Published on the 22/01/2010 | Written by Newsdesk

Despite the threat of heavy fines for companies that don’t report their greenhouse gas emissions, the majority in the mining and resources sectors have yet to measure their carbon footprint, according to a new research report commissioned by IFS.

The report, which surveyed a wide range of companies in the Australian mining and resources sectors, found that only 44 percent have implemented an energy efficiency improvement system.

The National Greenhouse and Energy Reporting System (NGERS), established under the National Greenhouse and Energy Reporting Act 2007, provides the framework for corporations to report greenhouse gas emissions, energy consumption and production.

The requirement applies to individual facilities producing 25 kilotonnes (kt) of carbon dioxide or consuming 100 terajoules (TJ) or more of energy. Corporate groups that emit at least 125kt of carbon dioxide or consume 500TJ of energy are also affected by the law.

In contrast to the lack of adoption for energy reporting systems, 87 percent of respondents felt that reducing carbon emissions was important to the industry. Other important issues were adequate waste management (85 per cent), heritage protection (77 percent) and compliance and risk management (100 percent).

IFS says its Eco-footprint Management tool provides organisations with control and transparency on the environmental impact of their operations, offering users “an enterprise standard methodology to help them control costs and meet an urgent need to prepare for compliance with environmental legislation”.

“To comply with government legislation, respond to shareholder demands and demonstrate a proactive sustainability approach, environmental impact has to be recorded. By taking action, compliance costs can be minimised, enabling mining and resources companies to focus on achieving economic growth and maximising efficiencies in 2010,” says Rob Stummer, IFS’s managing director for Australia and New Zealand.