e National Greenhouse and Energy Reporting (NGER) Act 2007 is a prime example of this trend.
If you’re a business owner in Australia, it’s essential to understand how this legislation can affect you. In this guide, we’ll explain the NGER Act, why it matters and what you need to know to comply with its requirements.
What Is the NGER Act?
The NGER Act is an Australian law that requires large businesses to measure and report their greenhouse gas emissions, energy production and energy consumption. This law is part of Australia’s broader efforts to improve environmental, social and governance (ESG) reporting and policies in the country. The NGER Act was introduced in 2007 to provide a better understanding of Australia’s overall greenhouse gas emissions and energy use and to encourage businesses to reduce their carbon footprint.
The NGER Act sets out specific reporting requirements for businesses that meet certain thresholds. For example, if your business emits more than 25,000 tonnes of carbon dioxide equivalent (CO2-e) per year, you are required to report your emissions to the government under ESG reporting guidelines. The reporting requirements also depend on the type of business you operate, as well as the sources of your emissions and energy use.
Who Is Affected by the NGER Act?
The NGER Act applies to a wide range of businesses operating in Australia, including those in the energy, mining, manufacturing and transportation sectors. Specifically, the law applies to businesses that meet certain thresholds for emissions, energy production or energy consumption, as part of their ESG reporting obligations.
In addition, some businesses that are not directly covered by the law may still be required to report their emissions if they supply products or services to covered entities. It’s important to check whether your business is affected by the NGER Act to ensure compliance with ESG policies in Australia.
Why Does the NGER Act Matter?
Benefits of Compliance With the NGER Act
Complying with the NGER Act and ESG reporting guidelines can bring several benefits to your business, such as:
- Can help to improve your company’s ESG compliance and ensure that it is aligned with Australia’s ESG laws and policies
- Can enhance your business reputation as a responsible and sustainable company, especially in Australia’s growing ESG reporting landscape
- Can help you identify opportunities to improve your business operations, reduce costs and improve efficiency.
Risks of Non-Compliance
On the other hand, failing to comply with the NGER Act can result in significant risks for your business, including legal and financial penalties. The Australian government takes ESG policies and compliance very seriously, and non-compliance can result in fines or even legal action.
Non-compliance can also damage your business reputation and cause harm to the environment. In addition, not complying with ESG reporting requirements can also mean missing out on potential business opportunities, as many stakeholders are increasingly interested in the ESG performance of companies they invest in or work with.
How to Comply with the NGER Act
Understanding Your Emissions
The first step in complying with the NGER Act and ESG reporting guidelines is to understand your company’s emissions. This involves identifying the sources of your greenhouse gas emissions and determining how to measure them. Ensure that your data is accurate and reliable, as this will form the basis of your ESG reporting. ESG lawyers can help you navigate the NGER Act and provide guidance on best practices for measuring emissions.
Reporting Guidelines and Best Practices
Once you have a clear understanding of your emissions, it’s time to start reporting. The NGER Act provides guidelines for ESG reporting, including what to report, when to report and how to report. It is important to follow these guidelines to ensure compliance and avoid penalties.
In addition, there are best practices for ESG reporting that can help improve the accuracy and reliability of your data. These include using standardised reporting frameworks, regularly reviewing your data for errors and inconsistencies and having a clear ESG reporting policy in place.
Tools and Resources Available
Many tools and resources are now available to help you comply with the NGER Act and ESG reporting guidelines. You can find various software platforms that can help you manage and report your data, ESG consultants who can provide guidance on compliance and best practices and ESG lawyers who can assist with legal compliance. Choose the right tools and resources for your business needs and ensure that they are aligned with Australia’s ESG laws and policies.
How Madison Marcus Can Help You
If you want to ensure compliance with Australia’s ESG laws and policies, avoid penalties and improve your business operation, we can help you. At Madison Marcus, we understand the importance of ESG compliance and the impact it can have on your business’s reputation. Our team of ESG lawyers can provide guidance on compliance with the country’s ESG laws and policies, help you navigate reporting requirements and thresholds and ensure that you are following best practices for ESG reporting.
Contact us today to learn more about how we can help you with your ESG compliance needs.