Climate Reporting Isn’t Just For Big Business
Why small and mid-sized companies need to pay attention now.
Australia rolled out new climate reporting rules starting January 2025 — and while your business might not be directly affected (yet), you’re almost certainly part of someone else’s report.
Here’s what’s happening, without any jargon.
Who Has to Report, and When
Climate disclosure reporting is rolling out globally, but here in Australia the new climate disclosure rules apply to businesses in three groups:
Group 1 (from Jan 2025): The biggest players — think banks, ASX-listed giants, and large private companies.
Group 2 (from July 2026): Big, but not massive – companies with $200M+ in revenue or 250+ staff.
Group 3 (from July 2027): Mid-sized businesses — those with $50M+ in revenue or 100+ employees.
If your business doesn’t fall into those brackets, don’t be fooled into thinking you are ‘off the hook,’ because you’re not.
You Might Not Report, But You Will Be Reported On
Large businesses are being asked to measure and report not just their own emissions (called Scope 1 and Scope 2), but also Scope 3 — which is the carbon emissions of their entire value chain.
That means you, as a supplier, could be included in their data. Ie, whatever you supply a bigger business, they will need to report on the carbon emissions of whatever that is.
So if you provide goods or services to a bigger business, you’re part of their emissions picture. And they’ll need information from you to meet their own reporting obligations — sooner rather than later.
What You Might Be Asked For
Your biggest client is now doing a full environmental stocktake. They’ll want to know things like:
How much energy your operations use
Whether your products are made sustainably
What your transport and logistics emissions look like
What environmental practices you have in place
This data helps them prove they’re serious about climate impact — and keeps their own reports compliant. Your job is to make sure you are a good supplier and can provide this detail.
Get Ahead, Don’t Fall Behind
You don’t need to panic. But you do need to prepare.
There’s quite a bit to organise, but this would be a great start.
Mapping out your emissions (even just a basic idea is a great first step)
Tracking energy usage and waste
Asking your own suppliers for sustainability info
Talking to your big clients about their reporting expectations
By getting started now, you’ll build trust, stay competitive, and be a more attractive supplier to the big players navigating new climate rules.
Future proofing Your Business
I cannot stress enough how this will impact your business over the coming years. It will be a deciding factor to winning business and done well will present you as an excellent supplier. This isn’t just about compliance, it’s about the resilience of your business. Understanding your environmental impact will make you better positioned for winning tenders with government or big corporates, meeting investor expectations, reducing costs through efficiency and standing out in an increasingly climate-conscious market.
Now’s the time to take small, smart steps that set you up for a stronger, more sustainable future, so give us a call and let’s get started!
IMAGE: A tortoise shell, called a carapace, measured from front to back, is a metric used in tortoise research and conservation for identifying different life stages and tracking growth rates.
By David Clode from Unsplash.