At the recent Australian Emission Reduction Summit 2024 (AER Summit) in Melbourne, our carbon consultant Nick Ross moderated an engaging panel of sustainability leaders on the topic of ESG, Leadership, and Decarbonisation.
The panel featured experts from across the Environmental, Social, and Governance (ESG) spectrum in a cross-functional and wide-ranging discussion.
- Rosemary Bissett, Head of Sustainability Governance and Risk at National Australia Bank.
- Cameron Ginn, Environment & Quality Manager - Construction at Fulton Hogan.
- Hayley Scott, Head of Social at WINC Australia.
This session highlighted the critical role of ESG leadership in guiding companies toward responsible decarbonisation efforts, providing insights into the challenges and opportunities faced by Australian businesses.
In this article, we’ll dive deeper into the key takeaways and actionable insights from the panel.
Discover what these leaders had to say about the road ahead for ESG-driven decarbonisation and how Australian businesses can stay ahead of the curve.
Governance and accountability: The foundation for decarbonisation.
Rosemary Bissett initiated the session by emphasising the importance of governance structures in achieving successful sustainability outcomes.
According to Bissett, as sustainability disclosures become mandatory, businesses must implement governance frameworks that mirror the rigour of financial reporting.
This will ensure the accuracy and transparency of data while mitigating the risk of greenwashing.
She advised businesses to begin by assessing their governance frameworks to identify gaps that need to be addressed in anticipation of the new reporting requirements.
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Kicking off the AER Summit 2024 with insights on ESG leadership at the Networking Breakfast.
“Good governance sets the foundation for credible sustainability reporting,” Bissett stated, stressing that companies must hold themselves accountable to the same standards as they do with financial reporting.
The integration of cross-functional teams, such as legal, compliance, and corporate affairs, is crucial for ensuring robust reporting practices and reducing the risks associated with carbon reporting.
Learnings from the construction industry.
The discussion then turned to the construction sector, where Cameron Ginn shared insights from Fulton Hogan’s decarbonisation journey.
Fulton Hogan set a baseline for carbon emissions in 2021, has conducted a gap analysis to identify areas needing attention, and is now working to improve transparency across a complex supply chain.
“At Fulton Hogan, transparency is paramount,” said Ginn. The company’s approach underlines collaboration, engaging departments and governance groups to align on decarbonisation goals.
Ginn highlighted the importance of remaining adaptable to emerging regulations, advising businesses to start with baseline measurements and build reporting structures progressively to ensure continuous improvement.
His key takeaway for companies was to take a phased approach. “By taking small steps, companies can build a solid foundation for ongoing success,” he noted, urging businesses to work with external partners to ensure proactive compliance and accurate emissions tracking.
Tackling Scope 3 emissions in construction.
Scope 3 emissions, which include emissions across a company’s supply chain, remain one of the toughest challenges in sustainability reporting. Ginn noted, “Scope 3 emissions are such an unwieldy part of sustainability, and they’re difficult to tackle. But once we got going, we saw that starting with even small steps led to meaningful progress.”
Engaging suppliers in the journey is vital, but it can be a complex task, especially when working with thousands of companies across varying levels of emissions maturity.
In Australia, where many construction firms operate with large networks of subcontractors, establishing a reporting standard for emissions requires patience and a flexible approach.
While some suppliers may have robust data reporting processes, others may need significant support to understand the global warming potential of their materials and their role in achieving decarbonisation.
Ginn explained that Fulton Hogan sought to work alongside closely with suppliers in different ways, from obtaining audited data to initiating conversations on allocating emissions related to specific products and services. “Engaging our 14,000 suppliers, we may have only 2,000 to 3,000 actives at any given time, but each has a role in our sustainability goals,” he highlighted.
Having these conversations not only supports more accurate reporting but also reinforces the importance of emissions reductions in the construction process.
The role of social impact in decarbonisation.
Rounding out the panel, Hayley Scott discussed the intersection of social impact and decarbonisation, pointing out that the social aspect of ESG is often overlooked but is equally important in driving sustainability.
According to Scott, social initiatives play a vital role in fostering an inclusive transition to a low-carbon economy. She explained that engaging employees and stakeholders in ESG efforts, such as through workplace wellness programs and initiatives supporting local suppliers, can help build stronger community ties and enhance overall commitment to environmental sustainability.
Hayley Scott, Head of Social Impact, Winc Australia in the Networking Breakfast panel.
“The social side of ESG often intertwines with environmental goals,” Scott said. She noted that when companies integrate social responsibility into their sustainability strategies, they can foster a sense of shared purpose, further motivating stakeholders to support environmental initiatives.
Bridging the governance gap.
As the panel concluded, it was clear that while some Australian businesses are well-prepared for the new reporting standards, many are still in the early stages of their ESG journey.
The transition to mandatory sustainability reporting will require organisations to address gaps in their governance structures and ensure that internal systems are robust enough to handle increased scrutiny.
“Are Australian companies ready for the significant increase in scrutiny that will come with mandatory reporting?” Nick Ross posed to the panel. The consensus was that while some companies are well on their way, others need to take proactive steps now to prepare for the shift toward mandatory ESG disclosures.
BraveGen's role in supporting ESG leadership.
As a proud participant and sponsor of the AER Summit, BraveGen was excited to engage with leaders and innovators in the decarbonisation space. BraveGen helped over 200 organisations track and manage emissions, facilitating compliance with new sustainability standards.
Our presence at the summit underscored the commitment to supporting businesses in their ESG efforts and decarbonisation journeys.
Making meaningful connections at the AER Summit 2024 in Melbourne – the BraveGen team in action!
BraveGen’s Carbon software enables companies to streamline their reporting processes, providing accurate and real-time data that supports the long-term sustainability goals of organisations.
As businesses face increased pressure to meet regulatory standards, we're dedicated to providing the tools and expertise necessary to help them succeed in their decarbonisation efforts.
Conclusion.
The opening panel at the AER Summit 2024 underscored the importance of strong governance, transparency, and social impact in driving decarbonisation.
With new sustainability standards on the horizon, Australian businesses must embrace proactive governance frameworks, cross-functional collaboration, and a focus on social responsibility to ensure they meet these requirements head-on.
As Nick Ross concluded, “The tools are here; the challenge now lies in how we choose to use them.”
The path forward for businesses will require committed leadership, clear strategies, and a steadfast dedication to the values that underpin ESG principles.
For businesses attending the summit, the insights shared offered a valuable roadmap to navigate the future of ESG and decarbonisation.
The time to act is now, and BraveGen is here to support companies every step of the way, helping them build the future of sustainable business practices.
