MEASUREMENT AND MANAGEMENT OF CARBON: THE COMMERCIAL IMPERATIVE

For Hire and Rental Businesses, Carbon Management Isn’t Just About Compliance—It’s Fast Becoming A Critical Commercial Reality.

THE HIRE AND RENTAL sector constantly evolves and innovates their product and service offerings to meet the needs of customers they support. All sectors of the economy are under increasing obligations to track and reduce their carbon footprint, and those expectations are passed onto supply chains.

For small and medium hire businesses, that brings a new reality: if you can’t measure and manage your carbon impact, you may lose existing customers and miss out on future opportunities. This focus on sustainability also offers a major opportunity to improve efficiency, reduce costs, and future-proof your business.

Why carbon now?

Governments, investors and broader stakeholders are demanding action. Large Australian entities are now required to report on climate-related risks under the mandatory climate-related financial disclosure regime. These standards align with global frameworks and will eventually apply to thousands of entities.
Even if you’re not directly covered by the mandatory reporting, your customers and other stakeholders may be. They will require your emissions data to fulfill their reporting obligations. That means if you’re supplying gear to a contractor working on a major project, you may be asked to provide your specific carbon emissions data related to your products and services.
Real-world impacts : Brisbane Olympics 2032
The Brisbane 2032 Olympic and Paralympic Games organisers have publicly stated that the Games will be “climate positive”— not only aiming for net zero but going further by removing more carbon than they emit. This commitment has real implications for all contractors and suppliers associated with the games and the development of related infrastructure — including for hire and rental providers.
Any company bidding to work on Olympic-related infrastructure or event delivery must now show how it will reduce emissions and achieve sustainability goals. Whether you supply generators, site sheds, access equipment or event structures, being able to provide carbon data and offer lower-emission options is a prerequisite to do business.
If you can’t provide emissions data—or don’t offer low-emissions equipment—you could be excluded from project sites.

What counts as carbon?

Carbon emissions (CO₂-e), are produced through the burning of fossil fuels, use of electricity and other business activities. In the hire and rental industry, they typically fall into three categories:

• Scope 1: Direct emissions—e.g., fuel burned in delivery trucks, forklifts, and hire equipment.
• Scope 2: Indirect emissions from purchased electricity—e.g., lighting, heating and workshop power.
• Scope 3: Indirect emissions across your value chain—e.g., emissions generated when customers use your hired equipment, or through your suppliers.

The business case for carbon management

While climate action is often framed as an environmental concern, the reality is that carbon measurement is becoming a core business issue.

1. Winning work
   Government departments and tier-one contractors now routinely include emissions criteria within tendering processes. Being able to provide carbon data and offer low-emission equipment alternatives can help you win work. Some businesses are bundling carbon reporting into customer contracts, helping them meet their Scope 3 obligations.
2. Cutting costs
   Carbon management often goes hand-in-hand with energy efficiency. Reducing fuel consumption, upgrading equipment, or improving logistics can lower emissions and operational costs. Switching to LED lighting, installing motion sensors, or maintaining equipment to improve efficiency can generate significant savings, improving the profitability of operations.
3. Enhancing brand and reputation
   Many customers are more environmentally aware and socially conscious than ever. Demonstrating leadership on sustainability can help build trust, enhance loyalty and attract new customers who want to partner with businesses aligned with their own values.
4. Attracting investment and finance
   Banks and investors are placing greater importance on Environmental, Social and Governance (ESG) factors. Businesses that proactively manage carbon risk are seen as more resilient and forward-thinking, making them more attractive for funding and partnerships.
5. Staying ahead of regulation
   Climate-related regulations are expanding. Businesses that act early will be better positioned to adapt, avoiding last-minute compliance costs or the risk of being caught unprepared when new standards are introduced.

Get started: Measuring your carbon footprint

You don’t need to be a sustainability expert to begin. You can start the journey with a simple emissions baseline calculation using existing data.
Here’s where to start:

• Fuel use: Track litres of diesel, petrol, or LPG used in delivery vehicles, generators, and on-site plant & equipment.
• Electricity: Record kWh used in depots, yards, offices, and workshops.
• Equipment use: Estimate the operating hours and emissions from commonly hired assets.
• Other sources: Include waste, refrigerants, and staff travel where relevant.

There are now many technology and software tools which can integrate with your existing systems to assist you in efficiently tracking carbon emissions. Alternatively, you can work with an adviser to provide a more structured approach.

Managing emissions: Turning insight into action

Once you understand where your emissions are generated you can take action to reduce them, such as:

• Use telematics and fuel tracking to monitor vehicle and generator performance.
• Offer a green fleet option to customers, with clearly labelled low-emission choices
• Implement anti-idling policies for trucks and plant.
• Switch to LED lighting, solar panels, and efficient HVAC systems in depots.
• Engage suppliers who share your sustainability values—and ask for their carbon data too.

The time to act is now

Carbon measurement and management is now a commercial reality, and a competitive advantage.
Now is the time to start your journey and measure your baseline footprint.
There is a clear commercial advantage if you can demonstrate that you track your emissions, invest in change, and clearly communicate your carbon credentials.

If you would like to explore ways to advance your sustainability journey, please reach out to Nicholas Guest at HLB Mann Judd.