Firms a bit smoggy about lowering emissions

The vast majority of Australian companies want to reduce their greenhouse gas emissions but only 10% say they have the know-how to do it, according to a report by the Australian Industry Group (Ai Group).

A survey of 800 companies from the manufacturing and commercial construction sectors in Victoria, NSW, Queensland and South Australia revealed a wide variety in levels of understanding of climate change.

It showed that 56% saw opportunities from climate change to promote their company as socially responsible and to improve energy efficiency and lower costs, while 78% felt it was responsible to reduce carbon emissions even if it added to costs.

But only one in 10 companies said they had enough information to appropriately manage the risks associated with climate change.

Victorian Minister for Environment and Climate Change Gavin Jennings said the first step for businesses wanting to reduce their carbon footprint was measuring their current emissions.

"By developing a baseline, businesses can begin to apply smart and often quite simple solutions to reduce their emissions," he said.

"Businesses will also save money, because actions that save energy, water and resources lower costs as well as reduce greenhouse emissions."

Don Matthews, Ai Group Victorian president and chief executive of paper group SCA Hygiene, said his company had taken big strides in reducing its carbon footprint on several fronts, including purchasing virgin fibre only from certified suppliers.

Other sustainable business practices include reducing waste sent to landfill to zero within five years, reducing carbon dioxide emissions year-to-year and cutting water consumption by at least 15% over the next five years.

"We know what we are emitting and we have taken clear goals on how to reduce it," Matthews said.

Ai Group chief executive Heather Ridout said industry shared an understanding of its obligations but was also aware of the risk to their competitiveness from higher costs.

"Companies need more information on how they can improve sustainable practices, they need a better understanding of an emissions trading scheme and they need better incentives, particularly for small to medium firms," Ridout said.

"Companies are deeply conscious of the need to lower their greenhouse emission, and are taking steps to reduce their electricity, gas, water usage and waste productions."