New nation-wide research demonstrates Australian businesses recognise the imperative of achieving net zero emissions as a key driver for economic competitiveness and climate resilience, but indicates many companies are not acting quickly enough.
The findings of Schneider Electric’s Sustainability Index 2023 survey of more than 500 decision-makers across corporate Australia highlights the need for increased momentum in decarbonisation efforts, which includes switching fleets and other vehicles to EVs.
The report reveals that about two-thirds (69%) of businesses agree that Australia must meet net zero emissions targets to remain economically competitive.
About 77% of businesses agree sustainable transformation provides a competitive edge.
However, 52% of respondents have a decarbonisation strategy in place or are actively discussing its implementation and less than half (42%) of business leaders expect their company to reach zero Scope 1 emissions, 37% aim for zero Scope 2 emissions, and 24% strive for zero Scope 3 emissions.
“The time for incremental change has passed; we must act with urgency to secure a sustainable and prosperous future,” says Schneider Electric Pacific zone president Gareth O’Reilly.
“It’s clear that businesses recognise the strategic importance of sustainable transformation. With less than 80 months until 2030, the challenge for businesses now is to fulfil that strategic opportunity at pace.”
The survey reveals many businesses are falling short in implementing decarbonisation strategies.
Cost and risk associated with energy supply and resources are identified as the most significant issues, cited by 42% of Australian businesses.
Cybersecurity breaches are also a concern for 42% of respondents. In addition, 27% of companies worry about the resilience of the nation’s power grid, highlighting the need for a reliable and sustainable energy infrastructure.
“To achieve the necessary emission reductions, it is essential that businesses set ambitious targets and map out the path to achieving them,” O’Reilly says.
“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.”
The Schneider Electric report underscores the need for immediate action and the importance of digital technology, with 78% of companies acknowledging its key role in achieving sustainability goals.
“Corporate Australia is ready to fully embrace sustainability, but we need to support businesses in turning these intentions to outcomes,” says O’Reilly.
“Organisations must embrace sustainable transformation, prioritise digitalisation, and implement robust decarbonisation strategies now.”
Click here for Schneider Electric’s Sustainability Index 2023 report.
