Document added 29 July 2011 by Contributing Editor from the Media & Publishing industry
In this survey of 345 Austrlian busineess executives, 58% are certain that a price on carbon, set for July 2012, will provide some certainty, but 61% remain uncertain as to the impacts. Read the full report here, from The Sustain Group.
To download the document and join the conversation,
Join Now or Sign In
www.sustaingroup.net research@sustaingroup.net
58%
Of executives surveyed...
Believe that a price on
carbon at least provides
certainty, in terms of
policy...
Sustain Climate Change and Business Survey Results
Release date: July 2011
61%
Are uncertain as to the impacts...
A price on carbon will have for their
organisation as it is uncertain how they will
be both directly and indirectly impacted...
With the Australian
Governments announcement that a
price on carbon will be set from the 1st
of July 2012, we decided it was timely
to revisit the more than 345 business
executives who participated in the
June / July and September / October
2010 Climate Change and Business
Survey.
What we have found is still very
surprising. While many were looking
for certainty in an announcement, we
now find that a great number are now
uncertain as to the impacts a price on
carbon will have specifically for them.
In addition, there is an increase in the
number of people confused by
Opposition policy with many believing
it will cost them just as much.
www.sustaingroup.net research@sustaingroup.net
Survey history and overview
This is now the third in our series of surveys and reports that looks at
the business response to climate change and the impacts of proposed or
announced regulatory changes. The first of these surveys was
conducted in June and July of 2010 with more than 692 participants
across the three layers of business and industry: small, medium and
large organisations.
The second survey was conducted in September and October 2010 with
the period of responses being shorter and the methodology refined. This
reduced the core group of respondents to 347 business executives and
while there was an attempt to exclude the public sector, several
responses in the last survey were included because of the addition of
those who were not previously categorised as Statutory Authorities or
State Owned Corporations.
Continuing with the theme of collecting anecdotal responses (comments
fixed to some questions) 62 comments were recorded, up from 39 in the
September / October period. The current survey ran between the 18th
and 22nd of July 2011, covered the same industry categories as
previously recorded and using the same online collection methods.
In addition the survey was conducted after the price on carbon was
announced by the Australian Government to allow for a period of
absorption and review. Where possible we have kept to the strict
methodology we have in place for both the collection and assessment of
data as well as anecdotal responses. Where one person may provide a
comment that is negative to a question or point, we have tried to also
include an opposing comment for balance.
Matthew Tukaki, CEO of the Sustain Group
Quick Survey Data
58% of respondents believe the Governments announcement of a
price on carbon at least provides some policy certainty
However, 61% of respondents now believe there is greater uncertainty
of what the price on carbon will mean for their organisation either
directly or indirectly
62% of respondents do not believe that Australia has the skills base
to accommodate a rise in demand for green jobs or a growing green and
renewable energy / technology sector. This is down from 76.8% in the
previous survey
42.5% of respondents do not believe that the Government should
introduce a tax on carbon ahead of a proposed emissions trading
scheme. This is down from 56.5% in the previous survey.
36% believe the Government should have waited for a global
agreement, down from 40.6% in the previous survey while 52% now
believe the Government should not have waited.
66% or responding organisations are already taking direct
action when it comes to reducing carbon footprints – this is up slightly from
the September / October survey which found 63.8% of organisations
surveyed were taking direct action while in June and July of 2010 the
number was 59%.
In a “balancing” question of what respondents thought of Opposition
policy: 68% of respondents remain confused about what the Opposition
mean by direct action. This is up from the previous survey of 64% and still
down from the 76% in the June and July 2010 survey
www.sustaingroup.net research@sustaingroup.net
Survey Summary: In our September and October 2010 survey we noted that overall the responses were a reflection of an information vacuum
that existed at a time when climate change held a high public profile. In July of 2011, the public profile of the issue has not changed and,
indeed, it has only increased. As it was in the previous survey, confusion and uncertainty remains however, with an element of irony. 58% of
respondents agree that the announcement of a price on carbon gave an element of policy certainty however, 61% of respondents believe that
there is less certainty about the actual impacts a price on carbon will now have on their business or organisation. 63% were un-phased by a
public information campaign with some recognising that information was going to be key to understanding how the policy would play out in their
respective business or industry sector. The number of respondents who believe the Government should have waited until a global agreement
was reached is also down to 36% and the number who believe the Government were “good to go” (as several respondents put it) was up to
52%.
