Digital Twinning Australia’s (DTA’s) new CCEmissions360 Console allows companies to leverage technology to uncover energy and emissions savings within their processes. This, in turn, will turn an apparent compliance challenge into an innovation opportunity.
In 2023, the Australian Treasury released a consultation paper outlining its final proposals for implementing mandatory climate-related financial disclosure requirements. These proposals significantly expanded the reporting scope, capturing a broader range of entities under the scheme. As of July 2024, any Australian company with net revenue exceeding $500 million must include Scope 3 emissions in its annual reports. Scope 3 includes indirect emissions from suppliers, goods and services, and customers. The pressure on large and small companies to collect and report on their environmental performance has intensified.
Challenges for SMEs
While large corporations grapple with compliance, small and medium-sized enterprises (SMEs) face unique challenges. With limited financial, technical, and human capital resources, SMEs find calculating and tracking emissions resource-intensive. The complexity of methodologies, data collection, and reporting requirements can be daunting for smaller businesses. SMEs often prioritise day-to-day operations and survival, making emissions accounting a secondary concern when immediate challenges arise.
The Fear of Inaccurate Reporting
There’s a legitimate fear that emissions data collected by SMEs may be patchy or inaccurate. Rigorous auditing standards demand accurate reporting, and many companies worry their emissions data will not withstand scrutiny. However, there’s a solution on the horizon—one that transforms compliance into an opportunity.
Real-Time Reporting and Data Modelling
Digital twinning technology offers a path forward. With cloud computing and the proliferation of internet-connected sensors (thanks to the Internet of Things), real-time emissions reporting has become more accessible. Advanced data modelling technology enables emissions data to be traced from source to reporting, reducing the risk of green-washing and reporting errors. Companies can now embrace compliance while simultaneously enhancing productivity.
Framing the Issue
Emissions accounting should not be viewed solely as an obligation but as a business opportunity. Net-zero goals, sustainable practices, and productivity improvements are critical for the Australian economy.
Join the Movement Towards a Sustainable Future
Digital Twinning Australia invites businesses of all sizes to explore the CCEmissions360 Console and join the movement towards a more sustainable future. By working together and leveraging innovative technologies, we can transform asset management, reduce carbon emissions, and create a more resilient planet.
