With estimates revealing that only a third of Climate Reporting Entities have likely adopted Carbon Accounting tools for effective emissions reporting, the challenge is clear.
For sustainability professionals, this is more than a statistic—it’s a call to action and a chance to lead with confidence, simplifying compliance and reporting along the way.
Add to that the need to navigate evolving regulations like Australia’s new ASRS standards, and it’s clear why this terrain is so demanding.
As businesses grapple with these complexities, Lincoln Watson, CEO of BraveGen, sheds light on how companies can approach climate-related financial disclosures, overcome challenges, and turn sustainability into a competitive advantage.
In an insightful conversation about the year ahead, Lincoln also reflects on the evolution of BraveGen, expansion into Australia, and how sustainability is being integrated into every facet of business operations.
"In the first 18 months after the CRD legislation was introduced, we saw a significant increase in emission reporting activity,” Lincoln notes. The introduction of mandatory reporting requirements under frameworks like the Climate-Related Disclosures (CRD) marked a turning point.
Organisations took on a significant change in workload, engaging consultants or implementing software solutions to manage the increase more efficiently.
Many businesses are yet to make the move to software, with Lincoln estimating that only about one-third have adopted such tools to streamline productivity and improve audit processes. A conversation with one of the Big Four consulting firms suggested a similar figure.
“However, over the last six months, things have slowed,” he explains. Economic challenges and the intensity of reporting periods have tempered the momentum seen in 2023.
Despite this, interest remains strong with a significant number of the entities affected by the legislation still needing to optimise how they manage and report their emissions data.
Scope 3 emissions, particularly those tied to supply chains, remain top of mind. While some organisations are taking proactive steps to measure and report these emissions, many are still at the beginning of their journey.
“What was described as very difficult, with consultants leading the way, is now being understood and systematised. It’s a journey with challenges, but progress is being made,” Lincoln observes. “On the flip side, I suspect we will see some shifts here in how some companies manage this as they seek to improve data quality.”
The property sector for example is already making moves to improve data quality with Scope 3 leased assets. Property management firms are using metering to get accurate emissions data for their leased assets without burdening tenants.
For large asset owners committed to improving the performance of those assets, scope 2 emissions have been important for some time.
However, over the last year high energy prices are making businesses prioritise efficiency again. "Staying on top of energy management is a continuous activity, you take your eye off it and it goes right back up," says Lincoln.
“We’re seeing renewed interest in cutting utility costs, and emissions.”
As sustainability reporting matures, the landscape of emission factors is becoming increasingly complex. Whether it’s spend-based, operational, or embodied emissions, the management of emission factors and how they are applied to inventories is going to increase exponentially.
“Better tools, like Thinkstep’s improved emission factors, are available, but the sheer range of options is becoming daunting,” Lincoln points out. “While AI will provide some relief, significant simplification will be needed to prevent the process from becoming unwieldy for reporters and auditors alike.”
Lincoln acknowledges that the road to sustainability isn’t without its hurdles, especially in times of economic uncertainty. “The biggest challenge for many of our clients, is the increased work associated with carbon-related disclosures, resourcing the team and increasing influence across large businesses” he explains.
“Many large, listed companies go through their reporting periods in the mid-year, making it difficult to adopt new software solutions during this busy time. Combine that with the current economic climate, and it’s no surprise that moving forward can feel like a slow process.”
For BraveGen, these delays are compounded by the complexity of working with clients entering their first year of mandatory carbon reporting.
These businesses are focused on ensuring their data is accurate, compliant, and ready for auditing.
One of the core challenges BraveGen faces in Australia is helping businesses navigate the country’s new Australian Sustainability Reporting Standards (ASRS). “The key to supporting businesses here is making sure they can efficiently collect and categorise the right data,” says Lincoln.
These are a few key lessons learned from the CRD legislation:
"When our clients go into audits, we’ve heard stories about how solid data collection processes, verifiable approval workflows, notes, and the ability to produce a transparent calculation methodology have made the process much smoother,” Lincoln says.
