SMEs liable as suppliers under carbon price

18 Apr 2012

A recent survey has provided a snapshot of some of the ways in which SMEs will be affected by the forthcoming carbon price.
In order to reduce their financial liability under the scheme, large corporations and organisations will want to measure the real carbon footprint of their business operations.  And they will need to know the carbon emissions levels of the products and services delivered to them by their SME suppliers.  Many of Victoria’s small and medium sized businesses will be forced to reduce their carbon emissions as the flow on impacts of the carbon take effect. 

The Australian Institute of Management’s recent survey of business leaders and management personnel found that 58 per cent of participants believed that major polluters will require their SME suppliers to limit their carbon emissions.  Support for this view was highest among CEOs and Board Members (65 per cent).

A growing number of major organisations that are supplied by SMEs will require them to have systems and plans in place to measure and reduce their carbon emissions. “SMEs need to be ready to meet that requirement,” said Susan Heron, the CEO of the Australian Institute of Management, Victoria and Tasmania Branch. 

The survey, ‘Australia’s Carbon Tax’, attracted 936 participants across all industry sectors (including government).  It found that there was little scepticism about climate science, with just 12 per cent of respondents, including only 3 per cent of CEOs and Board members, saying they don’t believe in global warming or carbon reduction measures.

Measuring and reporting your environmental performance is a smart business move. Many businesses are now assessing their environmental credentials in order to cut costs and stay competitive, as a growing number larger organisations require their suppliers to have systems in place to measure and reduce their carbon emissions. 

Improving your energy efficiency and even becoming carbon neutral can improve the viability of your business, as demand for environmental credentials increases. The financial benefits from reducing your business’ carbon footprint can far exceed the costs, as larger organisations look for the lowest-emitting suppliers to support their operations.
Grow Me the Money can offer your business a simple step by step program to develop sustainable practices and help reduce business operating costs.  You can demonstrate to potential clients how your business is managing its environmental impacts through the development of an environmental management system (EMS), which is becoming a standard requirement of government and corporate contract tender processes.  On average, Grow Me the Money participants have saved $8300 on utility costs, whilst achieving significant carbon reductions.
For more information or to sign up, visit


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