by Komoneed | Nov 26, 2024
Australia’s new climate reporting requirements are fast approaching, and for many businesses, the time to act is now. These rules demand more than just ticking boxes — they push organisations to think differently about their role in tackling climate change. Whether you’re just starting or refining your strategy, understanding how to navigate the Australian Sustainability Reporting Standards (ASRS) will be key to staying ahead.
Here’s how your business can prepare and make the most of these changes.
From compliance to opportunity
Initially, these standards might seem like a compliance headache. But think of it like preparing for a marathon. You wouldn’t wait until the last minute to start training. Similarly, aligning with these regulations requires a steady build-up, and the benefits extend far beyond simply meeting deadlines.
Enterprise Performance Management (EPM): beyond financials
EPM has traditionally focused on financial metrics, but that’s no longer enough. Today, sustainability, diversity and stakeholder engagement are equally important. For CFOs, this means embedding climate and ESG goals into strategic planning. Think of it as a new way to gauge your organisation’s health and resilience.
Rethinking risk management
Risk management traditionally focuses on immediate threats like market volatility or cyber risks. Climate risk adds a new dimension.
ERM must now incorporate climate risks and ESG factors, from carbon emissions to resource scarcity. Social and governance considerations, like diversity and ethical practices, also play a pivotal role.
Climate risks are not future problems — they’re already here. Embedding them into your risk assessments is crucial for resilience.
The carbon accounting shift
Reporting on Scope 1, 2 and 3 emissions is a central part of the ASRS. Relying on manual spreadsheets is like using a sundial in the digital age. Automated systems provide precise, financial-grade reporting, which not only ensures accuracy but also supports better decision-making.
This isn’t about tech for tech’s sake and automation is more than a buzzword here. It’s about making carbon accounting manageable and actionable.
Data foundations
Reliable climate reporting starts with solid data. But let’s face it, data is often messy.
Robust climate reporting hinges on data that is FAIR — findable, accessible, interoperable, and reusable. Imagine knowing not only your total emissions but being able to pinpoint the biggest contributors. This framework ensures data integrity and enhances transparency, enabling reliable financial and non-financial reporting.
Supply chain management
Managing the extended supply chain is now more critical than ever. Reducing Scope 3 emissions involves considering both upstream and downstream impacts. A holistic view of your supply chain will drive comprehensive carbon reduction and support broader sustainability objectives.
Five steps to get started
Preparing for the ASRS doesn’t have to be daunting. Here are five actionable steps to ensure your business is ready:
Assess gaps: identify where your business falls short of the new climate regulations. This will clarify the scope of necessary changes and help prioritise efforts.
Evaluate materiality: conduct a materiality assessment to pinpoint the most significant climate-related risks and opportunities for your business and stakeholders.
Review data and technology: examine your current systems. Leveraging existing technology while addressing gaps will streamline the transition and minimise disruptions.
Set a carbon baseline: establishing your carbon footprint is a vital first step in planning your decarbonisation strategy. It provides a benchmark for tracking progress and setting future goals.
Model climate scenarios: analyse potential risks and opportunities under different warming scenarios, such as 1.5 and 2.5°C, to guide strategic decision-making.
Preparing for the future
The ASRS is more than a regulatory requirement — it’s a chance to future-proof your business. By embedding sustainability into your operations now, you’ll not only meet compliance deadlines but also position your organisation for long-term success.
In the coming weeks, we’ll delve deeper into each of these steps, offering practical insights and strategies to help your business navigate this new landscape. Remember, this isn’t just about compliance. It’s about leading in a world where sustainability is non-negotiable.
Thierry Lotrian is CEO of Climate & Decisions, specialising in helping organisations navigate climate regulations through data and AI technologies.
Top image credit: iStock.com/VectorMine
by Komoneed | Nov 23, 2024
The question of how intelligent plants and fungi are has been increasingly explored by scientists, as they have delved into the capability of these lifeforms to perceive and communicate with each other and the outside world. A new study has found that fungi can not only perceive, but learn, have memories, solve problems and make […]
The post ‘Mind-Blowing’: Study Shows Fungal Networks Can Solve Problems and Make Decisions appeared first on EcoWatch.
by Komoneed | Nov 23, 2024
In Switzerland, highway noise barriers surrounding the Oberland Autobahn near Wangen-Brüttisellen will soon provide solar power. Last year, Switzerland’s Federal Roads Office made the surfaces of highway noise barriers free and set out to cover 350 of them in solar panels. Swiss officials estimated that the arrays could generate 100 gigawatt hours of clean energy […]
The post Switzerland to Add More Solar Power to Rooftops and Highway Noise Barriers appeared first on EcoWatch.
by Komoneed | Nov 23, 2024
With world leaders, climate and environmental scientists and business leaders having gathered in Baku for COP29 — the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) — we’ve been advocating that this transformation poses significant challenges while simultaneously providing opportunities for growth, resilience and innovation.
