“Scope 3 emissions – the indirect greenhouse gas (GHG) emissions that occur across a company’s value chain, from purchased goods and services to product use and disposal – account for around 75% of a typical organisation’s total carbon footprint”
Scope 3 Data Depends on Suppliers. Most Suppliers Are Not Ready, E + E Leader
Environmental, social and governance (ESG) reporting is no longer a ‘nice to have’. As a business owner, understanding your emissions, carbon footprint and your organisation’s environmental impact is now a critical responsibility.
But what exactly are Scope 3 emissions? And why does your Aussie small business need to be aware of these specific kinds of emissions?
Scope 3 emissions
Scope 3 emissions are indirect greenhouse gases generated throughout a business’s entire value chain.
This includes upstream activities like raw material extraction, manufacturing and third-party shipping, as well as downstream activities like customer product usage and disposal. They encompass all operational emissions occurring outside a company’s direct ownership or control.
Why do larger customers need your emissions data?
Australian laws around sustainability reporting and ESG requirements require large corporate clients to report on their upstream emissions data.
Because of this, larger corporate clients will increasingly require smaller suppliers to provide accurate emissions data. As a small business, providing this data in a seamless way helps to maintain your position as preferred supplier and corporate partner.
How to provide Scope 3 emissions data
So, how do you act as a good corporate citizen and partner to your large corporate clients?
We’ve highlighted five steps that help you track your carbon emissions and share the relevant Scope 3 emissions data with your clients:
Map your operational boundary: Identify your primary emission sources by categorising all direct impacts, like company vehicles, and indirect impacts, like facility electricity consumption. This establishes what data needs tracking.
Gather existing financial data: Instead of hiring expensive consultants, extract raw data directly from your bookkeeping systems. Collect utility bills, fuel receipts and waste disposal records to back your calculations.
Calculate your carbon footprint: Input your collected financial and utility data into a free SME carbon calculator. Many of these tools plug directly into standard accounting software to automate the calculation process.
Secure your source documentation: Organise and securely store the source documents behind your data. ASIC emphasises transparency; corporate clients require clean, auditable records to satisfy their own sustainability auditors.
Share a data summary: Format your final figures into a clear emissions report or tender attachment. Providing this data is a simple way to make your business an easy-to-approve, low-risk partner for corporate value chains.
If you’re keen to improve your ESG reporting, come and talk to our team
We’ll work with you to focus on the correct environmental, social and governance elements. And we’ll help you produce the reporting that’s required when tendering for work with larger clients.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. To find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.