2023 – Sustainable Business & Finance

Sustainable Business & Finance 2023: When will we act?

The Herald’s 2023 Sustainable Business and Finance report comes at a time when persistent “cost of living” pressures have resulted in a marked slide in the urgency with which nations are tackling the climate change imperative.
This is unfortunate. But when revenues are crimped and costs rise, many firms also refocus their attention, to first, staying “in business”.

Neither have climate change initiatives had much airtime during the recent New Zealand election campaign.

They have been subsumed by other issues.

But they must come to the fore again after Prime Minister-elect Chris Luxon announces his Cabinet once the current negotiations between National, Act and New Zealand First are concluded. Critical to progress is exactly which politician will hold prime portfolios such as Climate Change, Transport, Energy and Agriculture.

The transport and agriculture sectors, in particular, are where major reductions need to be made in New Zealand’s greenhouse gas emissions profile.

Even more critical is the policies that will be favoured by the new Government.

An early insight into this comes from Chapman Tripp’s Kate Wilson Butler in her assessment of the likely direction of the new Government on climate change.

Businesses will be also looking out for some early insights to assess how the new Government’s strategies will align with their own climate-conscious strategies.

The catastrophic events of Cyclone Gabrielle and the Auckland Anniversary floods earlier this year serve as stark reminders of the urgent need for effective adaptation to climate change.

On this score, the new Government will have to make fundamental choices as to how much adaptation is led by local authorities and how much by central government.

This will have major budget implications into the future if New Zealand finds itself in the path of more disruptive weather — as seems likely.

Looking ahead to 2024, it is clear many New Zealand firms are refocusing their business practices in the wake of technological advancement and consumer preferences for sustainability-conscious products. This is particularly obvious in New Zealand’s prime agriculture sector.

Green finance is also steadily expanding in New Zealand with a greater appetite from firms to make headway in decarbonising their businesses with the assistance of well-targeted funding that is geared to results.

The Institute of Directors — which brought the World Economic Forum’s Chapter Zero Chapter to New Zealand — has also become a rallying point for directors to drive progress in the companies they govern. It’s not simply about ensuring directors are prepared to strategically identify climate risks and ensure sustainability reporting when it comes to reporting financial results, but to ensure change happens. Enjoy the report.

Fran O’Sullivan
Executive Editor
Herald Business Reports

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