Sydney Water has completed an extensive analysis of its supply chain carbon footprint and has estimated that the carbon price will increase our operating costs by up to $15.4 million a year and capital costs by up to $3 million a year, after allowing for emission reduction initiatives. As with many other companies, a significant proportion of Sydney Water's carbon price exposure rests within the supply chain. Supply chain pass-through costs are not transparent at this point in time and, therefore, must be estimated. Sydney Water is using the footprint tool developed by the Integrated Sustainability Analysis (ISA) group at the University of Sydney and tailored for the water industry through a collaboration with the Water Services Association of Australia (WSAA). While a carbon price will increase costs for the water industry, the supply chain carbon footprint method is helping Sydney Water to manage carbon costs and identify opportunities arising from Australia's move towards a low carbon future.
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