The Climate Solutions Advantage: A playbook for communicating the economic benefits of climate solutions to Australian mid-tier businesses

Overview

19 May 2025
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The Climate Solutions Advantage is a practical guide designed to help large organisations and industry associations champion climate action across Australia’s mid-tier business sector. Developed by the Centre for Policy Development and The Action Exchange, the guide provides clear, compelling messages to communicate the economic benefits of climate solutions.

While many large enterprises already recognise the financial imperative of emissions reduction, too many mid-tier businesses are being left behind—often due to a lack of tailored, actionable information. A 2023 survey found just 20% of small and medium business owners intend to improve the sustainability of their operations.

The Climate Solutions Advantage bridges this gap. Drawing on economic research and in-depth interviews with leading corporate sustainability experts, it equips business leaders with the tools they need to engage mid-tier firms—helping them reduce risk, cut costs, attract investment, and stay competitive in a rapidly changing market.

Download The Climate Solutions Advantage

The Climate Solutions Advantage is a playbook developed by the Centre for Policy Development and The Action Exchange that provides business leaders with the tools they need to communicate the advantages of climate solutions with mid-tier businesses.

How does this playbook help?

This Playbook breaks down the economic case for climate solutions into six clear benefits, each backed by real-world insights from business leaders and economists. It includes ready-to-use messaging and ways to communicate with businesses at every stage of the journey. The six key benefits are:

Reduced operational costs: Climate solutions can cut expenses and boost profits. Businesses that optimise energy use or electrify operations can improve their margins by up to 60%.
Mitigate business risk: From supply chains to insurance premiums, climate risks are rising. Climate solutions help businesses stay ahead of regulatory, financial, and reputational threats.
Protect market access: With mandatory reporting and global climate rules tightening, companies must reduce emissions to protect their access to domestic and export markets.
Better access to capital: Investors and banks are increasingly taking climate solutions into account in their lending criteria. Realistic, measurable transition plans open doors to more funding opportunities and more investment.
Stronger competitive advantage: Climate solutions provide companies with advantages over their competitors, from increasing shareholder returns and greater investor confidence, to reputational improvements and better market performance.
Greater resilience: Sustainable businesses are more adaptable, agile, and future-ready. Two-thirds of Australian companies already see the link between sustainability and long-term profitability.

What else does it say?

To learn more about The Climate Solutions Advantage you can watch the video below, where co-author Georgia McCafferty explains how the playbook was developed and what its key lessons and tips are for business leaders.

Why is this important?

Reaching net zero isn’t just about government policy or big business—it requires action across the whole economy. That includes the small and mid-sized businesses that power Australia’s supply chains, regions, and communities.

While large-scale systems change is critical, so too is change at the ground level. When mid-tier businesses cut emissions, they don’t just accelerate the energy transition—they reduce costs, attract customers, and future-proof their operations.

This is a moment of opportunity. Business leaders and industry associations have a powerful role to play in shifting the dial. By using this Playbook to clearly and confidently communicate the economic case for climate action, we can bring about real change. Because this isn’t just the right thing to do. It’s smart business.