WESFARMERS SUSTAINABILITY REPORT 2017

Our position on climate change

Wesfarmers accepts the Intergovernmental Panel on Climate Change’s assessment of climate change science and believes the world can pursue three objectives: a stable and reliable energy market; reduce emissions; and reduce the cost of energy. We have identified climate change as the most material environmental and social sustainability issue relevant to our businesses and have incorporated it into our long-term planning.

We recognise that the climate is changing due to human actions and we acknowledge that business has a part to play in mitigating this climate change. Wesfarmers supports Australia’s commitments under the Paris Agreement to limit global warming to 1.5°C-2°C above pre-industrial levels. Industry and governments must work together to achieve this outcome. Long-term policy certainty is a prerequisite for decarbonisation (meaning the economy reaches net zero carbon emissions) by 2050 to occur efficiently and affordably. During the year, we met with the Federal Government to reiterate our position that stable bipartisan action on climate change is critical for business to manage risk and invest in climate mitigation. Click here to read Wesfarmers' submission to a senate inquiry into the current and future impact of climate change on housing, buildings and infrastructure.

Wesfarmers recognises that climate change, industry trends and long-term customer trends mean we need to consider our exposure to the coal sector. The impact of climate change has introduced the question of ‘stranded assets’ to the wider fossil fuel sector. Click here to read about Wesfarmers’ position on investing in coal assets.