Business and Economy Report 2008

Business and Economy

The Auckland Region

Introduction

And it is real. While it continues tobe a subject of much discussionand debate, thinking and theory,environmental sustainability has movedfrom the fringes of the green movementand is now mainstreamed in policiesthroughout the globe. In the privatesector, after years of being dismissedas a secondary consideration, it hasbecome a priority for both companiesand consumers.

Things have moved so far that NewZealand now has a mainstream magazinededicated to sustainable living. Thelaunch issue of Good (also the country’sfirst carbon neutral magazine) describessustainability as being about ‘combiningthe wisdom of the past with thetechnology of the future. It’s asmarter way to live.’Sustainability doesn’t have to be aboutspending a fortune on reports evaluatingyour carbon status, or making your staffsit in the dark. It can be about makingattainable, regular changes to the waywe do things – changes that over timebecome habit forming, and usually endup saving money and increasingefficiency. Isn’t that what successfulorganisations do: strive for and achievecontinuous improvement?For some organisations, particularlythose that have a large impact on theenvironment, greater strides are requiredand desired, both by their customersand industry. Kiwis are great innovators,and some of the ways that Aucklandershave embraced the path to sustainability,whilst actually improving the success oftheir businesses, is a triumph.For many, sustainability has actuallybecome an enormous businessopportunity. Far from being anexpensive impediment, sustainabilityhas brought about immediate costsavings, an increase in appeal andmarketability to their customers, andhas made them a more desirableemployer for prospective staff.This issue of Business and Economyattempts to take stock of sustainabilityissues as they relate to the Aucklandregion and its economy. We invite you toreflect on how these issues could affectthe performance and future growth ofyour business or organisation.Among the highlights of this edition,the Sustainable Business Network’sDavid Clendon showcases someinnovative businesses in the Aucklandregion that are becoming increasinglysustainable.Catherine Murray reflects on therelevance of ‘green jobs’ to the Aucklandregion, and identifies certain sectorswhere there is potential for growthin the economy.

‘Sustainability’ – a buzzword, a concept, a mantra or a guidingprinciple? All of these: sustainability has a variety of meanings andprompts a variety of responses. Frankly, it’s important to realise thattalking sustainability is just as likely to turn people off as it is toexcite them. So the key is to keep it real.

Alison Reid explores the issues around sustainingAuckland’s labour force.Nick Jones presents findings from his ‘Consumerwho Cares’ research, conducted within theNielsen Media Research Panorama service.The research explores consumer demand forsustainable products and consumer attitudestoward broader sustainability principles basedon their purchasing patterns.We also look at Auckland’s ongoing attempt toinstitute a programme guided by sustainableprinciples, through ‘One Plan’.This publication continues our reporting on recenteconomic trends within the Auckland region.Building on previous years’ articles on innovation,we put the spotlight on Auckland’s weightlesseconomy, characterised by high-value-addedproducts and a shift away from energy intensiveactivities.Sustainable economic development is centralto the ARC’s vision for the Auckland region. Wehope you find this publication thought provokingand useful as you work to make your organisation – and ultimately Auckland and New Zealand – more sustainable.Michael BarnettChair, Auckland Regional EconomicDevelopment ForumChair, AucklandPlus

Contents

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Introduction 1Recent Trends 2Sustaining the Labour Force 7Sustainability and the WeightlessAuckland Economy 10Auckland’s Consumer Demandfor Sustainability 13The Emissions Trading Scheme 14Sustainable Businesses in Auckland 16Green Jobs in Auckland 18A Genuine Progress Indicator 20Instituting Sustainability 22Review of Prospects Over the Next Year 23

Figures

1 Gross Domestic Product 22 Employment 23 Labour Market Participation Rate 34 Employment Change by Sector 35 Difficulty Finding Labour in the Auckland Region 36 Earnings 47 Retail Trade 48 Retail Trade by Store Type 49 CPI Inflation 510 CPI Inflation and Pricing Intentions for Auckland 511 House Values 612 Housing Tenture in Auckland 613 Structure of Population for the AucklandRegion in 2006 and Projected for 2031 814 Projected Age Spread of Auckland RegionalLabour Force, 2006 and 2031 815 Current and Estimated Labour Force AgeSpread of the Auckland Region, 2006 and 2031 916 Pillars of Sustainable Development 1117 Productivity Growth in Services: Value Added PerPerson Employed (Annual Percentage Change) 1218 Frequency of Purchase of Products andServices that Support Environmental Charitiesand Worthy Causes 1319 Frequency of Purchase of Products andServices that Support Social Charities andWorthy Causes 1320 Components of Genuine Progress Indicator 2121 Economic Growth 2322 Summary of Auckland RegionEconomic Forecasts 24

BUSINESS AND ECONOMY 2008

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