25 January 2022
Climate Change an Increasing Concern for Australian Business
ITS Australia
Concern about climate change among Australian business leaders has significantly increased in the last eight months. Almost three quarters (74%) of Australian executives see the world at a tipping point for responding to climate change, up from just over half (52%) only eight months earlier.
Two thirds of Australian executives expect climate change to have a high or very high impact on their organisation’s strategy and operations over the coming three years, highlighting the recognition of the urgency to act.
The findings are contained in the 2022 Deloitte CxO Sustainability Report, based on a survey of more than 2,000 business leaders across 21 countries, including 102 in Australia.
"The battle against climate change isn’t a choice, it’s billions of choices. No action is insignificant, but certain activities and decisions ‘move the needle’ more than others, and those bolder actions from business leaders are needed now—while there’s still time to limit the damage. It’s time to prove we’re up to the challenge.”
Punit Renjen / Deloitte Global CEO
Australia is among the top 10 countries most concerned about climate change. Almost all the Australian executives surveyed (95%) say their companies have already been impacted by climate change citing the operational and regulatory impacts of climate change, cost of mitigation, societal pressures, and resource scarcity as areas of impact.
Australian businesses feel more pressure to act on climate change than the global average and more than half (51%) of Australian executives report that their organisation is being impacted by regulatory and political uncertainty.
The report finds Australian companies are much more likely – 10% or more ahead of the global average - to be implementing the tougher, “needle-moving” actions defined by Deloitte’s analysis.
More than a third of Australian executives have in some way experienced the impacts of climate events over the past year, with more frequent and powerful storms, bushfires, severe flooding and severe drought among the most common events.
Despite the increasing levels of concern, the report finds the vast majority of business leaders in Australia remain optimistic that there's still time to act. 89% currently (compared to 80% eight months ago) agree that with immediate action, the worst impacts of climate change can be limited.
(Deloitte modelling for the Business Council of Australia shows that inaction on climate change could cost the economy $3.4 trillion by 2070 but rapid, focused action could grow the economy by $890 billion adding around 200,000 jobs in that same period.)
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