Australian companies are becoming concerned about the impact of potential alternatives to the Federal Government’s CPR Scheme, according to a new survey.
The study of the Government’s Carbon Pollution Reduction Scheme (CPRS), conducted by global consulting and internal audit firm Protiviti, has found that while the vast majority of Australian companies no longer consider the CPRS to be a serious business issue, concern is building about what regulatory alternatives might take its place. The study indicates that 49 percent of company respondents consider the introduction of some form of climate change regulation to be either a medium or high-risk issue for their business.
The study shows that climate-related issues remain a concern for Australian businesses, according to managing director of Protiviti Mark Hamill.
“This finding confirms that while business considers the CPRS to be all but dead, anxiety is still high about what will fill the void,” says Mr Hamill.
“There’s a sense that regulation or a future price on carbon is inevitable. However with the Federal Opposition proposing a very different scheme, coupled with the recent change in Prime Minister and the Greens signalling support for a carbon price, it all adds up to a highly uncertain regulatory environment,” adds Mr Hamill.
The most significant climate change-related risk for companies at present was the impact on supply chain costs, with an equal 30 percent of businesses stressing the impact of domestic climate-related regulation. The potential effect on future market trends for products and services was a concern for 24 percent of companies.
Climate regulation will inevitably affect the costs of running a business and is consequently important to present and future business plans, says Mr Hamill.
“Any climate-related regulatory change will affect the way business is done and with it, the cost of inputs and outputs. At the moment, businesses are chanting the mantra of cost containment in an economy that remains subdued in many sectors. Naturally, companies are concerned about margins getting squeezed even further if their cost structure changes as a result of the impact of carbon regulation”, says Mr Hamill.
