Reducing carbon emissions is no longer optional for large facilities and industrial sites. Across Australia, organisations are facing increasing pressure from regulators, investors, and customers to demonstrate measurable progress toward net zero. With international standards developed by the International Sustainability Standards Board and Australian climate reporting requirements shaping disclosure expectations, businesses need practical and scalable decarbonisation strategies. For eligible Australian entities, mandatory climate-related financial disclosures are being phased in from reporting periods beginning on or after 1 January 2025, with reporting requirements centred on AASB S2 Climate-related Disclosures.
This article explores proven approaches to reducing emissions in large-scale operations, while highlighting how organisations can take structured steps toward long-term sustainability.
Understanding Emissions in Industrial Operations
Before implementing any strategy, it is essential to understand where emissions originate. Industrial sites typically generate emissions across three categories defined by the Greenhouse Gas Protocol:
- Scope 1: Direct emissions from on-site fuel combustion, equipment, and processes
- Scope 2: Indirect emissions from purchased electricity, steam, heat or cooling
- Scope 3: Value chain emissions, including suppliers, transport, and waste
For large facilities, Scope 1 and Scope 2 emissions are often the most immediate focus due to their controllability and measurable impact.
Establishing a Baseline Through Carbon Accounting
A credible decarbonisation strategy begins with accurate carbon accounting. This involves quantifying emissions across operations using recognised methodologies aligned with international standards.
A detailed emissions inventory enables organisations to:
- Identify high-impact emission sources
- Prioritise reduction opportunities
- Track progress over time
- Meet reporting and compliance requirements.
Without a baseline, it is difficult to measure improvement or demonstrate alignment with evolving climate-related disclosure standards. TEG has seen companies establish reduction targets without a baseline. They are often found to be unachievable once emissions are calculated and either cost the business a lot of money in offsets or risk claims of greenwashing. TEG recommends that targets are set only after a baseline has been established.
Setting Targets
Once the baseline is established, targets can be set. Companies should consider what is ambitious but achievable through:
- Investigating each emission source individually to determine improvements that could be made.
- Considering absolute emission reduction and/or emission intensity reduction e.g. emissions per tonne of product.
- Setting targets either internally or publicly
- Working with staff to achieve reductions.
Many organisations are setting mid range and longer term targets for 2030 and 2050 which are in-line with international programs. Interim and sub level targets can also be set – for example – a 100% reduction in Scope 2 emissions by 2027.
Improving Energy Efficiency Across Operations
Energy efficiency remains one of the most cost-effective ways to reduce emissions in large facilities. Even incremental improvements can deliver significant results at scale.
Key initiatives include:
- Turning equipment off when not required
- Upgrading to energy-efficient machinery and equipment
- Optimising heating, ventilation, and air conditioning systems
- Implementing smart building management systems
- Conducting regular energy audits
Energy optimisation not only lowers emissions but also reduces operational costs, making it a practical starting point for many organisations.
One manufacturer put a concerted effort into engaging staff to turn off appliances when they were not in use and saved around 5% of the total energy consumption for the year.
Transitioning to Renewable Energy Sources
Switching to renewable energy is a critical step in reducing Scope 2 emissions. Many industrial sites are now exploring a mix of on-site and off-site solutions, such as:
- Solar photovoltaic installations with batteries
- Power purchase agreements for renewable electricity
- Renewable energy certificates
These approaches can help reduce market-based Scope 2 emissions, support renewable electricity procurement and improve long-term energy planning.
However, reducing electricity consumption to start with should not be forgotten once renewable energy is used.
Electrification of Equipment and Processes
Electrification is becoming increasingly viable as renewable energy becomes more accessible. Replacing fossil fuel-based systems with electric alternatives can reduce direct emissions, improve efficiency and provide energy security.
Examples include:
- Electrified boilers and heat pumps
- Electric vehicle fleets for site operations
- Electrification of other manufacturing processes, such as ovens, where feasible
This transition often requires careful planning and infrastructure upgrades but can deliver substantial emissions and cost reductions over time.
Process Optimisation and Innovation
Industrial emissions are often linked to production processes. By rethinking how materials and products are manufactured, organisations can unlock meaningful reductions.
Strategies may involve:
- Redesigning processes to reduce energy intensity e.g. lightweighting
- Improved QA system to reduce rework
- Minimising material waste
- Adopting cleaner production technologies
- Implementing circular economy principles
Continuous improvement and innovation are essential for maintaining competitiveness while reducing environmental impact.
Addressing Value Chain Emissions
While Scope 3 emissions can be complex, they represent a significant portion of total carbon footprints for many organisations. Engaging suppliers and partners is key to driving broader impact.
Practical steps include:
- Setting supplier sustainability requirements
- Collaborating on low-carbon logistics solutions
- Reducing waste through improved procurement practices
A structured approach to value chain engagement helps organisations build resilience and align with stakeholder expectations.
The Ecoefficiency Group always talks about starting the conversation with your supply chain. You really don’t know what is possible until you have that conversation. Look at areas of high Scope 3 emissions for your business and talk to your suppliers about what you can achieve together.
Monitoring, Reporting, and Continuous Improvement
Decarbonisation is not a one-time project. It requires ongoing monitoring, transparent reporting, and regular review.
Organisations should:
- Track key performance indicators for emissions and energy use
- Align reporting with recognised frameworks
- Regularly reassess strategies based on new technologies and data.
Robust reporting builds credibility and supports compliance with emerging standards such as climate-related financial disclosures.
How The Ecoefficiency Group Can Support Your Decarbonisation Journey
Implementing effective decarbonisation strategies across large facilities can be complex. This is where The Ecoefficiency Group provides valuable support.
With expertise across Carbon Accounting and Management, Energy Management, Sustainability Strategy, Climate Risk Analysis and Mandatory Climate Reporting, The Ecoefficiency Group helps organisations measure emissions, identify practical reduction opportunities and build structured, data-driven plans.
Their team can support emissions baselining, emissions reduction strategies, energy audits, efficiency upgrades, ESG reporting alignment, climate disclosure readiness and ongoing performance tracking through tools such as GreenKPI. This approach helps businesses move from strategy to measurable action without unnecessary complexity.
TEG is also delivering a Sustainability Benchmark Program for Queensland based manufacturers. The program is 60% subsidised by the Qld Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development. The Sustainability Assessment is a cost effective first step in establishing a GHG emission baseline and includes recommendations for decarbonisation. Further information including pricing can be found here.
Final Thoughts
Decarbonising large facilities and industrial sites requires a balanced approach that combines technical expertise, strategic planning, and continuous improvement. By focusing on energy efficiency, renewable energy, electrification, and value chain engagement, organisations can achieve significant emissions reductions while strengthening operational performance.
As regulatory expectations continue to evolve, taking proactive steps today will position businesses for long-term success in a low-carbon economy.