Small Business Emissions Reporting 2025: Why Acting Now Gives You a Competitive Edge
- Future Accounting
- Jun 16
- 3 min read
Updated: Aug 14
Why small business emissions reporting is the key to staying competitive in 2025
If you're a small business owner, emissions reporting might not be on your radar - but it should be!
Even though the new climate disclosure laws starting in 2025 targeting large companies, although the ripple effects are reaching us smaller businesses too.
Why Small Businesses Should Pay Attention to Emissions Tracking
1. Climate regulations are evolving fast. Even if your business isn’t directly affected now, it may be in the future - especially if you engage with large companies or have government contracts.
2. Big Business Supply Chain is impacted. Big businesses are under pressure to report their full carbon footprint, including your emissions if you’re part of their supply chain. That means they’ll start asking you for data.
3. Environmental Factors are on Lender's Radars. Borrowing Decisions include Banks and investors are starting to factor environmental risk into their decisions. Having your data ready shows you’re a responsible, forward-thinking business.
4. People are Watching. Customers and employees care about sustainability. Showing that you're tracking and managing your emissions builds trust and attracts like-minded people.
What Are Scopes 1, 2 & 3 Emissions?
Think of emissions in three buckets:
Scope 1 – Emissions from sources you directly control (like fuel used in vehicles you own).
Scope 2 – Emissions from the electricity or energy you purchase and use.
Scope 3 – Everything else you influence but don’t control—like your supply chain, product use, and business travel.
What Can You Do Right Now?
Start with Scope 1 & 2 - These are simpler to track and fully within your control.
Prioritise Key Scope 3 Areas - You don’t need to measure everything - just what’s relevant to your business.
For example, if you import products or ship goods, those emissions matter most.
Use Easy Tools - You don’t need fancy software. Try simple calculators like those found at SME Climate Hub, or even a spreadsheet collecting emission factors.
Keep It Practical
Low Effort, High Reward - Just starting to track your emissions shows you're taking responsibility and opens doors to sustainable partnerships.
No Need to Be Perfect - This isn’t about a full audit on day one. Start small. Build confidence. Improve over time.
What's Changing in 2025?
Starting 1 January 2025, big businesses in Australia are required to report on the impact of climate change on their finances. As part of this, they’ll require information from suppliers - that’s where small businesses come in.
Experts like ASIC recommend small businesses:
Track energy use and waste
Engage with customers and suppliers about what they need from you
Get support from your accountant or adviser
This isn’t only about compliance—it’s about staying competitive and seizing new opportunities as businesses invest in climate resilience.
Sustainability isn’t just for the big players. Small businesses have a crucial role to play—and you don’t have to go it alone.
Want to Get Started?
We can help you with basic tracking templates or point you to simple tools that fit your needs. Feel free to reach out anytime.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
