Business gearing up for climate change

Behind the political and business rhetoric about climate change there is growing
evidence that Australia's largest companies are already preparing for a low-carbon
future.
Big business has seen the writing on the wall and is taking active, if quiet, steps
to mitigate its future risk, according to a leading energy and carbon data
collection specialist.
"Within big business there is a recognition that, irrespective of when we get an
emissions trading scheme (ETS) and exactly what shape it takes, fundamentally we are
moving toward a more carbon-constrained economy and there will be upward pressure on
energy prices," Carbon Systems chief executive David Solsky said.
As one of only a handful of Australian suppliers, Mr Solsky said there had been a
strong upswing in the number of companies introducing energy and carbon accounting
software.
Mr Solsky said Carbon Systems had installed its Energy and Carbon Intelligence
System (ECIS) in about 50 of the top 200 companies in Australia in the past 12 to 18
months.
The ECIS software captures and collates environmental data, such as energy, fuel,
water and carbon emissions, helping companies identify and act to reduce emissions.
Mr Solsky said the greatest demand was coming from mid to large manufacturers and
miners, with property, distribution and retail also a rapidly growing market.
"I would estimate that all up there is 2500 to 3000 mid to large organisations in
Australia looking to use technology like ours to get a better handle on the
measurement and management of their carbon emissions."
"The big emerging market has come from companies that are not historically large
consumers of energy or emitters but are now caught by the compliance regulations."
Companies already using the system include AGL, Fortescue Metal Group, Metcash,
Spotless Group, Elders and Dominos.
The national greenhouse and energy reporting system, now in its third year, had
provided strong momentum, but there were also hundreds of companies who introduced
the technology voluntarily.
"We also have a significant number of customers classed as voluntary reporters who
want the data for corporate social responsibility or triple bottom line reporting
(financial, social and environmental)," Mr Solsky said.
He said the ability to accurately and continuously monitor electricity and fuel
emissions could have huge cost-saving implications for clients.
"We've seen commercial office buildings where lighting retrofits have saved hundreds
of thousands in energy costs."
In one large-scale project, a client switched to generating electricity from gas on
site that saved millions of dollars over a three to five-year period.
"Today it is about being able to measure baselines and benchmark the energy and
carbon performance of their business operations," Mr Solsky said
"We are finding that with most of our clients there are a lot of energy efficiency
projects that are being juggled today, regardless of having a carbon price."
Mr Solsky said a carbon tax would increase the amount of viable energy and carbon
saving projects.
"A price on carbon would take that next tier of projects that aren't quite there -
where the return on investment or payback period doesn't look quite right at today's
energy prices - and bring them into the investment zone for a lot of the large
corporates that we are dealing with."
The Australian Chamber of Commerce and Industry, while not supporting the concept of
a price on carbon, said the potential cost-savings were driving greater energy
efficiencies among small and mid size companies.
"Our members are saying they are more anxious to look at opportunities for energy
efficiency to directly reduce their energy bills," ACCI director of industry policy
Greg Evans said.
"They are driven principally by economics without the need for a pre-emptive carbon
tax or emissions trading scheme."