Managing Carbon: It’s not too late
We’re now in week two of Australia’s carbon pricing initiative, commonly referred to as the carbon tax.
Media reporting, business forums and requests for information business associations all suggest a large proportion of the small to medium business community are highly concerned about this increase in costs and their capacity to manage it.
As a supporter of pricing carbon, a flash of concern crossed my mind that this new indirect cost to business is indeed an unsustainable burden. However, a trip up the range to a regional city reminded me that core business responsibilities of risk management, planning and entrepreneurship are businesses main weapons in carbon management.
In one instance, a health services provider, whilst openly sceptical about human-induced climate change, has made it an operational imperative for years to reduce their utility use through commonsense and innovation. They will still incur an increase, but they will be far ahead of their peers when benchmarked.
Another organisation took a different tack. Seeing significant exposure to compliance and cost on a range of environment and safety issues they restructured completely and shifted operational control to their client base.
Though not widely published, Woolworths have indicated they have no plans to increase prices as a result of the carbon tax due to a significant investment in energy efficiency over recent years in preparation.
The sign posts for a price on carbon of some description have been popping up for over four years. Federal energy (EEO) and Greenhouse (NGER) reporting have been in place for many years, in addition to various state-based legislation. Placing a price on carbon has been part of the policy landscape since 2007.
Proactive businesses have used this time to understand the issues and the potential exposure to their operations. They have invested time to educate themselves and money to engage consultancy services. They have also made capital and operational investments to improve energy efficiency and build a robust data set through carbon management software.
Reactive businesses have either not sought out or rejected support from the public and private sector to get themselves in a position of readiness. I have the greatest respect for people taking the risk and putting in untold effort to build a successful business but for one reason or another they have not addressed their business responsibilities around carbon management. So whilst I sympathise with business trying to address this issue now, I have to ask “Where the Bloody Hell Were You?”
A Chinese proverb states, “The best time to plant a tree was 20 years ago. The second best time is now.” This nicely reminds us that it’s not too late to get cracking on carbon management. Indeed, now is probably the best time to invest in systems and technologies that deliver visibility and efficiency. Government support is probably at its highest, both in terms of direct offset of the carbon price and in the numerous grants and education services available to those wanting to take action. But as we’ve seen with recent blowtorching of state based solar feed-in-tariffs, they won’t be around forever.
Simon McCabe is our resident Green Crusader and the Business Relations Director for Intelligent Pathways. Read his bio here.