Understanding Scope 3 Emissions: A Guide for NGER Reporters

Scope 3 Emissions Readiness: A Practical Guide

Effective from 1 July 2025, Australia’s new climate-related disclosure regime requires large entities, including NGER reporters, to report Scope 3 emissions under the AASB S2 standard.

What Are Scope 3 Emissions?

Scope 3 includes all indirect emissions in your value chain – from purchased goods to product use and investments. Often the largest source of carbon exposure.

Readiness Checklist for NGER-Reporting Entities

• Governance: Assign board-level oversight and embed into risk frameworks
• Stakeholders: Engage suppliers and educate staff
• Methodology: Map data sources, define assumptions, select emissions factors
• Systems: Leverage tech to streamline tracking and data governance
• Scenario Analysis: Model climate pathways and stress-test value chains
• Disclosure: Align with AASB S2 and plan for assurance from FY26 onward

Quick Wins for 2025–26

• Run materiality scan for Scope 3 categories
• Prioritise top emitters in your supply chain
• Start engaging suppliers early with tools/templates
• Leverage liability protections during initial rollout

Need support or templates? Visit emissionstatement.com.au for advisory tools.