By Jenana Roper, General Manager Digital Solutions, Schneider Electric
Achieving a unified approach to climate-related data comparison is crucial for Australia’s efforts to address its climate change targets. To support this, the Australian Government has recently introduced Climate Related Financial Disclosure (CRFD) reporting.
CRFD requires large entities and asset owners in Australia to disclose information about climate-related risks and opportunities, covering:
- material financial risks and financial opportunities relating to climate
- 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.
Businesses are facing challenges in meeting these new requirements – from resourcing through to data compilation. The good news is that while CRFD requires data recording and monitoring, existing technology can automate the process to minimise required resourcing.
Importantly, the right technology will not only automate mandatory record-keeping and reporting, it will also improve the overall sustainability metrics of assets, delivering sustainability impact at scale.
For instance, in an office tower, integrating IoT-enabled sensors into an energy monitoring system captures climate-related data while allowing 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, prioritise, track, and report building issues that contribute to carbon reduction and support the organisation’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.
In summary, digital technologies not only streamline mandatory 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 reporting and enhance building sustainability, visit www.se.com/au.