Consulting and audit firms have been criticised for over-charging businesses and producing overly complex work as Australia’s new climate-reporting regime is phased in.
Arteh, a compliance platform developed by Brisbane-based climate and data specialists, says businesses can meet the new requirements faster and more cheaply by using information already held in standard accounting systems.
Chief executive Thomas Key said some consulting work in the sector was unnecessarily expensive.
“Auditing currently done by expensive consultants is presented in complicated reports which are messy and difficult to read and contain a lot of unnecessary padding.
“We’ve turned that into an automatic, accurate and complaint process. We’ve simplified and cleaned it up so that the data can be downloaded from everyday accounting platforms like Xero, MYOB and Quickbooks.
“At that same time, we generate the reports on the modelling needed for compliance for a price that’s much lower and much more cost effective than the other, more traditional methods.”
Australia’s mandatory climate-reporting framework started with the first group of large entities from the 2025 financial year and will expand over coming years. Reports form part of annual reporting obligations lodged with ASIC.
Related: ASIC urges businesses to prepare for mandatory climate reporting
Confusion capital
Mr Key said some consultancy firms were capitalising on confusion around the new rules.
“I’ve seen consulting fees in this space and tens of thousands of dollars for work that is repeated every single year. This is a very good work for the big consultancy firms and the big audit firms.
“Can there be better jobs or bigger jobs or grander jobs or larger studies undertaken by larger consultancy firms? Absolutely.
“Is that what’s required for the space for businesses just to begin understanding where they sit in climate reporting? I don’t think so.”
Related: From spreadsheets to defensible Scope 3 emissions reports, without the scramble
Simple solution
Mr Key said Arteh’s online model allowed businesses to take control of their obligations using data they already held.
“Arteh gives you the opportunity to take data you already have and plug it in. There are no complicated demands other than what’s reported in BAS. These are diesel, gas, electricity usage costs for example.
“There are no new weird and wonderful calculations and validations. You need the data you already have on hand with bookkeeping software, with your accounts payable software.
“What is also important is there is time for most businesses to be complaint. This is gradually being introduced. We encourage business owners to ask ASIC questions and ask us questions.”
Arteh said its online climate-reporting service is available through its website.