As ESG reporting continues to dominate global conversations, businesses are increasingly expected to account for their greenhouse gas (GHG) emissions. In Australia, mandatory carbon reporting requirements, such as the National Greenhouse and Energy Reporting (NGER) scheme, ensure accountability and transparency. But is carbon accounting just a compliance exercise, or can it deliver real benefits to businesses? The answer is clear: carbon accounting, even when mandatory, can drive significant value for organisations. Here’s why.

What Is Carbon Accounting?

Carbon accounting involves measuring, tracking, and reporting the GHG emissions generated by an organisation’s activities. Emissions are categorised into three scopes:

1. Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles or fuel combustion).
2. Scope 2: Indirect emissions from the use of purchased energy (e.g., electricity).
3. Scope 3: Indirect emissions throughout the value chain (e.g., suppliers, product use).

In Australia, the NGER scheme mandates reporting for corporations that exceed specific thresholds:

• GHG emissions: 50 kilotonnes of CO₂-e or more.
• Energy production or consumption: 200 terajoules or more annually.

These reports, submitted to the Clean Energy Regulator by 31 October each year, support the Safeguard Mechanism and contribute to Australia’s international climate commitments.

Why Go Beyond Compliance?

Mandatory reporting may seem like a regulatory burden, but it offers a wealth of opportunities to drive business performance and sustainability leadership. Here are seven key benefits:

1. Cost-Saving Opportunities
   Carbon accounting shines a light on inefficiencies, helping businesses reduce energy use, streamline operations, and cut waste. These improvements often translate into lower operational costs.
2. Competitive Advantage
   Sustainability leadership enhances market appeal. Customers, investors, and partners are increasingly favoring businesses with strong environmental practices. For suppliers, meeting or exceeding emissions reduction expectations can be a critical differentiator.
3. Risk Management
   Proactive carbon accounting reduces exposure to regulatory and climate-related risks. Understanding your carbon footprint today can prepare you for future regulations, carbon taxes, or supply chain disruptions.
4. Attracting Investment
   Sustainability is now a key criterion for investors. Transparent carbon reporting demonstrates commitment to Environmental, Social, and Governance (ESG) performance, improving access to funding and investment opportunities.
5. Enhancing Reputation
   Demonstrating corporate responsibility builds trust with stakeholders. Clear communication of emissions reduction efforts not only strengthens brand loyalty but also boosts employee engagement and morale.
6. Driving Innovation
   Engaging in carbon accounting fosters innovation. Many businesses discover new opportunities, such as transitioning to renewable energy, adopting energy-efficient technologies, or implementing circular economy models.
7. Aligning with Global Goals
   By tracking and reducing emissions, businesses contribute to global sustainability initiatives, such as the Paris Agreement and the UN Sustainable Development Goals. This alignment strengthens relationships with governments, NGOs, and international markets.

The Australian Context

In Australia, carbon accounting plays a critical role in national climate strategies. The NGER scheme ensures transparency, informs government policy, and tracks progress towards reducing emissions. Data collected under this framework feeds into broader mechanisms like the Safeguard Mechanism, which sets emissions baselines for large facilities. Non-compliance can result in fines, penalties, or reputational damage, making accurate carbon accounting a non-negotiable for affected organisations.

Turning Compliance into Opportunity

Businesses required to report under frameworks like NGER shouldn’t view carbon accounting as merely a tick-the-box exercise. Instead, it’s an opportunity to create value, build resilience, and lead in a world transitioning towards net-zero.

By embracing carbon accounting, companies can:

• Unlock cost-saving efficiencies.
• Enhance their competitive position.
• Future-proof their operations against evolving regulations.

In a rapidly changing global landscape, carbon accounting isn’t just a compliance tool—it’s a strategic imperative.

ASIC has released the Draft Regulatory Guide RG 000 Sustainability reporting to assist businesses in preparing for mandatory sustainability reporting, which will begin in Australia on 1 January 2025.

Key elements of the draft guide include:

• Who must report
• What content is required
• How ASIC will oversee and enforce the new reporting regime

If you’re a director of a company that’s required to release annual financial reports under the Corporations Act, you may be required to report under the new sustainability regime. Please reach out if you’d like further advice about your obligations or how and when you should start preparing.

