GHG EMISSIONS REPORTING MAY IMPACT SMEs SOONER THAN EXPECTED

Small to medium enterprises (SMEs) are urged to educate themselves on greenhouse gas (GHG) emissions measurement, as climate-related financial disclosures requirements for large businesses and some government entities, could see SMEs asked for their GHG emissions if they are a supplier.

“Mandatory climate-related financial disclosures commenced for large business and financial institutions at the beginning of this year, but what smaller businesses may not realise is this could also affect them,” said Ainslie van Onselen, CA ANZ CEO.

“While there is currently no obligation for small business to report information relating to their GHG emissions, if SMEs are in the supply chain for large businesses or government, they may be asked to provide this information, especially if they are in high-emitting sectors such as Energy, Agriculture and Transportation and Logistics.”

Chartered Accountants ANZ (CA ANZ) and the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) have collaborated to produce a guide to help SMEs understand what information they may be asked by larger businesses they supply to, regarding their greenhouse gas (GHG) emissions.

The guide urges them to gain a better understanding of the value chain in which they operate and assess where GHG emissions might be occurring within their business.

“I encourage SMEs to take the time to read the guide and become familiar with climate-related reporting requirements around GHG emissions. Being prepared and understanding potential reporting obligations could give your business a competitive advantage,” said Australian Small Business and Family Enterprise Ombudsman, Bruce Billson.

“By including climate-related information in tenders, it will give confidence to potential new clients or customers, that SMEs are prepared and are considering sustainability issues,” Mr Billson said.

CA ANZ and ASBFEO’s climate-related financial disclosures guide for SMEs is attached.

ENDS 

About Chartered Accountants Australia and New Zealand 

Chartered Accountants Australia and New Zealand represents more than 140,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action. 

www.charteredaccountantsanz.com 

About the Australian Small Business and Family Enterprise Ombudsman

The Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) mission is to ensure that Australia is the best place to start, grow or transform a business. We do this by assisting and advocating for small businesses and family enterprises. We understand the challenges facing small and family businesses, and provide advice, data and research to improve policies, access to dispute resolution services information and services, and mental health support should the need arise.

We celebrate the vital and deeply personal contribution made by the more than 2.5 million small and family businesses to Australia’s prosperity, wellbeing and community.

asbfeo.gov.au

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