New research indicates that in order for Australia to reach its decarbonisation goals within the specified timeframe, the corporate world must take immediate action.
Schneider Electric’s Sustainability Index, 2023, surveyed 500 Australian corporate executives. 69 percent of those surveyed agree that net zero must be reached in order to remain economically competitive, with 77 percent agreeing that sustainable transformation is creating a further competitive edge.
“It’s clear that businesses recognise the strategic importance of sustainable transformation,” Schneider Electric’s Pacific Zone President, Gareth O’Reilly says.
“With less than 80 months until 2030, the challenge for businesses now is to fulfil that strategic opportunity at pace.”
Despite the agreeance that net zero is the way forward for corporate business, only 52 percent of respondents flagged that they have discussed or implemented a decarbonisation strategy. This is tied in with a concern regarding energy supply and resources, with 42 percent of those surveyed concerned about the cost and risks of each.
27 percent of companies are concerned about the resilience of the current energy infrastructure, with investment in renewables considered a must for Australian businesses.
“To achieve the necessary emission reductions, it is essential that businesses set ambitious targets and map out the path to achieving them,” O’Reilly continues.
“Many of the steps companies can take to improve energy efficiency and introduce their own renewable energy supply will not only improve their bottom line, but also protect them from volatility in energy supplies and pricing.”
42 percent of surveyed businesses expect that they will achieve zero Scope 1 emissions, which refers to direct emissions from owned or controlled sources, while 37 percent are aiming for zero Scope 2 emissions, which include indirect emissions from generation of purchased electricity, heating, and cooling consumed by the company, while a quarter aim to achieve zero Scope 3 emissions, which encompass all indirect emissions in the value chain and are regarded as the hardest to achieve.
Ultimately, corporate Australia is aware of its responsibilities, with 78 percent of the companies surveyed aware of their roles in the nation achieving the desired sustainability outcomes.
"Corporate Australia is ready to fully embrace sustainability, but we need to support businesses in turning these intentions to outcomes,” O’Reilly says.
Organisations must embrace sustainable transformation, prioritise digitalisation, and implement robust decarbonisation strategies now. The time for incremental change has passed; we must act with urgency to secure a sustainable and prosperous future. The moment is now."
To read the report in full, click here.