The role of coal and the need for change
Coal remains the largest contributor to climate change, generating 35% of global electricity as of 2023. The International Energy Agency’s (IEA) net-zero scenario calls for OECD countries to reduce coal’s share in power generation to 14% by 2030, with a complete global phase-out of unabated coal by 2040.
This underscores the fact that achieving global climate goals hinges on a viable energy transition strategy, particularly in Asia, where demand continues to surge.
The need for decarbonisation is stark: Asia’s carbon emissions now account for over half of the global total. The young age of Asia’s coal fleet — about 13 years on average — complicates the shift to renewables, with significant investments still tied up in coal plants. According to the World Economic Forum, policies that streamline and incentivise plant closures or conversions can accelerate the pace of transition.
Economic and environmental challenge
Transitioning to renewables in Asia requires not only technological shifts but also robust financial mechanisms.
We need financing models that incorporate public and private capital, with mechanisms like loans and grants making clean energy more accessible and competitive.
Countries like Vietnam face hurdles such as rigid power purchase agreements that protect coal plants from competition. Overcoming these barriers demands innovative financing, potentially reducing the cost of capital to make renewable projects more viable and less risky.
The move from coal to renewables also requires securing grid stability and resilience. The diversity of resources across Asia — from hydropower in Southeast Asia to solar in China — necessitates tailored strategies for integrating these resources into a cohesive and stable energy grid. GHD is actively involved in helping clients to navigate these complexities by advising on technical planning, decommissioning and the use of renewables like solar and wind.
Action steps to help Asia transform from coal to clean:
Develop robust financing models: Facilitate access to capital with a mix of loans, grants and public–private partnerships to make renewable energy more competitive and scalable.
Strengthen policy frameworks: Governments should adopt supportive policies to encourage investment, ease regulatory restrictions and provide incentives for renewable energy projects.
Invest in grid resilience and smart technology: Modernising grid infrastructure, including smart grids, is essential for integrating renewables and managing intermittent supply efficiently.
Encourage regional knowledge-sharing and collaboration: Cross-border partnerships can accelerate technology transfer, innovation and the development of best practices for transitioning from coal.
Support local workforces and communities: Implement training programs, workforce transition initiatives and local engagement strategies to ensure a fair and equitable transition for coal-dependent communities.
Based on this, there are three critical pillars for a successful transition: stable technical solutions, sustainable stakeholder engagement and a strong business case. Every project requires bespoke planning that integrates stakeholder interests, addresses environmental impacts and leverages technical expertise to ensure grid reliability.
A well-defined transition strategy that supports all stakeholders and secures financial backing is essential for a viable energy future.
Creating such a strategy involves evaluating the potential of each project and exploring repurposing opportunities, from battery storage to hydrogen production.
Looking forward: policy, financing and social impact
A successful transition will rely on supportive policies that facilitate investment and foster technological advancements. We need to understand the importance of a ‘just transition’ that balances environmental goals with economic equity, especially in coal-reliant communities.
Communities cannot be sidelined; local stakeholders need to benefit from new economic opportunities in renewables. At COP29 in Baku, GHD has been advocating for a holistic approach, including policy alignment, financial innovation and active community engagement.
The shift from coal to clean energy isn’t merely a goal — it’s an urgent necessity. Through collaboration, innovation and commitment to sustainable development, we can achieve a cleaner, greener future for Asia and beyond.
*Richard Fechner is GHD’s Enterprise Business Advisory Leader, leading the global business in providing strategy, commercial, economic, business case, logistics, policy, regulatory, asset management and transaction services. With over 30 years of experience, Richard has held senior roles in both the private and public sectors, contributing significantly to infrastructure development, investment and delivery across various sectors including ports, agriculture, energy, government and defence. He has advised on approximately AU$150 billion in infrastructure transactions and is a highly skilled infrastructure and business professional with expertise in strategic planning, business management and project engineering.
**Dr Tej Gidda is a distinguished expert in clean energy transitions and currently serves as the Global Leader for Future Energy at GHD. With over 20 years of industry experience, Dr Gidda holds a PhD in Environmental Engineering and is a registered Professional Engineer in Ontario. His work focuses on integrating clean energy technologies into existing systems and developing innovative strategies to overcome challenges related to reliability and affordability. Dr Gidda’s expertise spans hydrogen, renewable natural gas, traditional renewables, energy from waste, energy security and planning. He is also an adjunct professor at the University of Waterloo.
Top image caption: Pagudpud Wind Farm, Ilocos Norte, Philippines. Image courtesy of GHD.