Key Elements of the Draft Guide

1. Who Must Report: Outlines which organisations are required to prepare reports in compliance with the Australian Sustainability Reporting Standards (ASRS). Explains how the new requirements interact with existing legal obligations.
2. Content of Reports: Covers climate-related financial disclosures, sustainability information, and its presentation. Includes guidance on disclosing Scope 3 emissions, risk management, and transition plans.
3. ASIC’s Administration: Details ASIC’s approach to granting relief, issuing directions to companies, and enforcing compliance.

Directors’ Duty of Care and Diligence

Directors are responsible for ensuring compliance with the new reporting requirements. Obligations include:

• Staying informed about material climate-related risks and opportunities.
• Establishing systems to identify, monitor, disclose, and respond to risks.
• Seeking expert advice but independently assessing and using it in good faith.

Transition Period and Modified Liability

ASIC recognises that mandatory sustainability reporting presents a step change for many businesses. Transition measures have been introduced to help businesses adapt, including:

• Protected Statements: Limited liability for disclosures about future climate risks, such as strategies, targets, and Scope 3 emissions.
• Protection from civil lawsuits for a limited period: Only ASIC or criminal proceedings can challenge the Protected Statements. Civil claims (e.g., for misleading conduct) are not permitted. ASIC can issue directions for incorrect, incomplete, or misleading information in sustainability reports.

Future Outlook

• Over time, sustainability standards are expected to become common practice across the corporate sector, extending to the public sector and other agencies with tailored standards.
• Early preparation is encouraged, including assessing current reporting capabilities and addressing gaps to ensure smooth compliance.

At IEMA – Integrating Sustainability, Business & Community, sustainability is more than a priority—it’s central to how we operate. In line with our commitment to reducing our environmental impact, we’ve made meaningful strides by calculating our real-time carbon footprint with the assistance of NetNada (www.netnada.com.au).

For FY24, our total carbon footprint amounts to 216.301 tCO₂e, encompassing Scope 1, 2, and 3 emissions. The largest share—192.882 tCO₂e—comes from Scope 3 emissions, reflecting the indirect impacts of our supply chain.

Insights from Engaging Our Supply Chain

As part of this effort, we’ve analyzed the contributions of our top suppliers to our Scope 3 emissions. For example:

• One top 10 suppliers contributes 84.085 tCO₂e, representing approximately 43.6% of our Scope 3 footprint.

This analysis has helped us better understand the shared responsibility we all hold in reducing emissions and has guided how we approach collaboration across our value chain.

What We’ve Accomplished Together

In partnership with our suppliers, we’ve begun exploring innovative approaches to sustainability, including:

• Data Sharing for Emission Accuracy: Collaborating to integrate suppliers’ Scope 1 and 2 emissions data into our calculations, moving away from spend-based estimates to more precise primary data.
• Offsetting Practices: Evaluating how we can account for emissions generated by services while ensuring full transparency in offsetting these impacts.
• Encouraging Carbon Neutrality: Supporting our suppliers in becoming carbon neutral, both for services provided to IEMA and across their broader operations, positioning them to offer competitive, sustainable solutions to all clients.

Building a Collaborative, Carbon-Neutral Future

This journey has shown us the power of collaboration in driving change. By engaging our supply chain, we’re creating a ripple effect—encouraging and supporting others to join us in the transition toward sustainability.

We’re excited to share these insights and learnings as part of our ongoing commitment to transparency and accountability. Together, we can reduce emissions, foster innovation, and contribute to a more sustainable future.

If you’d like to learn more about our approach or discuss how your organization can join this journey, we’d love to hear from you.

#Sustainability #CarbonNeutrality #Collaboration

Australia is poised to adopt sweeping new sustainability reporting standards that will change how companies approach environmental, social, and governance (ESG) practices. The Australian Sustainability Reporting Standards (ASRS) will soon require large companies and listed entities to disclose sustainability-related information, in alignment with international frameworks like those set by the International Sustainability Standards Board (ISSB). This move towards consistent, reliable, and comparable data aims to provide investors and stakeholders with a more transparent view of environmental risks and sustainability performance.

For those of us in the quarries and extractive industries, these requirements may not yet be mandatory but are likely to apply soon. Taking a proactive approach to these standards now could position our sector as a leader in sustainable practices, ensuring readiness for future obligations while building trust with communities and stakeholders.

Why is Sustainability Reporting Necessary for the Extractive Industry?

The ASRS will introduce mandatory sustainability disclosures in phases, beginning in 2025. Larger entities will be the first to comply, with smaller companies required to join by 2027. This phased approach gives businesses time to establish the climate governance systems needed to meet Scope 1, Scope 2, and Scope 3 emissions standards.

