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.

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.