Identifying the person in charge of enterprise greenhouse gas (GHG) management is a good indicator of whether or not the organization views it as a strategic issue. At present, many companies have tasked carbon management to an environment, health and safety (EHS) or sustainability office, which allows the most knowledgeable environmental professionals within the organization to address climate change, but doesn’t attract the attention of the most influential parts of the business.
This status quo is changing quickly because carbon management is more than responsible environmental stewardship. It’s a risk management imperative that has a direct impact on an enterprise’s bottom line.
Thus, the responsibility for enterprise carbon management has started and will continue to move to the desks of CFOs and Directors of Risk Management, making greenhouse gas (GHG) mitigation and adaptation a central part of company operations, instead of just a marketing exercise to external stakeholders or a simply a reporting task to governments.
As carbon management rapidly becomes a key responsibility for finance and risk management professionals (who traditionally do not have accountability over this domain), they should be aware of some of the reasons that this shift is occurring and why investment in carbon management software will help them realize a number of monetary benefits.