Net Zero Newsletter – Sneak Peek Low Carbon Procurement
As we kick off the final quarter of the year, sustainability and climate-related reporting are seeing significant developments. With climate risks and sustainability challenges taking centre stage, businesses must be prepared for new regulatory frameworks. Following their approval on 20 September 2024, which we highlighted in last month’s newsletter, the Australian Accounting Standards Board (AASB) has officially made available two new climate reporting standards: the voluntary AASB S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and the mandatory AASB S2 (Climate-related Disclosures).
While AASB S1 remains voluntary, it encourages the disclosure of all sustainability-related risks and opportunities that could influence your organisation’s financial performance over time.
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Hear from our ASRS participants:
Since the launch of our Navigating the Australian Sustainability Reporting Standards (ASRS) course, we’ve been featuring feedback from participants across various sectors. This month, we highlight a comment from Katrina Boyd, Sustainability Manager at BORG, who recently completed the course:
ASIC’s sustainability reporting page and greenwashing penalties
The mandatory climate reporting requirements will be phased in over the next three years across three groups of reporting entities, with the first reporting cohort required to prepare annual sustainability reports for the financial year commencing on or after 1 January 2025. The second and third reporting cohorts are required to prepare annual sustainability reports for the financial years commencing on or after 1 July 2026 and 1 July 2027 respectively. To assist reporting entities, the Australian Securities and Investments Commission (ASIC) has established a dedicated sustainability reporting page?on the ASIC website to provide information about the new regime and how ASIC will administer it.
As climate reporting standards become more stringent, regulators are sharpening their focus on the integrity of sustainability claims. ASIC has introduced new penalties for greenwashing, making it clear that misleading or exaggerated environmental claims will not be tolerated.
Just a few weeks ago, ASIC issued its largest greenwashing penalty to date—$12.9 million – against Vanguard Investments Australia for making misleading claims about ESG exclusionary screens. The case serves as a strong reminder that misrepresenting sustainability claims will have serious consequences. ASIC Deputy Chair Sarah Court emphasised that greenwashing “remains an enforcement priority for ASIC.” In the recent case, it was found that approximately 74% of the securities in the Fund were not screened against applicable ESG criteria, despite being marketed otherwise. You can read the full judgment here.
As greenwashing becomes a growing concern, we also encourage you to explore the ACCC’s 8 Principles for trustworthy environmental claims, which provide valuable guidance on preventing misleading sustainability claims. These principles are a key part of what we cover in our ESG masterclass, where we teach how to communicate sustainability with integrity and avoid the pitfalls of greenwashing.
Speaking of which, we just wrapped up two more sessions of the ESG in Action series, held on October 9 and 10 at the Gold Coast and in Brisbane, respectively. Both events brought together a diverse group of participants from various industries, all eager to deepen their understanding of environmental, social, and governance (ESG) practices. Attendees engaged in discussions and interactive workshops, focusing on practical strategies to align ESG goals with business objectives.
Missed these sessions? No worries! We'll be offering more sessions of this masterclass soon. Follow me on LinkedIn to stay updated on future dates and announcements.
Launch of Taskforce on Inequality and Social-related Financial Disclosures (TISFD)
As businesses adapt to climate-focused regulations, the spotlight is also expanding to include nature and social sustainability. A new global taskforce was launched in September to address the financial risks of global inequality for companies and financial institutions. The Taskforce on Inequality and Social-related Financial Disclosures (TISFD) is an initiative aimed at providing a structured framework for organisations to measure, report, and disclose the financial impacts of social inequality, filling a critical gap in ESG assessments.
The recognition of social risks, such as inequality, as direct financial risks is gaining momentum. Similar to the TCFD and TNFD, the TISFD will establish standardised disclosure frameworks that enable organisations to evaluate their exposure and enhance decision-making. Key initiatives include standardising disclosures for social-related financial risks, providing tools to assess the impact of inequality on company performance, integrating social factors into financial decisions, and increasing transparency regarding wages, social equity, and human rights.
The launch of the TISFD marks a significant advancement in sustainable finance, placing the "S" in ESG alongside climate and biodiversity. For more information, visit the TISFD website.
SBTi Corporate Net-Zero Standard
The push for corporate net-zero commitments continues to evolve, with the Science Based Targets initiative (SBTi) leading the way. The Corporate Net-Zero Standard, launched by the SBTi in October 2021, aims to provide a common framework for science-aligned net-zero targets in the corporate sector. Since its inception, it has undergone two minor revisions (V1.1 and V1.2) and is currently undergoing a major revision to create V2.0.
The draft Standard for consultation is expected by the end of 2024, followed by public consultation, with the revised Standard set to take effect in 2025. Until then, you should continue using the current Corporate Net-Zero Standard V1.2 to set your targets.
The SBTi has outlined four key goals for this review:
For more information, visit: SBTi - Developing the Net-Zero Standard. Additionally, SBTi has launched a new subsidiary, SBTi Services Limited, to meet the growing demand for target validation services. This move separates standard-setting and validation functions, enabling each to scale effectively. The initiative also introduced a Validation Portal to streamline the submission and review process.
