The http://www.pwc.com/extweb/onlineforms.nsf/docid/0EDACFFBA83712AB852573DB000F55FF class="instorylinks">report Carbon Countdownsurvey found that just 8% of the CEOs or CFOs from 303 Australian companies with annual turnovers of at least $150 million felt they fully understood emissions reduction opportunities and risks, which PwC says is not surprising given the lack of confidence in baseline emissions data.

Furthermore, 98% of those surveyed say they had not yet implemented a strategic response to climate change.

Andrew Petersen from PwC says the report highlights the need for companies to establish effective emissions reporting systems.

He added that experience in Europe shows business needs to be prepared for an Emissions Trading Scheme (ETS) that will come into effect in Australia by 2010.

“Poor quality and unverified data was responsible for much of the early volatility in the start up period of the EU emissions trading scheme,” he said.

“Australia is now in fortunate position to benefit from the lessons learnt in Europe by sourcing the critical investment-quality emissions data. This is one area that can give Australia a competitive advantage when it comes to creating a rational and robust trading scheme.”

The National Greenhouse and Energy Reporting Act 2007 will add to pressure for companies to set up robust emissions data reporting systems. Some 700 companies are expected to disclose information regarding greenhouse emissions and energy use data under this scheme that will take effect from July.

Pressure is also coming from investors, with many beginning to assess how companies are placed to deal with climate change risks and opportunities and demanding greater transparency in corporate responses to climate change.

The survey found 80% of respondents did not factor in climate change opportunities and risks when completing their annual reports or when discussing opportunities and risks with stakeholders.

Highlighting the exposure of the resource sector (mining and energy) to carbon risk, all of them claim climate change will be a risk to their business by 2012. Furthermore, 74% have already assessed risk at the board level, compared to the 4% industry average.

Some 28% of resources companies have established a budget to respond to climate risks and opportunities, compared to 5% of the total sample. Nearly all (92%) of these organisations are formally factoring a value for carbon into their capital expenditure decisions, as opposed to 20% of total.