One in four Australian companies have no intention to reach net zero by 2050, while 40 percent are not acting on decarbonisation, according to Schneider Electric’s 2024 Sustainability Index.
The research from the energy management and digital automation specialist reveals more than half of Australia’s corporate decision-makers believe Australia’s energy transition is falling behind the rest of the world.
Less than one in five companies have a decarbonisation roadmap or strategy in place, according to the Index, while just 10 percent have a strategy for managing Scope 3 emissions.
More than half have not yet assessed climate risks and opportunities or developed a transition plan for their business, and only 44 percent are actively managing energy volatility.
Despite this, 70 percent of Australian business leaders agree that sustainable transformation gives them a competitive edge, with 71 percent of companies believing the benefits of adopting sustainable technology outweigh the costs.
Four out of five corporate decision-makers who were surveyed said the federal government should support the energy transition.
A third pointed to regulation as the main driver for decarbonisation, with the majority of respondents (81 percent) stating that the government should provide financial incentives for sustainable transformation to be viable, which was up from 76 percent last year.
Commenting on the findings, Schneider Electric’s Principal and Senior Director of Sustainability Business, Lisa Zembrodt, said the survey results demonstrate business supports the energy transition, but also that many companies risked being exposed for inaction by looming requirements to disclose decarbonisation strategies and targets.
“Most businesses see sustainability as offering a competitive advantage, but many don’t grasp the urgency of climate action,” she said.
“With new climate-related financial disclosure regulations rolling out next year, having a roadmap to transition your business to the low-carbon economy will be essential and companies should urgently develop and implement a net zero plan.”
According to current projections, 72 percent of companies expect to reach net zero by 2050, while a small number have an ambitious 2025 or 2030 target in mind.
Across the board, 57 percent of respondents are planning to invest in the next two years and 44 percent are expecting to achieve 100 percent renewable electricity by 2030.
Of all respondents, 38 percent are using AI to support their sustainable energy transition, with three in four agreeing that digital can help deliver their company’s sustainability goals.
Barriers to adopting and implementing sustainable solutions include a lack of financial resources (37 percent), lack of urgency from the business (36 percent) and a lack of government incentives (33 percent).
Two-thirds of respondents reported that their main source of energy data was bills and spreadsheets, while a further two-thirds said a lack of data impacted their decision-making.
Zembrodt said this year’s survey results point to an ongoing divide between the most progressive companies and those yet to act.
“We need to bridge this divide by sharing knowledge and resources across industries, being clear on expectations, and looking to governments for leadership and support,” she said.
“Companies should not wait to establish and act on a decarbonisation plan, the tools and technology exist today to improve efficiency and cut emissions, leading to lower energy costs.
“In an environment of greater transparency, progressive companies are optimising their sustainability and emissions performance, and with that they’re improving efficiency and are better able to attract capital.”
The research comprised over 500 business decision-makers at C-suite, senior and middle management level, spanning operations, finance, technology and sustainability functions.
