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How Australian Businesses Can Navigate Scope 3 Emissions Reporting with Wizer

6 days ago

4 min read



Australia is introducing new climate-related financial disclosure laws that will soon require large companies to report their Scope 3 emissions—the indirect greenhouse gas (GHG) emissions that occur throughout their value chain, both upstream and downstream. While Scope 3 emissions often make up the majority of a company’s carbon footprint, they are also the most challenging to measure and manage.

Many organisations are struggling to gather accurate data, ensure compliance, and engage suppliers effectively. Wizer specialises in stakeholder engagement, ensuring the right people are in the room, providing live data, and enabling structured consultation to simplify Scope 3 emissions reporting. Wizer is able to help businesses efficiently engage their value chain to collect the necessary insights and take action.

Understanding Australia’s Scope 3 Reporting Requirements

As part of mandatory climate-related financial disclosures, large businesses will need to disclose climate risks, transition plans, and Scope 3 emissions in their annual reports. These regulations align with the Australian Sustainability Reporting Standards (ASRS) and require compliance from entities that meet certain thresholds, such as:

  • Over 500 employees

  • More than $1 billion in consolidated gross assets

  • Over $500 million in revenue

While Scope 1 (direct emissions) and Scope 2 (indirect energy emissions) must be reported from year one, Scope 3 emissions will be mandatory from the second reporting year onwards. This gives companies some time to implement robust data collection and reporting mechanisms—but they need to act now.

The Biggest Challenges in Scope 3 Reporting

Reporting Scope 3 emissions is complex due to the involvement of multiple suppliers, logistics partners, and customers. Businesses face several key challenges:

1. Supplier & Partner Data Collection Is Inconsistent

  • Many suppliers do not track or report their emissions, making data collection difficult.

  • Smaller suppliers may lack the capability, resources, or incentive to provide accurate emissions data.

  • Companies need a structured way to engage and collect data from their value chain.

2. Identifying Gaps in the Value Chain

  • Scope 3 emissions cover 15 different categories, from purchased goods and services to transportation, waste disposal, and product use.

  • Many businesses struggle to identify which categories apply to them and where data gaps exist.

3. Ensuring Data Reliability & Avoiding “Greenwashing”

  • Without objective verification, companies risk reporting flawed or incomplete data.

  • Inaccurate data can lead to greenwashing accusations, damaging credibility and investor confidence.

  • Companies need to validate their emissions data before submitting reports.

4. Lack of Actionable Insights After Reporting

  • Even after compiling emissions data, organizations struggle to turn insights into action.

  • Reducing Scope 3 emissions requires collaboration across the supply chain, which is difficult without a structured approach.


How Wizer Helps Businesses Meet Scope 3 Compliance

Wizer provides a stakeholder engagement-driven solution that makes Scope 3 reporting easier, more accurate, and more actionable. Here’s how:

1. Structured Supplier & Stakeholder Consultation

  • Wizer facilitates structured engagement with suppliers, logistics partners, and key stakeholders.

  • The platform uses live recommendations to ensure the right people are consulted for emissions reporting.

  • Wizer does not measure emissions directly, but it ensures companies engage the right suppliers and collect the necessary data to report accurately.

2. Identifying Data Gaps & Missing Perspectives

  • Wizer’s decision intelligence engine helps organizations identify missing data sources.

  • Businesses can map their Scope 3 emissions categories and ensure they aren’t underreporting critical areas.

  • The platform provides a group strength indicator to highlight areas of uncertainty in emissions data.

3. Verification & Risk Mitigation

  • Wizer provides transparency metrics that assess data reliability and flag inconsistencies.

  • The platform ensures Scope 3 emissions data is credible, reducing the risk of regulatory non-compliance or greenwashing claims.

  • Live data validation checks ensure that collected emissions data meets Australian reporting standards.

4. Turning Data into Actionable Decisions

  • Wizer helps businesses prioritize sustainability actions based on collected emissions data.

  • Decision profiles & group insights identify which departments should be involved in emissions reduction initiatives.

  • Companies can track real-time supplier engagement and adjust their sustainability strategy based on ongoing feedback.



Beyond Compliance: Using Data to Drive Sustainability

Instead of treating Scope 3 reporting as just a compliance task, Wizer enables businesses to use emissions data to drive real change across their supply chain:

Supplier engagement insights improve collaboration on emissions reduction. Better decision-making leads to more sustainable procurement strategies. Transparency strengthens corporate reputation with investors and stakeholders.

Real-time insights allow businesses to adjust strategies based on supplier progress.


Conclusion

Navigating Scope 3 emissions reporting is a complex but necessary step for Australian businesses. With new laws coming into effect, companies must take action now to establish reliable data collection, engage suppliers effectively, and ensure regulatory compliance.

Wizer provides a stakeholder engagement-driven solution that streamlines reporting, ensures data credibility, and helps businesses turn emissions insights into action. While Wizer does not measure carbon emissions directly, it ensures organizations engage the right stakeholders, capture live data, and make informed decisions to meet compliance and sustainability goals.

Is your business ready for Australia’s new Scope 3 emissions reporting laws?  

Contact Wizer today to learn how our platform can help you navigate your stakeholder engagement with confidence.


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