Just 16 per cent of businesses will increase spending on sustainability in 2024.
This is according to a recent Retail Sentiment Report released by the National Retail Association, which noted that implementing sustainable practices could bring significant upfront costs for businesses.
This comes as retailers across Australia field growing business costs, including wage rises, alongside hampered consumer spending and confidence, putting pressure on business margins.
According to National Retail, business owners are looking for cost saving measures in their transition to reduce carbon emissions by 2030.
“Retailers are key to Australia’s transition to net-zero, so making sustainability more affordable to business owners needs to be an industry-wide priority,” National Retail director Rob Godwin said.
“We have found that operational costs for 77 per cent of all retailers will be worse this year with energy costs, wage costs and insurance being major constraints on business.
“While businesses will look to the May Federal Budget to lighten incoming cost burdens, owners will save themselves in the long run by getting ahead of their carbon neutral journey.”
Ahead of its 2024 Retail Fest event, Godwin announced a partnership with environmental firm Carbonhalo, which has designed a platform to simplify emissions reduction.
Carbonhalo CEO Richie Mulder underscored the significance of prioritising sustainability given the federal government’s push for mandatory climate reporting.
“Prioritising sustainability is no longer optional, but a necessity,” Mulder said. “Done correctly, it significantly enhances a business’s reputation and attracts new customers.”