Climate change, emissions trading and corporate social responsibility

I recently attended a stimulating panel discussion organised by the Australasian Compliance Institute on issues businesses need to consider in dealing with climate change.

The discussion showed that there is a lot of regulatory activity by different organisations across Australia relating to energy efficiency which is not co-ordinated or well-publicised. COAG is currently reviewing these.

The Government is already considering requiring companies to report on sustainability.

Key regulatory points include understanding the obligation to report emissions (do you know the size of your carbon footprint, do you have to report?) and the risk of committing greenwashing.

Do you have a reporting and risk management structure? If you don't know the size of your carbon footprint, how can you manage it and comply with the new laws?

Are you part of a supply chain that requires emissions control?

Is there an industry standard for your business (such as the finance industry's Equator Principles)?

Emissions Reporting

Do you know the quantity of your business's emissions?

The National Greenhouse and Energy Reporting System will commence on 1 July 2008.

The reporting system is expected to cover up to 900  medium and large companies, of which around 300 will be reporting for the first time.

From 1 July 2008, corporations will be required to register and report if:
− they control facilities that emit 25 kilotonnes or more of greenhouse gas (CO2 equivalent), or produce/consume 100 terajoules or more of energy; or
− their corporate group emits 125 kilotonnes or more greenhouse gas (CO2 equivalent), or produces/consumes 500 terajoules or more of energy.

Reporting on greenhouse gas emissions, reductions, removals and offsets, and energy consumption and production will be mandatory for corporations that exceed thresholds. Companies will need to establish whether they are obliged to report and, in corporate groups, they need to identify who will report. They need to determine what they have to report and fromm where. Submissions on the policy paper closed on 27 February. See the fact sheet (pdf)

Most large users should already be registered under the Energy Efficiency Opportunities Act 2006 .

Are you "greenwashing"?

Greenwashing involves misleading use of environmental claims for your product (some businesses do not have data that supports their "green" claims but claim they are green anyway)  The ACCC is already looking at green marketing and carbon offset claims.

As this year progresses, it is likely that the regulatory effect of climate change will intensify.

Your staff may also have strong views on how you comply.

BONUS LINKS: 

Department of Climate Change

Australian Conservation Foundation

The environmental legal system in Australia

Friends of the Earth: Code Red

Green Building Council of Australia