce your business's carbon footprint through these practical carbon insetting approaches:
- Renewable energy projects: Install solar panels or small-scale wind turbines to power operations, reducing reliance on fossil fuels.
- Waste reduction initiatives: Develop comprehensive recycling programmes and utilise waste materials in production processes.
- Eco-friendly packaging: Switch to sustainable packaging solutions that are recyclable or biodegradable.
- Sustainable supply chains: Choose suppliers who practise sustainable harvesting or manufacturing to minimise carbon emissions.
- Energy efficiency upgrades: Retrofit facilities with energy-saving technologies such as LED lighting or efficient HVAC systems.
- Transportation efficiency: Partner with logistics providers, like DHL Express, that use electric vehicles or optimise routes to reduce travel distances and fuel consumption.
- Digitise Operations: Transition to digital operations where possible to reduce paper use and streamline processes, enhancing overall operational efficiency.
Start your carbon insetting journey with DHL Express
Understanding the substantial benefits of carbon insetting, businesses are encouraged to adopt these practices to help further drive sustainability in Cambodia.
To support these efforts, DHL Express has developed the DHL GoGreen Plus service, a shipping option designed to assist businesses in integrating sustainability into their operations. This service focuses on reducing Scope 3 emissions, which encompass indirect greenhouse gas emissions from activities such as transportation and distribution within a company’s value chain.
We achieve this by substituting traditional aircraft fuel with Sustainable Aviation Fuel (SAF), a cleaner alternative that significantly lowers the carbon footprint of international shipping operations. By implementing SAF, DHL Express is able to help businesses reduce carbon emissions by up to 30% for their shipments. Moreover, our fleet of electric delivery vehicles further reduces our environmental impact by minimising local emissions during the last mile delivery.
Additionally, we provide a Carbon Calculator, which allows businesses to track and manage the environmental impact of their supply chain effectively.
Take a proactive step towards effective carbon insetting by leveraging our green logistics solutions. Sign up for a business account with DHL Express Cambodia and start shipping with us today.
