Government environmental reporting

Environmental reporting to improve transparency and reduce emissions

Environmental reporting requirements are set out in Financial Reporting Direction 24: Reporting of environmental data by government entities (FRD 24).

Environmental reporting improves transparency for the Victorian community. Reporting also supports the Whole of Victorian Government emissions reduction pledge (PDF, 2.2 MB). The pledge seeks to reduce greenhouse gas emissions from Victorian government operations. Reporting environmental data may help public sector boards manage climate-change related risks.

Financial Reporting Direction 24 requirements and guidance

• FRD 24 Reporting of environmental data by government entities – What departments and public sector entities must disclose in their annual report.
• Guidance on environmental disclosures under FRD 24 – How to collect, collate and disclose environmental data to meet FRD 24 requirements.
• Guidance on the application of reporting tiers under FRD 24 – What tier does my organisation belong to? Each tier is subject to different disclosure requirements (as listed in Appendix 2 of FRD 24).
• The Model Report for Victorian Government Departments – The 2022-23 Model Report includes guidance and example disclosures for FRD 24. The Model Report should be read alongside FRD 24 and its guidance. The Model Report implements the FRD 24 requirements for Departments. These are greater than the reporting requirements for other public sector entities. Non-department entities should refer to FRD 24 to understand their reporting requirements.

Tools and resources to help you implement FRD 24

DEECA has developed an Environmental Data Reporting Tool to help prepare FRD 24 compliant reports. It enables a user to input data from procurement, billing, or other data sources. The tool converts data into the required units and greenhouse gas emissions. The tool outputs tables that are in the format required for FRD 24 compliant reporting. Versions of the tool for different reporting years are available. These include emissions factors consistent with corresponding editions of the National Greenhouse Accounts Factors.

• Environmental Data Reporting Tool v1.02 (ExcelM, 348.1 KB) (2023 emissions factors)
• Environmental Data Reporting Tool v1.02 (ExcelM, 347.6 KB) (2022 emissions factors)
• Environmental Data Reporting Tool v1.02 (ExcelM, 349.0 KB) (2021 emissions factors)
• Environmental Data Reporting Tool v1.02 (ExcelM, 348.4 KB) (2020 emissions factors)
• Environmental Data Reporting Tool - Quick Reference Guide (PPTX, 2.4 MB)

DEECA has developed an FRD 24 Activity and Data Collection worksheet to help FRD 24 reporters plan their data collection. The worksheet helps to identify relevant facilities, understand which indicators they relate to, and track data sources or approaches where data is not available.

• FRD 24 Activity and Data Collection worksheet (Excel, 50.2 KB)

Training materials and resources will be updated progressively as they are developed.

Other environmental reporting resources

• National Greenhouse and Energy Reporting Scheme – Mandatory reporting for greenhouse gas emissions. Some Victorian Government entities must report to NGER.
• National Pollutant Inventory reporting – Mandatory reporting program for the release of certain hazardous substances including in waste. Some Victorian Government entities have reporting obligations to this scheme.
• Climate Active carbon and electricity accounting resources – Australia’s national program for carbon neutral certification. It provides guidance on the preparation of emissions inventories. Climate Active has a more extensive accounting of scope 3 emissions than FRD 24.
• GHG Protocol Standards, Guidance and Calculation tools – International standards for emissions inventories. They provide guidance on operational control.

You can also contact the Government Emissions team at DEECA with questions on FRD 24 reporting through environmental.reporting@delwp.vic.gov.au

FRD 24 and Greenhouse Gas Emissions Accounting

Under FRD 24 entities must report greenhouse gas (GHG) emissions relevant for their tier. This reporting sets the foundation for developing even more comprehensive GHG accounting in the future.

The internationally recognised standards and guidelines for corporate or organisational greenhouse gas accounting are the Greenhouse Gas Protocol and the ISO 14064 standard. FRD 24 uses greenhouse gas emissions accounting based on the GHG Protocol Corporate Standard and the Australian Government's Climate Active Carbon Neutral Standard for Organisations. The following principles, modified from the GHG Protocol Corporate Standard, are considered best practice when calculating a carbon account and are applicable to FRD24 reporting:

• Relevance: Your organisation’s greenhouse gas inventory and reporting should help inform decision-making. This includes the decision-making needs of your organisation and those of the Victorian Government as a whole.
• Completeness: Your reporting should be as complete as practicable, accounting for all activities within your organisational boundary that generate greenhouse gas emissions. Exclusions need to be justified and disclosed.
• Consistency: You should aim for consistent approaches to gathering data, using estimates and calculating emissions. Consistency between different activities and over time is important. Deviations should be justified and documented.
• Transparency: Clearly present your environmental and greenhouse gas emissions disclosures so they can be readily understood by stakeholders. You should disclose data gaps, relevant assumptions, and any changes to calculation methodologies or data sources.
• Accuracy: Ensure the accuracy of calculations and that uncertainties are minimised. Your greenhouse gas emissions inventory should be accurate enough to support relevant decisions with assurance to the integrity of the information. Where uncertainty is high, use conservative assumptions.

To help better account for and understand the sources of greenhouse gas emissions, they are commonly broken down into emissions ‘scopes’. This is consistent with national and international reporting standards.

• Scope 1 emissions are from sources that an organisation owns or controls, such as burning fossil fuels in vehicles or machinery.
• Scope 2 emissions are indirect emissions from an organisation’s use of electricity from the grid, which still uses coal and gas-fired power generation.
• Scope 3 emissions are indirect emissions from sources that an organisation does not control but does influence. FRD 24 requires the reporting of scope 3 emissions from corporate air travel and waste disposal for some reporting tiers.