A third of New Zealand businesses are acting in response to climate change ahead of emissions reporting rules taking effect, according to Stats NZ.

A survey of 7000 businesses with at least six employees shows 25% of businesses have reduced waste, 11% have switched to more sustainable suppliers and 10% have increased their digital technologies.

The main reasons why businesses have taken action are public pressure and opinion of customers and the workforce. More than 10% of businesses have measured their direct greenhouse gas emissions, including issues like changing the heating of buildings, or indirect emissions, such as those from electricity use or disposal of waste.

Stats NZ business performance manager Ricky Ho says businesses in industries that are major contributors to direct greenhouse gas emissions – such as agriculture, power and waste – are more likely to develop programmes to offset their emissions, compared with other businesses.

However, one in five businesses reported that cost was the main factor that stopped them from making changes to reduce their greenhouse gas emissions or adapt to climate change. Other reasons given were lack of management resources, lack of viable technology, and having other priorities.

The new regime requires large banks, credit unions, building societies, managers of registered investment schemes, insurers and most equity and debt issuers on the NZX to assess and publicly disclose their responses to climate-related risks. This list may be expanded by the Government, which will release its muchanticipated Emissions Reduction Plan on May 31.

While the Government has indicated the large increase in operational expenditure pencilled in for Budget 2022 (to be released on May 19) will go towards climate-related initiatives, some businesses will likely also have to bear the cost.

These articles were featured in NAI Harcourts Market Leader, Issue 2 2022.