Differences in Australian Sustainability Reporting compared to European standards

What we learned from our move into the Australian ESG market

Recently we opened on the ground in Sydney. We expected some differences in protocol, but what we found surprised us. A major benefit of our global approach is that we can look at trends in other parts of the world as a means of predicting the future for local markets. As the EU’s Corporate Sustainability Reporting Directive (CSRD) tightens sustainability reporting regulations, Australian companies can gain valuable insights into potential challenges and solutions for future-proofing while aligning with local regulations.

Data availability remains a significant challenge in all parts of the world. In the UK, resources like DEFRA provide comprehensive and expansive emissions data at no cost, which makes it easy for companies to calculate and report on their emissions. This is a rare resource and governments in Australia, Asia, Europe and the USA do not provide this detailed help. This discrepancy leads to a lack of standardization and has led to some SaaS providers in Australia and beyond using UK-based emissions data, for non-UK-based companies. This approach does not accurately reflect local conditions and can create a misleading picture of sustainability efforts and progress.

According to a recent article on edie.net, around 60% of businesses have not involved their technology teams in data collection and reporting, relying instead on spreadsheets. This method can be cumbersome, time-consuming and a huge cost to the business. Yet, the European Corporate Sustainability Reporting Directive (CSRD) is expected to impact around 50,000 companies, expanding its scope to include non-EU companies. This will undoubtedly require a more sophisticated approach to data collection, storage, and analysis. Furthermore, aligning with global standards, such as those set by the Task Force on Climate-Related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB), will be crucial.

Optimizing sustainability reporting

Observing these global trends allows Australian companies to proactively address similar challenges. By investing in advanced technology and ensuring accurate local data, they can optimize their sustainability reporting and stay ahead of regulatory demands. Here are some additional tips for Australian companies:

1. Leverage Local Expertise and Data: Ensure that your software provider for carbon scoring is using local data sets and making adaptions based on relevant geolocations. This will ensure that your sustainability reports reflect the unique environmental conditions of Australia and your business.
2. Implement Robust Data Management Systems: Move away from overreliance on spreadsheets. Spreadsheets will always have their place, but to reap the benefits of technology, companies should invest in advanced data management and invest in advanced data management systems. These systems can automate data collection, improve accuracy, and provide real-time insights.
3. Engage Technology Teams Early: Involve your technology and IT teams from the outset. Their expertise can help integrate new technologies smoothly and ensure that data systems are scalable and secure.
4. Stay Informed on Global Standards: Regularly review and align your practices with global sustainability standards and frameworks, such as TCFD and ISSB. This alignment can enhance the credibility and comparability of your National Greenhouse and Energy Reporting (NGER) regulated audits as well as alignment with Climate Active certification.
5. Train Your Workforce: Ensure that your staff are well-trained in the latest sustainability practices and reporting technologies. Continuous education and training can help maintain high standards of reporting.
6. Collaborate and Share Best Practices: Join industry groups and forums to share knowledge and best practices. Collaboration with other companies can provide new insights and innovative approaches to sustainability reporting.
7. Monitor Regulatory Changes: Stay ahead of regulatory changes by monitoring updates in sustainability reporting requirements both locally and internationally. Being proactive can help you avoid compliance issues and adapt quickly to new regulations.

When it comes to choosing a software provider for carbon emissions, it is important to run an audit of the calculations before you purchase to make sure:

1. They are using local emission factors
2. You have ease of data input ie miles travelled in vehicles not just spend
3. You can input data monthly or quarterly and see progress in real-time
4. You can have different dashboards for slice and dice of data to keep your eye on the ball
5. The software is future-proofed and covers the engagement of employees and suppliers as well

At eco-shaper, we have a highly-qualified, dedicated, global sustainability team who work full-time on adapting emissions data sets for different localities. For example, in Australia, not only do our calculation of emission factors differ from the UK, but they also differ depending on which state you’re in.

We plan to offer our database as on open-source resource for companies all over the world who urgently need databases for local accounting. Please email if you would be interested in receiving this resource.