Sustaining the environment and your bottom line - Ernst & Young - Australia

Sustaining the environment and your bottom line

Climate change regulation is moving emissions reduction from the corporate social responsibility agenda onto the performance management and mission critical list — turning carbon data into financial data that will materially affect corporate results. As we move to implementation phase of the development of the Carbon Pollution Reduction Scheme (CPRS), businesses need to begin identifying strategies to manage this uncertainty as a matter of urgency. Unlike the GST, responding to climate change regulation is not just about compliance: it is also about competitive advantage.

Once carbon hits the P&L, the economics of many industries will shift. How organisations anticipate, mitigate against and adapt to the resulting changes to their business models will be critical to achieving potential in these changing times. One of the most important issues to recognise is that climate change regulations will not have an equal effect on organisations in the same sector.

These changes also bring about opportunities for corporates, providing them with prospects to invest in and work on greenfield renewable energy, energy efficiency and carbon adaptation projects and technologies. Potentially, corporates can benefit from significant economic returns, while simultaneously supporting the environment.

To help you meet this challenge, we have assembled a highly skilled climate change team drawn from across our business. This team is helping our clients to develop strategies to sustain and build competitive advantage in a carbon constrained economy, identify risks and opportunities and prepare for compliance. As your organisation tackles the challenges of climate change regulation, we hope our insights, experience and pragmatic advice make a difference. We look forward to assisting you and your business with climate change strategy including carbon risk assessment, investment advice on renewable energy resources, assistance to fund mitigation or adaptation projects, accounting, benchmarking, policy development and broader CPRS implementation advice.