Big shift in climate reporting for the Australian poultry industry

In brief: 

  • Incoming climate reporting regulation effective 2025-27  will affect poultry producers – both layers and broilers
  • There is a need for accurate data and sustainability metrics to comply with these mandates
  • Sustell™ can support producers in measuring and managing required data 
  • Long-term benefits of data insights include improved sustainability performance, which can be integrated into business efficiency.

Big shift: climate reporting changes land in Australian poultry

The Australian poultry industry is on the brink of a major regulatory shift that promises to transform how broiler and layer businesses approach environmental accountability. These regulations mark a significant step forward in Australia's efforts to combat climate change by ensuring that all types of industry, agriculture included, contribute in a measurable and meaningful way to sustainability goals.

From 1 January 2025, the Treasury Laws Amendment Act will enforce new climate reporting regulations that require poultry producers to disclose accurate and comprehensive primary environmental data from their business. Initially affecting Group 1 businesses – the largest entities, often publicly listed or major corporations – and thereby typically the most resource-intensive producers. Group 1 businesses will likely in turn ask their suppliers for relevant data. 

The scope of the regulations will subsequently expand to include Group 2 entities in 2026 and Group 3 entities in 2027. This phased approach allows smaller producers time to prepare but underscores the urgency for sector adaptation.

For the poultry industry, the implications are significant. Although most Group 1 producers will be prepared, others may have a need to adopt robust systems for collecting, managing, and reporting data on a range of environmental metrics. This includes emissions from direct operations, energy use, and the broader supply chain. Without accurate data and reliable sustainability metrics, non-compliance will be a significant business risk.  

Data, data, data: what do producers need?

While some producers may hesitate to disclose sensitive, primary, operational data, failure to comply with these regulations carries both financial and reputational risks. Non-compliance could lead to fines, strained stakeholder relationships, and loss of competitive standing in an increasingly sustainability-driven market.

To meet the new climate reporting standards, Group 1 entities must address several critical areas:

  • Governance structures and climate risk strategies must be developed to ensure that risks are identified and effectively mitigated. Climate risk management plans should be integrated into existing business plan, aligning with both regulatory and operational goals.
  • Emissions tracking in the first year must measure and report Scope 1 emissions (from direct operations) and Scope 2 emissions (related to energy use). In year two, Scope 3 emissions reporting is also required (indirect emissions from across the supply chain, such as feed production and transportation). Tracking Scope 3 emissions is particularly challenging and requires extensive collaboration with partners through the value chain to gather accurate data.
  • Financial impact assessments are another essential component, requiring producers to evaluate how climate risks (such as extreme weather, or shifting consumer demands) affect operational costs and financial stability.
  • Emissions reduction targets linked to performance metrics that demonstrate progress over time.

Figure 1. A reporting company’s scope 1, 2 and 3 emissions

Adapt and overcome: reporting challenges

Reporting involves many challenges; particularly in measuring emissions, energy, and water use across the production cycle. Figure 2 demonstrates how significant the contribution of feed is to overall footprint in poultry production.

Figure 2: An example of broiler production’s environmental footprint     

 

Accurate tracking of emissions from feed, transport, and waste management is complex and resource intensive  . Additional staff or training may be needed to handle the reporting, adding to the cost and complexity for producers.

Managing and reducing emissions may require investment in new technologies and practices – such as Sustell™. Sustell™ gives feed and poultry producers control over their own, primary data, resulting in a more accurate footprint for management and reporting.

Primary data is important, as life cycle assessments (LCA) benchmarks are often based on European data, which may not reflect Australian regional practices.  By understanding their individual footprints, producers can report accurately as well as optimise their own production based on Sustell™ management recommendations.  Users can rest assured that Sustell™ is a fully secure, AWS-cloud based solution, that offers complete data security – right down to the feed ‘recipes’ used on farm, even when footprint data is shared. 

Sustell™: compliant and competitive

Sustell™ is dsm-firmenich's advanced and scalable LCA platform. This cutting-edge tool provides measurement solutions for poultry producers and streamlines data collection and management, allowing real-time tracking of key production processes. It helps assess environmental impact by calculating carbon footprints, water use, and other relevant metrics. Additionally, Sustell™ enables benchmarking, allowing producers to compare their performance against industry standards and identify areas for improvement.

What’s next? 

Beyond regulatory compliance, the benefits of accurate data collection and sustainability insights extend to long-term business performance. Optimising resource use can lead to cost savings, while improved sustainability aligns with shareholder and consumer expectations. For Australian poultry producers, Sustell™ is not just a reporting platform but a pathway to enhanced production efficiency and a more sustainable future.

As the 2025-2027 deadlines approach, leveraging Sustell™ will be an excellent opportunity for Australian poultry producers to remain compliant and competitive.

Published on

23 December 2024

Tags

  • Sustainability
  • Ruminants
  • Dairy