Australia's Climate Regulatory Landscape
Australia's carbon accounting landscape is undergoing a significant transformation in 2025, driven by a wave of new regulations and heightened expectations for transparency, auditability, and decarbonisation.
With the introduction of the Australian Sustainability Reporting Standards (AASB S2) and the move toward mandatory climate-related financial disclosures, Australian organisations face an increasingly complex reporting landscape. The National Greenhouse and Energy Reporting (NGER) Scheme remains the cornerstone of emissions and energy reporting, providing the data foundation for the Safeguard Mechanism, which sets and monitors emissions baselines for large facilities. Alongside this, the growing influence of international frameworks such as the International Sustainability Standards Board (ISSB) and the Task Force on Climate-related Financial Disclosures (TCFD) continues to raise expectations for transparency and consistency in carbon and climate reporting.
Phased implementation
The AASB S2 regulatory framework is being implemented through a phased approach starting 1 January 2025:
- Group 1 entities—comprising large listed and unlisted companies with over 500 employees, more than AU$500 million in revenue, or assets exceeding AU$1 billion, as well as NGER reporters and certain asset owners—must begin reporting from their first reporting period on or after 1 January 2025.
- Group 2 entities (medium-sized companies) will commence reporting from 1 July 2026,
- Group 3 entities (smaller companies) will start from 1 July 2027.
Scope 3 emissions reporting is required from the second reporting year onwards, meaning Group 1 entities will report Scope 3 from 2026. For many Australian organisations, Scope 3 emissions from supply chains represent the largest portion of their carbon footprint—often exceeding 60%—underscoring the need for platforms that can handle complex, multi-tiered data.
The Safeguard Mechanism requires Australia's largest emitting facilities (those exceeding 100,000 tonnes CO₂-e annually) to keep emissions at or below declining baselines, with penalties for non-compliance now calculated based on the volume of excess emissions.
In this environment, selecting the right carbon accounting platform is not just a compliance exercise—it's a strategic decision that can determine your organisation's ability to meet regulatory requirements, avoid financial risk, and realise decarbonisation opportunities. The best platforms offer audit-ready data, strong automation, seamless integration with business systems, and advanced AI capabilities to ensure accuracy and efficiency.
This listicle compares the top six carbon accounting platforms in Australia for 2025, focusing on their features, regulatory coverage, technical specifications, and automation strengths, so you can make an informed choice for your sustainability journey.
Unravel Carbon – Editor’s Choice
When it comes to meeting Australia’s 2025 carbon accounting requirements, Unravel Carbon stands out as the most advanced, AI-driven platform—purpose-built for organisations navigating the complexities of AASB S2, ISSB, NGERs, and the Safeguard Mechanism. What sets Unravel Carbon apart is its agentic architecture: a suite of AI agents that automate every stage of the sustainability workflow, from data collection and emissions calculation to audit preparation and regulatory disclosure.
Core Features:
- Full Scope 1, 2, and 3 Emissions Measurement: 100% GHG Protocol-aligned, with flexible data ingestion (CSV, webform, direct integration).
- Proprietary Emission Factor Database: Over 136,000 factors from 400+ sources, with user prioritisation and custom uploads.
- Audit-Ready Data Management: Comprehensive audit trails, evidence storage, and dedicated auditor logins.
- Decarbonisation Pathways: Scenario modelling, target setting, and access to a library of 150+ reduction solutions.
- Supplier Engagement: Automated supplier data requests and recalculation of Scope 3 emissions with supplier-specific data.
- Comprehensive Reporting: GRI, IFRS S2, and ISSB modules with AI-assisted drafting and peer benchmarking.
Regulatory Coverage:
GHG Protocol, ISO standards, IFRS S2, GRI, ISSB, CSRD, NGERs, AASB S2, Safeguard Mechanism, SOC2, ISO27001.
Technical Specifications:
- Direct API and SFTP integrations (SAP, NetSuite, Xero, Workday, BambooHR).
- AI-powered data validation, anomaly detection, and language translation (70+ languages).
- Asset-level analytics and customisable dashboards.
AI/Automation:
- Unravel Copilot: Expert AI assistant for sustainability professionals.
- Data Collection Agent: Automates data gathering from internal and external sources.
- Emissions Calculation Agent: Intelligent mapping and transformation of raw data.
- Insights & Review Agent: Automated QA/QC and error correction.
Competitive Strengths: Unravel Carbon's agentic platform delivers unmatched automation, auditability, and regulatory alignment. Its AI agents not only reduce manual effort but also ensure data quality and compliance across all major frameworks. The platform's deep integration capabilities and proprietary emission factor database provide a level of accuracy and flexibility that is critical for Australian organisations facing complex, multi-jurisdictional reporting requirements. Unravel Carbon's comprehensive feature set and automation capabilities make it a strong choice for organisations seeking a future-proof solution that turns compliance into a decarbonisation opportunity.
NetNada
NetNada is a trusted Australian carbon accounting platform known for its strong compliance features and automation capabilities. Designed for businesses of all sizes, NetNada streamlines the entire climate reporting journey, from data collection to certified disclosures.
Core Features:
- Rapid data importing for Scope 1, 2, and 3 calculations.
- Automated OCR for invoices and utility bills.
- Integration with popular business systems.
- Public sustainability profile and support for CDP/SBTi disclosures.
- Custom emissions factors and reduction planning.
Regulatory Coverage:
ISO 14064-3 audit requirements, CDP, SBTi, regional compliance programs.
Technical Specifications:
Automated data flows, secure one-way APIs, verified integrations with MYOB and Xero.
