September brings major shifts in sustainability, focusing on supply chain decarbonisation, water stewardship, and nature-positive business strategies. Governments and investors are pressuring companies to tackle Scope 3 emissions, while industries face stricter regulations on water usage and ecosystem restoration. Businesses that fail to act risk regulatory fines, investor disengagement, and operational disruptions.
Key updates for the month include:
- Supply chain decarbonisation is a top priority, with companies required to measure and reduce Scope 3 emissions.
- Water stewardship initiatives are expanding as regulatory bodies tighten water usage limits, particularly in resource-intensive sectors.
- Nature-positive strategies are gaining traction, with financial incentives and regulatory support driving biodiversity conservation.
Supply Chain Decarbonisation: Tackling Scope 3 Emissions
Scope 3 emissions—those generated by suppliers and product use—are now under investor and regulatory scrutiny. More companies are being required to disclose and actively reduce emissions in their entire value chain, not just their direct operations.
- The Australian Government has introduced new Scope 3 emissions reporting guidelines for businesses under the Climate-Related Financial Disclosure framework.
- BHP has committed to reducing supply chain emissions by 30% by 2030, collaborating with logistics providers on low-emission shipping and renewable energy-powered mining equipment.
- Coles and Woolworths are tightening supply chain sustainability requirements, mandating carbon footprint reporting from all key suppliers.
Case Study: BlueScope Steel’s Scope 3 Reduction Strategy
BlueScope Steel is working with suppliers to source low-carbon iron ore and investing in green hydrogen steelmaking. This initiative is expected to cut its supply chain emissions by 35% over the next decade while securing investor confidence in its net-zero transition plan (BlueScope, 2024).
What Businesses Should Do
Companies must:
- Measure and report Scope 3 emissions to meet regulatory and investor expectations.
- Engage suppliers in emissions reduction strategies, such as switching to low-carbon raw materials and transport.
- Incentivise sustainable suppliers by integrating carbon performance into procurement decisions.
Water Stewardship: Rising Regulations and Best Practices
Water scarcity is becoming a major operational and financial risk, with stricter regulations now affecting resource-intensive industries like mining, construction, and agriculture. Businesses that fail to manage water sustainably will face higher costs, regulatory penalties, and reputational damage.
- The NSW and WA Governments have introduced new policies restricting groundwater extraction for industrial use.
- The Australian Water Association has recommended mandatory water efficiency reporting for businesses exceeding certain usage thresholds.
- Companies like Rio Tinto and Fortescue Metals Group are investing in desalination and closed-loop water recycling to future-proof operations.
Case Study: Newmont’s Water Conservation Plan
Gold mining giant Newmont has launched a site-wide water recycling program at its Boddington operation in WA, reducing freshwater withdrawals by 40%. The company has also partnered with local communities to improve shared water resource management (Newmont, 2024).
What Businesses Should Do
- Audit water usage and implement efficiency measures, such as closed-loop systems and rainwater harvesting.
- Engage with regulators and local communities to develop sustainable water-sharing agreements.
- Invest in water recycling technologies to reduce dependence on freshwater sources.
Nature-Positive Business Strategies: Aligning with Global Biodiversity Goals
As biodiversity loss becomes a global financial and regulatory risk, companies are integrating nature-positive strategies into their operations. The focus is shifting from minimising harm to actively restoring ecosystems.
- The Global Biodiversity Framework (GBF) is driving new financial and regulatory incentives for nature restoration projects.
- The Australian Government has announced biodiversity credits, rewarding businesses that engage in ecosystem conservation.
- Companies like Transurban and Lendlease are incorporating biodiversity-positive designs into major infrastructure projects.
Case Study: Lendlease’s Urban Biodiversity Initiative
Lendlease is leading a nature-positive urban redevelopment in Brisbane, integrating green roofs, tree corridors, and wildlife-friendly building designs. This project not only meets sustainability targets but also enhances community liveability and property value (Lendlease, 2024).
What Businesses Should Do
- Integrate biodiversity restoration into business planning to align with new compliance and investor expectations.
- Leverage biodiversity credits to offset impacts and benefit from government incentives.
- Engage in nature-positive partnerships with conservation organisations and research institutions.
Strategic Imperatives for Executives
- Reduce Scope 3 Emissions: Implement supplier engagement programs and low-carbon procurement strategies.
- Implement Water Stewardship Plans: Reduce water consumption, enhance recycling, and engage with regulators.
- Adopt Nature-Positive Strategies: Align sustainability programs with biodiversity restoration and emerging market incentives.