As global markets, retailers, and consumers increasingly prioritise sustainable practices, WA food and beverage manufacturers face rising expectations to reduce emissions, improve energy efficiency, and demonstrate climate responsibility.
DPIRD, in partnership with RSM Australia, is undertaking the Energy Snapshot Study – a new initiative to understand energy use, greenhouse (GHG) emissions, and decarbonisation readiness across Western Australia's food and beverage manufacturing sector.
The study will identify opportunities and barriers to decarbonisation, providing manufacturers with a clear picture of their energy consumption and emissions, revealing potential areas for energy-efficiencies and cost-savings for their business.
About greenhouse gas emissions and carbon footprinting
A carbon footprint measures the total greenhouse gas (GHG) emissions caused directly and indirectly by a business or product.
For manufacturers, it helps identify where emissions are coming from - such as energy use, refrigeration, packaging, or transportation - and where efficiency and sustainability improvements can be made.
Different manufacturing processes have unique emissions profiles.
For example:
- Dairy and meat processors often have high refrigeration and wastewater-related emissions.
- Bakeries and snack producers may have higher gas usage for ovens.
- Breweries and beverage bottlers can see emissions from fermentation and packaging.
Industry benchmarking is valuable as it helps contextualise your performance.
Understanding your business' carbon footprint:
- identifies cost-saving opportunities through energy efficiency
- supports grant applications and ESG reporting
- improves supply chain competitiveness
- future-proofs your operations against climates-related regulations
- demonstrates leadership in sustainability.
Emissions are classified as:
- Scope 1: Direct emissions from owned or controlled sources (e.g. gas boilers, company vehicles).
- Scope 2: Indirect emissions from purchased electricity, steam, heating and cooling.
- Scope 3: All other indirect emissions in the value chain (e.g. upstream agriculture, packaging, distribution).
The Energy Snapshot Study focuses on Scope 1 and 2 emissions.
A carbon footprint is typically calculated by collecting data on energy use, fuel consumption, refrigerants, and other emission sources.
This data is then converted into carbon dioxide equivalents (CO₂-e) using recognised emission factors from sources like the National Greenhouse Accounts (NGA) Factors.
Required data sources include:
- utility bills (electricity, gas, etc.)
- fuel use (diesel, LPG, petrol)
- refrigerant types and top-ups
- production or operational data for emissions intensity metrics.
Previously, only large emitters have been to required to report under the National Greenhouse and Energy Reporting (NGER) Scheme.
However from 2025, certain companies are also now required to disclose their greenhouse gas (GHG) emissions, climate-related risks, and opportunities under the Australian Accounting Standards Board (AASB) S2, which aligns with the IFRS S2 climate-related disclosure standards.
This relatively new requirement will apply in phases based on company size and financial thresholds, starting with large listed and unlisted entities. Even if a business is not yet in scope, there is growing pressure from supply chains, customers, and investors for all businesses to improve emissions transparency and demonstrate credible emissions, especially in export-oriented, retail, and resource-intensive sectors.
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DPIRD Investment