Energy Emissions Reporting: What You Need to Know

Australia’s new climate disclosure rules are here, and they bring emissions reporting into your standard year-end cycle. Below is a plain-English guide to who needs to report, when the rules begin, what must be disclosed, and the practical steps that will make compliance easier and more valuable for your business.  

Who needs to report and when  

Reporting is mandatory for Australian corporate groups that meet any one of the following consolidated thresholds: $50m+ revenue, $25m+ gross assets at year end, or 100+ employees at year end. Size determines your start date and the disclosures you must provide. Reporting aligns with your financial year and is lodged with your financial and directors’ reports. A three-year phase-in begins for the largest entities from 1 Jan 2025, followed by Groups 2 and 3 in 2026 and 2027.

Tip: thresholds apply at the group level, not the individual subsidiary, so check your consolidated position early.

What your sustainability report must include

1. Governance of climate risks and opportunities,
2. Strategy and the potential impacts on your business,
3. Risk management processes,
4. Metrics and targets, including greenhouse gas emissions.

Groups 1 and 2 must disclose Scope 1 emissions and Scope 2 emissions from purchased energy, while Group 3 discloses material climate-related financial risks and opportunities or states if none are material.

What happens if you do not comply

There is a transition period for the first three years, but non-compliance can attract civil penalties. From 2026, ASIC will run annual surveillance of climate disclosures to lift the quality of reporting, and misleading or incomplete statements can trigger stronger enforcement.

Why your energy procurement now matters

Mandatory reporting is rolling in over the next three years, which means your business will need to measure annual emissions and factor sustainability outcomes into how you buy electricity. In short, contract decisions influence your reported Scope 2 emissions and your costs.

Nectr’s C&I team works with organisations across education, hospitality, manufacturing, pharmaceuticals and more to find practical, measurable ways to improve energy outcomes. Timing and tariff shape both matter, since wholesale prices are lowest in the solar-rich middle of the day and highest in the early evening. Planning your next contract early gives you more options and certainty.

Proven levers to cut Scope 2 emissions

You can lower reported emissions and strengthen your sustainability story by reshaping how you source and use electricity:

1. Certified renewable supply such as GreenPower added to a standard contract.
2. Renewable electricity contracts or PPAs that lock in supply from wind or solar and provide price certainty.
3. On-site solar and batteries to reduce grid consumption and improve resilience.

These options are all recognised pathways for reducing Scope 2 and can improve stakeholder confidence under the new framework.

A simple getting-started plan

1. Confirm your group status and start date, then set an internal timeline to align with your year end.
2. Map your emissions data sources, starting with energy bills and metering for Scope 2.
3. Assign governance: who owns climate risk, reporting and assurance.
4. Choose your reduction levers: renewable procurement, load shifting, and on-site generation.
5. Engage your retailer early to secure competitive terms that support cost and emissions goals.

Quick checklist by group

1. Group 1 large reporters start in FYs beginning 1 Jan 2025. Prepare Scope 1 and Scope 2, and build governance, strategy, risk and metrics sections.
2. Group 2 starts 1 Jan 2026 with similar requirements.
3. Group 3 starts 1 Jan 2027, focusing on material climate-related financial risks and opportunities, or confirming if none are material.

How Nectr can help

We can assess your current energy profile, outline renewable procurement pathways, model cost and emissions impacts, and design a plan that fits your budget and risk appetite. That includes adding GreenPower, arranging a PPA with our wind or solar projects, or deploying on-site solar and storage.

If you would like a short briefing for your leadership team or a quick options analysis for your next electricity term, our C&I specialists are ready to help. Email
business@nectr.com.au to get in touch with our specialists.

This article is general information only and is not legal advice. Always confirm obligations with your advisers and refer to the latest regulatory guidance.