Navigating the new transport carbon reporting requirements in 2025
Ready or not, the way transport businesses track and report carbon emissions is changing. With new regulations slated for 2025, organisations across New Zealand and Australia must rethink how they measure, report, and ultimately reduce emissions. But while it comes with a hefty dose of box-ticking, it’s also a chance to show the world where you stand in the race toward net zero.
Done right, you can make this shift less about compliance and more about building trust, and even gaining a competitive edge in an increasingly climate-conscious market.
What you need to know about the new requirements
The new regulations are designed to align New Zealand and Australia with their Paris Agreement commitments and net-zero goals for 2050. Passed in September 2024, the legislation introduces mandatory climate-related reporting for large and medium-sized companies starting in 2025, and requires disclosures on climate risks, opportunities, and greenhouse gas emissions across the value chain. Reporting will phase in for smaller companies over subsequent years, with additional time granted for Scope 3 emissions and protections against litigation.
In short, it means companies must now go beyond lip service to deliver true sustainability, as they accurately track, report, and reduce their transport-related carbon emissions. And it spans everything - from your employees’ daily commutes, to the freight journeys bridging the Tasman, and the fleets navigating city streets from Auckland to Adelaide.
Why have these requirements been implemented?
Transport emissions have become a critical target in the fight against climate change. In Australia, the sector is already the third-largest source of greenhouse gas emissions, accounting for 21% of the nation’s total in 2023, and is projected to become the largest by 2030. Similarly, New Zealand faces these same pressures to decarbonise transportation and meet its climate goals.
Globally, the push for mandatory climate disclosures is growing, with initiatives like the ISSB standards and the EU’s Corporate Sustainability Reporting Directive setting a clear precedent. So, these new carbon reporting measures really form part of a global effort to curb emissions, drive innovation, and fast-track the shift to low-carbon technologies, renewable energy, and more sustainable supply chains - and ultimately, a net-zero economy.
Implications for ANZ businesses
On the surface, businesses face an urgent need to establish robust carbon measurement and reporting systems. But the impact goes deeper, pushing organisations to explore greener alternatives and reimagine their logistics strategies. Businesses that lead the charge can not only cut costs but also build a stronger brand and appeal to customers increasingly prioritising sustainability.
Understanding scope 1, 2, and 3 emissions
Understanding the categories of carbon emissions is essential for compliance with the new Transport Carbon Reporting requirements. A global framework, established by the Greenhouse Gas Protocol, divides emissions into three distinct scopes based on their source and the level of control a business has over them:
- Scope 1 | Direct emissions
These are emissions that come directly from sources a business owns or controls. For transport, this includes fuel consumption from company-owned vehicles, such as delivery vans or fleet trucks. Measuring Scope 1 emissions is typically the most straightforward, as the business has direct control over the assets involved. - Scope 2 | Indirect emissions from energy
Scope 2 emissions result from the energy a business consumes but doesn’t generate itself. For example, electricity used to charge electric vehicles (EVs) in a company’s fleet would fall under Scope 2. While less complex to measure than Scope 3, businesses must still account for the carbon intensity of the energy source they use. The carbon intensity of the energy source (e.g., coal-powered grid vs renewable) must also be factored in. - Scope 3 | Indirect emissions across the value chain
Scope 3 emissions are the most challenging to measure but also the most significant for many businesses. They include emissions from activities outside the company’s direct control, such as employee commutes, third-party logistics, or the carbon footprint of suppliers. For example, emissions from a third-party freight provider delivering goods on your behalf would fall under Scope 3.
It's important to note that scope 3 emissions often make up the largest proportion of a business’s transport-related carbon footprint. However, tracking them can be complex, requiring robust data-sharing systems and collaboration with partners.
Connecting scopes to compliance
While still under development, it is likely the new regulations will align with the recently-released standards and will require businesses to account for emissions across all three scopes, making it essential to understand how each impacts operations. While Scope 1 and Scope 2 are often within a company’s immediate control, tackling Scope 3 requires a proactive approach, leveraging technology and building partnerships across the supply chain.
Steps to compliance
Getting ahead of these new regulations requires a plan. Here’s how to ensure your business is ready:
- Start with emissions: Conduct a comprehensive review of all transport-related emissions. This should cover direct emissions from owned fleets, and indirect emissions tied to third-party logistics. Consider tools like Cario’s freight management system which can simplify the process and ensure you’re accurately reporting Scope 3 emissions.
- Organise your data: Make sure you have the right systems in place to track, record, and manage emissions data. Modern compliance tools can help to streamline this process, saving countless hours while ensuring your reports meet all requirements. Establish data-sharing protocols with partners to ensure you can capture Scope 3 emissions accurately.
- Create a carbon plan: Think long-term. Transition to electric fleets, find efficiencies in shipping and delivery, or invest in offsets to tackle unavoidable emissions.
- Keep improving: Compliance is just the start. Use your reporting data as a stepping stone to implement greener practices year on year, helping you stay ahead of both regulations and market expectations.
Adopting technology to support your reporting
Now is not the time to lean on manual processes. Tools like telematics and AI-driven analytics provide far smarter, more efficient ways to track, analyse and cut emissions.
For example, as businesses adapt to new carbon reporting requirements, Cario’s Freight Carbon Calculator provides a practical tool for understanding and managing transport emissions. It calculates Scope 1 and Scope 3 emissions, using freight data such as transport modes, volumes, and delivery patterns to generate detailed reports, offer visual dashboards, and even calculate offsets like tree planting to neutralise carbon impact. Plus, it integrates with platforms like SAP, NetSuite, and Shopify, to fit seamlessly into existing workflows.
It's time to get your transport reporting on track
These new Transport Carbon Reporting requirements signal an important shift for businesses in New Zealand and Australia. While meeting the new requirements presents clear challenges, it also offers a valuable opportunity for organisations to lead in sustainable transport practices. Those who act decisively, supported by technology to ease the administrative burden, can help create a greener future while enjoying the economic and social rewards of being part of the solution.