Implementation of emissions reduction plan

Our plans and priorities for our emissions reduction plan.

Published 23 January 2025

Implementation plan

The following section identifies 27 actions as part of the ATO’s Emissions Reduction Plan. The ATO has firmly committed to helping combat climate change and notes that implementation of the plan may be influenced by a range of factors, including changes in technology and service providers, future annual budgets, and service priorities.

This is the inaugural plan for the ATO and focuses on actions with the highest emissions reduction impact to assist in meeting the 2030 target date.

Each action has been categorised as to whether it directly reduces the ATO’s carbon emissions, influences other action, or innovates by enabling the integration of new or emerging technologies.

Impact:

an action that directly results in reducing the ATO's carbon emissions.

Influence:

an action that seeks to influence or encourage emissions reduction of contractors, suppliers, staff, or subsidiary business.

Innovate:

an action that enables the use or implementation of technologies that drive net zero outcomes.

Priority area 1: net zero buildings

The highest source of carbon emissions identified in the baseline of the ATO’s operations is associated with building electricity consumption. Reducing these emissions by improving energy efficiency and electrification represents the most achievable and cost-effective approach for the ATO.

To assist this approach, the Strategy identifies rating systems as an effective means to understand and reduce property-related emissions. To support this, entities are required to rate their properties over 1000m² using the Energy rating tool by National Australian Built Environment Rating Scheme (NABERS) to target ratings based on their metropolitan or regional location. Additionally, new builds must have a minimum 4-star Green Star rating from the Green Building Council of Australia.

The ATO will work with landlords to further improve the energy efficiency of our sites through upgrades to base building plant and equipment.

Table 2: Priority area 1 actions
Action number	Action detail	Action type
1.1	Actively reduce under-utilised office space and equipment as appropriate. Commencement year: 2024	Impact
1.2	Engage with landlords to upgrade all lighting to high-efficiency LED, coupled with lighting control sensors such as daylight sensors and occupancy sensors. Commencement year: 2025	Innovate
1.3	Engage with landlords to explore the implementation of smart building management systems if not already in place, enhancing efficiency and reducing emissions. Commencement year: 2025	Innovate
1.4	Undertake annual NABERS energy ratings for leased properties with an NLA of >1000m², achieving a minimum 5.5-star rating for metropolitan sites and 4.5-star rating for sites located outside a metropolitan area wherever possible. Predicted emissions reduction if all sites are 5.5-Star NABERS energy rated: 3,134t CO2-e p.a. Predicted energy reduction: 7,038,643kWh p.a. by meeting a 5.5-star NABERS energy rating at all sites. Commencement year: 2025	Impact
1.5	Ensure all office refurbishments with an office space of >1000m² and leased for a minimum of 4 years will achieve 5.5-star NABERS energy rating. Commencement year: 2024	Impact
1.6	Implement Green Lease Schedules (GLS) for all leased properties with an NLA of >1000m² and minimum 4-year lease term. The GLS will create a legal and management framework under which both parties, (lessor and lessee), are required to achieve and maintain the building environmental performance throughout the term of the lease. A mutually agreed GLS will assist the ATO to overcome barriers more effectively by allocating incentives and responsibilities for improved emissions reduction management across its leased portfolio. Commencement year: 2025	Influence
1.7	Review existing GLS’s to ensure they align to the Strategy and net zero 2030 target. Commencement year: 2025	Influence
1.8	New leases to be all-electric buildings, where available. Commencement year: 2024	Impact
1.9	Implement electric vehicle charging facilities to support electric vehicle charging of fleet vehicles on site, where possible. Commencement year: 2025	Influence
1.10	Prioritise upgrades to eliminate the use of gas in ATO tenancies. Commencement year: 2025	Impact
1.11	Replace low-efficiency appliances with high-efficiency models at end of life. Prioritise reuse and recycling through Govtree and other suitable programs to prevent landfill disposal. Commencement year: 2024	Impact
1.12	Undertake Type-2 energy audits at sites that are identified as having high energy intensity or that don't meet the required NABERS energy rating, with the audits used to identify energy efficiency solutions for implementation. Predicted ongoing emissions reduction (at 10% total reduction): 1,737t CO2-e p.a. Note: Total reduction is a conservative value. Energy audits typically identify energy reduction opportunities that reduce overall consumption by up to 20%. Predicted energy reduction: 2,233,172 kWh p.a. Commencement year: 2025	Influence
1.13	Retire old ICT equipment and replace it with high-efficiency systems, transition to laptops, and switch from dual to single monitors to reduce energy consumption. Commencement year: 2024	Impact
1.14	Maintain existing end of trip facilities and investigate opportunities to improve facilities that support low emission commutes. Commencement year: 2026	Influence
1.15	Integrate sustainability education initiatives through a range of mediums including: internal communications good news stories awareness campaigns. Commencement year: 2025	Influence
1.16	Participate in Earth Hour and Government Energy Action Response (GEAR) protocol to show the ATO’s commitment to net zero and climate action. Commencement year: 2024	Influence
1.17	Investigate new and emerging technologies that support the ATO’s transition to net zero buildings, as they become available and viable. Commencement year: 2024	Innovate
1.18	Explore any eligible funding opportunities to implement net zero programs across the ATO’s property portfolio, leveraging potential funding available to Commonwealth entities to support emissions reduction initiatives. Commencement year: as released	Influence

