KEY POINTS:
The country's top chief executives don't think climate-change science is accurate and believe the Government is overstating the risk to New Zealand. But they're ready to prepare for a carbon-constrained economy.
The New Zealand Herald Mood of the Boardroom survey reveals that while most big-business leaders have scant
respect for public policy on climate change, they are divided over whether New Zealand should go carbon neutral. Most feel the country should prepare for worldwide carbon constraints but they are in no hurry for it to become carbon neutral.
Indeed, nearly seven out of 10 CEOs surveyed said New Zealand's international competitiveness might be weakened if it became carbon neutral before other countries. But nearly two out of three identified a risk to the national brand or exports if New Zealand did not move to reduce carbon emissions.
The response from chief executives in small and medium enterprises to the greenhouse gas debate follows closely the views of big-company CEOs.
At least seven out of 10 SME heads (72 per cent) are yet to be convinced of the science of climate change, but 79 per cent say New Zealand should prepare for a carbon-constrained global economy. Sixty-eight per cent identify a risk to the national brand or exports if New Zealand doesn't move to reduce carbon emissions.
Deloitte New Zealand chairman Nick Main said whatever people's views about the science, it made sense for companies to at least measure carbon emissions to prepare for future carbon trading.
"Carbon emissions have become an issue for people buying our products overseas. You have to be careful if doesn't be come another non-tariff trade barrier."
He said business had to accept there was evidence of greater carbon emissions and global warming and that New Zealand was committed internationally to reducing carbon emissions.
"The Kyoto Protocol is in place and we have signed up to it, and positioning ourselves to help negotiate another treaty is very important to us. You have to take this seriously."
Main said sooner or later there would be a carbon-trading system here and companies would need to measure and audit their carbon emissions.
"A properly designed carbon-trading system would encourage people to make economically rational decisions. You have to create a property right and regulate around the market but you don't have to regulate around what people do."
BANK of New Zealand chief executive Cameron Clyne reiterated his company's support for carbon neutrality, saying, "We have declared our commitment to carbon neutrality by 2010."
In March, the bank set a September 2010 deadline to be carbon neutral. Clyne said then the bank would start investigating a long-term solution to "offset its carbon footprint".
"We will also begin to work with customers to help them understand the impacts and opportunities that climate change presents for their business."
Air New Zealand chief executive Rob Fyfe said, despite the majority view, he would be more concerned about New Zealand's international competitiveness if it didn't take the lead on carbon neutrality.
"This is a great opportunity for New Zealand to competitively differentiate itself," he said. "We have a great platform in 100% Pure New Zealand and people will pay a premium for carbon-neutral solutions and experiences.
"While our costs may be higher, we can offset that with productivity and premium margins.
"We will never know definitively whether the science [of climate change] is right until it is too late. People care about this stuff and people's purchasing behaviour and lifestyles will become increasingly influenced by their beliefs."
A respondent from a power company warned against New Zealand "going it alone" in carbon neutrality. He supported investment in energy efficiency and renewable energy, but said policy development outside New Zealand was being appraised to ensure the country was aligned to large carbon dioxide emitters and "not going alone and getting caught out again - eg Kyoto [Protocol]".
Business Roundtable executive director Roger Kerr said many people had no idea what carbon neutrality would mean to New Zealand. "Carbon neutrality is completely unobtainable for the foreseeable future, even if we closed all our agricultural sector, banned all cars and other forms of transport and stopped economic growth."
Kerr said many companies were voluntarily conserving energy and reducing greenhouse gas emissions. But he was not surprised at scepticism of the Government's climate-change policy, which he said lacked credible cost-benefit analysis.
"What then should New Zealand do about the Kyoto Protocol? We are not going to meet our commitments by a country mile. Do we ignore the protocol or do we honestly withdraw from it?"
