In the last two years, 35 percent of New Zealand businesses took action on climate change, Stats NZ said today.
"Reducing waste, switching to sustainable suppliers, and increasing the use of digital technologies were some of the changes businesses made in response to climate change," business performance manager Ricky Ho said.
These results are from the business operations survey: 2021, in which over 7,000 New Zealand-based businesses with six or more employees took part. The annual survey collects information about business practices.
The most common reasons businesses took climate change-related actions were demand from management, board, or employees, and demand from customers. Businesses also cited public opinion and having experienced the physical impacts of climate change as reasons they made changes.
| Main reasons that businesses undertook actions | Percentage |
| Do not know | 32 |
| "Demand from management and or board and or employees" | 26 |
| Demand from customers | 26 |
| Public opinion | 23 |
| Experienced the physical impacts of climate change | 17 |
| Did not make any changes | 15 |
| Other | 13 |
| To minimise supply chain disruptions | 12 |
| To take advantage of opportunities presented by climate change | 10 |
| Demand from investors or shareholders | 7 |
| Participation in government programmes | 6 |
| Pressure from competitors | 6 |
| Potential for litigation | 1 |
Of those businesses that acted in response to climate change, 10 percent measured their direct greenhouse gas emissions, while 6 percent measured their indirect greenhouse gas emissions in the last two years.
Direct greenhouse gas emissions are from sources controlled by the business. For example, natural gas used to heat a building, or the fuel used in trucks operated by the business.
Indirect greenhouse gas emissions result from activities across the supply chain. For example, for a business in the service industry this could include emissions from the generation of the electricity it uses, or from the disposal of its waste.
"The survey showed that businesses in industries that were major contributors to direct greenhouse gas emissions, such as agriculture and power and waste, were more likely to develop programmes to offset their emissions, compared with other businesses," Mr Ho said.
See Greenhouse gas emissions (industry and household): Year ended 2019 for more information on greenhouse gas emissions.
Cost is a main factor for businesses not taking action to reduce greenhouse gas emissions
One in five businesses reported that cost was the main reason 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.
| Factors that stopped businesses from making changes to reduce greenhouse gas emissions or adapt to climate change | Percentage |
| Not applicable to the business | 30 |
| Too costly | 20 |
| Nothing has stopped businesses from making changes | 20 |
| Lack of management resources | 14 |
| Do not know | 13 |
| Other higher priorities | 12 |
| Lack of viable technology | 12 |
| Lack of information to support decision-making | 10 |
| Lack of appropriate personnel and or skills | 7 |
| Difficultly raising or sourcing finance | 4 |
| Other reasons | 3 |
| Too risky | 1 |
Less than half of businesses plan to take actions in response to climate change
In 2021, 45 percent of businesses surveyed planned to take steps over the next five years in response to climate change. The top three actions planned were:
- reducing waste (33 percent)
- switching to more sustainable suppliers (20 percent)
- taking steps to reduce the risks to the business of the physical impacts of climate change (19 percent).
| Actions businesses plan to take in response to climate change | Percentage |
| Reduce waste | 33 |
| Switch to more sustainable suppliers | 20 |
| Take steps to reduce the risks to the business of the physical impacts of climate change | 19 |
| Assess the risks to the business of the physical impacts of climate change (eg increased flooding or droughts) | 18 |
| Change to lower emission technologies | 17 |
| Increase use of digital technologies | 17 |
| Develop or expand offering of low emission goods and services | 12 |
| Develop programmes to offset emissions | 11 |
| Stop or reduce use of coal or natural gas | 5 |
One in ten businesses planned to measure their greenhouse gas emissions
Ten percent of businesses planned to measure their greenhouse gas emissions over the next five years. They were more likely to do so in the following industries:
- Agriculture, forestry, and fishing (25 percent)
- Mining (24 percent)
- Electricity, gas, water, and waste services (23 percent).
In the business operation survey: 2021, businesses were surveyed about the potential impacts and opportunities for businesses in responding to and adapting to climate change as New Zealand transitions to a low-emissions economy.