“That’s always gratifying—knowing we’ve helped streamline the process and made a difference."
For Lincoln, the goal is clear: "It's about making data management simple, so our clients can focus on what matters most—reduction strategies. We appreciate there is a lot to it, but they shouldn’t be bogged down by the administrative side of reporting. It should be about climate action, not climate admin."
BraveGen’s software is built to optimise the entire data collection and reporting process, and Lincoln emphasises that continuous improvements are crucial.
"We need to keep improving our clients productivity as their jobs become increasingly complex.", he notes.
"We’ve already added new features to our platform to handle more emission factors and enhance reporting efficiency. Our focus remains on enabling our clients to manage the process seamlessly, and we will continue building tools that increase data accuracy and save time."
Lessons from New Zealand to Australia.
BraveGen’s experience working with businesses in New Zealand has played a pivotal role in its ability to support Australian businesses.
Lincoln highlights the importance of enterprise-level tools for managing data throughout the year, not just at the time of reporting. "Many organisations used to report only once a year, but now the legislation requires them to continuously collect and categorise data. That’s where our experience comes in. We’ve been helping businesses here streamline their processes for over a decade."
That experience, coupled with deep local knowledge, gives BraveGen an edge over international competitors unfamiliar with the nuances of the Australasian market.
He explains, “Experience in Europe or the US isn’t always applicable here. The reality is that sustainability managers in this region need data collection tools and integrations compatible with local suppliers, along with consulting expertise that operates in the same time zone and understands the local regulatory landscape and industry-specific requirements.”
Lincoln also stresses the importance of understanding industry metrics. “It’s not just about carbon emissions. Intensity metrics, industry benchmarks and broader Social and Governance reporting are also an important part of the broader legislative reporting. Businesses must be equipped and prepared to capture and manage them effectively. We’ve been working with industries like transportation, fisheries, and ports for years, and that domain experience translates well across New Zealand and Australia.”
While many businesses are still focused on compliance, Lincoln is passionate about helping them see sustainability as a strategic opportunity. “Our vision is for sustainability to be integrated into every business’s performance,” he states.
"Sustainability is no longer just a cost or regulatory burden—it’s a differentiation opportunity."
He acknowledges some industries struggle to identify a clear green premium for their investment. Lincoln believes that the integration of sustainability into a company’s core strategy can help them stand apart in the market.
He recalls discussions with board members of major companies who initially viewed sustainability purely as a compliance activity. “The conversation was all about cost, the approach was reactive,” Lincoln reflects.
"But now, sustainability is a part of the brand narrative. It's about creating stronger appeal to their target client and positioning the business for on-going value ahead of competitor offerings being left behind."
BraveGen’s own success stories illustrate this shift. “We’ve helped our clients save over $118 million on utility costs while reducing carbon emissions. It’s a win-win,” says Lincoln.
"Take Webstar, one of New Zealand’s largest commercial printers, for instance. Within the first 12 months of using our energy monitoring system, they saved $54,000 in energy costs and achieved a 7.99% reduction in energy use. Today, their savings have exceeded $250,000—and they’re just getting started."
"Businesses that align sustainability with their strategy are seeing the financial and reputational benefits."
He points to the growing market demand for sustainability as a competitive advantage, particularly in the consumer goods sector. “Consumers are increasingly making purchasing decisions based on sustainability. For premium brands, this is a huge opportunity. If you're serious about sustainability, it becomes a powerful tool for brand differentiation and market positioning.”
As the year ahead unfolds, Lincoln sees the momentum building for sustainability in New Zealand and Australia. He is confident that the regulatory landscape will continue to evolve, but the broader trend is clear: businesses that act now will be better positioned for the future.
“There are regulatory pressures, but also financial incentives that make sustainability a smart business decision,” he says.
"As more businesses realise the long-term value of sustainability, we will see a broader shift. And for those who feel overwhelmed by the changes, my message is simple: Start small. Learn as you go. Don’t try to solve everything at once."
For Lincoln and BraveGen, the future is about empowering businesses to meet their sustainability goals and navigate the complexities of compliance with ease.