Carbon Management Strategies: Costly Compliance or Profitable Investment?

Takeaways
- Companies are facing growing financial pressure from carbon pricing and border adjustment taxes, making carbon management strategies increasingly important.
- Experts say accurate carbon data and integrated sustainability strategies can turn carbon reduction into a financial advantage.
- Businesses that embed carbon management into their leadership and operations often see long-term gains in efficiency and resilience.
As governments tighten climate regulations and introduce mechanisms such as carbon pricing and border adjustment taxes, companies are being forced to rethink how they manage emissions. While implementing carbon management strategies can be costly, experts say the long-term financial benefits may outweigh the initial investment.
This topic was discussed at the Sustainability LIVE: The Net Zero Summit 2026, where industry leaders examined how companies can turn carbon reduction efforts into a business advantage.
One of the biggest challenges, according to experts, is how companies understand and communicate carbon-related issues. Thibault Renaud, Senior Manager for Sustainability Strategy and Transformation at Cytiva, said the complexity of carbon discussions often slows progress.
“The big problem we have when we talk about sustainability is a language and understanding problem,” he explained. “Money is something that we all speak, we can all relate to. For carbon, this is much more complex because it is nuanced.”
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The Rising Importance of Carbon Data
As companies accelerate their net-zero transition, expectations around carbon data are becoming more demanding. Businesses are now required to provide accurate and often audited figures rather than relying on estimates.
Michael Batstone, Global Climate Strategy Manager at IFS, stressed that detailed data is critical for meaningful action.
“You really need to move away from estimation and be as specific as possible to actually drive change,” he said.
Accurate carbon reporting can also be complicated. Achim Martinka, Vice President Global Air Product and Head of Sustainability at DSV, noted that even small variables can significantly affect emissions calculations.
For example, the type of aircraft used in air freight can change reported emissions dramatically.
“If you take the same shipment from here to Mexico, the aircraft type can impact up to 75% of your CO₂ data,” he said.
Because of this complexity, companies must carefully evaluate the software tools and methodologies they use for corporate carbon reporting.
Stephen Elderkin, Director of Environmental Sustainability at National Highways, said consistency in measurement is essential.
“It’s really important that you’re all using the same language,” he noted, adding that suppliers bidding for new contracts must meet recognized standards such as PAS 2080.
Balancing Cost with Long-Term Value
Collecting detailed emissions data and implementing sustainability strategies can involve significant investment. However, panelists argued that these efforts often deliver strong financial returns.
Renaud explained that companies are increasingly linking carbon management to risk and resilience.
“We've seen that sustainability is also becoming a lot about resilience and risk management. Fragility is actually costing a lot of money,” he said. According to Achim Martinka, businesses generally fall into two categories: Those that see emissions reporting as an expensive compliance requirement and those that treat it as a core business philosophy.
Companies that embed sustainability into leadership decisions are often willing to invest heavily in carbon management strategies, and many are seeing strong results.
“It's not one or the other; they can work together if it's an integral part of your business model,” he said.
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Michael Batstone added that carbon reduction initiatives frequently improve operational efficiency, which can directly benefit the bottom line.
As regulations tighten and climate risks increase, experts believe companies that act early and invest in effective carbon management strategies may gain a competitive edge in the global transition to a low-carbon economy.
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Source: Sustainability MAGAZINE












