Climate Active Organisations Pave The Way For Sustainable Action

Published: June 7, 2022.

Northmore Gordon

Climate Active is an Australian government certification program that recognises businesses achieving carbon-neutral status across multiple categories including organisations, products, services, buildings, events and precincts. Certification requires organisations to assess and inventory their carbon emissions, implement reduction measures, and purchase carbon offset credits to counterbalance remaining emissions. Annual reporting is mandatory and published on the Climate Active website, enabling certified companies to demonstrate climate leadership and social responsibility to consumers seeking purpose-driven brands.

Corporations and businesses are finding ways to reduce their emissions and reach a net-zero carbon status. Stakeholders are taking greater note of the impact that climate change is having. We can see it in the increased frequency of extreme weather and in the damage inflicted on coastal ecosystems, helping us recognise that climate action is good for people, the environment, and economic prosperity.

Climate Active is a certification program that allows the Australian government to recognise businesses reaching a carbon-neutral status. Certification is available for a number of applications, including buildings, events, organisations, precincts, products, and services.

Becoming certified requires that organisations:

  • Assess and create an inventory of their carbon emissions
  • Implement measures to reduce emissions
  • Purchase carbon offset credits to counterbalance remaining emissions

Being Climate Active certified verifies and validates companies' carbon neutral claims, enabling Climate Active companies to showcase climate leadership and social responsibility. As consumers increasingly search for purpose-driven brands, the Climate Active certification stands as a way to rise above the crowd and display leadership in sustainability.

What Companies Are Climate Active

Hundreds of companies are already recognised by Climate Active, giving consumers plenty of opportunities to make sustainable purchasing and lifestyle decisions. Some notable Climate Active organisations include:

  • Australia Post - the Australian postal services company received certification for carbon-neutral products and services after implementing several energy efficiency improvements, undergoing electrification of processes and purchasing carbon offset credits.
  • Lion - this Australian food & beverage company has been certified carbon-neutral as an organisation. Alongside its purchasing of carbon offset credits, the company is following through on commitments to generate and procure more renewable energy.

  • Commonwealth Bank - The financial institute is Climate Active accredited as an organisation. With a strong commitment to procuring clean electricity, Commonwealth Bank has installed several on-site solar systems to generate and procure clean renewable energy.

  • Qantas - The international airline is Climate Active certified for its service. With the majority of emissions stemming from burning jet fuel, their emissions reduction strategy involves improving fuel efficiency, transitioning to less carbon-intensive fuels, and improving fleet efficiency. Qantas also participates in carbon offsetting through purchases of VCUs, ACCUs, and Voluntary Emissions Reductions (VER).
  • REA Group - Certified as an organisation, the digital advertising company established a detailed action plan to reduce emissions by transitioning to renewable energy sources for electricity as well as implementing behavioural and procedural changes in the workplace.

How To Become Climate Active Certified

Climate Active administers certification and maintains the standards required to be deemed carbon neutral. Becoming Climate Active certified is a multistep process that starts with applying and ends with a public disclosure statement being published on the Climate Active Climate Active certified brands.

Step 1: Apply

The first step is to apply to Climate Active. Northmore Gordon often manages this step for our clients to make the process quick and easy. Upon approval, the company enters into a license agreement with Climate Active.

Step 2: Calculate emissions

Next, the company must determine its greenhouse gas (GHG) emissions. This provides a benchmark figure for the company to actively reduce, and the process of developing a carbon inventory - which Northmore Gordon assists in doing - highlights opportunities to improve energy efficiency and reduce scope emissions.

Step 3: Reduce Emissions

Once emissions are calculated, the company must work to reduce them. This can involve a variety of strategies: reducing energy usage through operational changes, such as adopting video conferencing in place of conducting air travel for meetings; transitioning to the use of certified carbon neutral products and services; implementing strategies like heat recovery systems that optimise energy use and lower fuel demand; improving energy efficiency through equipment upgrades; and electrifying processes, such as transitioning to electric vehicles or procuring more electricity from renewable energy sources.

As experts in commercial energy use and energy efficiency practices, Northmore Gordon helps companies realise the most effective strategies to adopt in their transition to carbon-neutral operations.

Step 4: Purchase Carbon Credits

After implementing emissions reduction strategies, remaining residual emissions are to be offset via the purchase of carbon offset credits. These credits represent reduction in emissions and come from various activities that support clean energy projects - such as solar or wind farms - or promote carbon sequestration practices, such as reforestation initiatives or programs that preserve natural carbon sinks. The diversity of carbon offset credit programs leads to ranging efficacy, and Northmore Gordon helps companies to select and purchase reputable credits to ensure the company feels confident and proud of their emissions reduction strategy.

Once a company has effectively cancelled out its remaining emissions through sufficient purchase of offset credits, the company reaches carbon neutral status.

Step 5: Validate claim

A company's claim that it has reached carbon neutral status has to be validated by an independent third-party. This validation confirms the company accurately reflected their carbon inventory, made appropriate adjustments to reduce emissions, and offset residual emissions through reputable carbon offset credits.

Step 6: Receive certification

Once the claim has been verified, Climate Active will provide certification and publish the company's public disclosure statement to the Climate Active website. This showcases the credibility of the company's claim and assures consumers that the company has taken meaningful steps to reducing its emissions.

