On average, e-invoices are four times more environmentally-friendly than paper invoices. The study revealed a small surprise. The largest difference is not generated by saving paper and a digital workflow. Rather it is the time-saving of processing inbound invoices that makes work more efficient, leading to cost savings.
Whereas with processing paper invoices, approximately 60% of the emissions are generated by labour and 40% are generated by paper, envelopes, printing, franking and distribution. With e-invoices the labour ratio sours to 99%.
The carbon footprint of an electronic invoice is therefore considerably smaller than that of a paper invoice. A paper invoice generates approximately 450 grams of greenhouse gases, while an electronic invoice can generate as little as 150.
It should be noted that this study dealt with structured e-invoices. Not PDF’s. Even though SME’s prefer to use PDF’s. And with a 99% market share of SME’s in mind the outcomes of this research have to be put in that context. On the other hand the research notes that SME’s that seek to reduce costs by switching to invoices in PDF format are not gaining the most important benefits of electronic invoices.
The research also shows that in addition to the environmental benefits, switching to e-invoices frees resources, making a company more efficient. Freed resources can be used, for example, to improve customer service.
