Paperless for Planet- Sustainability in Finance

As we stand on the precipice of a climate crisis that seems to deepen with each passing day, the stark reality of our situation has never been more apparent. 2023 was the hottest year on record, a chilling testament to the rapid changes our planet is undergoing​​. 

The World Economic Forum underscores this dire situation with a report warning that 2050 climate change may result in an additional 14.5 million deaths and $12.5 trillion in economic losses globally​​. This stark prognosis places climate change risks at the forefront of global consciousness, emphasizing the urgent need for action​​.

Amidst this bleak outlook, a powerful quote from the World Wildlife Fund offers a call to action: “Together, we can take action to create lasting solutions and protect the future of nature.”

Lasting solutions can only come from processes that are built into the system. One-time initiatives are no longer enough. 

One simple yet transformative way to incorporate eco-consciousness into your organizational process is to rethink how you manage employee expenses. 

Suggested readings:What are Business Expenses: A Complete Guide

Going paperless can be a game-changer for our planet.

Is manual expense management actually using a lot of paper? 

Time for some real math to see the impact.

Imagine 5000 employees working in a company that uses a manual expense management system. 

Let’s assume 20% of the 5000 employees travel for work. This will include sales, executive, and project teams that require travel. According to this study, the average business traveler takes about 6.8 trips per year.

An average business trip lasts over four days and involves various expenses such as meals, lodging, transport, and miscellaneous costs. Let’s assume a conservative average of 15 receipts per trip, which accounts for three meals, accommodation, and other travel-related expenses.

Typically, an expense report for a business trip could include a cover page and a detailed itemization of expenses. We’ll assume each report comprises 2 pages (and we are being frugal here). Additional documentation may be required, such as approval forms or supplementary pages for detailed expense breakdowns. Let’s allocate two pages per trip for these documents.

So, 

the total number of employees traveling is 20% of 5000 = 1000 traveling employees.

Trips per Year for the Company: 1000 employees * 6.8 trips = 6800 trips per year.

Paper Usage per Trip:

Receipts: 15 receipts * 1 page per receipt = 15 pages.

Expense Reports: 1 report * 2 pages = 2 pages.

Additional Documents: 2 pages.

Total Paper Sheets per Trip: 15 (receipts) + 2 (report pages) + 2 (additional documents) = 19 pages.

Annual Paper Usage for Expense Filing: 6800 trips * 19 pages per trip = 1,29,200 pages.

Suggested reading: Best Way to Manage Expenses in an Enterprise

What can you save if you go paperless? 

According to this study, one tree can produce about 8,333 sheets of paper. This figure can vary depending on the type of tree and the paper production process, but it serves as a reasonable average for our calculation.

A commonly cited figure is that producing one sheet of paper takes about 3 gallons of water. This estimate includes water used in production, from tree growth to the final paper manufacturing.

Trees Needed for 25,840 Sheets of Paper:

1,29,200 sheets, 8,333 sheets per tree, 15.5 trees

Water Consumption:

 1,29,200 sheets*3 gallons/tree = 3,87,600 gallons of water

So, it’s apt to say that going paperless can save the planet!

Let’s introduce the hero of our story: digital expense management software like Happay. This nifty tool can digitize the whole process, eliminating the need for all that paper. So, what’s the win here?

Saving trees: More than 15 trees are saved every year. Because those saved trees can absorb between 0.9 and 1.5 tons of CO2 over their lifetimes, we’re talking about a potential reduction of about 18.6 tons of CO2 emissions (considering the cumulative effect over many years).

Conserving water: About 14 lakh (1.4 million) liters of it.

Now, isn’t that something? By ditching paper and going digital with expense management, companies aren’t just simplifying processes; they’re taking a solid step toward a greener future. 

Here are the calculations presented in table form

Parameter	Calculation
Traveling Employees	20% of 5000 = 1000 employees
Trips per Year for the Company	1000 employees * 6.8 trips = 6800 trips
Paper Usage per Trip	Receipts (15 pages) + Report (2 pages) + Additional (2 pages) = 19 pages
Annual Paper Usage for Expense Filing	6800 trips * 19 pages = 1,29,200 pages
Trees Needed for Paper Production	1,29,200 sheets / 8,333 sheets per tree = 15.5 trees
Water Consumption for Paper Production	1,29,200 sheets * 3 gallons = 387,600 gallons
Saved Trees	More than 15 trees/year, reducing ~18.6 tons of CO2 over their lifetimes
Saved Water	About 1.4 million liters

Quick read: 5 Easy Steps to Paperless Expense Filing

Happay- the easiest step to sustainability

Adopting an automated expense management system and going paperless is one of the simplest moves a company can make toward sustainability. It’s a clear testament to how small changes powered by technology can have a profound impact on our planet. 

One such tool is Happay, India’s leading T&E platform. It automates and digitizes your expense management process, completely eliminating the need for paper. As a cherry on top, Happay has a self-booking tool that allows employees to select eco-friendly flights, an added green bonus that can save 80% carbon emissions per trip. 

So, let’s advocate for more trees in the ground, less waste, and a happier, healthier earth. Here’s to making expense reports, something we tell our grandkids about as they gaze at us, wide-eyed, unable to believe we ever lived such an archaic existence. Let’s go digital, let’s go green, and let’s go Happay!