Senate Finance and Public Administration Legislation Committee [Part 2], , 2:12:41 to 2:15:10
Senator McDonald questions the ANAO on the definition and auditing of scope 3 emissions for Commonwealth companies, noting the judgment required in reporting.
Topics: Climate change, Emissions reduction
Speakers: Carla Jago, Senator Susan McDonald, Speaker 1, Senator The Hon Don Farrell, Unknown Speaker
ANAO, but um I would like to welcome the Honorable Senator Don Farrell. Um Minister, would you care to make a statement at this point in time? I would
like to make a statement but I might do it at the time when I would ordinarily be um
>> fantastic. We will come back to you at that point. Um we'll go back to Senator McDonald.
>> Thank you very much, Chair. Um can I just go back and clarify on um uh on your last question that the definition of scope three is still contested given that we are asking companies um to report on scope three. uh how yes I if if the audit office doesn't know how to define scope three how are we asking companies to measure and track on scope three
>> um so there is a definition for scope 3 but there's a lot of judgment that goes into determining what that number is so it's not an easy to apply formula there's a lot of judgment about what scope 3 emissions are for the sustainability reports that were done for the 2526 six financial year entities did not have to do scope 3 emissions and have that audited. So we actually didn't audit scope 3 emissions for the 20 sorry the 2526 year. Um so we audited um the sustainability reports for four Commonwealth companies NBN, Snowy Hydro, um Australian Rail Corporation and ASC. Um and each of those we did issue um limited assurance auditors reports um but none of those covered the scope 3 emissions as they were required to.
>> Right. I'm I'm intrigued because we've legislated that companies have to report on scope 3 emissions but the government auditor um is saying that it is uh there's judgment around it. Um and I assume this is where the qualitative statements from sustainability reporting is coming from.
>> Yes. So there's absolutely judgment in it and companies are reporting but they didn't need to get it audited for the 25 26 year. So we did not audit those numbers this past year.