How your carbon footprint impacts business success: a guide for New Zealand businesses

The industrial revolution has fundamentally transformed international logistics and shipping. However, it has also caused increases in greenhouse gas emissions, which in turn have driven various international crises — such as famines, droughts, and more generally, climate change. 

The tangible effects of climate change have led to a greater awareness among the global population, which is reflected in their purchasing habits. According to PwC’s 2024 Voice of the Consumer Survey, some consumers are willing to spend 9.7% more, on average, for sustainably produced or sourced goods even as cost-of-living and inflationary concerns rise¹. Hence, a low carbon footprint is no longer a niche advantage but an important factor for New Zealand import and export businesses to achieve international success.

But what does carbon footprint mean, and how does it affect us? How is one’s carbon footprint calculated? How can you reduce it? And how does your carbon footprint affect your business’s chances of success?

Read on to learn about carbon emissions and how choosing an international shipping partner like DHL Express can help with emissions reduction, enabling your business to reduce its carbon footprint and compete on the global stage.

What is a carbon footprint and what are its effects?

Carbon footprint refers to the number of greenhouse gases, including carbon dioxide and methane, that an individual or community emits over time due to their actions. Carbon footprint is measured in units of carbon dioxide. The amount of greenhouse gases a business organisation generates is thus its corporate carbon footprint. 

Globally, the average carbon footprint per person is approximately 4 to 5 tonnes of CO2 per year². This is equivalent to taking a flight from Frankfurt to New York or driving 3,300 kilometers in a petrol car. In the United States, the average carbon footprint is 16 tonnes per person, reports The Nature Conservancy³.

An individual’s carbon footprint is calculated by accounting for the electricity, fuel, and meat consumed, how much waste they generate, and other personal choices. 

For businesses, emissions naturally vary based on their size and sector. However, some sources estimate that an average SME office with approximately 10 employees emits approximately 3.7 tCO2e (metric tons of carbon dioxide equivalent) per employee every year. This calculation is based on a standard energy usage from typical office equipment⁴. To put this into perspective, 3.7 tCO2e is roughly equivalent to the emissions from driving an average passenger car for one year.

In short, humans and businesses both leave a carbon footprint, which affects the environment in several ways:

• Greenhouse gases accelerate climate change and global warming, seen in extreme weather conditions such as famines, droughts, and floods.
• Carbon emissions pollute urban landscapes, thus causing more individuals to suffer from respiratory diseases.
• They also bring about toxic acid rain, harming humans, animals, and plants.
• Greenhouse gases are directly linked to rising global temperatures, which accelerate the melting of glaciers and the acidification of ocean water, killing marine species. 

Why carbon footprint matters for businesses

While your carbon footprint affects the environment in general, it can also significantly impact your business in several ways:

The rise of conscious consumers

As mentioned above, consumers are becoming increasingly conscious of their buying decisions. According to the aforementioned 2024 PwC survey, more than 80% of consumers say they are willing to spend more for sustainably produced or sourced goods¹. This signals a massive shift in consumer expectations and spending habits.

Furthermore, this sentiment is particularly strong among the younger generations. As reported by the World Economic Forum, Generation Z shows the most concern for the planet’s well-being and influences others to make sustainability-first buying decisions⁵.

A survey of American consumer attitudes on sustainable shopping by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania reported that 75% of Gen Zers prefer to buy sustainably rather than go for brand names⁵. This means that New Zealand businesses need to consider sustainability not just as a marketing tool, but as a core component of their brand identity to successfully attract and retain younger consumers.

Pressure from investors and B2B partners

The carbon footprint of companies is also under intense scrutiny from both partners and investors. Due to rising consumer awareness and government regulation, large international retailers and B2B partners now have stringent sustainability requirements for their suppliers.

Furthermore, investors are increasingly using ESG (Environmental, Social, and Governance) criteria to evaluate businesses, impacting access to capital. A significant 79% of investors consider how a company handles ESG risks and opportunities as crucial in their investment choices, with 76% using a company's ESG risk and opportunity profile to filter out potential investments⁶. 

Additionally, 89% of investors globally consider ESG issues as part of their investment approach, according to a Capital Group report⁷. Therefore, the consequences of not meeting these carbon footprint and other ESG standards can be severe.

A potential competitive advantage

A low-emission logistics strategy and a strong environmental profile can serve as a key differentiator that opens doors to new markets and attracts premium customers for businesses. A positive carbon footprint can be an impactful marketing tool, helping to build brand loyalty and secure a competitive edge in the crowded global marketplace. 

A report by McKinsey & Company concluded that ESG-related growth is possible across all brands, whether large or small, national or private label, in price tiers both high and low⁸. This shows that New Zealand businesses have the opportunity to leverage their sustainability efforts for commercial gain.

New Zealand and international carbon regulations

New Zealand is actively committed to reducing its emissions to meet global environmental targets. The government's main tool for emissions reduction is the Emissions Trading Scheme (ETS), which places a price on greenhouse gas emissions. These domestic policies are driving local businesses to decarbonise and adopt more sustainable practices. This mechanism is crucial for helping New Zealand meet its international obligations under the Paris Agreement.

This commitment extends beyond domestic borders, influencing how businesses engage in import and export activities. International regulations, such as the EU's Carbon Border Adjustment Mechanism (CBAM), are becoming increasingly relevant.

CBAM places a carbon price on imports of certain goods, aiming to prevent "carbon leakage" (where production moves to countries with less stringent environmental policies). This has a direct effect on New Zealand exporters, as they must now account for and report the emissions embedded in their products to remain competitive in key European markets. This makes a strong focus on carbon footprint reduction even more critical.

Ways to reduce carbon footprint

There are several ways individuals and corporations can reduce their carbon emissions, these include:

• Switching to renewable energy sources, such as wind and solar
• Using electric vehicles instead of traditional vehicles powered by fossil fuels
• Switching to renewable aviation fuel
• Recycling industrial products to reduce waste
• Using energy-efficient appliances and electronics
• Reducing solid waste sent to landfills
• Using solvents and refrigerants that emit less carbon
• Manure management to reduce nitrous oxide and methane emissions during decomposition

Partner with the right logistics provider 

Businesses can help reduce their carbon emissions by cultivating a green culture in the company. A key aspect of reducing your CO2 footprint is to ensure green practices across the supply chain. This means partnering with a logistics company, like DHL Express, that helps you achieve your sustainability goals. 

DHL Express is the pioneer of sustainable logistics, targeting zero emissions by 2050. Our GoGreen Plus service is a tangible solution for New Zealand businesses to reduce the carbon footprint associated with their international shipping. It is an industry-leading service that enables businesses to inset the carbon emissions of their shipments by up to 30% through the use of Sustainable Aviation Fuels (SAF), which is produced with waste cooking oil, sugar cane and other biomass fuels.

This optional green service charges based on cargo weight, and your investment goes fully and directly into developing green technologies and SAF capacity within DHL's global network. Through this carbon insetting, GoGreen Plus allows businesses to bring down their Scope 3 emissions, which are indirect greenhouse gas emissions that arise in a company’s value chain, including transportation and distribution downstream, with certified* emissions savings.

*Certificates are only issued for selected GoGreen Plus models.

With over 86% electricity generated through renewable energy, more than 100 million miles travelled on e-vehicles, and more than 70,000 certified GoGreen specialists, DHL Express is redefining logistics, aiming to help businesses make a more significant impact together. Open a DHL Express account today and find out how it can help you achieve your sustainability goals.