Carbon Emissions Measurement and Reporting (Scope 1, 2, 3)
Carbon emissions measurement (or carbon accounting) refers to the process of quantifying the total greenhouse gas (GHG) emissions generated by an entity, whether an individual, organisation or country over a defined period. Emissions are typically expressed in metric tonnes of carbon dioxide equivalent (tCO₂e), which standardises different greenhouse gases (such as methane) based on their relative warming impact compared to carbon dioxide.
At Impact HQ, we work with both Australian and global businesses that recognise emissions reporting is becoming increasingly important, but are at varying stages of readiness. Some organisations have partial or primary data available, while others are yet to establish structured data collection processes. In many cases, there is already growing pressure from customers, supply chains and regulators.
Carbon accounting is no longer something that can be deferred. Whether driven by regulatory requirements, supply chain expectations or the need to remain competitive, meaningful progress depends on having a clear understanding of your emissions profile.
Carbon Emissions Measurement and Reporting (Scope 1, 2, 3)
Carbon Emissions Measurement and Reporting (Scope 1, 2, 3)
At Impact HQ, our focus is on building practical, sustainable carbon accounting systems; not one-off reporting exercises. We work with you to establish processes that can be maintained internally and used year after year, supporting ongoing emissions reporting, decision-making and continuous improvement.
We bring deep experience in carbon emissions measurement and reporting across following sectors and industries
Carbon Emissions Breakdown
Carbon accounting is measuring and tracking the greenhouse gas emissions that result from your business activities.
Fuel, electricity, transport, suppliers and indirect operations emissions are accounted for within it.
In Australia, this is growing increasingly relevant with ASRS, NGER and supply chain ESG expectations.
This is a simple proposition – understand your emissions footprint so that you can:
• report it
• manage it
• Decrease it through the passage of time
Scope 1, 2, 3 Breakdown
This is the core of carbon accounting, and honestly, where most confusion happens.
Scope 1 (Direct Emissions)
It means emissions from sources you own or control.
Examples:
Company vehicles
Fuel usage
On-site equipment
Scope 2 (Indirect – Energy)
These come from purchased electricity, gas or energy.
Examples:
Estate agency electricity
Warehouse Usage Of Power
Scope 3 (Indirect – Value Chain)
This is the largest and most complicated one of all.
Examples:
Emissions from supply chains
Transport and logistics.
Business travel
Waste
Purchased goods
Most businesses underestimate Scope 3. But this, in fact, is where most emissions really dwell.
Our Carbon Measurement Methodology
We do not transcribe numbers and generate a report. We build a structured approach based on ISO 14064 standard.
Our procedure are pragmatic and encompass.
Step 1 – Define Control and Accurate Boundaries
We define what is included:
- Entities
- Locations
- Operations
Step 2: Data Collection Through Structured Methodology
We ensure data is complete and clean to be used for calculations
Step 3 : Discover Emission Sources
We first map Scope 1, 2 and 3 sources to your business.
Step 3 – Data Mapping
Your data processed against relevant emission categories
Step 4 – Calculation
Our approach is aligned with globally recognised standards, including the GHG Protocol and ISO 14064-1, and utilises established emissions factors from NGA, EPA and DEFRA.
Step 5 – Audit Ready Report and Documentation
All assumptions, methodologies and limitations are rigorously documented. This means your carbon accounting is more than calculated- it's defensible and audit-ready.
Emission Data Collection & Tools
This is where the majority of companies fail.
Data is usually:
We help structure it properly.
Unless a system is really essential we wont push costly systems.
• scattered across departments
• Inconsistent
• Incomplete
Typical data sources:
• Fuel invoices
• Electricity bills
• Fleet data
• Records of Procurement
• Travel logs
We also assist you in selecting tools based on your size:
• Excel models(for small and mid-sized enterprises)
• Software platforms (for larger companies)
Reporting & Verification
Calculating emissions is also followed by the need to be reported.
That is what your data used for.
ESG reports
Sustainability disclosures
Client requirements
From regulatory compliance
Our GHG emissions reporting is aligned with:
You will not be in a starting position when verification approaches your business.
GHG Protocol Corporate Standard
ISO 14064-1:2018 (Greenhouse Gas Accounting & Reporting)
Australian National Greenhouse and Energy Reporting (NGER) Scheme
NGA Factors (Australia) for emissions factors
AASB S2 / ASRS (climate-related disclosures)
IPCC Guidelines for global warming potentials (GWP)
DEFRA Emission Factors (UK) or US EPA
For businesses progressing towards audits, assurance or certification, we determine:
Clear methodology
Basis of preparation (BoP) document
Proper records
Consistency of calculations
Challenges in Scope 3
This here is the biggest pain point. Almost every business struggles here.
