Matt Cowley: The changing environment for businesses

Businesses need to address societal issues. Photo / File

OPINION

Businesses do not exist in a vacuum. There are societal issues that the business community needs to address as customers carefully choose where and how they spend their money and time.

Whether you believe it or not, an increasingly vocal majority of customers are mindful of climate change and they want to reduce their impact on the environment. It will make good business sense to align with your customers' values on this climate change debate.

Nevertheless, the Government needs to be mindful of the cumulative impact of its policies on businesses with the ever-increasing costs of doing business.

I have high expectations for Minister Stuart Nash, with his extensive regional development and business portfolios, that he is strongly representing the voice of business within Cabinet.

Business owners are mindful of their escalating obligations to their staff – both financially and emotionally to support their wellbeing.

Locally, Tauranga businesses will also be looking at massive council rates increases to fund the transport goals of getting more people out of private cars and on to bikes and buses.

The hospitality sector needs to overhaul their kitchens as "cooking with gas" will be a thing of the past.

Businesses will become liable for the waste associated with their products, even after it is sold to the customer. This will be one of the hardest and most challenging tasks for businesses.

Electricity prices will increase as the grid needs to account for greater peak loading when people charge their cars straight after work.

In my opinion, the issue is not whether to address climate change; the issue is the need to carefully manage the transition to become a carbon neutral economy.

The Government's transition plan must work in harmony with business confidence and job creation.

Some industries will be easier to change than others. There needs to be good education on why it's important and to make it easy for businesses to get on board.

The costs of going carbon neutral must be shared across the community in a fair and transparent way.

There are great examples of businesses proudly marketing their environmental conscience processes as a way of justifying their higher prices, giving them a point of difference, and attracting and retaining their staff.

These businesses are successful because they are living their customers' values.

• Matt Cowley is the chief executive of Tauranga Chamber of Commerce.