The Clean Energy Regulator recently released its 2022 Corporate Emissions Reduction Transparency report that provides a snapshot of the work being done by corporate Australia to address climate change, writes Clean Energy Regulator chair David Parker AM.
The Clean Energy Regulator is paving the way for increased transparency and accountability around corporate climate disclosures with the publication of the first Corporate Emissions Reduction Transparency (CERT) report.
The pilot CERT report was released in July 2022 and is an Australian first. It provides a snapshot of some of Australia’s largest companies’ climate ambitions across a range of sectors and industries.
CERT is a framework that allows companies to communicate their climate-related commitments, progress and net emissions position all in one place, providing greater accountability and transparency.
I was delighted to see 23 companies from the energy, manufacturing, mining, retail, financial, construction and research sectors participate in the CERT report’s pilot. These companies represent almost a quarter of Australian emissions reported to the Clean Energy Regulator for 2020-2021.
While participation in the CERT report is voluntary, any company emitting more than 50 kilotonnes of carbon dioxide equivalent (CO2-e) emissions per year is eligible, with potential for the eligibility to expand to more companies in the future.
Many other companies were consulted and engaged in designing the framework, and I am pleased to see many expressing a strong interest in future participation.
The first report ran as a pilot, ensuring the full breadth of the framework and reporting guidelines were tested in a real-world scenario. We are undertaking an evaluation with a view to public consultation on any key changes later this year.
Key takeaways from 2022 CERT report
The CERT report made it clear that corporate Australia will play an important role in helping to reach the goal of net zero by 2050, with a 43 per cent reduction in emissions by 2030. The report revealed 90 per cent of participants have committed to net zero or 100 per cent renewable energy consumption.
Outside of this, companies have committed to a range of sustainability and environmental goals, and 19 of the company reports included a commitment where progress is verified by the Clean Energy Regulator.
Importantly, more than 80 per cent of CERT participants are aiming to meet their commitments by 2030, demonstrating the genuine work being done right now by many Australian companies to achieve carbon abatement.
Fourteen companies surrendered units and certificates, including 780,000 Australian and international carbon credit units that were used to offset emissions, and 360,000 large-scale generation certificates (LGC) which are administered under the Clean Energy Regulator’s Large-scale Renewable Energy Target (LRET).
Why participate in CERT
By participating in the CERT report, companies can demonstrate their leadership and commitment to taking genuine action on climate change through strengthened accountability and transparency.
The flexibility of the CERT report is truly unique, allowing companies to report information and data on scope 1 (direct combustion) and scope 2 (electricity emissions). The CERT report also supports disclosure of commitments to reducing scope 3 (supply chains) and international emissions, and an increased focus on carbon abatement efforts.
The report presents companies’ net and gross emissions, their level of renewable electricity consumption, use of carbon offsets and progress towards certain commitments.
Importantly, key elements of the report are verified using data held by the Clean Energy Regulator, and this is identified in the report for each individual participant.
The CERT report can also be used by companies to support their corporate reporting through leading initiatives such as the Task Force on Climate-related Financial Disclosures and the emerging standards from the International Sustainability Standards Board that came out of the Glasgow Conference of the Parties.
Looking ahead to 2023 CERT report
I would like to thank the 23 companies for participating in the CERT pilot. We also appreciate the contributions of other stakeholders who provided invaluable input into the co-design process. The pilot was developed through an extensive consultation with industry and other stakeholders.
Following the success of this year’s report, we are encouraging companies who are required to publish their greenhouse emissions and energy use data to consider opting in to the 2023 CERT report. Opt-ins will open in November 2022 via the Clean Energy Regulator’s website.
The 2022 report is also available on the Clean Energy Regulator’s website and there is a particular emphasis on the progress of companies towards meeting their climate commitments.
We are anticipating higher participation in the 2023 CERT report, and we expect the transparency brought by CERT will drive an increase in demand for renewable energy and investment in emissions reduction in Australia.
For more information, visit cleanenergyregulator.gov.au/Infohub/Markets/cert-report.
David Parker AM has been chair of the Clean Energy Regulator since July 2017. With a career spanning more than 25 years with Commonwealth Treasury, he has worked across financial sector liberalisation, tax reform, macroeconomic forecasting and policy, competition policy, energy policy and international economics. His column will be a regular feature in EcoGeneration.