Beyond emissions, the extractive industry has broader environmental impacts to consider, particularly around biodiversity loss and ecosystem health. While the Taskforce on Nature-related Financial Disclosures (TNFD) is not yet mandated in Australia, it provides a framework for understanding and managing nature-related risks. Given rising global expectations, mining and extractive companies will likely need to address ecosystem impacts in their governance practices. Legal experts also warn that failing to manage these risks could expose directors to liability under the Corporations Act 2001 (Cth), underscoring the need for companies to bolster their nature-related risk management.

Practical Steps for Embracing Sustainability Reporting

For companies preparing for these emerging regulations, readiness and a proactive strategy are essential.

1. Assess Your Current Position
   Begin by assessing your sustainability practices, especially around Scope 1, 2, and 3 emissions. Knowing your current status will help you identify areas needing improvement as you prepare for ASRS compliance.
2. Set Commitments
   Develop a strategy to reduce your carbon footprint and advance nature-positive practices. Integrate these goals into your company’s policies, risk management, and governance structures to lay a strong foundation for future reporting.
3. Translate Goals into Action
   Move from strategy to execution by embedding sustainability commitments into daily operations. Whether your aim is net-zero emissions or meeting ASRS requirements, a clear focus on practical action will support meaningful progress.
4. Monitor and Report Progress
   As you progress, ensure your actions are transparent and well-documented. Meeting ASRS disclosure requirements will help communicate your sustainability journey to stakeholders and highlight your proactive approach to environmental stewardship.

Adapting to these standards offers an opportunity for the quarries and extractive sector to showcase leadership in sustainable practices, positioning businesses to meet stakeholder expectations and demonstrate environmental accountability. By planning ahead, we can all contribute to a more resilient and sustainable future for the industry.

Introduction

The mining industry is increasingly recognising the importance of Environmental, Social, and Governance (ESG) factors in project planning, execution, and reporting. The latest draft of the JORC Code which is up for consultation until 30th October 2024, reflects this shift by incorporating significant changes aimed at enhancing ESG disclosures. Among these updates, particular attention is given to mine closure outcomes, ensuring that sustainability is not an afterthought but a fundamental part of resource development from start to finish. https://www.jorc.org/

The Need for Enhanced ESG Reporting

In recent years, stakeholders, including investors, regulators, and communities, have demanded greater transparency and accountability in how mining projects address ESG issues. The draft JORC Code responds to these demands by introducing new clauses that require material ESG factors to be disclosed at every stage of a project’s life cycle, from exploration to closure.

The key changes focus on ensuring that ESG considerations are not only integrated into project planning but also reported with the granularity appropriate to the project stage. This approach ensures that as a project evolves, the understanding and management of ESG risks and opportunities become more detailed and aligned with the project’s maturity.

Key ESG Changes in the Draft JORC Code

The draft JORC Code introduces several key changes to improve ESG disclosures:

1. Specific ESG Clauses: New clauses have been added that mandate the disclosure of material ESG considerations appropriate to the study stage. This ensures that from exploration through to closure, ESG factors are systematically considered and reported.
2. Reporting Criteria in Table 1: A new section in Table 1 (Section 5.5) has been added, which requires baseline ESG disclosures at the exploration stage, with increasing detail as the project advances to the Reserves stage. This tiered approach ensures that the level of ESG reporting is commensurate with the stage of the project and its materiality.
3. Guidance Matrix: The introduction of a Guidance Matrix provides a structured approach to ESG reporting, outlining themes and impacts that users of the JORC Code should consider. This matrix is designed to ensure that relevant ESG issues are addressed consistently across projects.

 

Emphasising Mine Closure Outcomes

One of the most critical stages where ESG considerations come into play is during mine closure. The draft JORC Code’s updates place a strong emphasis on mine closure, recognising it as a pivotal phase that can significantly impact both the environment and local communities.

Environmental Restoration and Rehabilitation

The updated JORC Code requires detailed mine closure plans that focus on environmental restoration and rehabilitation. These plans must outline how the land will be restored to a stable and sustainable condition post-mining, including efforts to manage or re-establish ecosystems. This focus on environmental outcomes is crucial in ensuring that mining projects do not leave lasting negative impacts on the landscape.

