Introduction In the past, people were not concerned about the changes in climate. However, with the increase in global warming, a lot of emphases has been placed on protecting the environment. The impacts of climate change have caused many countries to develop policies to protect the environment. Countries have developed legislation to protect the environment. For example, on eighth November 2011, the Australian parliament passed the Clean Energy Act. The Act consisted of eighteen pieces of legislation to provide a platform for the government to reduce its greenhouse emission. The Clean Energy Act was effective as of 1 st July 2012. The Act was established to provide a complete plan for the reduction of emissions. This was to be achieved by creating proper land management policies, the strategy of carbon pricing, establishing renewable energy, and creating energy efficiency. It is expected that the plan would cause financial impacts on the country’s industrial sector (Richardson, 2012). The overview of the legislation The report will ensure that the concerned companies pay attention to the Clean Energy Act regarding their corporate energy consumption and production, greenhouse gas emissions, and abatement actions. This regulation particularly affects companies that emit 125 kt and facilities that emit 25 kt. It has been realized that the environmental impact of the processes of production and supply chain is never measured. Therefore, the impact should be determined from up to downstream of the chain. The Clean Energy Act was established to develop yearly reports about the carbon emitted, consumption of electricity, and other aspects. The legislation will affect the company’s finances through operational changes and complexities as new responsibilities are introduced (Food and supply chain intelligence 2010). Companies face the challenge of providing solutions to their environmental impacts. This is in regard to providing recommendations to mitigate the environmental footprints, as well as recommending new supply chains. This process will require recognition of each activity in the supply chain. Therefore, efficient equipment is purchased to replace the inefficient ones to minimize the energy input and output (Food and supply chain intelligence 2010). Business and industries Carbon pollution reduction is important in addressing the problem of climate change. More than five hundred companies are emitting greenhouse gases. These companies are required to buy a permit for every ton of emission. A carbon tax is one strategy that the government has implemented to reduce the carbon footprint for most businesses. In this case, only a few companies face direct legal obligations. The sectors affected most include the stationery industries, processing industries, and decommissioned coal mines. The agricultural and land-use sectors have not been affected by the Clean Energy Act. The clean energy finance cooperation has ensured that the government finances the private sector in implementing clean energy projects. The effect of climate change will likely affect business in the future. The introduction of this legislation will protect the future economy. If actions are not implemented, then the future of business will be affected in various ways. Th