David Benson-Pope
13 February, 2007
Business Partnerships for Sustainability
The Labour-led government is introducing new measures to make it easier for New Zealand businesses to find out about and implement sustainable business practices, Environment Minister David Benson-Pope said today.
The Business Partnerships for Sustainability programme -- announced today in the Prime Minister's statement to Parliament -- will include support for existing sustainability advisory services like the Sustainable Business Network, the expansion of assistance to industry groups and certainty from the government on moves to a carbon-priced future.
"Seventy-eight per cent of business leaders believe that sustainability will make New Zealand more competitive," David Benson-Pope said.
"Many businesses have taken steps in this direction, and others want to do the right thing, but don’t know where to start.
"Success stories include Grove Mill, the world's first certified carbon neutral winery, and Fonterra whose 'inland port' at Te Rapa links its North Island plants by rail, removing trucks from Waikato Roads.
"The government wants to build on the strong partnerships it has built around sustainability through programmes and services such as EECA's Emprove energy efficiency programme, MfE's Simply Sustainable programme and the 'Greening the Screen' partnership with the film and television industry."
The Business Partnerships for Sustainability programme will include:
- Working with stakeholders to ensure that business has good advice on how to achieve greater sustainability
- Promoting and marketing and support for sustainable business products and services
- Working with business to ensure it can leverage off the government's sustainable purchasing and practises
- Continuing advisory and technical support
- Mainstreaming sustainability into business development programmes
"The initiative will also address the need for certainty about future energy directions so that they are in a position to take advantage of the significant economic opportunities that arise from sustainability."
Full details of the initiative will be announced later in the year and in Budget 2007.
Q&A – Business partnerships for sustainability
What is being proposed?
This initiative will:
- increase advisory support to businesses
- invite those sectors most affected by environmental perceptions to work with government on sector sustainability strategies
- link with, and leverage, government purchasing power to support businesses that want to produce more sustainable goods and services and develop markets domestically and offshore.
- further details on roll-out and the various parts of the package will be given in the coming months.
What is already being done by government?
The government already works in partnership with business. There are already strong partnerships with industries or businesses which are taking an active approach, e.g.
Existing central and local government-supported programmes and services will continue, for example:
- EECA’s Emprove energy efficiency programme
- Energy Intensive Business grants to help high energy using businesses invest in efficient technologies
- MfE’s Simply Sustainable programme
- The recently announced $8 million contestable fund to support deployment of marine based energy
- Forest Industries Development Agenda (funding for bioenergy initiatives for renewable energy from woody biomass)
- Wellington Regional Chamber of Commerce promotions
- Landcare Research’s EnviroSmart and Enviro-Mark programmes.
What is already being done by businesses, and what are the benefits?
The government acknowledges the work of business organisations like the Sustainable Business Network and New Zealand Business Council for Sustainable Development on sustainability issues.
Success stories include:
- Westpac Bank -- supply chain management
- Grove Mill -- world’s first certified carbon neutral winery have been released
- Urgent Couriers -- has kept emissions despite 26% growth in turnover level by purchasing lower emission cars and making more use of cycling and smart technology; will become carbon neutral
- Tenon Limited -- replaced large quantities of natural gas with renewable geothermal heat to run its wood drying kilns, significantly cutting its bills and its greenhouse gas emissions
- New Zealand Aluminium Smelters -- emissions cut by 40% from 1990 levels despite 25% increase in production, with annual savings of $10 million.
There are also areas which offer promise for the future:
- The Pastoral Greenhouse Gas Research Consortium, a private-public venture, is doing vital research into measures which can reduce agricultural sector emissions (which make up about half of New Zealand’s greenhouse gas emissions)
- The Scion and AgResearch programme with US-based Diversa Corporation, which could see the whole New Zealand vehicle fleet running on New Zealand-grown biofuels
Work is already underway to put in place a regulatory framework to ensure that the products used and made by New Zealand businesses meet good environmental standards.
Why should business bother?
The environment in which New Zealand businesses operate is changing and New Zealand business will need to be prepared and able to change with it. Resources are becoming scarcer and more expensive, weather patterns are changing and will affect agricultural and other business sectors into the future, and global markets are demanding more environmentally aware products and services. These changes are opportunities for the New Zealand economy as well as risks. For smart business, sustainability can save money and increase profitability through resource efficiency, cost reduction, new market niches, and scope for innovation.
What is the government doing to increase business certainty on future climate change policy and carbon pricing?
The government is currently consulting on its climate change and energy policies. When finalised, these policies will give clear signals to business on the transition to greenhouse gas pricing in the future. The government recognises that clear signals on this are important for business certainty.
What is government doing to lead business transformation?
The government will use its purchasing power to help support businesses that want to sell sustainable goods and services. (see sustainable procurement)
