Carbon Accounting & Reporting | Australia

What it is, who it’s for and why it’s important

Carbon accounting has arrived in Australia, and it’s already having an impact on small and medium-sized businesses. New regulations for big businesses to report greenhouse gas emissions has a direct flow-on effect for SME suppliers to also report their emissions or risk losing clients.

We’re on the forefront of carbon accounting, helping small and medium-sized businesses find the right carbon reporting solution to stay ahead of the pack.

Are you an SME that’s been told to provide carbon reporting to your client?

Wondering if you’re prepared for calculating your carbon footprint?

Do you know what the new law requiring climate reporting means?

CONTACT AN EXPERT

What is Carbon Accounting?

Put simply, carbon accounting helps companies calculate their carbon footprint and the impact of their business activities on the environment.

Carbon accounting is the process of measuring and tracking the amount of carbon dioxide (CO2) and other greenhouse gases a company emits. Also known as greenhouse gas accounting or climate reporting, carbon accounting involves detailed tracking of emissions from various sources, including energy use, transportation and waste production.

By measuring and understanding the elements that make up a company’s carbon footprint, companies can identify areas to reduce their carbon emissions and their impact on the environment.

Carbon accounting enables businesses to measure,

manage and reduce their environmental impact.

Who’s it for?

Carbon accounting is for all businesses, regardless of size. The government will be introducing mandatory climate-related reporting obligations for the largest companies and financial institutions from January 2025. However, many smaller businesses will also be required to provide carbon reporting soon. Some of our SME clients are already required to provide carbon reports.

Emissions are divided into three categories:

Scope 1 Emissions
Direct Sources

Direct greenhouse gas emissions from sources owned by the company.

Scope 2 Emissions
Indirect Sources

Indirect emissions from purchased electricity or heating.

Scope 3 Emissions
Indirect Upstream & Downstream Sources

Indirect emissions that occur in the company’s upstream and downstream activities including emissions from the entire value chain.

Scope 3 emissions can account for a significant portion of a company’s total carbon footprint, often between 80% and 95%. In fact, Scope 3 includes many of a company’s most significant impacts, such as emissions in the supply chain from producing the materials.

LETS GET STARTED

Integrating carbon accounting isn’t just about saving the planet,

it’s about securing your company’s future in a green economy.

Why is Carbon Accounting important?

Even though SMEs are not yet required to report their Scope 1 and 2 emissions, larger companies such as Woolworths, Qantas and BHP Group will expect their suppliers to calculate their carbon footprint as part of Scope 3 emissions reporting as soon as 2025. Many European companies are a year or two ahead of this timeline, impacting Aussie businesses that export (or have customers who do so).

This shift highlights the importance of carbon accounting for businesses of all sizes. A willingness to provide carbon accounting could mean the difference between retaining or losing large clients.

In addition, major market players such as Coles and Amazon have set long-term net zero emissions targets with a flow-on effect to businesses within their vast supply chain to decarbonise their operations.