Back to Industry Insights
2025All
Featured image

Decarbonisation Insights Summary

An analysis of 70 Australian & New Zealand SMB Decarbonisation Use Cases

Executive Overview

  • 70 real-world cases analysed: 19 Australian detailed cases + 51 New Zealand sector examples
  • Split between approaches: 57% Quick Wins (38 cases) vs 43% Investments (32 cases)
  • Key finding: Decarbonization delivers measurable financial returns while reducing environmental impact

Financial Performance Insights

Return on Investment Patterns

  • Quick Wins (payback <3 years):
    • Fuel switching/optimization: Immediate to 2-year payback (e.g., Postal Freight: $1M/year savings, no capital cost)
    • LED lighting upgrades: 18-month to 2-year payback with 15-75% energy reduction
    • Energy audits & behavioural changes: <1-year payback, 5-15% cost savings
    • Operational policy changes: Zero capital investment, immediate returns
  • Strategic Investments (3–10-year payback):
    • Heat pumps replacing gas: 3–5-year payback, 40-50% emission cuts
    • Solar PV installations: 4–7-year payback, 20-35% grid independence
    • Refrigeration/HVAC upgrades: 2–5-year payback, 12-20% energy reduction
    • Fleet electrification: 5–10-year payback, 40-60% fuel cost reduction

Quantified Annual Savings (Selected Examples)

  • Energy efficiency: $5,000-$1.8M/year depending on scale and sector
  • Fuel optimization: $12,000-$1M+/year (logistics sector shows highest returns)
  • Waste reduction: $5,000-$30,000/year through diversion and composting
  • Water efficiency: $5,000-$18,000/year with greywater/rainwater systems

Carbon Impact by Intervention Type

  • Highest impact interventions:
    • Fleet electrification: 50-60% emission reduction in transport sectors
    • Renewable electricity switch: 35% Scope 2 emission elimination
    • Process heat electrification: 40% emission cuts from fuel switching
    • Modal shift (road to rail): 50-60% freight emission reduction
  • Medium impact (10-30% reductions):
    • Energy efficiency upgrades (lighting, HVAC, motors): 10-20% site-wide reduction
    • Heat recovery systems: 20% fuel/gas reduction
    • Variable speed drives: 11-17% specific equipment energy reduction
  • Quantified annual CO₂ reductions:
    • Large facilities: 800-3,700 tCO₂-e/year (Regis Aged Care, De Bortoli, Austral Fisheries)
    • Medium businesses: 66-1,341 tCO₂-e/year (Bickford's, RM Williams)
    • Small operations: 3-30 tCO₂-e/year (Margaret River Truffle Farm, various NZ SMBs)

Sector-Specific Success Patterns

Manufacturing & Processing

  • Top interventions: VSDs on motors/compressors, heat recovery, LED lighting
  • Typical savings: 12-35% energy reduction
  • Key enabler: Energy audits identify hidden opportunities

Hospitality & Tourism

  • Top interventions: Heat pumps, solar hot water, EV charging
  • Guest experiences benefit: Improved comfort + green branding
  • Typical savings: 20-30% energy costs

Logistics & Transport

  • Top interventions: Route optimization, eco-driving, fleet electrification
  • Quick wins: 10-20% fuel savings from software/training
  • Long-term: EVs deliver 40-60% operating cost reduction

Food & Beverage

  • Top interventions: Waste-to-energy, packaging reduction, renewable electricity
  • Circular economy: Composting saves disposal costs + creates value
  • Market advantage: Sustainability credentials win retail contracts

Implementation Success Factors

Critical Enablers

  • Government grants: 65% of cases leveraged grants/incentives (Australia: Clean Technology, Energy Efficiency; NZ: various regional programs)
  • Expert audits: Professional energy audits uncovered 12-35% savings potential not visible internally
  • Phased rollout: Multi-site programs (Regis: 35 facilities) achieved economies of scale
  • Timing strategic work: Off-season installations (Berrydale Swim School) avoided revenue loss

Common Technology Choices

  • Lighting: LED conversions universal across all sectors (15-80% lighting energy reduction)
  • Heating/cooling: Electric heat pumps replacing gas (4:1 efficiency gains typical)
  • Motors/pumps: Variable speed drives enabling 10-20% energy savings
  • Renewable energy: Solar PV most common (4–7-year payback), 100% renewable contracts for immediate Scope 2 elimination
  • Monitoring: IoT sensors and telematics reducing travel emissions and improving efficiency

Business Benefits Beyond Carbon

Operational Improvements

  • Reliability gains: New equipment = less downtime (HF Hand: better weld quality, De Bortoli: improved cooling capacity)
  • Productivity boosts: Better lighting/heating = safer, more comfortable workplaces (Thredbo Distillery, Glen Park)
  • Reduced maintenance: Modern systems need less servicing (LEDs last 10x longer, EVs have 60% fewer moving parts)
  • Future-proofing: Protection from energy price volatility and carbon pricing

Market & Brand Advantages

  • Customer acquisition: 8 cases explicitly noted winning new eco-conscious customers (Ross Hill Wines: "customer excitement and loyalty increased")
  • B2B requirements: Meeting retailer/client sustainability mandates (Maurice Blackburn: winning government tenders)
  • Certification value: Climate Active/Carbon Neutral status = marketing differentiation (Capital Brewing: Australia's first carbon neutral beer)
  • Staff engagement: 5 cases reported improved employee morale and pride (Austral Fisheries, Maurice Blackburn)

Competitive Positioning

  • First-mover advantage: Early adopters gained media coverage and awards (Sydney Opera House, Alto Hotel)
  • Premium positioning: Sustainability enables higher pricing/occupancy (Alto Hotel, Ross Hill Wines)
  • Supply chain leadership: Team Global Express positioned for client Scope 3 requirements

Analysis based on 70 verified case studies from Climate Active, government sustainability programs, and industry reports (2018-2025)

Your customers are already asking the question  can you show real progress on emissions?
Corporate and export partners increasingly expect clear evidence: emission transparency, reduction plans, and credible reporting that aligns with their own sustainability commitments.

Get your CFO-led Carbon Snapshot Review this month uncover your biggest quick wins, model the ROI, and see how your business stacks up before those questions come to you.

Email; Warwick@greenmetrics.co.nz to book your Carbon Snapshot Review or Contact Us Here

Last updated: 10/8/2025

More Industry Insights