Priority area 2: net zero energy

Reducing energy consumption through energy management strategies and improving energy efficiency is recognised as the most effective way for the ATO to reduce its emissions.

To assist this approach, the Strategy has set a renewable electricity target of 80% of electricity procured is from renewable sources (where available) by 2028 and 100% by 2030. To achieve this target, the Department of Finance will establish a whole-of-Australian-Government arrangement for electricity procurement for use by entities. The ATO commits to participate in this arrangement as it is rolled out nationally.

Table 3: Priority area 2 actions
Action number	Action detail	Action type
2.1	Participate in the whole-of-Australian-Government electricity agreement when it becomes available across the country. Emissions reduction: 17,368t CO2-e p.a. by 2030 Commencement year: as determined by the Department of Finance	Impact
2.2	Consider undertaking a behind the meter solar and battery feasibility assessment for sites where possible. Commencement year: 2025	Influence

Priority area 3: net zero fleet

The Australian Government has committed to reducing emissions by setting a target of 75% of new passenger vehicle purchases and leases to be low emissions vehicles by 2025. The ATO is committed to supporting this target in the transition of its fleet.

Transport fuels for the ATO’s corporate fleet contributes 1% of total emissions, with the current fleet consisting of 56 hybrid vehicles.

Table 4: Priority area 3 actions
Action number	Action detail	Action type
3.1	Review annual fleet and fuel data reporting in line with the net zero reporting requirement, monitoring fleet performance, vehicle utilisation, fuel consumption and emissions to identify opportunities for fleet optimisation. Commencement year: 2026	Impact
3.2	Transition the ATO fleet to zero emissions fleet vehicles as leases expire, aiming to achieve at least 75% of all new passenger fleet vehicles procured be low emissions vehicles by 1 July 2025. Commencement year: 2024	Impact
3.3	Provide information and support to staff on efficient driving practices to reduce emissions. Commencement year: 2025	Influence

Future emissions reduction

The Strategy currently focuses on reducing Scope 1 and Scope 2 emissions, but it may extend to Scope 3 emissions in the future.

This expansion is likely because addressing Scope 3 indirect emissions can significantly enhance our overall sustainability efforts.

The ATO is already actively monitoring its Scope 3 emissions and continuously seeks innovative ways to improve and minimise these emissions, including encouraging our vendors to adopt more sustainable practices.

To this end, the ATO has already included Scope 3 emissions in our annual reporting, offering a comprehensive overview of our current total emissions and establishing a baseline for future assessments.

We will also review and enhance our business travel policies to prioritise virtual meetings and promote the use of public transportation for necessary travel. When air travel is most appropriate, we will strive to reduce emissions by selecting direct and low-emission flight options whenever possible.

Furthermore, we are investigating opportunities to lower emissions from our waste management processes by boosting recycling rates and minimising waste generation.

These initiatives reflect our broader commitment to sustainability and reducing our environmental footprint.

Table 5: Future emissions actions
Action	Action detail	Action type
4.1	Update the ATO’s corporate policy on travel to prioritise sustainable and low emissions travel. Sustainable and low emissions travel may include rail, shared ride services, electing low emissions travel options and purchase of travel offsets. Commencement year: 2025	Influence
4.2	Promote the benefits of public transport, walking, and cycling to new staff during induction programs and familiarise them with end of trip facilities at their workplace. Use internal communications to promote Travel CEI. Commencement year: 2025	Influence
4.3	Revise current waste management processes to enhance recycling rates and minimise waste generation. Commencement year: 2025	Innovate
4.4	Actively support procurement efforts by seeking innovative strategies to reduce emissions and encourage our vendors to adopt sustainable practices. Commencement year: 2025	Influence

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