Greenhouse gas & carbon neutrality
A new carbon emissions trading scheme (ETS) in Australia will change the way we do business – for the better. Within it lies both opportunity and risk. The FMCG Sustainability Institute helps you navigate the new territory.
In the short term, the major retailers and some of the very largest emitters on the manufacturing side will be required to report their carbon emissions over the next two years and a cap will be set per company that cannot be exceeded after 2010. Some of the larger companies are already reporting on a voluntary basis. As of 2010, companies that do not use their entire allocation will be able to on sell their carbon credits to companies that are exceeding their cap: a strong economic incentive (both carrots and sticks) for reducing footprint.
Companies that are not so large may still enter the scheme by reporting energy and emissions now on a voluntary basis, in order to provide accurate data for the longer-term setting of their own cap (rather than having the cap set for them later without accurate data).
Eventually, it is widely recognized that all companies will be required to report. This presents a two-edged sword to our industry, both opportunity and risk:
- opportunity to leverage Sustainability as competitive and commercial advantage now, and;
- risk of penalties and increasing costs if carbon emissions are not reduced.
Major Australian retailers, including Woolworths, are setting carbon reduction targets. The Woolworths strategy currently falls short of mandatory Sustainability reporting for their supply chain at this stage, but it is only a matter of time before the industry takes the lead from overseas initiatives like Wal-Mart’s environmental scorecard. History shows us that when major Retailers are hit with a cost, (and the price of carbon will be a biggie), they will inevitably look to suppliers to help drive savings.
Meanwhile, a bevy of shopper and consumer research is indicating that more and more people are thinking about the carbon footprint of their purchases.
With the carbon issue escalating, there is no doubt that companies need to:
- account for their emissions,
- reduce their emissions,
- monitor, review / continue to report their emissions;
via a properly prepared GHG plan.
The FMCG Sustainability Institute helps you proactively and positively plan for the ETS change, in the context of your overarching Sustainability strategy.
You will find further commentary and resources regarding the pending emissions trading scheme (ETS) in the News / Articles section of our website.
To find out how we can help you with greenhouse gas and carbon neutrality – contact us.