AI/Automation:
- Automated data collection, mapping, and verification.
- AI-driven emissions calculations and reporting.
Strengths: NetNada’s intuitive interface, strong auditability, and local support make it a go-to choice for Australian SMEs and mid-market companies seeking straightforward compliance and rapid onboarding.
Avarni
Avarni is an enterprise-grade platform built for organisations with complex data environments and extensive supply chains. Its AI-powered engine and audit-ready tools are tailored for Australian compliance and assurance.
Core Features:
- Flexible data import (spreadsheets, PDFs, images).
- AI-powered emissions calculation (Scope 1, 2, 3).
- Enterprise customisation (entities, cost centres, reporting categories).
- Target setting, scenario modelling, and supplier engagement.
- Audit trail with links to source data.
Regulatory Coverage:
SOC 2, ISO 27001, GHG Protocol, ASRS, AASB S2.
Technical Specifications:
- Integration with 1,000+ systems (Oracle, SAP, Power BI).
- Library of 65,000+ emission factors.
AI/Automation:
- Automated classification and mapping of activities.
- Pre-assurance review and data gap flagging.
Strengths: Avarni’s flexibility, deep integration, and supplier engagement tools make it ideal for large enterprises and consultants managing multi-entity, multi-supplier reporting.
Trace
Trace is a user-friendly platform that leverages AI to simplify emissions measurement and staff engagement. It’s designed for organisations seeking a practical, educational approach to carbon accounting.
Core Features:
- Easy data collection and integration with accounting systems.
- AI emissions engine for identifying sources.
- Emissions hotspot analysis (Scope 1, 2, 3).
- Staff and supplier engagement tools.
- Decarbonisation planning and progress communication.
Regulatory Coverage:
Supports regulatory and supply-chain reporting requirements.
Technical Specifications:
AI-driven source identification, expert-led workshops.
AI/Automation:
Automated emissions source detection and reporting.
Strengths: Trace’s focus on education, engagement, and ease of use makes it a strong choice for organisations new to carbon accounting or those prioritising internal buy-in.
Pathzero
Pathzero specialises in portfolio and financed emissions, making it the platform of choice for asset managers, owners, and financial institutions.
Core Features:
- Pathzero Navigator for financed emissions (Scope 3 Category 15).
- Pathzero Clarity for GHG-compliant inventories.
- Pathzero Library for secure data sharing and benchmarking.
- Consultant support for adoption and decarbonisation strategy.
Regulatory Coverage:
GHG Protocol (Scope 1–3), AASB S2, ISSB.
Technical Specifications:
Estimation methods for data gaps, expert review of emission factors.
AI/Automation:
Automated estimation and classification for financed emissions.
Strengths: Pathzero’s unique focus on investment portfolios and data sharing makes it indispensable for financial sector compliance and benchmarking.
Sumday
Sumday bridges the gap between financial and carbon accounting, offering a carbon ledger that traces emissions back to financial records.
Core Features:
- Carbon Ledger for transaction-level emissions coding.
- Carbon trial balance and general ledger reports.
- AI-powered “Smart Suggestions” for emission sources.
- Audit and evidence management.
- SumdAI tools for data querying and error checks.
Regulatory Coverage:
Audit-focused, integrates with financial accounting workflows.
Technical Specifications:
AI-powered suggestions, rule-based coding, audit-ready documentation.
AI/Automation:
Automated transaction coding, error checking, and draft summary generation.
Strengths: Sumday’s integration with financial systems and audit focus make it ideal for organisations seeking to embed carbon accounting into core finance processes.
Methodology & Selection Criteria
This list was compiled through a review of platforms active in the Australian market, using criteria such as regulatory alignment (AASB S2, ISSB), auditability, automation, integration capabilities, data quality, and user experience. Features and specifications were validated against official product documentation, regulatory guidance, and direct platform analysis. Only platforms with a proven track record in Australia and support for 2025 compliance requirements were included.
Frequently Asked Questions
What are the new carbon accounting regulations in Australia for 2025?
Australia introduces mandatory climate-related financial disclosures under AASB S2 from 1 January 2025, implemented through a phased approach. Group 1 entities (large companies with 500+ employees, AU$500 million+ revenue, or AU$1 billion+ assets, plus NGER reporters) must report Scope 1 and 2 emissions from their first reporting period on or after 1 January 2025, with Scope 3 emissions required from the second reporting year. Group 2 and Group 3 entities will commence in July 2026 and July 2027 respectively.
The Safeguard Mechanism requires facilities emitting over 100,000 tonnes CO₂-e annually to meet declining emissions baselines, with penalties calculated based on excess emissions volume. Compliance is overseen by ASIC, with a three-year transitional enforcement period where only ASIC can bring civil proceedings.
What are the penalties for non-compliance with Australian climate reporting?
Under the mandatory climate disclosure regime, directors must make declarations about compliance with AASB S2. During the three-year transitional period (1 January 2025 to 31 December 2027), only ASIC can bring civil proceedings for non-compliance. For the Safeguard Mechanism, facilities in excess emissions situations face civil penalties calculated as the difference between net emissions and baseline emissions (in penalty units, currently $330 per unit as of April 2025), plus an additional 100 penalty units per day for up to two years while the excess continues. NGER reporting failures can result in civil and criminal penalties, including infringement notices for late reporting.
How do I choose the right carbon accounting platform for my business?
Evaluate platforms based on regulatory coverage, auditability, automation, integration with your business systems, and support for Scope 3 and supply chain data. Consider your organisation’s size, complexity, and reporting obligations.
%20%20.jpg)