The landscape of mandatory reporting in Australia is undergoing the biggest shift in a generation. Mandatory climate-related financial disclosures are no longer on the horizon; they are here.
For large Australian franchise organisations, particularly those classified as "Group 1" entities, 2025 marks the start for these new obligations.
Two out of three of the following criteria being met determines your reporting group:
A significant, and often daunting, component of this is reporting on Scope 3 emissions – the indirect greenhouse gas emissions that occur in a company's value chain. For franchisors, this includes the energy consumption of their franchisees (Category 14 emissions).
This new era of transparency presents both a challenge and an opportunity. The challenge lies in gathering accurate, comprehensive energy data from a potentially vast network of independent franchisees. The opportunity? To not only meet compliance demands but also to drive significant energy cost reductions across your franchise network by better understanding your energy data across the network to reduce costs.
This is where Termina steps in, offering an automated solution tailored for the Australian market to automate Scope 3 franchisee energy data capture while simultaneously working with franchisees to lower energy costs.
The Scope 3 Challenge for Australian Franchises
Reporting Scope 3, Category 14 emissions (Scope 1 and 2 emissions of franchisees) is a complex undertaking for any franchisor. In Australia, these challenges are compounded by:
- Sheer Scale: Managing data from hundreds, potentially thousands, of franchisee sites across different states and territories, each with varying energy retailers and tariffs, is a monumental task.1
- Data Inconsistency: Franchisees usually pick their own energy suppliers, making aggregation difficult.
- Resource Drain: Manually chasing, collecting, validating, and inputting energy data from every franchisee is incredibly time-consuming and diverts resources from core business activities.2
- Accuracy Concerns: Manual processes are prone to errors, risking inaccurate emissions reporting and potential accusations of greenwashing, especially as scrutiny from regulators like ASIC and stakeholders intensifies.3
Mandatory Climate Reporting in Australia: What Group 1 and Group 2 Franchisors Must Know
The Australian government has legislated mandatory climate-related financial disclosures, aligning with international standards. Here’s a succinct breakdown for Group 1 entities:
Who is a "Group 1" Entity?
Your organisation falls into Group 1 if it meets two out of three of the following criteria for a financial year 5:
- Consolidated revenue of AUD $500 million or more.
- Consolidated gross assets of AUD $1 billion or more at the end of the financial year.
- 500 or more full-time equivalent employees at the end of the financial year. (Entities meeting the NGER publication threshold are also in Group 1).5
When Does Reporting Start?
Mandatory reporting for Group 1 entities begins for financial years commencing on or after 1 January 2025.5 For a company with a 30 June year-end, the first mandatory reporting will be for the year ending 30 June 2026.7
What About Group 2 and 3 Reporting?
For Group 2 this will start in 2026:
- Year 1 (e.g., FY2025-26): Group 1 entities must report on their Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased energy) greenhouse gas emissions.5
- Year 2 Onwards (e.g., FY2026-27): Reporting on Scope 3 emissions becomes mandatory for Group 1 entities from their second year of reporting.5 This includes emissions from franchisees (Category 14).
- Grace Period: Recognising the complexity of Scope 3 data, there's a three-year period of limited immunity from litigation concerning inaccuracies in Scope 3 emissions reporting and certain forward-looking statements, provided disclosures are made on a reasonable basis and in good faith.5
ASIC (Australian Securities and Investments Commission) is responsible for administering and enforcing these new requirements and has released guidance for reporting entities.3 The emphasis is on high-quality, consistent, and comparable information.3
Termina: Your Partner for Automated Scope 3 Franchisee Reporting & Cost Reduction in Australia
Termina offers a powerful, automated solution designed to help Australian franchise organisations meet these new Scope 3 reporting obligations efficiently while delivering tangible benefits to franchisees.
- Automated & Accurate Franchisee Energy Data Capture:
Termina automates the collection of energy consumption data (electricity and gas) from your franchisee network across Australia.9
- How it works: Termina handles the roll-out to automatically ingest data from each franchisee, regardless of which energy supplier they’re with, or if they’re part of an embedded network or landlord supplied energy.
- Benefit: This totally automates data collection for an accurate and auditable data trail for your Scope 3 energy emission calculations.
- Simultaneous Energy Cost Reduction for Franchisees:
While capturing data for compliance, Termina actively works to lower energy costs for your franchisees.
