Third of companies struggling to achieve climate targets: survey
More than one-third of Australian businesses are struggling to achieve their carbon emission reduction targets, according to a new survey.
While 43 per cent of companies surveyed had a net-zero policy, a carbon markets report commissioned by Viridios Capital found businesses, especially heavy emitters, were having trouble meeting their commitments.
Big industrial emitters are covered under the federal government’s safeguard mechanism scheme. Jessica Shapiro
The survey of 200 companies by polling firm Freshwater Strategy also raised concerns about the federal government’s safeguard mechanism being the best strategy to help reach net zero by 2050.
The survey of carbon professionals – or people tasked with helping companies reach their emissions targets – to be released on Wednesday raises further doubts about Australia’s ability to reach its 2030 climate targets, which some energy experts have described as “impossible”.
Amid shareholder activism and focus on ESG (environmental, social and governance) issues, most companies have made broad commitments to reach net zero by 2050, or even earlier.
The Viridios survey found 35 per cent of respondents, who came from a cross-section of industries including manufacturing, construction, agriculture, transport, logistics and professional services, said they would struggle with their carbon obligations.
A clear majority (67 per cent) believed Australia’s emission policy was “heading in the right direction”.
But there were concerns about the Albanese government’s tightening of baselines under the safeguard mechanism, which requires companies that emit more than 100,000 tonnes of carbon each year to reduce their carbon footprint by 4.9 per cent a year to 2030.
Half of those surveyed
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