Adaptation and action the key to survival in this new world

Monday 4 August 2008: In a comprehensive review of the Australian Government’s Green Paper on the Carbon Pollution Reduction Scheme, professional services firm Deloitte has told its clients that the impact of doing business in a ‘brave new carbon-constrained world’ will be far-reaching, with organisations that are able to adapt and act more likely to prosper.

“The Carbon Pollution Reduction Scheme will fundamentally change the economic environment,” said Deloitte Australia’s Chairman Wayne Goss. “However many Australian businesses are still at the early stages of understanding exactly how these changes will affect them.

“What this debate means for our clients is that climate change is no longer just an issue for the environmental or sustainability team – it applies to every level of management whether it is tax, supply chain, corporate governance or reporting.

“Climate change is about to become an everyday business challenge with far reaching implications across the organisation and it will therefore be elevated to the agendas of every Board.”

Jon Stanford from Deloitte Economics, who led the firm’s review of the Government’s Green Paper and The Draft Garnaut Paper that preceded it said, “Business now recognises that the scheme will introduce significant structural change in the economy. It will change relative prices and costs, demand new structures and supply chains, and present opportunities to some sectors while limiting others.

“It is now recognised that some organisations will prosper, while others will linger for a while and then disappear. Adaption and action will be the key to survival in this ‘new world’.”

Helping you to understand the climate change Green Paper is the first of Deloitte’s ‘Doing business in a carbon-constrained economy’ client alerts. It identifies the key issues, interprets the impacts, and articulates how to develop an appropriate response.

In the Paper, Deloitte highlights the key issues that businesses need to urgently address:

1. Evaluate and monitor the intensity of emissions in your business

2. Understand how the Carbon Pollution Reduction Scheme will affect you, including:

• are you directly liable?
• will the scheme affect your key markets?
• how will the scheme affect the prices you pay for key supplies?
  

3. Prepare to change your business strategy to adapt to a carbon-constrained economy.

Jon Stanford 
Partner Deloitte Economics
Tel: +61 (0) 3 9208 6915
Mobile: 0412 867 755