Survey gives business low energy conservation ranking

By NZPA

Monday 14th May 2007

Businesses are being urged to look across the Tasman for a lesson in energy conservation and environmental initiatives.

A survey published in the Grant Thornton International Business Report ranked New Zealand 25th out of 32 economies in terms of action taken to prepare for ever-increasing energy prices globally and the need to conserve energy.

The biggest worry for businesses globally was raw material costs, which 44% of businesses identified as having a major impact on cost pressures in the next year, the report said.

Staff costs were the second biggest concern at 41%, with 37% concerned about energy costs and 34% about transport costs.

But in New Zealand increasing staff costs were the biggest concern for businesses with 49% seeing them as having a major impact, followed by raw material costs at 34%.

Energy costs were perceived as having an impact on cost pressures over the next year by 25% of those taking part.

Grant Thornton New Zealand spokesman Peter Sherwin said a clear message from the survey was that unless environmental factors such as energy costs became issues that significantly affected a company's profitability, there was no incentive for a company to take action and reduce its impact on the environment.

One country bucking the trend was Australia, where businesses were undertaking more energy and environmental initiatives than New Zealand, Sherwin said.

That was despite Australia having the lowest ranking of all 32 countries in terms of expectations that energy costs would have a major impact on cost pressures during the next 12 months.

New Zealand could take a leaf out of the Australian book and benefit, he said.

"Globally, we are at a tipping point with regard to environmental management. Companies that don't take action to mitigate energy costs risk harming their long-term competitiveness."

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