Four out of five Australian business leaders agree that the business community needs to take an active role in responding to climate change and over 70 percent want more information according to new survey data in a report released today, ‘Carbon Countdown’ by PricewaterhouseCoopers (PwC).
The survey respondents (CEOs and CFOs of over 300 Australian businesses with annual turnover of more than $150million), however expressed concerns about the quality of their emissions data and compliance requirements. Only 2 per cent of business leaders in the survey have a high level of confidence in their own greenhouse gas emissions data.
Andrew Petersen, Climate Change Services, PricewaterhouseCoopers said, “Poor quality and unverified data was responsible for much of the early volatility in the start up period of the EU emissions trading scheme. Australia is now in fortunate position to benefit from the lessons learnt in Europe by sourcing the critical investment-quality emissions data. This is one area that can give Australia a competitive advantage when it comes to creating a rational and robust trading scheme.
“It is vital that the Government collects the right investment-quality emissions data to help alleviate compliance and cost of compliance concerns, which in turn will help businesses to meet its accelerated timelines.
“The right level of compliance and data will create an effective operating framework that can deliver business confidence and environmental integrity.
Sean Lucy, Climate Change Services, PricewaterhouseCoopers said, “Businesses must also listen to customers, shareholders, and employees to understand their expectations on climate change. One in four of the business leaders surveyed recognise that their customers are seeking green versions of their products and services. Some businesses are already using climate change awareness as an opportunity to develop innovative new products and services, drive revenue growth and improve their brand reputation in the consumer marketplace."
"It is also important that business understands that they do not need to wait for government before tackling the quality and transparency of the emissions data it produces. Business leaders must not underestimate the size of the challenge and make the most of the opportunities that a carbon economy will bring to them, both tangible and intangible."
"Regardless, until you know where the emissions are within your organisation you cannot understand the true nature of the risk and opportunity."
Over 75 per cent of businesses are not yet formally assessing climate change as a risk to their business.
Resources sector way ahead
It is, however, a different story in the resources (mining and energy) companies surveyed; as all of them believe that climate change will be a risk to their business by 2012. Furthermore, 74 per cent have already assessed risk at a Board level – compared to just 4 per cent industry average.
Moreover, 28 per cent of resources companies have established a budget to respond to climate risks and opportunities – compared to 5 per cent of the total sample. Nearly all (92%) of these organisations are formally factoring a value for carbon into their CAPEX decisions – as opposed to 20 per cent of total.
However, a broad look at Australian business reveals that only 22 per cent of all survey respondents (including resources companies) have undertaken actions in response to climate change. Most of these have created new internal policies and procedures.
Andrew Petersen said, "We’ve seen the resources sector come along way through exposure to international markets and responding to demands from the investment community and wider stakeholders. I expect other sectors will respond once the right policy signals are in place, although it will be tight under the accelerated timeline of the new government.
"2008 will see a step change in the Australian response to climate change. Business will need to narrow the gap between rhetoric and preparation.
"It’s pure and simple, the waiting game is over. Business needs to step up and take action now and develop the necessary tools and business acumen to operate in a carbon constrained economy."
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