Why are companies like Microsoft joining the Carbon Tax bandwagon

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MTF Blog_31st May

 

Are you a business owner? And while you scan the newspaper every morning to find out what’s trending in the business world, did an article screaming, “Global Warming Alert: 2019 has so far recorded 33 Hottest and 0 Coldest Temperatures in the U.S.” catch your attention? It’s true. Global carbon emissions are the biggest culprit for this imbalance.

Sure, you must have felt horrible realizing what the environment has in store for the future generations, but did it ever come across to you as to how you can you bring about a change and take corrective measures yourself?

Your first thoughts might be, “Me? What can I possibly do? I run an IT company, not a carbon-intensive industry!”

Well, read on to find out!

How can you help with reducing the carbon emission?

Emission of carbon dioxide along with other greenhouse gases and their deadly effects on the global climate finds mention in many of the business charts of big industry giants and the government. In fact, sustainability strategy was one of the top 5 global challenges in the 2015 CEO Challenge Survey.

Much of the chaos can be attributed to the everyday operations of corporations and businesses such as the energy used to function offices, labs, manufacturing facilities, production, supply chain or for that matter even business air travel.

For example — if you own a logistics company whose business is mainly focussed on air or road transport mechanism, then the mobility of goods will form an essential crux of your business. However, the goods would be transported by aeroplane or trucks which would definitely cause carbon emissions. Thus, your business is contributing to climate change and global warming indirectly. This is true for practically every business in the world.

No matter what your business is, you and your employees surely do travel to your office by a car, have a fully air-conditioned office and even take a few business trips around the year? This does not make you a criminal, but sure leaves behind your carbon footprint on the environment. The question is how can you prevent that? By paying the Carbon Tax.

What is a Carbon Tax?

Carbon tax has nowadays become a topic of intense discussion. It is a tax imposed on the emission of carbon caused by the business operations of various industries. Such a tax would increase the price of burning fossil fuels and any resulting goods or services, to curb its usage and promote the use of renewable energy instead.

The Microsoft way of becoming Carbon Neutral

Microsoft has taken up the mission to become carbon neutral, and in lieu of the same, they have introduced an internal carbon fee which holds its business units financially accountable for the carbon emission. Such a fee is then invested in projects that reduce carbon emission, generate green power, recycle e-waste, make buildings more energy-efficient etc.

Microsoft does this by allocating the cost of carbon fees across its major business units and includes such cost in their annual budgets as well. Each quarter, they track and analyze their energy use in different business operations which includes even the cost of business air travel for its executives. These kilowatt-hours are then converted into tons of carbon and the carbon fee is then ascertained and measures are taken to reduce and make up for it.

Conclusion

There are many initiatives being taken to help sort this issue like the launch of REBA by major corporations like the Walmart, General Motors and Google which aims to help companies buy renewable energy and make it accessible to all. Implementing a carbon tax can start a wave towards the use of clean energy by taxing individuals for their carbon footprint and using the amount derived towards environment detoxification and investment in renewable energy. Maybe, it’s time for you to introduce the same in your company and do your bit to save the earth.

For more such tax news and updates, stay tuned with MyTaxFiler. We also provide a one-stop solution for all your tax-related woes. Simply drop a mail at tax@mytaxfiler.com or call us at (888)-482–0279 for an on-call consultation.

 

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