Engaging with New Zealand Business
30. How work towards the goal expressed above will bear fruit, however, will ultimately depend on the willingness and ability of New Zealand firms to manage risks and/or take up opportunities. This is not something the government can achieve by itself. Nor can the government, acting alone, develop what it thinks is the "solution" and expect it to be embraced by business. Even where the government decides to set requirements in some areas, such as minimum standards for government procurement, it will still be for individual firms to respond.
31. While understood in some circles, many firms, especially SMEs, do not have a good understanding of how changes in international markets or regulatory conditions as outlined above are likely to shape their future business and/or lack the capability to respond to these changes. In particular, developments affecting markets that stem largely from long-term government actions, especially at the international level, can be opaque to all but the largest firms.
32. Contrary to some external perceptions, current information shows that New Zealand firms generally lag behind other OECD countries in the uptake of sustainable business practices. Many seem focussed on extending and defending core business as opposed to capitalising on emerging businesses opportunities and creating viable options for the future.
33. What, then, can the government do to get business better engaged and aligned with the positioning goal for New Zealand, as outlined above? Put another way, what can the government do to help firms lift their game in terms of sustainable practices that would enable them and other players to "trade" on the basis of their "sustainability"?
34. Businesses need to be able to see a clear value proposition in becoming more sustainable, i.e. recognise specific opportunities for using environmental integrity for economic advantage and have the capability to capitalise on these opportunities.
35. It is proposed that, as well as establishing and articulating the medium to long-term positioning goal outlined above, the government:
- in partnership with firms and/or sectors likely to be responsive to the need to become more sustainable, advance a small number of initial, well-chosen initiatives or actions of a potentially transformative nature (the emphasis being on making an intelligent start, learning by doing, and not embarking on too wide an agenda);
- seek to broaden current business-capability initiatives to a wider range of firms and sectors so that mainstream business has a good understanding of the emerging market-based risks and opportunities and an ability to respond to the challenges.
36. Below we discuss a range of actions with respect to (a) and (b) above (noted in bold for ease of reference) organised under four separate, but related, levels of activity:
- identifying market opportunities;
- building the capability of New Zealand firms;
- building the capability of key New Zealand sectors;
- building New Zealand's capability for international leadership.
37. Timely, accurate and specific market intelligence is a sine qua non for improved performance.
38. At the firm level, the government can assist businesses which want to access sustainable business support services by ensuring these are well- signposted, high-quality, adequately resourced, and integrated into mainstream business channels.
39. At the sector level, the government can support key sectors to develop co-ordinated responses to common risks and opportunities - the pastoral, tourism, food and beverage and seafood sectors are obvious areas of focus given their economic importance/potential and the relevance of sustainability issues to their future economic performance.
40. At the country level, sustainability efforts by internationally-prominent sectors will reinforce the international reputation of New Zealand as a source of sustainable products and services - this reputation can be further enhanced if New Zealand is seen to be at the forefront of new sustainable developments, e.g. research into tackling greenhouse gas emissions from the agricultural sector.
41. Officials propose to report separately on how progress under each level of activity can be measured and how these are contributing to the overall goal. This will involve drawing on existing work on growth and innovation and sustainability indicators.
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