Why?
Data availability and quality
Lack of data from suppliers and other stakeholders within the value chain; high dependence on estimation
Challenging to collect credible and consistent information from different suppliers globally
Supplier involvement
Calculation methodology
Inconsistent due to two different approaches to calculation (activity and spend)
Boundary determination
Unclear on which activities to include and exclude from the 15 scope 3 categories
Missing data and assumptions
Using general emission coefficients may result in lower precision
Risk of double counting
Overlaps between supply chain partners may cause duplications
Resource-intensive process
Time-consuming to collect, validate, and update data
Shifting industry standards and expectations
Changes in regulations (GHG Protocol, ASRS, SBTi) create confusion
No control over emissions
Since the emissions lie outside the company's operations, reducing them becomes difficult
We help companies overcome these challenges by:
Addressing Data availability issues → Combining primary data with proxy data
Enhanced Supplier engagement → Supplier data gathering process
Complex methodologies → Standardised hybrid methodological approach
Scope considerations → Determining appropriate boundaries
Control limitations → Concentrating on key areas.
This is how most established companies with mature emissions measurement methodologies, approach Scope 3 emissions
Assumption formulation → Explicit and defendable assumptions
Avoiding double counting → Ensuring no double-counting
Effort in resource allocation → Efficient data processing procedures
Changing standard practices → Adherence to current standards
Why Carbon Accounting is Important
Carbon accounting is not just the realm of big businesses; in Australia, carbon accounting has become necessary for all types of businesses due to the following reasons:
1. Increasing Regulatory Compliance
2. Growing ASRS and climate reporting needs
3. Supply Chain Pressure
4. Growing need for emissions information by clients and purchasing departments
5. Increasing requirements in Tenders
6. Carbon data is becoming increasingly important to be ahead of the competition
7. Investor and Financing Institutions Needs
8. Banks and investors are demanding more ESG reporting
9. Future Preparedness
Our Approach
Although carbon accounting services are common among service providers, few of them consider what is realistic and achievable in the context of your business-specific needs. We strive to develop solutions that are truly fit-for-purpose and fit your budget. Our approach:
Designed specifically for Australian companies – considering the unique regulatory and operational environments in Australia, rather than using international models
Designed for large, small and medium-sized enterprises (SMEs) with pragmatism in mind – Taking into account limitations associated with data gathering and other operations
No over-engineering – Choosing simplicity over complicated designs
Systems that can operate sustainably internally – Creating systems that are internally manageable and maintainable
Based on internationally recognised frameworks – Adhering to the GHG Protocol, ISO standards, and regulations, not just theoretical frameworks
Improvement through phases – Knowing exactly what is possible now and suggesting having plans for improvements down the line
Phased Delivery Approach – Building on a strong emissions baseline, we gradually advance decarbonisation and a net-zero strategy, grounded in current capabilities and future scalability of a business.
Benefits
Accurate carbon accounting goes further than a mere emissions calculation, such as
Credible baseline → Provides one version of the truth on emissions
Regulatory preparedness → Consistent with ASRS and reporting guidelines
Enables data-driven decision-making throughout the organisation, minimising assumption-based decision-making.
Stakeholder trust → Earns credibility with shareholders, consumers, and financiers
Informed decision-making → Detects critical areas to address
Competitive edge → Enhances bidding and ESG compliance
Cost effectiveness → Reveals energy and process efficiencies
Net zero framework → Facilitates decarbonization and transition strategies
FAQs
Carbon accounting refers to the quantification of a company’s greenhouse gas emissions (Scope 1, 2 and 3). It is an essential starting point for compliance, ESG reporting, and decarbonisation efforts.
The requirement applies to some large organisations under the NGER and ASRS frameworks; however, it is becoming increasingly relevant for all businesses due to supply chain and investor pressures.
Scope 3 emissions include indirect greenhouse gases emitted throughout the value chain and typically represent the majority of a business’s carbon footprint.
Their quantification mostly depends on supplier data, involves multiple categories and often requires many assumptions, making them more complex than Scope 1 and 2.
Typically 4-8 weeks based on availability of data, organisational complexity, and the extent of the scope of carbon emissions that need to be reported.
Start from a high-level screening of all emissions using existing data, focus on material sources, and gradually refine estimations by collecting additional information.
It becomes the base for:
- ESG reporting
- Decarbonisation and Net zero strategy
- Planning for emissions reductions
Carbon emissions measurement and reporting is becoming a necessity for any business. It is a complex task, especially for businesses that are beginning their ESG journey or those that are under more pressure from clients and their supply chains.
Early adoption provides a clear advantage to businesses: usually establishing a baseline in a simple, phased manner allows organisations to build capability over time, rather than committing significant resources under pressure when compliance requirements arise.