Mandatory Climate Reporting

Australia is moving into a transformative era of corporate transparency with the introduction of mandatory climate reporting. Starting January 1, 2025, large corporations are now required to disclose detailed information about their climate-related risks, carbon emissions, and strategies for mitigating their impact. This initiative aligns with global efforts to meet emission reduction targets and is one of the most significant reforms to corporate financial reporting in Australian history.

‍

Which companies are required to report

The new legislation mandates that organisations meeting specific size thresholds must produce annual disclosures in line with the Australian Sustainability Reporting Standards (ASRS). These disclosures are to be included within a separate Sustainability Report as part of the company's Annual Reporting to ASIC. The rollout will occur in three phases:

• Group 1 (from January 1, 2025): Companies with two of the following: $500M+ in consolidated revenue, $1BN+ in EOFY consolidated gross assets, or 500+ employees

• Group 2 (from July 1, 2026): Companies with two of the following: $200M+ in consolidated revenue, $500M+ in EOFY consolidated gross assets, or 250+ employees.

• Group 3 (from July 1, 2027): Companies with two of the following: $50M+ in consolidated revenue, $25M+ in EOFY consolidated gross assets, or 100+ employees.

‍

The importance of addressing Scope 3 emissions

A critical aspect of these reporting requirements is the inclusion of Scope 3 emissions, which encompass indirect greenhouse gas (GHG) emissions occurring throughout a company's value chain. For many organisations, Scope 3 emissions represent a significant portion of their total carbon footprint, making their accurate reporting and reduction essential.

Reducing Scope 3 emissions involves proactive engagement with suppliers and service providers to implement sustainable practices. By collaborating with partners offering decarbonisation solutions, such as New Energy Transport, companies can effectively manage and reduce these indirect emissions.

‍

How New Energy Transport can help

At New Energy Transport, we recognise the challenges businesses face in meeting these new reporting standards, particularly concerning Scope 3 emissions. As a provider of zero-emission road freight services, we offer a practical solution to help companies reduce and report on their indirect emissions.

Our fleet of electric vehicles safely deliver, not only your freight, but also on your decarbonisation goals. This will ensure that your goods are transported efficiently without contributing to greenhouse gas emissions. By choosing our service, companies can:

• Lower Scope 3 emissions: Partnering with us directly reduces the emissions associated with the transportation segment of your value chain

• Enhance sustainability reporting: Utilising zero-emission transport services demonstrates a commitment to sustainability, strengthening your position in mandatory climate disclosures

• Align with regulatory compliance: Our services support your efforts to comply with the ASRS by providing verifiable data on emission reductions in your supply chain

By integrating New Energy Transport's zero-emission solutions into your logistics operations, you not only comply with emerging regulations but also contribute to a more sustainable future.

Embracing these changes proactively will position your business as a leader in sustainability, fostering trust among stakeholders and ensuring long-term success in a carbon-conscious economy.

‍