Heaptalk, Jakarta — Performing the decarbonization process remains one of the severe challenges that several parties, including business players, must overcome. Nevertheless, CEO of CarbonShare Faelasufa affirmed that companies must comprehend the associated risks before strategically attempting to resolve carbon risks.
As she affirmed during the interview with Poempida Hidayatulloh in the Forum Carbon Indonesia YouTube Channel, “If you are talking about how businesses can mitigate carbon-related risks, we need first to understand what this risk is.”
According to her, the primary risks include:
- Physical risks relate to damage caused by extreme weather or natural disasters due to climate change, such as floods and storms. She perceives that physical impact can damage property and increase operational costs.
- Transition risks arise from shifting to a low-carbon economy, including changes in policy, technology, and markets.
- Financial risk involves increased operational costs and stranded assets due to policy changes or physical damage. Companies must also consider higher insurance costs and other potential financial losses.
“Companies need to adequately discover this risk that will happen right now or in the future, so then, they need to prepare to mitigate and face that risk appropriately. For this reason, we frequently advise companies to measure their GHG emissions and provide strategic suggestions based on the risk that will come your way if they do not change anything in their operations,” Faelasufa admitted.
How does CarbonShare mitigate it?
In helping companies carry out decarbonization efforts, CarbonShare provides three primary services, covering:
- Academy focuses on changing mindsets and providing professional skills to drive a culture of sustainability in their companies.
- GHG measuring to assist its clients in accounting for their carbon footprint. These tools are also embedded with an API to automatically calculate GHG emissions related to the calculation of GHG emissions associated with transactions when integrated into other platforms, such as e-commerce or ride-hailing. Besides providing API, CarbonShare also offers consultation to bolster clients in holding ESG initiatives.
- Carbon offsetting helps clients buy carbon credit to offset somebody else’s deficit.
“Businesses eventually need to decarbonize, and they would want to include their end user to help them on their decarbonization journey. Yet, when a client integrates our API in their apps or websites, it can calculate the carbon footprint associated with their user’s transactions. For instance, if we are talking about ride-hailing, our API can automatically calculate how many kilos CO2 is associated with their distance,” Faelasufa said.
Through serious and collaborative decarbonization efforts, Faelasufa looks forward to mitigate the risks of climate change and create a better future. He believes that climate change is not only the government’s responsibility, but also collective responsibility as civil society.
