"Business response to climate change: Government and Opposition called to question"
Announcement posted by SansGov 15 Jul 2010
www.sansgov.com
Main survey themes:
Survey covered 692 businesses categorized as small, medium or enterprise
64% of respondents are not clear on what the impacts of an Emissions Trading Scheme or a Carbon Pollution Reduction Scheme will be on them (or their industry)
78% of respondents believe that not enough is being done to explain the key policies or their potential impacts
63% of respondents believe that the Australian economy does not have the adequate number of green skills to manage an ETS implementation or its aftermath
59% of organisations are moving ahead with the implementation of their own carbon reduction programs
76% of respondents also don’t understand or are confused by what the Opposition means as direct action
Matthew Tukaki, the CEO of SansGov, has released the first in a series of business surveys dealing with climate change policies and how they impact business. Conducted over a period of two weeks with a total number of 692 respondents, the survey shows significant gaps between proposed Government policies and on the ground implementation:
“The survey really does show that business and industry are struggling with understanding what impact an ETS or a CPRS will have on them and while there is an agreement that more needs to be done on climate change the general, and in some cases overwhelming, sentiment is the Government just isn’t explaining itself.In fact, 78% of respondents do not believe the ETS policy has been explained properlyin order for them to form a view on the likely impacts. Some of the anecdotal comments coming through feedback, aside from the raw data, shows genuine confusion about what sectors of the economy and industries would be impacted and the scale of the cost, while several indicated concern over whether or not such a complex regulatory and taxation environment may in fact head the same way as the previously proposed RSPT” Mr. Tukaki said
“Another concerning variable is that63% of respondents do not believe that we have sufficient skills in the economyto implement complex regulatory environments around an ETS or CPRS, let alone managing a framework from a business by business perspective. This is backed up by a debate within the education community on how to best define sustainability and, therefore, what new or additional education programs need to be introduced to provide the economy with the requisite skills needed – this is no longer a question of simply developing skills for a renewable technology / energy sector, it is about the broader need for green skills that touch everything from the regulatory environment through to the supply chain.” Mr. Tukaki said
“The Opposition certainly does not escape criticism with 76% of respondents either not understanding (44%) or being confused (32%)about what they mean by direct action on climate change. In terms of direct action, it is clear that business is already responding to climate change by implementing individual or industry based direct action. In fact 59% have indicated they are already taking direct action through implementing their own carbon reduction programs with these centred on reduction in energy consumption, modifications to travel policies and transportation, increasing interest in green star rated buildings and leases, and a greater interest in the carbon footprint of suppliers. Several respondents commented “what additional direct action could they implement?” Mr. Tukaki said.
“On the question of leadership64% of respondents would prefer the Government to take a domestic leadership role when it comes to climate change policies, while it is evenly split on the question of whether or not the Government should wait for a global consensus.” Mr Tukaki said
What is clear is the general acceptance that climate change is very real and there is a significant move towards sustainability and the implementation of individual carbon reduction programs. For many in the retail side, this has been to some degree dictated by changes in consumer behaviour over time. This consumer movement has led to cleaner and greener products and services being developed and has, to some degree dictated emerging products and packaging. Another point that is not lost through the survey data is a move by business to implement and enforce stronger sustainability measures on supply chains and where they procure the raw materials from:
“There have been several cases recently where online media and consumer movements have led to the dumping of some primary producers because of how they have grown or manufactured the raw materials – this in turn has led to business and industry changing the way it procures by introducing tougher sustainability and environmental requirements as part of contracts and agreements. This is one of the direct measures large corporations and buyers are introducing that do flow past just domestic production and into foreign markets such as Indonesia for paper products and South America and Africa for coca.” Mr Tukaki said.
“We now have several surveys out from different sectors from consumers through to business – all of them are now pointing to the same thing that a combination of approaches is wanted. From the business side, it is clear that whatever framework is proposed, the lessons of previous implementations and announcements (the RSPT and home insulation) are learnt. “ Mr Tukaki said
Mr Tukaki cautioned the Government that even though the New Zealand ETS had been introduced only from the 1stof July, lessons can already be learnt from a regulatory, consumer and business response perspective:
“There were the same sorts of sentiments in New Zealand prior to implementation as there are in Australia. For example, consumers (both individual and business) were concerned about likely energy cost hikes. As it turns out, from the 1stof July, energy prices did increase which prompted a warning by the regulatory authorities that price gauging would not be tolerated. On the Governments side, improvements have been made to how it explains the new system by breaking it down by industry and consumer. This is now reflected in the quality of materials and content that is easier to understand and come to grips with.” Mr Tukaki said
“The challenge this Government and Opposition have is the debate and public discussion has moved on from the belief of the existence of climate change to the acceptance of the majority in the community that more needs to be done to lower our impact on the environment – it is a challenge because the right policies may in fact be a mix of what both parties are proposing. If the key sticking point is, therefore, the percentage target and the date by which it should be achieved, then both sides of politics may just find that they only way of cutting through is by consensus.” Mr Tukaki said.
“Either way, consumers and business alike have no appetite for bad planning, unexpected or planned cost hikes or wishy, washy policy”. Mr Tukaki said
Survey overview:
Number of organizations surveyed where data has been used in the final analysis: 692
Number of organizations excluded from the final analysis: 61 (these organizations indicated they were responding from outside of Australia when completing an online survey. Had that data been included there would not have been a material change in the over arching results of each category). Of those responses received offshore, the largest number came from North America, Europe and New Zealand. All New Zealand responses will be automatically discarded if that data set is used in the future because of a conflict in the implementation of that nations ETS from the 1stof July 2010 (clearly, specific questions unique to that countries new environment would need to be asked separate to any other survey)
There were questions built into the survey to act as control questions. These focused around skills and policy impacts
37% of respondents indicated they represented a small business, 32% medium sized business and 31% enterprise sized business
About SansGov:
SansGov was formed in 2001 as a knowledge and information management consultancy. In 2003 it added business transformation and change management to its scope of services and in 2009 the business introduced a sustainability practice. SansGov has been behind a range of significant reviews including the review of information management at the Joint House Department of the Parliament of Australia and the Australian Communications Authority. Matthew Tukaki is the CEO of SansGov.
About Matthew Tukaki:
Matthew Tukaki is CEO of SansGov and is the former Head of Drake Australia, the nation’s oldest and largest employment company. In addition to leading Drake in Australia, Matthew was also responsible for the business in Asia and was the companies power of attorney. Matthew is also the former Chairman of the WorkWise group’s executive committee and on the 1stof July 2010 assumed the role as Australia’s representative to the United Nations Global Compact (www.unglobalcompact.com) . The UNGC is the world’s largest business and industry led corporate social responsibility program with some 7,000 members worldwide.
Future surveys:
Green jobs and skills: August 2010
Business reaction to climate change policies and announcements: September 2010
A copy of the full report with analysis will be released from the 19thof July. For a copy emailinfo@sansgov.com
For comment:
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