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In a global context, achieving a unified approach to climate-related data comparison is crucial for addressing climate change collaboratively. To support this, the Australian Government has recently introduced Climate Related Financial Disclosure (CRFD) reporting.
CRFD requires that large entities and asset owners in Australia will need to disclose information about climate-related risks and opportunities. The bill requires entities to disclose:
- material financial risks and financial opportunities relating to climate;
- any climate-related metrics and targets (including scope 1, 2 and 3 GHG emissions);
- governance, strategy and risk management processes in relation to the above risks, opportunities, metrics and targets.
Mandatory disclosures and audits for Group 1 entities will begin in July 2025, with Group 2 and Group 3 entities being phased in in 2026 and 2027. Businesses should prepare for these changes now, developing an action plan to assess, report and review their findings.
Many stakeholders in the industry share the goal of reducing carbon emissions and increasing sustainability. However, in my conversations with property owners, developers and others, there is concern about how much additional workload is being created by this record-keeping and reporting requirements. It is clear the businesses are facing significant challenges in meeting these new requirements – from a labour and workload perspective, but also through lack of necessary data and digital technologies to efficiently comply with these laws.
The good news is that while CRFD requires data recording and monitoring, existing technology can automate the collection of this data, minimizing additional work hours from already overstretched asset and facilities teams.
For instance, in an office tower, integrating IoT-enabled sensors into an energy monitoring system not only captures climate-related data but also allows for immediate adjustments, leading to better energy efficiency and improved system resilience. Energy monitoring systems offer operational oversight and real-time visibility into energy and sustainability data, making decision-making more effective.
Building analytics technologies can significantly impact operating costs, occupant comfort, and asset value by identifying and addressing operational inefficiencies. This technology makes it easy for teams to identify, prioritize, track, and report building issues that contribute to carbon reduction and support the organization’s sustainability goals.
Moreover, independent data platforms create a unified, easy-to-understand, and reliable link to various building systems across a portfolio. This connection enables data-driven decision-making, benchmarking, and sustainability reporting at scale.
“The right technology can not only automate mandatory record-keeping and reporting but can also improve the overall sustainability metrics of assets, delivering sustainability impact at scale”.
In summary, digital technologies not only streamline mandatory climate reporting but also lead to more sustainable, resilient, and efficient buildings. These technologies empower businesses to make data-driven decisions, they optimize building performance, and advance their sustainability efforts. Through these efforts buildings will also benefit from being more sustainable, more resilient, more efficient and more people-oriented – all things that make them more appealing to tenants and investors.
For more information on how Schneider Electric can simplify mandatory climate reporting and enhance building sustainability, visit Schneider Electric Australia.
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