ng run. These technologies generate some greenhouse gas emissions. But their output pales in comparison to fossil fuels, which have ten times the carbon emissions as the CO2 equivalents for wind and solar.
Support grid decarbonization. Contributing to wind- and solar-based power systems should be a collaborative effort among regional facilities. Some companies, for example, have benefited from installing clean-energy technology to power their facilities and then selling the excess capacity to other companies that wish to purchase offsets for their emissions.
Businesses can take concrete steps to demonstrate leadership in climate action and contribute to a low-carbon economy.
Look across operations and the entire supply chain to identify potential carbon reduction opportunities. An audit is a great way to determine what a company can do on its own and what might require additional financing, such as purchasing renewable energy from wind and solar energy operators.
Consider offsets as an easily attainable pathway to decarbonization. Companies unable to eliminate carbon emissions can offset them. Some simple steps include buying excess solar power capacity from producers, reducing waste sent to landfills by purchasing 100% recycled products, or ensuring vendors have reduced their carbon outputs.
Participate in environmentally friendly projects. Net zero only happens once a company becomes carbon neutral across its entire supply chain. If net zero isn’t possible for a company, it can still be part of the solution by investing in environmentally friendly projects, like refurbishing forests.
Bank of America achieved carbon neutrality in its operations in 2019, a year ahead of schedule. It is accelerating its progress toward reaching net zero before 2050 and reaching additional interim targets by 2030. By implementing initiatives like the ones mentioned above, companies can have a positive impact on the planet and themselves now and in the future.
Bob Arth is executive vice president and head of the Northeast region for global commercial banking at Bank of America Merrill Lynch.
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