How Emissions Reporting Will Soon Be Unavoidable for Every Business - Will Yours Survive?

In a world increasingly aware of the environmental crisis, it’s clear that accountability will shape the future of business.

In Australia, if the increasing pace of tightening regulations and growing pressure from stakeholders continues, every company will soon be forced report their emissions. The country is moving toward stricter reporting standards, exemplified in the incoming Mandatory Climate Related Financial Disclosures, as the demand for transparency increases.

This level of accountability is not just a government mandate; it’s a response to the market's insistence on sustainability. Eventually, every company and entity worldwide will follow suit, not because governments force them to, but because it will be what customers, employees, and investors demand.

The transparency that comes with such reporting will drive a shift so fundamental that the concept of Scope 3 emissions – the emissions indirectly caused by a company through its supply chain – will eventually become redundant. Let me explain why.

Every company is part of a greater ecosystem. We all rely on others for goods and services, creating an intricate web of relationships. Scope 3 emissions are born from this interdependence. Today, businesses must estimate the environmental impact of their supply chains, which is an inexact science fraught with challenges. Companies lack direct control over these emissions and must rely on estimates, which leads to inconsistencies and inaccuracies in reporting.

But what if everyone in the supply chain took full responsibility for their own emissions? Imagine a world where every single entity, large and small, is accountable for their Scope 1 and Scope 2 emissions – the emissions they directly create and those from the energy they purchase. When that happens, Scope 3 emissions will be reported naturally, not through rough calculations, but because every participant in the chain will already have disclosed their impact.

This shift is not just idealistic. It is a logical progression. As transparency increases, as technology evolves, and as regulations tighten, the lines between direct and indirect emissions will blur. We’re heading toward a future where companies won’t need to calculate their suppliers’ emissions – they’ll already be published. The incentive to hide emissions or fudge numbers will disappear in favour of a holistic, truthful accounting system that everyone participates in.

This isn’t just about compliance. It’s about leadership. The organisations that embrace full accountability now will be the ones leading the charge in the future. They will build trust with their stakeholders, gain a competitive advantage, and, most importantly, contribute to a healthier planet.

The future of emissions reporting is not just a necessity, but a responsibility. And when we all take responsibility for our actions, Scope 3 becomes irrelevant. Because we are all, collectively, doing the right thing.

To take the first steps towards decarbonisation, contact us or book a demo today.