Companies reporting under Australia's climate disclosure rules, and many others with net-zero commitments, must account for Scope 3 emissions: the emissions in their value chain, including the goods and services they buy. That means asking suppliers for data.
Step 1: Understand the Request
Before collecting anything, clarify what your customer is asking for. Do they want your total footprint, or only emissions related to what you supply them? Which year? Which scopes? Is there a template, a questionnaire or a portal? When is it due, and will they want it every year?
Step 2: Set Your Boundary
Decide which entities, sites and activities you are including. For most small and mid-sized businesses, this is every location and vehicle you own or control.
Step 3: Gather Activity Data
- Scope 1 (direct): fuel used in vehicles and equipment, gas used on site and refrigerant top-ups.
- Scope 2 (purchased energy): electricity from your bills, by site.
- Scope 3 (value chain): start with the largest categories, often purchased goods, freight and business travel.
Step 4: Calculate Using Recognised Methods
Apply the GHG Protocol methodology and, for Australian activity, emission factors from the National Greenhouse Accounts Factors published by the Australian Government. Record the factor source and version for every calculation, so the figures can be checked and repeated next year.
Step 5: Allocate If Needed
If your customer wants emissions related only to their orders, allocate your footprint using a sensible basis such as revenue, volume or weight, and explain the method you used.
Step 6: Respond Honestly
Share your figures with your method, boundary and assumptions. Where data is estimated, say so. Avoid broad claims like "carbon neutral" or "eco-friendly" unless you can substantiate them; the ACCC has published guidance on making environmental claims and has acted against misleading ones.
Step 7: Improve Each Year
Customers often value progress as much as the number itself. Set a baseline, identify a few practical reductions, and consider independent verification as your data matures.
