Webinar: Driving Decarbonisation: Smarter Carbon Reporting for the Australian Wine Industry

Mandatory Reporting Pressures

Australia implemented mandatory climate-related financial disclosures on 1 January 2025, requiring large listed and proprietary companies to report on climate risks, opportunities, governance, and greenhouse gas emissions under standards aligned with international frameworks. The regime phases in across groups: the largest entities (revenue ≥ AUD 500 million, assets ≥ AUD 1 billion, or 500+ employees) began with financial years starting on or after that date, focusing initially on Scope 1 (direct) and Scope 2 (purchased energy) emissions, with Scope 3 (value chain) required where material and expanding in later phases.

For the wine industry, this arrives amid existing sector-specific commitments. Wine Australia’s Emissions Reduction Roadmap targets a 42% cut in sector greenhouse gas emissions by 2030 from a 2020-21 baseline, supported by initiatives in vineyard practices, energy efficiency, and waste management. Larger wine companies, such as those in the ASX-listed space, are already preparing sustainability reports that incorporate these disclosures, with some conducting preliminary assessments ahead of mandatory deadlines.

The stakes are concrete for an export-reliant industry facing scrutiny from international markets and domestic retailers. Major retailers impacted by the rules are increasingly requesting emissions data from suppliers, including wineries, to meet their own compliance obligations. Non-compliance or poor performance risks reputational damage, restricted market access, higher financing costs, or penalties, while accurate reporting can unlock green finance or competitive advantages in sustainability-focused markets.

Tensions arise in the value chain: large winemakers bear direct reporting burdens, but Scope 3 requirements draw in grape growers and other suppliers who may lack resources for sophisticated carbon tracking. The sector's biogenic emissions from fermentation are excluded from net calculations as part of a closed carbon cycle, shifting focus to hotspots like packaging, transport, and energy use. Smaller producers, not yet directly mandated, still face indirect pressure through contracts and industry programs like Sustainable Winegrowing Australia.