More than half of Australian companies plan to scale back environmental initiatives to weather the financial harm caused by the COVID pandemic, a report released this month suggests.
Over the past few decades, regulatory and societal pressures have prompted businesses to adopt environmental initiatives at a growing rate.
Environmental initiatives require a long-term focus, and in my view, businesses would be unwise to scale back these measures in response to the pandemic.
This is a troubling figure, but below the global average of 65%.
But as a general rule, slowing the momentum on environmental initiatives increases business exposure to climate risk – and may affect future profitability.
Sustainable business activities need not damage a business’ financial returns.
For governments, this is a good time to seriously consider pricing carbon, which financially penalises high-emitting companies.
Governments should also consider earmarking a decent fraction of further stimulus payments to encourage business action on climate change.
They, along with governments and society, cannot continue their uncoordinated, piecemeal response to climate change.