If you supply goods or services to large companies, Scope 3 emissions requests are coming your way. Preparing for Scope 3 emissions requests from your large company customers is quickly becoming a new part of doing business in Australia.
Many small business owners are hearing the term “Scope 3 emissions” for the first time. It can sound complex, technical and overwhelming. The good news is you do not need to become a sustainability expert overnight. You just need to understand what is being asked and take some practical first steps.
This article explains how to prepare for Scope 3 emissions requests from your large company customers, why it matters, and what Australian small businesses should be doing now.
Why you need to prepare
Large Australian companies are under increasing pressure to report on their environmental impact. New climate related reporting rules mean many big businesses must now measure and disclose emissions across their entire supply chain.
That supply chain includes you.
Scope 3 emissions cover indirect emissions created by suppliers, contractors and service providers. This is why preparing for Scope 3 emissions requests from your large company customers is no longer optional.
We are already seeing large organisations asking suppliers questions like:
- Do you track your emissions?
- Can you provide energy usage data?
- What steps are you taking to reduce emissions?
Being unprepared can put valuable contracts at risk.
What are Scope 3 emissions
Understanding the basics
Scope 3 emissions are emissions that occur outside a company’s direct control but are linked to their activities. For large companies, this includes emissions from:
- Purchased goods and services
- Transport and logistics
- Contractors and outsourced services
- Waste and disposal
If you supply a large company, your operations form part of their Scope 3 emissions.
That is why preparing for Scope 3 emissions requests from your large company customers matters, even if you are a small business.
Why small businesses are feeling caught off guard
Many small business owners tell us:
“I didn’t realise this applied to me.”
“I’m not a big polluter.”
“I don’t know where to start.”
This reaction is completely normal. Most SMEs were never required to measure emissions before. But large customers now rely on supplier data to meet their own reporting obligations.
Preparing for Scope 3 emissions requests from your large company customers early gives you control instead of scrambling later.
What large company customers are likely to ask for
Common Scope 3 data requests
While requirements vary, many large companies are starting with simple requests such as:
- Electricity usage from power bills
- Fuel usage for vehicles or equipment
- Business travel details
- Waste disposal information
- Basic sustainability policies
Over time, these requests may become more detailed.
Being organised now makes future requests far less stressful.
How to prepare for Scope 3 emissions requests
Step 1: Get your records in order
Good financial and operational records are the foundation. Start by gathering:
- Electricity and gas bills
- Fuel receipts
- Vehicle usage logs
- Supplier invoices
- Waste and recycling invoices
If your bookkeeping is up to date, this step is much easier. This is where accounting systems play a key role in preparing for Scope 3 emissions requests from your large company customers.
Step 2: Understand your biggest emission sources
You do not need perfect data to start. Focus on the main areas:
- Energy use
- Transport
- Materials used
- Waste
For many service based businesses, energy and transport are the biggest contributors. For trades and manufacturers, materials and fuel often matter most. Don’t just record the costs, also record usage and date (eg watts of electricity and litres of fuels with details of the particular fuel)
Step 3: Document what you already do
Many businesses are already doing positive things without realising their value.
Examples include:
- Using energy efficient equipment
- Reducing waste
- Buying locally
- Maintaining vehicles properly
Writing these down and format this as an emissions policy. Use Chat GPT or Claude to help format and identify any gaps. This shows effort and intent, which large customers value.
The hidden business benefits of preparing early
Stronger client relationships
Being able to respond confidently to Scope 3 emissions requests builds trust. It shows you are professional, organised and future focused.
Several clients have told us they won work simply because they were “easier to deal with” than competitors.
Competitive advantage in tenders
More tenders now include sustainability questions. Preparing for Scope 3 emissions requests from your large company customers can help you:
- Win new contracts
- Retain existing clients
- Stand out from competitors
This is not just about compliance. It is about opportunity.
Common mistakes small businesses make
Ignoring the issue
Hoping it will go away is risky. Large companies are under strict deadlines and may move on to suppliers who can provide data.
Overcomplicating it
You do not need expensive consultants or complex software straight away. Start simple and build over time.
How your accountant can help with Scope 3 preparation
An accountant can help you:
- Set up systems to track relevant data
- Use existing financial records efficiently
- Respond confidently to data requests
- Plan for future reporting requirements
Preparing for Scope 3 emissions requests from your large company customers is much easier when sustainability data aligns with your financial data.
What this means for Australian small businesses
Climate reporting is becoming part of everyday business. While small businesses may not be legally required to report yet, supply chain pressure means expectations are changing.
Preparing now helps you:
- Protect key customer relationships
- Reduce last minute stress
- Position your business for long term success
The businesses that adapt early will be in the strongest position.
Ready to get your business prepared?
If you are receiving Scope 3 emissions requests or expect them soon, now is the time to act.
👉 Book a meeting to talk through your business, systems and next steps:
https://calendly.com/accountants2business/meeting-partner-janelle-bartlett-new-enquiryweb-clone?month=2024-10
👉 Download our free guides to help you get organised and future ready:
https://accountantbusiness.com.au/our-guides/
Being proactive today can protect your business tomorrow.
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