The introduction of mandatory emissions reporting for Australian companies shouldn’t be thought of just as a regulatory burden.
It also presents businesses with the opportunity to use the data they collect reduce their carbon emissions and take advantage of the financial, operational and marketing benefits that often come with lower emissions.
Companies that get started on this sooner rather than later will get a jump on their competitors.
Ross Hill Wines, which took part in one of our Vinolytics wine tastings recently, is one such business.
The wine company, based in Orange in NSW, began decarbonising over a decade ago and is Australia’s first certified carbon neutral winery.
Ross Hill have has taken a wide range of initiatives to reduce its carbon footprint, including increasing solar panels by more than four times; minimising transport requirements; reducing tractor hours by 40%; and changing all lighting to use less power for the same effect.
The family-owned company has also decreased water usage by about 50%, thus requiring less pumping power; cut back on the amount of refrigeration used in the winemaking process; and improved insulation in the winery and on surrounding piping and tanks.
Reduced operating costs
The great benefit from these sorts of initiatives is that along with reducing carbon emissions and helping the planet, they increase a business’ operating efficiency. They reduce operating costs through lower use of electricity and fuel and in many cases equipment is being used less, which reduces maintenance costs.
And of course there are the marketing benefits that come with being a certified low or zero carbon business. As more consumers and businesses focus on reducing their own emissions, they will increasingly seek out goods and services from low-carbon businesses.
Every Australian business with over 100 employees; assets of over $25 million; and/or revenue of over $50 million will soon have to report their emissions, starting from 1 July this year, with smaller companies progressively phased in during 2026 and 2027.
Collecting emissions data provides businesses with a starting point to re-evaluate their operations and equipment and consider where efficiencies can be introduced.
The chance to get a head start
Air conditioning, heating and cooling, water processing, and compressed air, are critical for running many businesses. They are also major energy users, so cutting back on their use will bring financial savings along with emissions reduction.
Analytical models drawing on operations data can reveal the cost and benefits of carbon efficiencies, and help build the business case for carbon reduction initiatives. They can compare the operational and maintenance cost of running equipment as things stand and predict what they would look like in the future with a lower carbon footprint.
With all this at stake, it’s a good idea for companies to get a head start on collecting carbon data, even if it won’t be mandatory for many businesses for another couple of years.