Australian building industry faces urgent scope 3 reporting challenge: why product carbon footprints are the smart solution
The clock is ticking for Australian building product manufacturers and specifiers as new Scope 3 emissions reporting obligations take effect in January 2025. These requirements will shake up the industry, forcing businesses to track and manage carbon footprints across their supply chains with urgency. Without transparent emissions data, companies risk costly compliance issues.
Currently, fewer than 10% of building products in Australia carry Environmental Product Declarations (EPDs)—a gold standard for documenting environmental impacts.
However, the process is expensive, and with fewer than 30 certified EPD assessors in Australia, widespread adoption is impractical. The industry needs a cost-effective, scalable solution to meet these new requirements.
Enter Verified Product Carbon Footprints (PCFs).
A PCF calculates a product’s total greenhouse gas emissions from raw material extraction to the point of sale (cradle-to-gate), using internationally recognized ISO 14067 standards. Unlike EPDs, which require extensive data collection and third-party verification, PCFs offer a faster, lower-cost solution while maintaining accuracy and credibility. Businesses can even upgrade a PCF to a full EPD when necessary, providing the flexibility the industry needs.
PCFs are already gaining traction globally. In Europe, nearly 40% of companies adopted product carbon footprinting by 2020, up from 30% just three years earlier. The message is clear: transparency is no longer optional, and companies that fail to adapt risk falling behind.
Leading companies like Dyson have embraced PCFs to measure carbon emissions at every stage of their products’ life cycles—from raw material extraction to production, transportation, and disposal. By quantifying these emissions, Dyson can pinpoint areas where reductions can be made, making data-driven decisions that reduce its environmental footprint.
For Australia’s building and construction industry, the message is clear: PCFs aren’t just a compliance tool—they’re a competitive advantage. As regulatory pressure mounts and demand for low-carbon materials rises, manufacturers and specifiers embracing PCFs will be better positioned to win contracts, meet customer expectations, and future-proof their businesses.
Recommendations for the Australian Building Industry:
- Embrace PCFs Now: With Scope 3 emissions reporting becoming mandatory in 2025, businesses should start adopting Verified Product Carbon Footprints immediately. It offers a cost-effective, scalable way to meet the new reporting requirements while providing flexibility to upgrade to full EPDs when needed.
- Invest in Carbon Transparency: Companies should prioritise carbon transparency as part of their sustainability strategies. Embracing PCFs can help businesses identify high-impact areas in their supply chain and take actionable steps to reduce emissions, enhancing both their environmental footprint and bottom line.
- Leverage PCFs for Competitive Advantage: As the demand for low-carbon products increases, companies that proactively adopt PCFs will be better positioned to win contracts, comply with regulations, and meet evolving customer expectations for sustainable practices.
- Collaborate and Share Knowledge: The building industry should collaborate to share insights and strategies for measuring and reducing emissions. This can help accelerate the adoption of PCFs and ensure businesses across the sector stay ahead of regulatory changes.
The shift toward carbon transparency in the built environment is already here. Companies that take action now won’t just avoid compliance headaches—they’ll shape a cleaner, more sustainable future for Australian construction
Sources
EPD Australasia: https://epd-australasia.com/about-us/individual-verifiers/ . Date sourced 5 march 2025
PR News Wire, ‘ The Dyson Airblade(TM) Hand Dryer Receives Industry First Carbon Reduction Label’
https://www.prnewswire.com/news-releases/the-dyson-airbladetm-hand-dryer-receives-industry-first-carbon-reduction-label-88996292.html