Emissions Gap Report 2024
The urgency to align business practices with robust climate commitments is echoed globally. On October 24, the United Nations Environment Programme (UNEP) released the Emissions Gap Report 2024 calling for bold action to meet the Paris Agreement's 1.5°C climate target. The report warns that without cuts of 42% by 2030 and 57% by 2035 in greenhouse gas emissions, the world could experience warming of up to 3.1°C. UNEP urges G20 nations to lead the way in scaling up mitigation efforts and highlights the need for comprehensive investment and international collaboration.
Explore the full report here.
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Ambitious commitments by states, local governments and communities
Sustainability commitments are also growing at the local government level. Last month, we published our blog post update on local government and community commitments, “Net zero commitments by states, local governments and communities – September 2024”. ?Over 165 Australian councils have made ambitious net-zero commitments, with more than 85 councils and communities joining the movement since our last update in December 2021.
These ambitious targets show how local governments are leading climate action through initiatives such as CEDAMIA,?the Global Compact of Mayors,?C40,?Cities Race to Zero,?ICLEI?and the?Climate Active program.
Read the full blog post here!
We're currently developing a dedicated webinar series for councils, where we’ll present our latest research and tackle essential decarbonisation topics.
We want to hear from you! Share the issues that matter most to your community, and help us shape these sessions to ensure they truly meet your needs. Your feedback is invaluable in making this initiative as relevant and impactful as possible. Stay tuned for more updates—we look forward to collaborating with you!
Recent and upcoming engagements
It's been an incredibly busy time here at 100% Renewables as we continue helping organisations navigate the rapidly evolving sustainability landscape.
Responsible Business Unit conversation
Recently, we took part in a roundtable discussion on Responsible Business, hosted by Sefiani. The event was held simultaneously in Sydney and London, as part of the global launch of Sefiani’s Responsible Business Unit. Alongside industry leaders, we explored key sustainability trends, the critical role of communicators as educators, and the importance of bringing diverse voices to the table in shaping responsible business practices.
National Roads & Traffic Expo 2024
Are you in the transport industry looking to decarbonise and address evolving infrastructure challenges? The National Roads & Traffic Expo 2024 is kicking off today at the Melbourne Convention & Exhibition Centre! This 2-day event will spotlight innovative decarbonisation strategies for the infrastructure and transport sector.
Join me alongside 200 other experts as we present effective approaches for achieving net zero while tackling the growing demands of infrastructure. I’ll be presenting on "Understanding the Critical Steps in Developing Your Net Zero Strategy" tomorrow, where we’ll explore how sustainability is reshaping road infrastructure projects. Don’t miss this chance to engage with industry leaders and drive a greener future. Registration is FREE! If you’re already registered, I look forward to seeing you tomorrow. If you haven’t signed up yet, there’s still time—register now!
?? Date: Wednesday-Thursday, 30-31 October 2024
?? Location: Melbourne Convention & Exhibition Centre
Climate Active updates
Climate Active hosted a three-part webinar series from September 20 to October 4 to provide guidance for organisations preparing their FY24 carbon neutrality reports. Below are some key takeaways:
Additionally, new reporting guidelines were introduced, including updates to Climate Active’s tools and templates:
A new tool, the ‘Carbon Offsets Retirement Summary Workbook v1.0,’ has been introduced to track carbon offset retirements. This tool requires you to declare your purchased offsets and submit necessary evidence (including hyperlinks or screenshots) of these purchases.? Key dates to keep in mind for FY24 reporting:
Lastly, Climate Active announced that consultant registration is currently on hold due to ongoing reforms.
Low Carbon Procurement Training Program
We’ve been refining our Low Carbon Procurement Training to better support our clients in meeting stakeholder expectations and reporting requirements. Many organisations are now prioritising the development of their Scope 3 carbon footprints, with Categories 1 and 2 (Purchased Goods and Services; Capital Goods) often being their largest emission sources. ?
When companies begin calculating emissions from their purchases, they typically rely on expenditure data combined with industry-average emission factors. However, this approach has its limitations—reducing emissions can only be demonstrated by spending less. As a result, more organisations are now engaging their supply chains to achieve more accurate and specific emissions data. We’ve enjoyed creating new visuals to show the shift from expenditure-based accounting to more precise carbon footprint measurements. These graphics are a central feature of our training, making complex concepts easier to grasp.
Here’s a sneak peek at what we’ve been developing for the course:
We are committed to crafting a curriculum that genuinely addresses your needs, and your feedback is invaluable in this process.
If you haven't yet taken our brief survey, now is the perfect time. Your input will be instrumental in refining the program, ensuring it targets the specific goals and challenges you face. Plus, as a token of our appreciation, participants who complete the survey will enjoy a 50% discount on their enrolment once the training is officially launched. Thank you for helping us make this program a success!
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