Meridian Energy is taking another step in the fight against climate change by piloting an internal emissions price to encourage greener practices and reduce its environmental footprint.
The move comes as New Zealand introduces new rules requiring all listed companies to disclose how climate change may impact their business operations and long-term strategy
Meridian Senior Climate Lead, Michael Stanton, says it’s driven by the need for action on climate change.
The move comes as New Zealand introduces new rules requiring all listed companies to disclose how climate change may impact their business operations and long-term strategy.
"Climate change is going to have a material impact on the way that we all live and operate in the future. Changes are already visible." he says.
The internal emissions price that Meridian is piloting is designed to make the cost of environmental impact clear for business units. By attaching an internal price to activities that emit carbon, Michael Stanton says the company is encouraging its teams to use low-emissions products and practices.
This pricing mechanism makes high-emission alternatives more expensive, encouraging the use of low-emission products and services. High emissions products are often priced at a discount to low emission alternatives, making them appear more attractive. However, the internal emissions price looks to level that playing field.
This approach is part of a broader strategy to bring environmental considerations into Meridian’s business decisions and encourage more sustainable practices that will secure long term shareholder value.
“We need to be working towards substituting high emissions products and materials in our supply chain with low emissions products. This will be critical for us to deliver against our emissions reduction targets. To do so requires a deeper level of engagement with our suppliers – the opportunity is significant for both Meridian as a leader in our sector and for our suppliers who we encourage to seize the opportunity that innovation offers.”
Climate change brings significant risks to businesses, including extreme weather events and shifts in legislation and consumer behaviour - changes that can have a big impact on businesses that aren't ready to adapt.
And Michael believes the benefits of this work will last far beyond his lifetime.
“I am a keen fisherman and can be regularly seen on Canterbury's braided rivers chasing trout and salmon, I am also a keen skier. My goal is to ensure that my children and their children are able to do the same things I've done – to enjoy our beautiful environment.
“We pride ourselves on clean and green environment, and Meridian's a custodian of that. What we're trying to do is safeguard our environment for our young people, for our future, and for our children.”
