With mandatory climate disclosure only a few months away, Avani is excited to partner with leading businesses to measure, monitor and mitigate their assets’ carbon footprints.
The Treasury Laws Amendment Act (Financial Market Infrastructure and Other Measures) Bill 2024 has passed Australian parliament, and with it, Australia has become a global leader in mandating climate disclosure against the ISSB-aligned standards.
According to Joseph Longo, ASIC Chair, this is the biggest changes to financial reporting and disclosure standards in a generation. By mandating that businesses disclose climate risk within their financial reports, the Government is ensuring that investors can make clear and concise decisions in line with their own decarbonisation ambitions.
In addition to reporting on their climate governance, risk management and strategy, businesses will need to disclose scope 1, 2 and 3 emissions. Emissions are scoped according to levels of operational control.
Simply put, scope 1 emissions are those resulting from the burning of fuels on site. Within the built environment this primarily relates to natural gas used to heat buildings, refrigerants used to cool them, and diesel burnt as a backup source of power.
Scope 2 emissions relate to electricity consumed on site. For Australian properties, these emissions are relatively high given Australia’s (declining) dependence on coal fired power, as more and more renewable energy enters the grid.
Lastly, scope 3 emissions account for all other value chain emissions, things falling outside of a business’ control. For a property company, these primarily take the form of the embodied carbon in building construction materials (steel, cement, etc.), tenant electricity consumption, and other operating needs such as water and waste.
Access to this vast range of emissions can be unavailable, unreliable and absent and will harm entities’ ability to report.
And it’s not merely access. Given the scrutiny which will be applied to these reports, ideally businesses are also disclosing emissions reduction targets and progress.
These are significant challenges facing all Australian companies.
Avani is excited to work with property clients to ensure not only compliant disclosure, but leading disclosure, capable of separating them from their peers and attracting the best capital, customers, and staff.
Rather than perceiving this legislative shift as a risk, we are enthused by the opportunity to lead the way, utilising our technology to access and drive down clients’ emissions.
Simple, easy access to timely, accurate data is essential.
We’re thrilled to be able to provide it.