A new business survey of more than 1,000 employed and self-employed workers by independent finance firm Metro Finance has revealed Australians are both tightening their belts and planning for a brighter future.
Despite the overwhelming expectation that the cost of goods and services would continue to rise in 2025, almost two thirds of respondents said their companies would not seek financing this year.
Considering more than 70% were confident they could obtain financing if necessary, Australian business appears to be holding a cautiously optimistic attitude to the future of the Australian economy.
Interestingly, while many businesses are looking to reduce budgets and save costs, many are still taking up sustainability and waste reduction initiatives.
ESG initiatives avoid the axe
Despite increasing revenue, improving cashflow and reducing debt being the three primary business goals for the 2025 financial year, many companies are introducing or maintaining recycling (39.6%), solar energy (27.6%), and low emission vehicles initiatives (19.6%) in their business practices.
More than a third of respondents indicated their environmental, governance and social (ESG) efforts were paying dividends in terms of community approval of their business, and more than a quarter indicated engaging with sustainability policies helped them be seen as industry leaders.
There was dissenting opinion however, with 16.4% of respondents indicating they thought sustainability efforts made businesses seem more expensive than their competitors.
The Federal Australian government introduced a bill to make sustainability reports containing climate-related financial disclosures mandatory as of January this year, meaning the sustainability of Australian businesses will be more apparent than ever before.
“As more people consider environmental sustainability when making financial decisions, climate disclosure will continue to grow in importance,” ASIC commissioner Kate O’Rourke said, referring to the mandatory reporting rules.
“Enhanced climate disclosure will also benefit reporting entities themselves, enabling them to better understand their climate-related risks and opportunities over the short, medium and long term.”