A great deal more needs to be done before business is adequately prepared for the CPRS scheme, says Ai Group chief executive, Heather Ridout.

A report by the Australian Industry Group and KPMG into business readiness for climate change reveals a mix of responses.

While businesses have begun to take active steps to measure and manage their carbon footprints, there are still significant problem areas, with businesses not yet well informed about the government's proposed Carbon Pollution Reduction Scheme (CPRS).

"There is clearly a great deal more that needs to be done before we can assume business is adequately prepared for the scheme and its impacts," says Ai Group chief executive, Heather Ridout.

According to Ridout, one of the biggest concerns for business is the disturbing proliferation of regulatory measures in the climate change area in recent times and the strong expectation of more to come. "Notwithstanding some promising initial comments by the commonwealth government, there is yet to be any streamlining of (the) regulation over greenhouse gas emissions."

"These findings accord with a recent report by the Productivity Commission in which it counted no less than 244 regulatory measures related to greenhouse gas emissions administered by 56 different agencies. This is emerging as a major failure of policy in Australia. Ai Group urges the government to put right at the top of the policy agenda a plan with clearly defined targets aimed at getting rid of unnecessary and productivity damaging climate change regulations."

Key findings of the report:

* Almost three-quarters of businesses currently measure or plan over the next three years to measure their carbon footprint;
* Around 38% of businesses have already taken steps to reduce their direct emissions, reduce their energy overheads or to reduce their energy inputs per unit of production;
* More than 60% of businesses have taken steps or plan over the next three years to invest in "cleaner" capital equipment as part of their management of their carbon footprint;
* Only 15% of businesses surveyed were confident they had knowledge of all key elements of the CPRS;
* Over 30% of businesses say they have no knowledge of the key elements of the Scheme;
* Over 55% of all businesses are currently not taking steps to become better informed;
* Close to one-quarter of businesses surveyed have undertaken a formal assessment of the impacts of the CPRS;
* Across businesses of all sizes, almost 70% of respondents expect to be allocating extra resources over the next three years to compliance with regulations in the areas of greenhouse gas emissions and energy use.