Climate Active has measures in place to protect the integrity of the program and our carbon neutral certifications. This page outlines the requirements for entities participating in the program, and our compliance policy and processes.
Standards
To be certified, an entity must meet the requirements of the relevant Climate Active Carbon Neutral Standard. These voluntary standards provide best practice guidance on how to measure, reduce and report emissions data.
To read more about the certification process, head to Certification.
To learn more about the Climate Active Carbon Neutral Standards, head to Tools and resources.
Licence agreement
If Climate Active provides in-principle approval of an entity’s application, we will ask them to sign a licence agreement. The standard template is available on our website.
The licence agreement outlines the entity’s program obligations, including:
- the relevant certification standard
- terms and conditions
- fees
- the schedule for reporting, third-party validation, and certification.
Read more about compliance with the licence agreement below.
Trade mark use and public communications
The Climate Active trade mark can be used for certified organisations, products, services, buildings, events and precincts. The trade mark can only be used where a licence agreement has been signed and the responsible entity has received a Notice of Certification.
Certified entities must seek approval from Climate Active to use the Climate Active trade mark. There are strict requirements around use of the trade mark and public communication of Climate Active claims, including carbon neutral claims. These are outlined in our licence agreement.
Unauthorised use or misuse of the Climate Active brand, trade mark or marketing material may result in suspension from the program or termination of an entity’s certification.
We provide members with guidance to help them understand their obligations and accurately communicate their claims. We also conduct regular compliance checks of current and past members to determine they are using the trade mark appropriately.
We encourage members to check their Climate Active and environmental communications against:
- the Australian Consumer & Competition Authority (ACCC)’s guide to making environmental claims for business
- the Australian Securities and Investment Commission (ASIC)’s information sheet on how to avoid greenwashing when promoting sustainability-related products.
Compliance policy
Our compliance policy is designed to protect the integrity of the program by ensuring certified entities adhere to their obligations under the licence agreement.
To be compliant, a certified entity must:
- meet the requirements of the relevant standard
- follow the relevant reporting schedule
- this includes submitting reporting documents to Climate Active by the deadline and to our reasonable satisfaction
- pay all fees on time
- use the trade mark correctly.
Climate Active is a voluntary program. Compliance issues are managed through a graduated, risk-based approach. We work proactively with non-compliant members to support voluntary action to return to compliance. This includes allowing reasonable time and opportunity for entities to rectify the non-compliant activity. Most members respond constructively and go on to meet the requirements of the program.
If a responsible entity has breached or is at risk of breaching the terms and conditions of the Licence Agreement, Climate Active will notify them as soon as possible in writing. This notification will outline steps to remedy the breach and include a date by when the responsible entity must take action.
To read about our reporting requirements, head to Reporting requirements.
Termination
In cases of continued or highly serious non-compliance, Climate Active may send an entity a notice suspending or terminating their certification and/or their licence agreement. Depending on the compliance issue, this may be effective immediately, a specific termination or suspension date will be communicated.
Climate Active gives terminated entities clear advice on their responsibilities upon termination. This includes advice on outstanding reporting obligations and the need to remove any certification claims.
Terminating an entity’s licence agreement is the final compliance action available under the program.
Terminated entities are listed on the Climate Active website under Certified Brands.
Withdrawal from Climate Active
Certified entities can choose to exit the Climate Active program at any time and must notify Climate Active in writing of their intent to withdraw.
Withdrawing from the program is a matter for each business, based on their individual circumstances.
Businesses are not required to explain to Climate Active why they are withdrawing from the program. However, we offer businesses an opportunity to provide feedback on their decision to leave the program.
Some reasons cited by businesses include:
- program costs
- complexity of certification and reporting requirements
- uncertainty around the future of the program
- adverse media coverage and criticism of the program
- choosing to focus on emission reductions over offsetting
- prioritising aligning with the new mandatory Climate-related Disclosure requirements under the Australian Sustainability Reporting Standards (ASRS).
Upon receiving written notice from the responsible entity, Climate Active will provide a formal notice of withdrawal. This notice outlines the effective withdrawal date and any outstanding obligations needed for the entity to close out their participation in the program.
Withdrawn members are listed on the Climate Active website under Past Certified Brands.
Obligations for past-certified entities
All terminated and withdrawn entities are responsible for meeting their outstanding obligations under their licence agreement.
If an entity receives a withdrawal or termination notice, they must:
- stop using the Climate Active trade mark
- remove references to ongoing Climate Active certification in their materials
- stop claiming a connection to Climate Active.
Products manufactured and packaged before the withdrawal or termination can still be sold until existing packaged stock is exhausted.
Withdrawn and terminated entities are also expected to provide annual reports for certified periods up to the date of withdrawal or termination.
Climate Active undertakes all reasonable steps to notify past certified entities about their outstanding obligations. However, the responsibility for meeting these obligations rests with the entity.
Should an entity continue to make inaccurate or misleading claims, including misusing the Climate Active trade mark, we may refer them to the Australian Consumer Competition Commission for investigation.
Compliance checks
In addition to the standard program compliance processes outlined above, Climate Active undertakes regular compliance checks on current and past members. These checks aim to ensure any use of the trade mark or public claims about an entity’s certification status are accurate and appropriate.
If you notice an organisation making a Climate Active claim that seems inaccurate or misleading, including misusing our trade mark or member logo, please contact us at climateactivecomms@dcceew.gov.au.