Evaluating the Economic and Environmental Impacts of Comprehensive Emission Reduction Strategies in SMEs: A Case Study Approach

Foxconn EV Systems LLC, 2300 Hallock Young Rd, Warren, Ohio - 44481, United States

Abstract

This paper assesses the economic and environmental implications of comprehensive reductions in emissions in small and medium enterprises. The document focuses on reduction from all three scopes, which are analyzed through a simple cost-benefit framework. The case studies of three companies in different sectors: automotive manufacturing, Textile, and Food processing, demonstrate substantial reduction of greenhouse gases, including 25%, 30%, and 12% reduction in scope 1, scope 2, and scope 3, respectively. Economical results feature reduced energy bills, tax deductions, and more efficient supply chains. Environmental implications include improved air quality, reduced waste, and lower carbon footprint. The policy implication is that similar strategies are beneficial for all businesses and offer attractive economic and operational opportunities. Furthermore, the paper can also help policymakers make data-driven decisions regarding the industry and the company. The method for future research comprises long-term economic and environmental effects, specific sectoral difficulties, and available reduction technologies.