A game of two halves developing: The results show an improvement in the Governments position on the subject of climate change policy
however it is shaping to be a game of two halves where it is plausible the number of people agreeing with the Governments position will
increase as more information is placed into the public domain. While the number of people agreeing with the position of policy certainty has
increased, it should not be under estimated the number of organisations who are concerned as to the day to day commercial impacts. When
asked “Do you believe that as more information is released about the actual impacts on certain sectors or organisations, you will become more
certain about the ramifications for your business?”, 61% of respondents indicated that would probably be the case and this is aligned to the
number of organisations that have already implemented sustainability programs, also referred to as direct action initiatives, which sits at 66%
up from 63.8% in the previous survey. Interestingly, the Government found support from sectors where it may have been considered unlikely.
The strongest support for the position of the Government came from the logistics supply chain, building and construction industries whereas the
least support came from the mining sector.
Coalition policy: confusing and not detailed: 68% of respondents remain confused as to Coalition policy with many adding “at the end of the
day, we pay for it”. This has increased from 64% and this is also the question where we received an equal number of anecdotal comments to
the Governments position. These included “The economics don’t seem to add up and surely we will be affected either through paying a higher
tax or by having to absorb flow through costs.” Through to: “I see a lot of opposing, but I can’t see what they will actually do.” In reverse, there
was support for the Coalition’s general position with one person adding “Surely there is more sense in self regulation than Government
imposing a tax.” The challenge for the Coalition will be explaining exactly what is meant by direct action and what the specific costs will be,
where the money will come from and how it will be implemented.
www.sustaingroup.net research@sustaingroup.net
Skills to support transition and employment : As was the case with the June / July and September / October survey, the question of skills
capacity remains a large concern with 62% of respondents believing we did not have enough current skills capacity. While this is down from
76.8% (a large enough drop by average standards) the anecdotal comments reflect a concern as demand grows, supply of relevant skills such
as carbon auditors, engineers, trades and technical / vocational will not be available. Many pointed to the “unavailability” of credible tertiary and
vocational training / education programs to train existing staff or use for supply for future staffing needs. Those institutions referred to through
anecdotal comments, included Griffith University (MBA program offered through its South Bank Campus) and TAFE’s South Western Sydney
Institute (WSI) Green Skills Courses. In the case of TAFE there were a high number of references to specific programs from organisations
mainly in the Western Sydney area. The Sustain Group notes that there is little raw and credible data / information available in the public
domain that refers to the number of “green jobs” that will be created specifically by Government or Opposition policy. In addition, there also
remains a question as to whether or not enough is being invested into the education system at all three layers (K-12, technical / vocational and
tertiary).
Additional Survey Data
56% of respondents were now
considering undertaking a carbon footprint
analysis, irrespective of whether they
would be impacted or not
42% of respondents were evaluating a
change in energy providers with 27%
prepared to pay a premium for renewable
63% of respondents are concerned that if
they do not, or did not have, a
sustainability strategy in place, their
business model may be impacted by
changes in consumer behaviour
31% of organisations now belong to some
sort of third party accreditation framework,
program or initiative
Industry Sectors Surveyed
Banking and finance
Consulting
Industrial, logistics and supply chain
Building and construction
IT&T
Retail and trade
Professional services
Manufacturing
Public sector and community services
Infrastructure and transport
Mining and resources
Respondents based on org size
Large business (500 employees +):
36%
Medium sized business (20 – 499
employees): 32%
Small business (less than 20
employees): 31%
www.sustaingroup.net research@sustaingroup.net
About the Sustain Group
The Sustain Group is an organisation dedicated to working with
clients in business, industry, Government and the community as
they move to adapt and transition into a low carbon economy.
Taking a very strategic approach, we work with organisations as
they work to meet the demands of new regulatory environments
and shifts in consumer behaviour.
With strategic partnerships across academic institutions, research
organisations and through our work as a signatory to the United
Nations Global Compact, the Sustain Group assists clients in
mapping carbon output, developing and executing carbon
reduction strategies. Utilising economic modelling based around
input-output methodologies, our teams of consultants are able to
map direct and indirect carbon emissions, those of suppliers and
with the ability of going further by mapping emissions across
product lines, individual operational sites and stand alone
projects.
Our sustainability recruitment division also works on identifying
the right talent and skills for organisations as they build and
execute sustainability strategies, while our alliances enable our
sustainability education division to provide world class programs
across technical, vocational, management and executive layers.
The Sustain Groups credibility is built around understanding the
market through changes in regulation, consumer behaviour,
industry and sector trends.
Contact details
To request a full copy of the specific survey questions asked
please email research@sustaingroup.net and note the July
2011 survey
If you would like public comment on the results please contact
CEO, Matthew Tukaki on 0410 481 404 or by email
matthew.tukaki@sustaingroup.net
This document is available for download @
www.sustaingroup.net/julysurveyresults
All rights are reserved (C) 2011 Sustain Group Pty Ltd