When does Scope 3 become mandatory under AASB S2?

From each entity's second reporting year. Group 1 entities with a 30 June year-end disclose Scope 3 for the year to 30 June 2027; Group 2 from the year to 30 June 2028. The first year's relief is for reporting, not for data collection: the second-year figure needs a full year of supplier data.

Which Scope 3 categories do we have to report?

The material ones. AASB S2 requires disclosure of material Scope 3 categories out of the 15 in the GHG Protocol, with the measurement approach and data quality stated. For most Australian companies purchased goods and services, capital goods, fuel-and-energy activities and use of sold products dominate. We screen all 15 so the effort goes where the tonnes are.

Can we use spend-based estimates?

Yes, as a starting point. Spend-based factors give complete coverage quickly and are acceptable where primary data is not yet available, provided the method and its limits are disclosed. Assurance and credibility improve as you replace them with supplier-specific or activity data, category by category.

How do we collect data from hundreds of suppliers?

Not by email. The ESG Supplier and Customer Portal sends each supplier a short, pre-filled request, chases them automatically and validates what comes back. The Scope 3 Hub reads unstructured documents such as invoices and certificates with AI and turns them into activity data with a human check.

Do financed emissions count as Scope 3?

Yes. Category 15 covers investments, and AASB S2 requires banks, insurers and asset managers to disclose financed emissions with the metrics the standard specifies. Asset owners with $5 billion or more under management are in Group 2 regardless of size.

Scope 3 & Supplier Emissions

Scope 3 is where the emissions - and the data pain - really live. We make supplier and value-chain emissions collectable, not impossible.

A Scope 3 capability built on Microsoft Sustainability Manager, with a Scope 3 Hub that uses AI to read unstructured supplier data and an ESG portal that collects primary data directly from your suppliers and customers - so material Scope 3 categories become reportable, not estimated away.

Scope 3 becomes mandatory in your second reporting year

Scope 3 is usually the largest part of a footprint and the hardest to measure. Data sits with hundreds of suppliers in inconsistent formats, primary data is scarce, and spend-based estimates are too coarse for assurance. Under AASB S2, material Scope 3 becomes mandatory from the second reporting year - so this problem is now on a clock.

We deploy a Scope 3 Hub that uses AI to ingest and structure unstructured supplier documents, and an ESG Supplier and Customer Portal that collects primary emissions data directly from your value chain. Together they lift Scope 3 from coarse spend-based estimates toward defensible, primary-data reporting on the categories that matter.

Scope 3 Hub with Utility AI

AI reads unstructured supplier documents - invoices, statements, certificates - and turns them into structured, factor-ready activity data.

Unstructured document ingestion
AI extraction to activity data
Human-in-the-loop validation

ESG Supplier & Customer Portal

An external portal that collects primary emissions data directly from suppliers and customers, with workflows that chase and validate responses.

Primary-data collection
Automated supplier follow-up
Response validation and scoring

Category materiality

We identify which of the 15 Scope 3 categories are material for you, so effort goes where the emissions actually are.

15-category screening
Materiality prioritisation
Data-quality tiering

Spend-to-primary pathway

Start with spend-based estimates for coverage, then replace them with primary data category by category as suppliers respond.

Spend-based baseline
Progressive primary-data uplift
Data-quality flags on every figure

What changes for your Scope 3 disclosure

Scope 3 becomes reportable

Assurance-ready Scope 3

Material categories move from 'too hard' to defensible disclosure.

Supplier data without the chaos

Automated collection

A portal and AI replace hundreds of email threads and spreadsheets.

Effort where it counts

Prioritised

Materiality screening focuses work on the categories that move the number.

Who needs Scope 3 under ASRS

Built for:

Companies facing mandatory material Scope 3 from reporting year two
Procurement and supply-chain teams engaging suppliers
Sustainability leads stuck on spend-based Scope 3 estimates
Businesses with emissions concentrated in their value chain

Runs on

Microsoft Sustainability Manager
Scope 3 Hub (Utility AI)
ESG Supplier & Customer Portal
Microsoft Fabric
Power BI

Built to align with

GHG Protocol Scope 3 Standard
AASB S2 / ASRS aligned
ISSB S2 aligned
NGER methodology

Accelerate Your Desired Outcomes

Clients choose us because we:

Are certified Microsoft experts.
Take a holistic approach to understand your business needs and bridge the gaps with the right tools and solutions.
Collaborate with you and prioritise your input to ensure a client-centric approach.
Operate with agility and speed, thanks to our small teams and 2-week sprint model.
Start developing on day 1 to get results quickly.
Focus on delivering outcomes, not just scope, to ensure we meet your goals.
Offer cost-effective solutions that enable you to reach your goals faster.
Stay flexible and open to new and better ways of doing things to continually improve your business processes.
Are proudly Australian owned and operated.

Frequently asked questions

When does Scope 3 become mandatory under AASB S2?: From each entity's second reporting year. Group 1 entities with a 30 June year-end disclose Scope 3 for the year to 30 June 2027; Group 2 from the year to 30 June 2028. The first year's relief is for reporting, not for data collection: the second-year figure needs a full year of supplier data.
Which Scope 3 categories do we have to report?: The material ones. AASB S2 requires disclosure of material Scope 3 categories out of the 15 in the GHG Protocol, with the measurement approach and data quality stated. For most Australian companies purchased goods and services, capital goods, fuel-and-energy activities and use of sold products dominate. We screen all 15 so the effort goes where the tonnes are.
Can we use spend-based estimates?: Yes, as a starting point. Spend-based factors give complete coverage quickly and are acceptable where primary data is not yet available, provided the method and its limits are disclosed. Assurance and credibility improve as you replace them with supplier-specific or activity data, category by category.
How do we collect data from hundreds of suppliers?: Not by email. The ESG Supplier and Customer Portal sends each supplier a short, pre-filled request, chases them automatically and validates what comes back. The Scope 3 Hub reads unstructured documents such as invoices and certificates with AI and turns them into activity data with a human check.
Do financed emissions count as Scope 3?: Yes. Category 15 covers investments, and AASB S2 requires banks, insurers and asset managers to disclose financed emissions with the metrics the standard specifies. Asset owners with $5 billion or more under management are in Group 2 regardless of size.

Proof and further reading

article

Scope 3 under ASRS: the One-Year Relief and What to Do Before It Ends

AASB S2 gives every reporter one year before Scope 3 is mandatory. What the relief covers, when it ends for each group, which categories will be material, and how to collect supplier data in time.