Australia’s mining sector is under increasing pressure to demonstrate climate action and transparency. Investors, regulators and downstream customers are all demanding credible decarbonisation plans, and clear data to back them up.
With the Australian Sustainability Reporting Standards (ASRS) now in effect, the stakes are higher than ever. These standards require mining companies to disclose climate-related risks, emissions, and transition plans. That means more rigour, more scrutiny, and a lot less room for error when it comes to carbon reporting.
But there’s an opportunity here, too. For companies that are prepared, the ASRS isn’t just a compliance exercise, it’s a chance to get ahead of market expectations, de-risk operations, and secure long-term growth. The key is knowing where your emissions are, how to reduce them, and how to communicate this effectively.
The unique emissions profile of mining
Mining has a complex and carbon-intensive emissions profile. Emissions are driven by diesel-powered equipment, electricity use, transport, and explosives, among other activities. Scope 1 and 2 emissions are significant, but Scope 3 is where the real scale becomes evident.
For many miners, Scope 3 accounts for more than 80% of total emissions. These include downstream processing, transportation, use of sold products, and upstream activities like the production of purchased goods and services. In short, Scope 3 is broad, difficult to measure, and mostly outside the miner’s direct control, making it the most challenging part of ASRS-aligned reporting.
That said, pressure to address Scope 3 is growing. Major customers, particularly in sectors like steel and energy, are starting to demand emissions data from their suppliers. Investors want credible net zero plans that include Scope 3. And the ASRS requires disclosure of material Scope 3 emissions, even if the data is incomplete.
This makes it essential for mining companies to start mapping their full emissions footprint. The longer they delay, the harder it will be to meet stakeholder expectations and regulatory requirements.
ASRS reporting: risks and requirements
The ASRS framework, aligned with ISSB’s IFRS S2, demands disclosure of material climate-related risks and opportunities across short, medium and long term time horizons. For miners, these could include physical risks from extreme weather and transition risks from carbon pricing, stranded assets, and declining demand for high-emission products.
To meet ASRS expectations, companies must disclose:
- Governance and risk management processes related to climate
- Material Scope 1, 2, and Scope 3 emissions
- Climate resilience under different scenarios
- Transition plans, including targets, strategies and capital allocation
Mining companies that fail to meet these standards risk reputational damage, investor backlash, and ultimately, capital flight. But those that act early can use ASRS reporting as a way to build trust and attract long-term investment.
The good news is, most miners already collect a significant amount of emissions data. The challenge lies in aligning it with ASRS requirements, filling in Scope 3 data gaps, and ensuring that disclosures are defensible. Carbon accounting platforms like Avarni are designed to streamline this process, giving mining companies the tools to rapidly assess emissions exposure, identify key risks, and prepare for assurance.
Turning disclosure into decarbonisation
Accurate emissions data is the starting point, but not the endgame. The real value of ASRS reporting is in how it helps companies take action. For miners, that means finding practical ways to decarbonise operations and value chains.
The sector already has decarbonisation pathways in play. Electrification of haul trucks, renewable energy at mine sites, and low-carbon processing technologies are gaining traction. But these solutions need to be prioritised based on emissions impact and feasibility. That’s where granular data helps.
By analysing emissions across operations, suppliers, and customers, miners can identify hotspots, compare suppliers based on carbon intensity, and evaluate where interventions will have the biggest payoff. Avarni enables this kind of data-driven decision making by helping companies visualise Scope 3 emissions, assess supplier performance, and model transition scenarios.
This insight doesn’t just support reporting, it helps guide strategy as well. And with investors and boards increasingly focused on emissions-linked performance, having a clear, data-backed decarbonisation roadmap is fast becoming a baseline expectation.
Solving the supplier data challenge
For mining companies, Scope 3 emissions aren’t just difficult to reduce, they’re also difficult to see. The bulk of these emissions come from suppliers and subcontractors, many of whom lack the systems, capacity or knowledge to track their own carbon footprint. That makes supplier engagement one of the toughest and most critical parts of ASRS-aligned reporting.
Manual data collection methods like spreadsheets and email surveys simply don’t scale in a global supply chain. They’re time-consuming, inconsistent, and prone to gaps. Yet under ASRS, companies are expected to disclose material Scope 3 emissions using the best available data. Estimates aren’t enough if the data exists somewhere in the chain. And regulators, investors and customers are beginning to expect primary emissions data wherever possible.
That’s where Avarni comes in. Our supplier engagement capability gives mining companies a scalable, automated way to collect emissions data directly from suppliers, no matter where they sit in the value chain or what their carbon maturity looks like. Suppliers receive guided, easy-to-complete requests, helping them report emissions data in a way that aligns with your reporting requirements and the GHG Protocol.
This kind of data integrity is crucial not just for compliance, but for credibility. It also lays the groundwork for smarter decision-making. Once supplier data is in, mining companies can start identifying emissions hotspots, benchmarking supplier performance, and working with vendors on targeted reductions. It turns reporting into action, and gives miners a clearer path to decarbonisation.
Building a competitive edge through climate leadership
ASRS reporting is about more than compliance. It’s about staying competitive in a low-carbon economy. Customers and investors are already starting to reward miners that can demonstrate low-carbon products and responsible supply chains. As global carbon markets mature, this trend will only accelerate.
Miners that can provide transparent emissions data and credible transition plans will have a clear advantage. They’ll be able to secure long-term off-take agreements, participate in green finance opportunities, and navigate regulatory changes with confidence.
But to get there, companies need the right systems in place. Avarni supports miners through this transition by simplifying emissions measurement, enhancing Scope 3 visibility, and providing scenario analysis tools that align with ASRS and beyond.
The mining sector has a crucial role to play in the net zero transition, not just as a carbon emitter, but as a supplier of the critical minerals that will power the clean energy shift. That’s why it’s vital that mining companies treat ASRS not just as an obligation, but as an opportunity to lead.
Summary
- The ASRS will require mining companies to disclose emissions, risks, and transition plans across all scopes, with a focus on climate resilience and governance
- Mining has a complex emissions profile, with Scope 3 representing the largest and most challenging category
- Delaying action on Scope 3 measurement and reporting could expose miners to investor pressure, regulatory risk and supply chain disruption
- Accurate emissions data can unlock better decarbonisation strategies and help companies prioritise investments with the biggest impact
- Miners that move early on ASRS-aligned reporting will be better positioned to win investment, secure contracts, and build long-term competitive advantage
