Schneider Electric's 2024 Sustainability Index has revealed that many Australian businesses are struggling to decarbonise and are calling on the government for support. The report, now in its fourth year, investigates corporate Australia's position on sustainability and energy efficiency, as well as the drivers and roadblocks to establishing net zero pathways.

Key findings of the report include that 40% of companies are not acting to decarbonise and one in four have no intention to reach net zero by 2050. While 70% of respondents are discussing their Scope 1, 2 and 3 emissions, only 10% have a strategy in place for managing Scope 3 emissions. More than half of the businesses have not yet assessed climate risks and opportunities or developed a transition plan. Only 44% of companies are actively managing energy volatility.

The report also found that one in four companies will not achieve net zero by 2050. However, 70% of Australian business leaders agree that sustainable transformation gives them a competitive edge. Additionally, 71% of companies believe the benefits of adopting sustainable technology outweigh the costs. Despite this, less than one in five companies have an overarching decarbonisation roadmap or strategy in place.

Schneider Electric’s Principal and Senior Director, Sustainability Business, Lisa Zembrodt, said: “Most businesses see sustainability as offering a competitive advantage, but many don’t grasp the urgency of climate action.” She added, “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.”

Zembrodt said: "This year’s survey results point to an ongoing divide between the most progressive companies and those yet to act – but time is running out. 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. 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.”

The report's findings highlight the urgent need for businesses to take action on climate change and the role of government in providing financial incentives for sustainable transition. With new climate-related financial disclosure regulations set to roll out next year, businesses will be required to reveal extensive information on climate-related issues.

According to current projections, by 2050, 72% of companies expect to reach their net zero targets. However, 37% of respondents cited a lack of financial resources as a barrier to adopting sustainable solutions, 36% said it was not seen as urgent by their business, and 33% cited a lack of government incentives. Two-thirds of respondents said their main source of energy data was bills and spreadsheets, and a lack of data impacted their decision-making.