On Thursday the Federal Government committed to cutting Australia’s carbon emissions by between 62% and 70% from 2005 levels by 2035. In addition, there are six sector emission reduction plans outlining how the Government will work with the electricity and energy; agriculture and land; the built environment; industry; resources; and transport sectors to transition to a low carbon economy.
To meet these targets is going to require significant buy-in from businesses as well as all levels of government to achieve this level of reduction in the next 10 years.
What are the implications of this carbon reduction target for businesses?Â
Transitioning to a low carbon economy can present many opportunities to businesses but also leaves companies who lag behind and fail to act at risk. When considering the lead time for planning projects and implementation, organisations should start to consider the need for projects to achieve these emissions reduction targets now.
As part of mandatory Sustainability Reporting, organisations are required to report their Greenhouse Gas (GHG) emissions. Disclosing your GHG emissions is an important indicator of your transition risk, as we transition to a low carbon economy.
In addition, organisations must disclose any targets set or have been imposed on them. The National Carbon reduction target does not amount to a target that has been imposed, however, the implications on your specific organisation of the economy needing to meet that target should be factored into your analysis of your climate related risks and opportunities.
Even though you may not have specific targets imposed on your organisation, announcements like the National Carbon reduction target will increase the focus on organisations’ GHG emissions reporting. Some large companies are already taking actions, which will have flow on effects through the economy. Even before the Government’s 2035 reduction target was announced, large retailers had set a targets  that 80% of their supplier spend would be with suppliers who have science-based aligned target by the end of FY29. Therefore, there are strong economic drivers to start setting your own GHG targets.
Moore Australia has partnered with Sumday, a software designed to help you capture, measure and track your GHG emissions, making it simpler to manage your carbon footprint and set and achieve reduction targets. If you want further information about how we can assist you in setting up you GHG emissions, or establishing science-based targets, please contact your local Moore Australia contact for further information.
