The challenges SMEs facing and not aware of this yet
Most SMEs aren’t ignoring carbon reporting.
They’re just missing the skills to do it properly. With increasing regulatory pressure from ASIC, the rise of ISO 14064 audits, and the looming expectation of full Scope 1–3 emissions, fuel and energy data from your larger clients or council for your next tender, carbon literacy is fast becoming essential for businesses of every size.But here's the problem: Very few small and medium-sized businesses have anyone in-house who actually knows how to do it.Who’s Actually Doing Your Carbon Reporting?
For most SMEs, carbon reporting gets handed to...
No one at this stage, as regional QLD SMEs are already under pressure from increasing costs, loosing businesses due to outback flood, delayed deliveries due to poor Bruce highway, the pressure is real. Amid this, SMEs cannot afford the in-house FIFO sustainability full time role. More, let's think of getting a consultant from Brissy. A quick google search and get city-based consultant flown to regional hub, for which, you are liable for their travel and overnight accommodation cost. At least ~$1000 for a flight and accommodation in Moranbah. More, carbon accounting is technical, standards-heavy, and time-consuming. It’s a niche skill, not something you can DIY over a weekend with a spreadsheet and a YouTube video.
Here’s just a taste of what’s involved:
Knowing how to use emissions factors correctly (updated annually),Understanding Scope 1, 2, and 3 classificationsEmerging ESG clauses in tender and contract renewals.Setting emission reduction targets to stay in the supply chain (not just guessing a % reduction),Prepping for ISO 14064 audits, not much popular in Australia yet, but it sets the foundation for carbon accounting.And documenting it all in a way that avoids greenwashing risks, which now ACCC is watching.Sound familiar? Probably not — and that’s the issue.
It’s Not Just a Compliance Problem. It’s a Capability Gap.
In its 2024–25 budget submission, CPA Australia highlighted that SMEs are feeling stretched thin, particularly as ESG disclosure and regulatory reporting requirements ramp up. It’s not just about cost — it’s about internal bandwidth and expertise.
Put simply:The regulatory bar is rising faster than SME capabilities can keep up. This creates a dangerous mix of:Confusion: What do these standards even mean?Delays: Projects stall while teams try to figure it out.Risk: Incomplete or incorrect reporting opens the door to greenwashing claims or non-compliance.In large corporates, this is handled by full ESG teams or external consultants.In SMEs? It's often… no one.Why the Skills Gap Matters More Than You Think
The sustainability space is full of buzzwords. But this is not about “driving innovation” or “navigating ESG complexity.” This is about your business staying compliant, credible, and competitive.The skills gap isn’t just holding you back — it’s putting you at risk.
Here's what’s at stake:
Next Contract Renewal: A risk of losing contracts due to not ready with the carbon data.Investor confidence: More investors are checking for credible carbon disclosures.Customer trust: B2B buyers increasingly ask for Scope 3 data from suppliers.Legal exposure: ASIC has made it clear greenwashing isn’t a PR issue, it’s a legal one.And yet, most SMEs don’t have the luxury of hiring full-time sustainability staff. So what’s the solution?
Aethiro: Gladstone based your in-house support without a headcount
This is exactly why we built Aethiro — to act as an embedded carbon team for Australian SMEs. We’re not a bloated consultancy. Instead, we offer:
Carbon footprint calculationTender-Ready Carbon Snapshot™Practical GHG reduction pathways to slash fuel and energy costsSupport for ESG requirements in your tendersISO 14001 gap analysisISO 14064 pre-auditsSeamless integration with your existing financial accounting teamAll delivered with real industry experience — not just theory. We help SMEs move from confusion to confidence. From skills gap to capability. From “we should be doing something” to “we’re already on track.”
Final Thought: You're Not Alone in This
If you’ve felt stuck trying to handle sustainability reporting internally — you’re not the only one.
The carbon skills gap is real. But so is the solution.You don’t need to become a climate expert overnight. You just need the right team in your corner.
Speak to a real regional QLD person on 07 4886 0724