Nearly one-third of New Zealand businesses have increased prices because of energy costs or supply uncertainty, while one in five has reduced production, operating hours or output, according to a new ASB survey.
“Businesses clearly recognise the growing challenges posed by rising energy costs and potential supply disruptions, driven by declining domestic gas reserves, the Middle Eastern conflict, and global political uncertainty, yet many are not taking action,” says ASB executive general manager corporate banking Jonathan Oram.
The survey of more than 400 business leaders, supported by Talbot Mills Research, found 73% were concerned about current energy costs, making it their second biggest concern behind general economic uncertainty at 79%.
Seven in ten businesses regard energy as a major or actively managed operating cost, with a similar proportion reporting increases in energy costs over the past two years.
The findings reveal a gap between confidence and preparedness. While 64% believe their business could continue operating through a prolonged power outage, only 37% expect to maintain operations for more than three days without their primary energy source.
More than a quarter (28%) have identified energy as a business risk but have yet to develop a plan to address it.
ASB says technologies including solar power, battery storage and electric vehicles are providing opportunities to reduce costs and improve energy resilience, although upfront investment remains a significant barrier.
The survey found 43% of businesses identified initial costs as the biggest obstacle to investing in energy resilience.
More than 40% of businesses surveyed spend at least 40% of their energy costs on buildings and facilities.
In response, ASB has partnered with building performance company Tether to launch Better Buildings, a platform designed to help property investors, building owners and tenants assess opportunities to improve energy efficiency, sustainability and resilience.
“Better Buildings helps businesses identify energy resilience opportunities, build the business case for investment and create better-performing, future-ready buildings. When businesses are ready to invest, ASB can support eligible projects through our sustainable finance solutions,” Oram says.
Tether founder and chief executive Brandon van Blerk says businesses have often faced difficulties coordinating building advice, suppliers and financing.
“Too often, property owners and occupiers have had to navigate building advice, suppliers and finance separately, making it harder to turn opportunities into action. Better Buildings brings the process together in one place, helping businesses build stronger investment cases, access funding and measure results.”
ASB has funded an expansion of the National Australian Built Environment Rating System New Zealand (NABERSNZ), which measures building energy efficiency on a one to six-star scale. The scheme now includes shopping centres, retail stores, warehouses and cold stores.
Administered by the New Zealand Green Building Council on behalf of the Energy Efficiency and Conservation Authority (EECA), the scheme independently assesses building energy performance. It has been operating in New Zealand’s office sector since 2014.
For businesses with more complex energy requirements, ASB is supporting access to independent energy consultants to assess resilience, identify potential savings and develop implementation plans.
Eligible customers proceeding with qualifying ASB lending can receive reimbursement of consultancy costs of up to $50,000.
ASB’s sustainable finance options include business sustainability loans, lending under the Government-backed Gas Transition Loan Guarantee Scheme and specialised financing for larger projects.