- How it works: We leverage group buying power from thousands of businesses in our network to negotiate better-than-market electricity and gas rates.9 Our platform continuously compares these rates against each franchisee's usage and automatically switches them to the best available deal each month if savings can be found.9
- Benefit: By grouping your franchise energy data you can help your franchisees lower their energy costs and become more profitable while you automate reporting. So you have their buy in from day one.
Automate Your Utility Bill Management and Reporting
The data captured by Termina is designed to simplify your overall carbon accounting process:
- Seamless Integration and reporting: The franchisee energy emissions data calculated by Termina can be easily exported in standard formats for integration with your existing corporate carbon accounting software or sustainability reporting platforms. This ensures a smooth data flow and avoids manual re-entry.
- Cost-Effective Data Solution: For many franchises, the energy consumption of franchisees is a significant and challenging component of their Scope 3 footprint. Now you can report on every store’s energy while reducing costs.
The Termina Advantage for Australian Franchisors:
- Simplified Compliance: Meet the new Australian mandatory climate reporting requirements for Scope 3 (Category 14) with greater ease and auditable accuracy.
- Reduced Administrative Burden: Free up internal resources by automating the data collection and calculation process.
- Enhanced Franchisee Relations: Provide a tangible benefit to your franchisees by actively working to reduce their energy costs.
- Improved Data Accuracy: Minimise errors associated with manual data handling, leading to more reliable emissions reporting.
Take Control of Your Franchise Scope 3 Emissions with Termina
The 2025 deadline for Group 1 companies in Australia is already here. Proactive preparation for Scope 3 emissions reporting is not just about compliance; it's about smart business strategy.
Termina offers a unique dual solution: robust, automated data capture for your franchisees' energy emissions to meet Australian reporting mandates, coupled with a powerful mechanism to reduce their energy costs.
Ready to simplify your Scope 3 reporting and deliver savings across your Australian franchise network?
- Visit Termina to learn more about our tailored solutions for franchise organisations.
- Request a demo to see how our platform can automate your franchisee energy data and unlock significant savings.
Don't let Scope 3 reporting be a burden. Partner with Termina and turn your compliance obligations into an opportunity for efficiency, cost reduction, and reporting across your Australian or international franchise network.
Works cited
- Australia Electricity for Businesses: Streamlining Energy Needs, accessed on May 8, 2025, https://energyaction.com.au/australia-electricity-for-businesses/
- Australia's Procurement Challenges in 2025: Sector-Specific ..., accessed on May 8, 2025, https://proleaders.com.au/australias-procurement-challenges-in-2025-sector-specific-complexities/
- 25-051MR ASIC issues sustainability reporting regulatory guide, accessed on May 8, 2025, https://asic.gov.au/about-asic/news-centre/find-a-media-release/2025-releases/25-051mr-asic-issues-sustainability-reporting-regulatory-guide/
- ASIC publishes final sustainability reporting guidance for companies - AICD, accessed on May 8, 2025, https://www.aicd.com.au/risk-management/framework/climate/asic-publishes-final-sustainability-reporting-guidance-for-companies.html
- ESG—Australia: Mandatory Climate-Related Financial Disclosures: Legislation Passes Parliament | HUB | K&L Gates, accessed on May 8, 2025, https://www.klgates.com/ESGAustralia-Mandatory-Climate-Related-Financial-Disclosures-Legislation-Passes-Parliament-9-11-2024
- Australia's New Mandatory Climate Reporting: What It Means for Your Business - Zevero, accessed on May 8, 2025, https://www.zevero.earth/blog/australia-climate-reporting-mandates-2025
- Australian sustainability reporting legislation and standards finalised - KPMG International, accessed on May 8, 2025, https://kpmg.com/au/en/home/insights/2024/09/24ru-12-australian-sustainability-reporting-standards-legislation-finalised.html
- Navigating Australia's Mandatory Climate Reporting - AASB/ASRS - Terrascope, accessed on May 8, 2025, https://www.terrascope.com/blog/navigating-australia-mandatory-climate-reporting
- Automate Energy Savings For Small Business | Termina - Termina, accessed on May 8, 2025, https://termina.io/reduce-prices/small-business
10. Business Energy Savings - Group Energy Purchasing - Termina, accessed on May 8, 2025, https://termina.io/blog/what-is-an-energy-buyers-group
11. Energy Brokers Australia | Commercial Electricity & Gas Plans, accessed on May 8, 2025, https://sustainableenergysolutions.com.au/
12. Business Energy Procurement Made Easy - Termina, accessed on May 8, 2025, https://termina.io/blog/business-energy-procurement-made-easy-automated-savings-for-your-company
