Authored by Colin Davies, ReGen Strategic General Manager of Sustainability and ESG and Katie Martin, Avetta Director of Sustainability and Innovation.

 

Companies across Australia must prepare for significant changes now that the Australian Accounting Standards Board (AASB) has finalised Australia’s Sustainability Reporting Standards (ASRS).

In the first instalment of our blog series on this topic, we explored the context around the new disclosures and answered some of the most common questions about how best to prepare and why now is the time to take action, not panic.

In this second instalment, we look at management tools designed to measure your Scope 3 emissions in a way that complies with the new requirements.

 

Preparing for the complexity of Scope 3 emissions

Reporting on Scope 3 emissions, which include indirect emissions throughout the supply chain, is one of the most challenging aspects of the new Australian Sustainability Reporting Standards. This involves understanding and prioritising emissions sources, gathering credible data, and applying appropriate calculations. In the first year of reporting, companies are required to measure Scope 1 and Scope 2 emissions (e.g. direct emissions and purchased energy). Scope 3 emissions become mandatory in the second year given the complexity of their calculation.

 

Navigating Environmental, Social and Governance (ESG) compliance

In Australia, navigating the complexities of ESG compliance can be daunting, especially for the smaller companies that will be required to report against the new standards in the coming years. 

We’ve put together four simple steps to help you drive sustainability throughout your supply chain and prepare for the new reporting requirements:

1. Ensure your suppliers receive an ESG evaluation experience tailored to their size, sustainability maturity, and specific industry.
2. Engage suppliers to help drive program adoption and ensure timely completion.
3. Guide suppliers through a step-by-step process for entering data and provide continuous improvement plans to reduce their Scope 1 and 2 emissions permanently, supporting your Scope 3 reductions without carbon offsets.
4. Provide benchmarking to help anchor and contextualise data for suppliers against similar supplier trade types and geographies to showcase additional performance opportunities.

 

Engaging suppliers

ReGen Strategic has partnered with Avetta to offer a comprehensive solution to make it easier for suppliers to gather the data required to effectively measure your Scope 3 emissions. This includes:

• Capturing Scope 3 emissions at scale with direct data provided by suppliers, mitigating risks of greenwashing

- For hiring firms, Scope 3 - meet reporting requirements and avoid inaccuracies in spend-based calculations

- For suppliers, Scope 1 and Scope 2 – as more requests for proposal (RFPs) and business partners require carbon emissions reporting, our calculator and training tools provide assistance to suppliers to meet their stakeholders’ needs and improve sustainability practices

• Easing the reporting burden for suppliers with a semi-automated carbon calculator attuned to their region and industry
• Supporting supplier compliance and continuous improvement with access to sustainability and decarbonisation playbooks with actionable strategies
• Going beyond calculations with transparency into all material sustainability business risks in the supply chain including environmental, social, and governance with scored assessments and supporting documentation review
• Building assurance with sustainability and social auditing by global experts.

 

Creating business value and maximising positive social and environmental impact

Avetta and ReGen Strategic together can help you continuously optimise your supply chain for sustainability and minimise environmental impact. Ask us how you can comply with growing sustainability regulations, map and improve supply chain sustainability and ESG performance, and deliver a positive impact for people and the planet.

 

Taking the next steps toward ESG compliance

With mandatory requirements finalised in September and the first in-scope entities needing to report in 2026, now is the time for your organisation to act.

 

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• Avetta Named a Leader in Supply Chain Sustainability Software by Independent Research Firm
• Supply Chain Sustainability Boosted by Landmark Partnership Between Avetta and ReGen Strategic 
• Mandatory climate reporting: time to panic or prepare?
• Avetta Customer Success Story Pacific National
• Improving ESG and supplier compliance for a leading energy corporation

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