Partner, Sustainability and Climate Change Leader, PwC New Zealand
New Zealanders can’t ignore climate change any longer. The Climate Change
Commission’s draft advice recommends a range of ambitious policy levers and actions to help New Zealand achieve its carbon neutral targets. If implemented these will have far reaching implications on every business in the country. Action needs to be taken now to progress the transition to a low carbon future.
I think climate change brings considerable potential. So much focus is given to the risks and the costs associated with compliance, but it’s not often you get to really look at your business model and disrupt how you operate.
Climate change impacts every aspect of a business from how it sets its strategic direction, to how it continues to generate revenue, and the operating model that supports it. The potential to redefine your business is huge. Some businesses will reap the benefits and others will need to make fundamental shifts to survive.
Climate change also presents an opportunity for reputational advantage for first movers. They have the opportunity to own that space and show true leadership within their sector.
However, any work in this area needs to be done with integrity and authenticity to have any real bearing on reputation perception.
One critical challenge facing publicly listed companies and large financial services organisations is the Government’s intention to mandate climate-related financial disclosure – a proposal currently making its way through parliament. Impacted organisations will be required to comply or explain based on standards currently being drafted by the External Reporting Board (XRB). These disclosure requirements could take effect as early as 2023.
It’s important for these organisations to begin identifying and assessing risk now to ensure they are ready to meet the requirements.
of CEOs are ‘extremely concerned’
about climate change and environmental
damage compared to 42% in 2020
have factored in climate change and
environmental damage into their
strategic risk management activities
compared to 40% globally
of CEOs plan to increase long-term
investment in sustainability and ESG
initiatives over the next three years as a
result of COVID-19
of CEOs believe the Government’s
recovery plan will effectively
balance short-term economic needs
with long- term environmental goals
compared to 45% globally and 41%