But don’t relax, we still have a long way to go
Australian manufacturers … take a bow.
When it comes to reducing carbon emissions your sector is leading the way.
A major national survey by KPMG and the Australian Industry Group (AiGroup) shows manufacturers are doing more to address the issue than their counterparts in the services and construction sectors.
The survey findings from nearly 400 companies provide a point of comparison to assess business readiness for the coming low carbon economy.
There is no doubt the proposed Australian Carbon Pollution Reduction Scheme (CPRS) has the potential to transform the way many Australian companies do business – particularly in the manufacturing sector.
The good news is manufacturers are the most active in taking steps to assess the impacts and costs of the CPRS.
Of the 392 CEOs surveyed, 39 per cent of those from the manufacturing sector have measured their emissions compared with 30 per cent in services and 15 per cent in construction.
An alarming 62 per cent of the companies surveyed are yet to take any steps to reduce their emissions or energy output.
And 25 per cent had no plans to measure their carbon emissions before the Federal Government’s Carbon Pollution Reduction Scheme is launched next year.
The survey found almost one-third of businesses had no knowledge of the main elements of the proposed Scheme. And more than 55 per cent of all businesses are currently not taking steps to become better informed.
The survey also showed “a worrying surge in regulation” associated with greenhouse gas emissions.
‘Some significant problem areas’
Almost four in 10 businesses surveyed, reported an increase in costs of complying with regulation in these areas over the past three years.
Ai Group chief executive, Heather Ridout, says there are encouraging signs that businesses have begun to take active steps to measure and manage their carbon footprints.
“However, the survey also points to some significant problem areas,” she says.
Businesses are still not well informed about the scheme, she admits.
“While some businesses have a very good understanding of the key elements of the proposal this is far from widespread. There is clearly a great deal more that needs to be done before we can assume business is adequately prepared for the scheme and its impacts.”
KPMG’s National Climate Change Partner Jennifer Westacott says while some companies are leading the way and making good progress, there is much work to be done.
“Australian business needs to act now despite the uncertainty around the CPRS. Strong global momentum for change is building and business has to start getting ready for the low carbon economy of the future,” she says.
On the positive side, more than one-quarter of survey respondents have identified opportunities arising from the CPRS.
Almost 70 per cent of respondents expect to allocate extra resources over the next three years to comply with regulations in the areas of greenhouse gas emissions and energy use. About 60 per cent of businesses intend to boost the capacity of their existing personnel to assist in managing their carbon footprint.
It is encouraging that many manufacturers have displayed a good understanding of the key elements of the proposal and are making the necessary preparations.
We congratulate manufacturers on their initiative.
The environment will be the ultimate winner.