The New Zealand Business Council for Sustainable Development is concerned New Zealand businesses are at risk of missing out on the significant business opportunities likely to arise out of the climate change challenge.
The council has identified significant business opportunities associated with the increased need to reduce greenhouse gas emissions and
we believe that these, or similar opportunities, are available to all New Zealand businesses.
But a lack of awareness and innovative thinking may mean businesses miss out.
My recent experience through The Warehouse has proved that companies can make a real difference. Our eco efficiency programme in the form of energy management, which last year received the Energy Efficiency and Conservation Authority supreme award, is saving The Warehouse about $3 million a year and is reducing greenhouse gas emissions.
Some of our energy management initiatives are simply the clever application of common sense.
The council's Climate Change Business Opportunities report describes 32 opportunities that the six participating companies have identified within their operations.
These range from providing knowledge and services, to climate-friendly branding, to investment in emissions reduction projects at home and in developing countries.
The report aims to help all businesses think positively and creatively about climate change so we can together seek win-win solutions.
The collaboration between Waste Management and Mighty River Power is an excellent example of an alliance that is delivering a win for business and a win for the environment. Methane, a powerful greenhouse gas, is now captured from Waste Management's Redvale landfill and used to generate power for around 700 homes.
BP has proved that reducing greenhouse gas emissions can be good for a company's financial bottom line.
Since 1997, BP internationally has reduced its greenhouse gases by 10 per cent from a 1990 base line and at the same time created US$650 million ($1.34 billion) in value.
Peter Griffiths, BP Oil New Zealand's chief executive, is convinced other companies can also achieve such results.
Steve Bonnici, managing director of Urgent Couriers, says reducing the company's carbon dioxide emissions through fuel use management "reduces our impact on the natural environment while improving our contractors' financial sustainability".
Andy Pearce, chief executive of Manaaki Whenua Landcare Research, was recently in London where there was considerable interest in the capabilities that Landcare has developed.
Pearce says that in Britain. major industries, banking, investing and insurance organisations have an increasingly strong focus on the sustainable development performance of businesses. Reducing greenhouse gas emissions is a key element of that performance.
London is setting itself to be the global centre for emissions and credits trading, and there is strong interest in credits from New Zealand.
Meridian Energy chief executive Keith Turner says the company is "exploring emissions trading opportunities that could potentially assist New Zealand to meet its Kyoto Protocol and national energy efficiency objectives."
Milburn Cement has recognised a significant opportunity to receive credit for improving the efficiency of its subsidiary cement plant in China, and Hubbard Foods has identified energy efficiency opportunities that will lower its costs and reduce emissions.
Dick Hubbard says the first priority is to reduce emissions by improving energy efficiency, but they will also look at the firm's whole greenhouse footprint.
High-level quantitative analysis in the specific areas of commercial building energy efficiency, wood waste to energy, the Clean Development Mechanism (a mechanism where, under the Kyoto Protocol, countries can get credit for investing in emissions reduction projects in developing countries), methane reduction through ruminant efficiency and climate-friendly branding found revenue opportunities of over $350 million a year.
The resulting greenhouse gas savings would be around nine million tonnes of carbon dioxide a year. This is estimated to be the emissions reduction equivalent of taking more than two million family cars off the road.
It is important to note that we believe this analysis is only the beginning - a taster to get business thinking. There are likely to be plenty more opportunities.
For example, optimising transport systems has the potential to deliver enormous financial and greenhouse gas savings.
For most companies, climate change is now a risk management issue with a significant upside. It makes good business sense for businesses to get to work as early as possible to minimise their greenhouse gas emissions and to identify their business opportunities in a carbon-constrained economy. If we don't act soon we will miss out.
* The council's report was prepared by PricewaterhouseCoopers in conjunction with the Ministry of Economic Development, the six participating members, BP Oil New Zealand, Hubbard Foods, Landcare Research, Meridian Energy, Milburn New Zealand and Urgent Couriers.
Experts from Niwa and Telecom also helped. A full copy of the report is available at New Zealand Business Council for Sustainable Development
* Stephen Tindall is chairman of the Business Council for Sustainable Development.
Dialogue on business
The New Zealand Business Council for Sustainable Development is concerned New Zealand businesses are at risk of missing out on the significant business opportunities likely to arise out of the climate change challenge.
The council has identified significant business opportunities associated with the increased need to reduce greenhouse gas emissions and
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