Audit Lowe Down – Australia's New Climate Reporting Laws: What Do They Mean for Small and Medium-Sized Entities?

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Audit Lowe Down – Australia's New Climate Reporting Laws: What Do They Mean for Small and Medium-Sized Entities?

Lowe Lippmann Chartered Accountants

Australia's New Climate Reporting Laws: What Do They Mean for Small and Medium-Sized Entities?

Australia's Senate has just passed a Bill introducing mandatory climate-related reporting for large entities, but what does this mean for small and medium-sized businesses? While you may not be directly required to comply, there is still a significant impact to consider.

One of the key areas affected is Scope 3 emissions reporting, which includes the emissions generated along the supply chain. This means that if your entity is part of the supply chain of a mandatory reporter, they will likely need detailed information for you to accurately report their own emissions.

This is where proactive preparation can benefit you. A first step is to identify which entities in your value chain may be affected and start the conversation with them. You can then consider your carbon footprint: including how much energy does your business consume and your main sources of emissions. By gathering and tracking this data now, you can provide the necessary information to your larger partners, helping them comply with the new requirements.

For example, if you are a small manufacturer supplying products to a large retailer, that retailer will need to report the emissions associated with the production, transportation, and even the disposal of your products. Being able to provide them with accurate emissions data not only strengthens your business relationship but also positions you as a responsible and forward-thinking partner.

Preparing now for these regulatory changes could give you a competitive edge. Climate-related reporting is gaining momentum globally, and staying ahead of the curve will ensure your business is ready to meet any new obligations.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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