Support With Climate Active Certification

If energy is not the primary focus of your business, then it can be challenging to move through the assessment, implementation, and application stages of the Climate Active certification process.

Northmore Gordon is on a mission to help organisations and industrial businesses boost profitability through decarbonisation and improved energy efficiency. With our team of energy experts, we can navigate the Climate Active process with your company to assure you reach your sustainability goals and optimise savings. If you want to declare environmental responsibility to your customers and community, then reach out today and we'll work to make Climate Active part of your sustainability plan.

Reporting and compliance context

Confirm the reporting entity and period, current thresholds, regulator guidance, evidence boundary and assurance obligations before applying the dated discussion to a live report.

What is Climate Active and how does it recognise carbon-neutral organisations?

Climate Active is an Australian government certification program that recognises businesses achieving carbon-neutral status across multiple categories including organisations, products, services, buildings, events and precincts. Certification requires organisations to assess and inventory their carbon emissions, implement reduction measures, and purchase carbon offset credits to counterbalance remaining emissions. Annual reporting is mandatory and published on the Climate Active website, enabling certified companies to demonstrate climate leadership and social responsibility to consumers seeking purpose-driven brands.

Which emissions scopes must organisations measure under Climate Active, and what offset instruments are allowed?

Organisations must measure Scope 1, 2 and material Scope 3 emissions, then reduce where possible before offsetting the remainder. Allowed offsets differ by scope: Scope 2 emissions may be offset using Large-scale Generation Certificates (LGCs), while Scope 1 or 3 emissions may use ACCUs, Certified Emission Reductions (CERs), Removal Units (RMUs), Verified Carbon Units (VCUs) or Verified Emissions Reductions (VERs). This distinction ensures that the offset instrument matches the emissions category being neutralised, maintaining integrity of the carbon-neutral claim.

What are the six steps to Climate Active certification, and where can Northmore Gordon assist?

The certification pathway involves: 1) applying and entering a license agreement; 2) calculating greenhouse gas emissions to establish a carbon inventory benchmark; 3) reducing emissions through operational changes, equipment upgrades or electrification; 4) purchasing carbon credits to offset residual emissions; 5) validating the claim through independent third-party verification; and 6) receiving certification and public disclosure. We assist by managing applications, developing emissions inventories, identifying effective transition strategies, and selecting and procuring reputable carbon offset credits to streamline the entire process.

How do organisations establish their emissions baseline and inventory for Climate Active?

Organisations begin by identifying legal entities, facilities, reporting period, intended audience and reporting purpose. We provide scope 1, 2 and 3 inventory services, including emissions assessments, documented boundaries, activity data, emissions factors and calculations. The inventory establishes a baseline record and supports the carbon-neutral claim by quantifying organisational emissions across defined boundaries. A data-readiness assessment can identify gaps before collection, clarifying what information exists, who owns it, and what measurements remain needed before submitting certification applications.

What emissions reduction strategies can organisations implement before purchasing offsets?

Organisations can pursue operational changes, energy efficiency improvements, equipment upgrades and electrification of processes. Our energy optimisation services combine engineering assessment with implementation support, covering industrial facilities, commercial buildings and utilities. Examples include improved fuel efficiency, renewable energy procurement through moREnewable100, process heat and refrigeration optimisation, and renewable electricity attribute management. Organisations should reduce emissions where technically and commercially viable before relying on offset purchases, as this demonstrates genuine carbon-neutral progress rather than offset-only approaches.

What role does carbon offset selection play in Climate Active certification, and how should organisations evaluate offset instruments?

Carbon offsets purchase environmental credits to neutralise remaining emissions after reduction measures. Climate Active allows different offset types by emissions scope, requiring organisations to select instruments aligned with their emissions category and verify their credibility. We provide environmental-attribute due diligence, evaluating offset integrity and validity before procurement and retirement. Organisations should maintain claim files documenting the exact offset wording, supporting calculations, source documents, purchase period, assumptions and approver to ensure the carbon-neutral claim remains traceable and defensible throughout and after certification.

How can organisations avoid common pitfalls when making carbon-neutral claims under Climate Active?

Organisations must keep physical reductions separate from contractual electricity attributes and carbon offsets, avoiding the mistake of combining different emissions-reduction types into a single claim. A claim file should retain exact wording, supporting calculations, source documents, period, assumptions and approver; if public wording changes, verify whether the same evidence still supports it. Do not subtract purchased offsets from an emissions inventory without applying the relevant reporting framework correctly. Our carbon advisory services, including carbon-accounting boundary guidance and environmental-attribute due diligence, help organisations maintain audit-ready documentation and make credible, defensible carbon-neutral claims aligned with Climate Active requirements.

What reporting obligations apply to Climate Active certified organisations in Australia?

Climate Active certified organisations must publish annual reports on the Climate Active website disclosing their carbon-neutral status. Beyond Climate Active requirements, Australian organisations may face separate reporting obligations under the National Greenhouse and Energy Reporting (NGER) scheme, Australian Sustainability Reporting Standards (ASRS), National Pollutant Inventory (NPI), and NSW Climate Change Mitigation and Adaptation Plans (CCMAPs) if applicable. These frameworks have different thresholds, deadlines and scopes. We provide reporting support across all frameworks, helping organisations determine applicability separately and prepare compliant inputs for multiple schemes simultaneously.

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