Action on climate change top of business concerns

Climate change is one of the top three issues facing Australian executives, following the economic outlook and the search for talent, with 68 per cent of executives reporting that they have increased their investment in sustainability over the last year.

The report also found most Australian business leaders (79 per cent) remained optimistic that economic growth can be achieved while also reaching climate change goals.

The survey, part of a global survey of executives, took a deep dive into the concerns and actions of Australian business leaders when it comes to climate change and sustainability. Additionally, the survey found that 56 per cent of business leaders said climate change is likely to impact their companies’ strategies and operations to a “high/very high” degree over the next three years.

A further 57 per cent said they feel concerned about climate change all or most of the time, while 80 per cent are somewhat or extremely optimistic that the world will take sufficient steps to avoid the worst impacts of climate change.

More than 60 per cent of leaders said that it was the concern of their employees that is a reason for their organisation’s actions on sustainability.

Head of Deloitte Access Economics, Dr Pradeep Philip, said Australian business executives are starting to see the shift from voluntary action to mandated change.

“The recent proposed change to the safeguard mechanism and emissions targets for big polluters show the regulatory environment is changing,” he said.

“This trend is likely to continue, marking the end of the age of voluntary action and the beginning of a new period of mandatory transition.

“This year’s report also highlights the broadening drivers for change — employees, customers, investors, shareholders, and regulators — for executives and organisations in Australia and around the world. But there is more to do and the pressures to invest in sustainability will only continue to grow.

“While executives are united on some of the key benefits of climate action such as brand recognition, employee engagement and positively impacting a shared world crisis, only 31 per cent cited investor returns as a key benefit of accelerated climate action. Done right, rapid decarbonisation presents the single biggest growth opportunity for Australian business and we expect to see this recognition shift as fast movers take the benefit of stakeholder demand for action.”