Social Considerations in Mine Closure

The social impact of mine closure is another area where the updated JORC Code demands greater transparency and accountability. The Code emphasises the need for ongoing community engagement and the consideration of socio-economic effects during and after closure. This includes plans for post-closure land use, which must be developed in consultation with local communities to ensure that the land can continue to provide value, whether through agriculture, conservation, or other uses.

Governance and Compliance

Governance plays a central role in mine closure, with the updated JORC Code highlighting the importance of adhering to regulatory requirements and ensuring transparency in closure planning. Companies are expected to document and disclose their closure plans comprehensively, demonstrating their commitment to ethical practices and regulatory compliance.

Financial Provisions for Closure

The draft JORC Code also addresses the financial aspects of mine closure, requiring clear disclosures on the provisions made to cover closure and post-closure activities. This financial transparency is critical to ensuring that companies are adequately prepared to meet their closure obligations without placing an undue burden on stakeholders or the environment.

Conclusion

The proposed changes to the JORC Code mark a significant step forward in integrating ESG considerations into the mining sector, with a strong emphasis on responsible mine closure. By requiring detailed and stage-appropriate ESG disclosures, the updated Code ensures that mine closure is not an afterthought but an integral part of the project lifecycle. These changes reflect the growing importance of sustainability in mining, ensuring that the industry can continue to meet the demands of stakeholders while minimising its impact on the environment and local communities.

For more information DM Andrew Hutton or visit or website www.iema.com.au

In a world increasingly preoccupied with size and scale, it can be easy to assume that bigger equals better. For some reason, clients feel comfortable because they think the big firms have it all covered as a “one stop shop”. But when it comes to environmental management and advisory firms, this is not necessarily the case. More often than not, smaller firms with a niche focus can offer distinct benefits over their larger counterparts. There is significant value of small environmental management firms, particularly those that leverage a network of external specialists, like our company.

2. Tailored Expertise
One of the most significant advantages of choosing a smaller firm is the access to specialised knowledge. Unlike larger consulting firms that are often confined to using in-house expertise, small firms have the flexibility to tap into a wide array of specialists depending on the project’s unique requirements. It’s an on-demand expertise model. It enables a client to assemble the best team, not a team lead by an expert that occasional shows up on the project and flick passes the bulk of the work to consultants in back rooms. At IEMA – Integrating Environment, Business & Community we have cultivated a network of industry leaders who bring their specialised skills to the table when necessary.

3. The Power of Partnership
In line with this, our business model hinges on strategic partnerships. We have the ability to ally with other local firms to create a project team that possesses the precise expertise needed to deliver on a project. For an upcoming project, we plan to collaborate with two local Associate firms, multiplying the breadth of knowledge and capabilities we can offer. This partnership-driven approach helps us ensure that each project gets the right people and skills it needs, rather than a one-size-fits-all team.

4. Highly Focused and Agile
The small size of our firm is also an asset when it comes to project management. The lean structure of our organisation allows for increased adaptability and a quicker response to change, making us more agile and able to pivot as project needs evolve. This nimbleness is particularly vital in the realm of environmental management and mine closure, where conditions and requirements can change rapidly.

5. Personalised Approach
Smaller firms often provide a more personalised approach, understanding your project on a deeper level and giving it the care and dedication it requires. Large consulting firms may have the resources, but they often lack the personal touch that makes your project unique

6. Closely-Knit and Passionate Team
Lastly, smaller firms are often characterised by a closely-knit team that shares a unified vision and deep passion for the work they do. This close camaraderie can lead to increased motivation, better communication, and ultimately, superior project outcomes.

7. Cost-Effective Solutions
By partnering with local specialists, we can often offer more cost-effective solutions without compromising on quality. Large firms may have a rigid cost structure, but we have the flexibility to tailor our approach, delivering high-quality results within your budget.

8. Sustainability and Local Impact
Our collaboration with local firm means that you’re invested in the local economy and environment. They understand the specific environmental challenges and regulations of the region, ensuring that our solutions are not only effective but also sustainable

**The Value Proposition**

All of this builds a unique value proposition: small environmental management and advisory firms like ours can offer more tailored solutions, improved agility, and a broader range of expertise than their larger counterparts. We can do so by harnessing the power of partnerships and external networks, rather than relying solely on in-house resources.

In conclusion, don’t let size dictate your choice of an environmental management and advisory firm. The future of the industry is flexible, nimble, and powered by strategic collaborations. It’s a future where firms like ours, with the ability to access a diverse range of specialists, are well-positioned to lead.