KPMG & Ai Group have conducted a major national survey into business readiness for climate change. They found that while businesses are beginning to adapt to the carbon constrained future , there is a great deal of uncertainty  around the proposed Carbon Pollution Reduction Scheme (CPRS) and a rush in regulation associated with greenhouse gas emissions. The full report is available for download on the KPMG website.

According to the report, only a quarter of the respondents to this survey have undertaken a formal assessment of the impacts of the CPRS while a third have reviewed costs and opportunities to reduce costs impacts. 

“When business really understands the detail it is clear this is not only a compliance and reporting issue, it is integral to business strategy” said Ai Group Chief Executive - Heather Ridout.

“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” said KPMG’s National Partner in Charge of Sustainability, Climate Change & Water- Jennifer Westacott.

Report Summary:

• Almost three-quarters of businesses currently measure or plan over the next three years to measure their carbon footprint;

• Around 38% of businesses have already taken steps to reduce their direct emissions, reduce their energy overheads; or to reduce their energy inputs per unit of production;

 
• More than 60% of businesses have taken steps or plan over the next three years to invest in “cleaner” capital equipment as part of their management of their carbon footprint;

• Only 15% of businesses surveyed were confident they had knowledge of all key elements of the CPRS;

• Over 30% of businesses say they have no knowledge of the key elements of the Scheme;

• Over 55% of all businesses are currently not taking steps to become better informed;
• Almost one-third of businesses had no knowledge of the main elements of the proposed Scheme;

• Close to one-quarter of businesses surveyed have undertaken a formal assessment of the impacts of the CPRS;

• Around one-third of respondents have assessed cost impacts of the CPRS and ways to reduce these impacts;

• More than one-quarter of respondents have assessed opportunities arising from the CPRS;

• Manufacturers are the most active in taking steps to assess the impacts and costs of the CPRS;

• 60% of businesses intend to boost the capacity of their existing personnel to assist in managing their carbon footprint;

• Almost four in 10 businesses surveyed, reported an increase in costs of complying with regulation in these areas over the past three years;

• Across businesses of all sizes, almost 70% of respondents expect to be allocating extra resources over the next three years to compliance with regulations in the areas of greenhouse gas emissions and energy use.