Free resources
Free Scope 3 Emissions Prioritisation Guidelines for AASB S2 compliance
Misha Cajic
May 7, 2025
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4
min read
As Australian companies adapt to the new AASB S2 sustainability disclosure requirements, many sustainability teams are asking the same question: where do we start with Scope 3? With fifteen categories to assess — and limited time and resources — prioritisation is key. That’s why Avarni has released a free, easy-to-use guide to help sustainability managers and consultants quickly identify the most material Scope 3 categories for their industry.
The Scope 3 Emissions Prioritisation Guidelines are designed to bridge the gap between broad regulatory frameworks and practical implementation, enabling better decision-making, clearer reporting, and faster progress on decarbonisation.
AASB S2, based on the ISSB’s IFRS S2 standard, requires organisations to disclose Scope 3 emissions where material. This means companies need a clear and defensible way to determine which Scope 3 categories matter most.
The reality is that not every Scope 3 category is equally important for every industry. For instance, "Purchased Goods & Services" is far more material in manufacturing than in financial services, while "Investments" plays a significant role in the latter. These sector-specific differences are often overlooked—but not anymore.
Our guide applies industry-specific insights from ASX-listed companies to deliver a tailored approach. It gives sustainability teams a fast track to materiality assessment that aligns with best practices under the GHG Protocol and AASB S2.
The guide opens with a framework for evaluating Scope 3 activities, based on seven clear criteria adapted from the GHG Protocol. These include the size of emissions, the company's influence over the activity, associated risks, stakeholder expectations, outsourcing factors, sector guidance, and financial significance. These are not theoretical checkboxes — they’re practical lenses that sustainability teams can apply to determine which categories should be front and centre in their reporting and action plans.
It then maps all fifteen Scope 3 categories against their relative importance across fifteen major Australian industries. Categories are ranked from “very important” to “not important,” offering a quick way to spot priorities based on sector norms. Whether you’re working in healthcare, logistics, education, or finance, you’ll find immediate guidance on which emissions categories to focus on.
This matrix is especially valuable for consultants and enterprise sustainability teams juggling multiple business units or clients. It saves time and helps create alignment between sustainability reporting and operational realities.
Beyond being a checklist, this resource is designed to help managers make smarter, faster decisions about where to allocate carbon accounting effort. With limited budgets and resources, focusing on what truly matters is essential.
Take "Upstream Transportation and Distribution," for example — it may be critical for retail and manufacturing but irrelevant for sectors like education. Rather than wasting time chasing low-impact data, the guide helps users concentrate on categories where reductions and risk mitigation are most likely to occur.
The included examples of each category also add clarity. For instance, “Fuel- and Energy-related Activities” includes emissions from extraction and transport of purchased energy, which are often overlooked in Scope 1 and 2 reporting. Similarly, the “Use of Sold Products” category highlights downstream emissions from customer product use — a big deal for electronics and appliance brands.
The real kicker? These guidelines are built to complement Avarni’s emissions intelligence platform. If your organisation is already calculating actual Scope 3 emissions using Avarni, this guide helps you benchmark those results against industry expectations.
Rather than treating prioritisation as a one-off activity, users can apply this matrix continuously — using it to refine decarbonisation strategies, engage internal stakeholders, and make the business case for further emissions reductions in high-impact categories.
With built-in flexibility, the guide also leaves room for custom criteria. Organisations can layer in their own thresholds or materiality rules to tailor the approach even further.
With mandatory disclosures rolling in under AASB S2, and investor scrutiny mounting, there's no more time for guesswork. Sustainability managers need actionable insights to prioritise high-impact categories and comply with regulations. This free guide doesn’t just offer a framework — it gives sustainability teams the confidence to back up their reporting decisions with evidence and benchmarking.
The guidelines aren’t meant to replace in-depth analysis or external advice, but they’re a critical first step for anyone navigating Scope 3 prioritisation under pressure. And best of all? They're free, easy to use, and built for the Australian regulatory landscape.
