*By Decio Krakauer
The climate crisis is one of the greatest challenges of our time, with significant impacts on ecosystems and society as a whole. According to data presented at COP28, Brazil alone emitted 2.3 billion tons of greenhouse gases in 2022, with the impacts on the Cerrado and Amazon biomes standing out. Given this scenario, companies have a fundamental role in the search for sustainable solutions.
The concept of management software has evolved over the years, going from being just a technology or software to becoming an essential business culture in the new connected society. Today, ERP emerges as a strategic tool to reduce the carbon footprint, optimize processes and contribute to a more sustainable future.
The carbon footprint, which quantifies the amount of greenhouse gases emitted by an activity, has become an essential indicator for assessing the environmental impact of companies and individuals. According to the UN, CO2 concentrations in the atmosphere have already exceeded pre-industrial levels by more than 150%, reaching an all-time high in 2022. This increase is one of the main factors contributing to global warming and its consequences, such as rising sea levels, extreme weather events and loss of biodiversity.
In this scenario, ERP management software can be an ally for companies and governments around the world in reducing the carbon footprint of various economic activities. By integrating data from various areas of the organization, ERP makes it possible to identify the main points of greenhouse gas emissions and assist in the implementation of energy efficiency measures. With it, it is possible to track energy use in real time, ensuring that companies identify areas of high consumption and implement improvement actions to reduce waste. In addition, it facilitates the adoption of renewable energy sources, monitoring their impact and contributing to the reduction of greenhouse gas emissions.
Another application is in monitoring emissions associated with the production and transportation of products, encouraging the selection of suppliers with sustainable practices. With ERP, it is possible to provide complete visibility of the supply chain, allowing companies to evaluate and select suppliers based on their environmental performance. This encourages more sustainable practices throughout the value chain, from raw materials to the final product.
In Europe, a number of ERP-integrated software solutions have already been developed to address the issue of climate change. These solutions go beyond simple monitoring, offering a holistic approach to managing carbon neutrality. Some of the features include: defining carbon neutrality targets, identifying the actions needed to achieve these objectives, monitoring the progress of emissions reductions and creating organizational KPIs related to carbon neutrality. By incorporating this methodology into ERP, companies can ensure that their environmental goals are intrinsically linked to operational and strategic processes.
Below are some contributions of ERP to a sustainable future:
Combating Climate Change
Reducing carbon footprint, optimizing energy and water use, and implementing sustainable practices in the supply chain. By automating and continuously monitoring processes, companies can identify and eliminate waste, resulting in significant savings and a lower environmental impact. For example, digitizing documents and processes reduces the need for paper, contributing to forest conservation.
ERP-driven decarbonization
Integrating carbon footprint results into core business processes to drive sustainable decisions based on end-to-end carbon management. This includes real-time monitoring of carbon emissions, enabling immediate adjustments and adoption of more sustainable practices. With ERP, companies can map their emissions, identify areas for improvement, and implement effective decarbonization strategies. This can include optimizing logistics routes to reduce fuel consumption and emissions associated with transportation.
Streamlining and making carbon neutrality accessible
Using ERP solutions, small and medium-sized businesses can adopt carbon neutralization practices in a straightforward and cost-effective manner. ERP simplifies the collection of emissions data, facilitates the implementation of reduction strategies and allows real-time monitoring, making the carbon neutralization process more accessible. This includes the possibility of purchasing carbon credits to offset unavoidable emissions, contributing to environmental projects.
Promote social sustainability
Improve working conditions, ensure employee health and safety, and promote diversity and inclusion. With a robust ERP, it is possible to monitor and ensure that labor practices are fair and safe, as well as promote an inclusive and diverse work environment. The ERP can track health and safety indicators, ensuring that standards are met and that employees work in appropriate conditions.
Strengthen corporate governance
Transparency in management, combating corruption, adopting ethical and responsible practices, and promoting stakeholder participation. ERP facilitates traceability and accountability, which is essential to maintaining investor and customer trust. This is achieved through the automation of compliance and audit processes, ensuring that all operations comply with regulations and ethical standards.
By incorporating these practices, companies not only meet regulatory requirements, but also position themselves as leaders in promoting sustainability and corporate responsibility. This strengthens their reputation, improves relationships with investors and consumers, and contributes to more sustainable and resilient economic development.
ERP offers several benefits for business sustainability, including the ability to monitor and reduce carbon footprint, efficiently manage resources, and promote ethical and transparent governance practices. By facilitating the adoption of renewable energy sources, tracking emissions in real time, and optimizing the supply chain, companies can not only meet their environmental obligations, but also lead the transformation to a more sustainable future.
*Décio Krakauer, CEO of Ramo
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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