The feeling in the air around the push towards minimising greenhouse gas (GHG) emissions has a very similar feel to it to how it was more than a decade ago in the lead up to the introduction of a price on carbon or a “carbon tax” way back then. Of course, history tells us that the model introduced by Julia Gillard was ultimately killed off and so did the broader discussion on managing greenhouse gas emissions which went to sleep with just the odd piece in the newsfeed every now and then.

In recent years, the topic has woken up considerably and broadened to be a part of the ESG conversation via the E for Environment amongst Social and Governance. The E part has continued in the global political discussions of course with the periodic forums to reconfirm or adjust emissions targets from time to time. The introduction of mandatory climate related financial disclosures has brought the topic into sharper focus, but really it is the S for social which is driving the pressure to act.

SRJWW was heavily involved in understanding the GHG emissions space all those years ago and were involved in collaborating with other firms in Walker Wayland Australasia and strategic partners, such as Pangolin Associates, to build skills as GHG Energy Auditors for assurance purposes. The language was very similar then to what it is now:

• The bigger organisations will require smaller businesses in their supply chain to minimise their emissions because the supply chain makes up most of an organisation’s Scope 3 emissions
• Financial institutions will require an understanding of a business’ emissions in assessing loan applications
• Governments will increase weighting on the management of emissions in their tenders for contracts
• It is a great opportunity for marketing for new customers and employees.

These factors and more are just as relevant now and are happening. Just as now, back then we felt that it was an area of importance that our clients would need to address and just like now, we went through the process of measuring our carbon footprint and implanting minimisation strategies. For example, we installed solar in our office to half our use (and cost) of electricity, and installed LED lighting and timing sensors in our office. In short, we felt that if we were going to talk to our clients about this, we needed to act ourselves. Lead by example.

Fast forward to now, the pause button has been released, and the conversations are building again. So again, we are walking the talk. For us, the conversations became more serious out of the Walker Wayland conference in May 2023 which had ESG as its theme. On the back of building strong alliances with Sumday and continuing our long-term relationship with Pangolin Associates, we also commenced a relationship with Prime ESG Advisory to assist us with the broader scope of ESG services.

Setting the Baseline: Understanding our Carbon Footprint

Working closely with Prime ESG Advisory, we recently completed our own Carbon Management Report to shed light on our carbon footprint and how we can not only measure, but also manage and ultimately reduce our emissions. The key findings from our report are:

• For the 2022-2023 financial year our carbon footprint amounts to 338.6 tonnes of CO2
• 88% of this arises from Scope 3 emissions which includes indirect emissions from purchased goods and services, business travel and employee commuting
• 68% of our electricity footprint comes from our team remote working with half of our working time on average being remote, highlighting the evolving nature of workplace practices and their environmental implications

Engaging Employees: The Heart of Decarbonisation

Central to SRJWW’s decarbonisation strategy is employee engagement. Recognising that our team play a pivotal role in the organisation’s sustainability efforts, SRJWW encourages their participation in reducing emissions. The report highlights that 54 employees submitted their individual carbon footprints, averaging 14.3 tonnes per employee. This engagement not only provides valuable data but also fosters a culture of environmental awareness and accountability within our firm.

One intriguing finding is the dietary habits of our team, where only 4% follow a meat-free diet while the majority (52%) identify as medium meat eaters. Given that food and waste constitute 28% of the carbon footprint, encouraging more sustainable dietary choices could present a significant opportunity for emissions reduction.

Reducing Emissions: A Multi-Faceted Approach

The key opportunities for us to reduce our carbon footprint from the report are:

1. Developing a Climate-Focussed Vision
   Articulating a clear and compelling sustainability vision can galvanise both internal and external stakeholders, aligning efforts towards common environmental goals.
2. Setting Reduction Targets
   Establishing specific, measurable targets for emissions reduction is crucial. This provides a roadmap for continuous improvement and benchmarks progress over time.
3. Employee Education and Engagement
   Educating our team about carbon emissions and the importance of ESG initiatives is vital. This not only empowers employees to act but also integrates sustainability into the core business strategy and provides real world understanding as we seek to help our clients in this space.
4. Sustainable Travel Policies
   Implementing policies that promote low-carbon travel options can significantly reduce emissions from business travel and employee commuting. For instance, 32% of our team already use renewable carbon-neutral energy, and further promotion of such practices can amplify impact.
5. Supplier Engagement
   With a substantial portion of emissions stemming from purchased goods and services (48%), engaging suppliers to adopt greener practices is essential. Starting with high-impact areas like IT and telecommunications can yield considerable benefits.

Moving Forward: From Measurement to Action

The journey to carbon neutrality is a continuous process of measurement, action, and reassessment. SRJWW’s Carbon Management Report serves as a crucial first step, providing a comprehensive baseline and actionable insights. By setting clear targets, engaging employees, and integrating sustainability into their business strategy, we are demonstrating a commitment to “walking the talk”.

As we move forward, the emphasis for us will be on translating these insights into tangible actions. This includes exploring innovative ways to reduce emissions, fostering a culture of sustainability, and leveraging technology to enhance efficiency.

At the same time, our team is trained and ready with the support of our alliances to help guide businesses through a similar process on the back of their own real-world experience. Stay tuned for more including our broader commitment to ESG through strategy being released soon via Walker Wayland Australasia with the assistance of Prime ESG Advisory.

For a confidential conversation with an SRJ Walker Wayland advisor, contact us today.