From obligation to opportunity: why Australia's sustainability shift is the electrical industry's biggest moment

With Australia’s climate-related financial disclosure requirements already reshaping procurement, supply chains and tender processes, electrical businesses face a choice: wait and react or move early and win. We spoke with Lisa Zembrodt, Principal of Schneider Electric Advisory Services, to understand what’s really at stake — and why the opportunity is bigger than most businesses realise.

Sustainability has well and truly moved out of the ‘nice to have’ column. For Australian electrical businesses — contractors, panel builders, OEMs and system integrators — 2026 marks a decisive moment. Climate-related financial disclosure obligations are expanding, supply chain data requests are intensifying, and tender criteria are evolving faster than many businesses have anticipated.

But according to Lisa Zembrodt, Principal of Schneider Electric Advisory Services with a focus on sustainability, the businesses that will define the next decade of Australia’s electrical industry are the ones choosing to see this shift as a strategic opportunity — not a compliance headache.

“Sustainability has really moved out of this realm of being a nice to have. There are absolutely ways that climate change creates opportunities, particularly for the electrical industry.”

What’s changing — and faster than you might think

Australia’s Climate-Related Financial Disclosure (CRFD) framework has been rolling out in stages since 2025. Group one — the largest listed entities — have already begun reporting under the Australian Sustainability Reporting Standards (ASRS). Group two, which covers the next tier of companies, will be required to report for financial years starting from 1 July 2026.

For many in the electrical industry, this might seem like someone else’s problem. But Zembrodt is direct about the reality: “We are seeing larger companies ask for data from their suppliers. It’s really important that they understand the climate risks that their suppliers face.”

That means smaller businesses — even those years away from their own mandatory reporting — are already being asked to provide emissions data, demonstrate climate risk awareness and show they have governance processes in place. Fail to do that, and the risk isn’t just regulatory. It’s commercial.

The supply chain effect: why ‘too small’ is a dangerous assumption

One of the most common responses Zembrodt hears from small and medium-sized electrical businesses is: “This doesn’t apply to me. I’ll look at it later.” Her response is clear: “It is at your doorstep already — and it will just creep up over your stoop into the living room before you know it.”

Even businesses not yet in any reporting group are affected through the companies they serve. If you hold a major contract with a Group 1 or Group 2 reporting entity — a data centre, a mining company, a manufacturer — you may be a critical part of their supply chain risk assessment. Your customer might want to understand your carbon footprint, your climate risks and what you’re doing to manage them.

“If you can walk the talk, the doors are open for you. And this is just the beginning.”

The flip side? Businesses that can demonstrate they have a handle on sustainability aren’t just avoiding risk — they’re actively winning more work. “You might end up with an opportunity to take a bigger share in one of your largest customers as a small business,” Lisa Zembrodt explains. In an increasingly sustainability-conscious procurement landscape, being ahead of the curve is a genuine commercial differentiator.

The tender landscape is already shifting

Beyond supply chain requests, Zembrodt points to a clear and growing shift in how businesses are evaluated in tender processes. Environmental performance metrics are already embedded in many tenders — and this is only going to become more pronounced.

“We do already see tenders including metrics around impact on environment — but other sustainability metrics as well,” she says. “Social and governance issues all come into play. That will continue to grow in importance.”

For larger companies issuing tenders, working with suppliers that lack sustainability credentials carries real reputational risk. That creates a clear filter: businesses that can demonstrate good sustainability governance are more likely to be shortlisted, preferred and retained.

A generational opportunity for the electrical industry

There’s a broader tailwind here that Zembrodt is emphatic about: the electrical industry is positioned at the centre of the global decarbonisation push.

“Electrification is required to decarbonise many sectors, many industries,” she says. “This is an absolutely critical sector of our economy — and that sector needs to have a really good understanding of how it can be sustained financially into the future.”

From data centres and mining to manufacturing and commercial real estate, every energy-intensive sector will need the expertise, infrastructure and services that electrical businesses provide. The contractor who can also advise on emissions reduction, energy efficiency and climate risk management is not just a service provider — they’re a strategic partner.

Where businesses get stuck — and how to move forward

Zembrodt identifies three key challenges that hold small and medium-sized businesses back:

1. Knowing where to start

Sustainability can feel abstract and overwhelming, particularly for businesses whose expertise lies elsewhere. Zembrodt recommends starting with something concrete: measuring your carbon footprint. “It’s as simple as creating a carbon footprint as a starting point. There are great tools to be able to do that.”

2. Finding the right expertise

Not every business needs a full-time sustainability expert. “It does not make sense for every business in Australia to go out and hire a sustainability person,” Zembrodt says. Accessing advisory services or programs designed for smaller businesses is a far more efficient approach.

3. Overcoming the perception of cost

Many businesses assume sustainability strategy is expensive. Zembrodt reframes this: the real cost is inaction. “This is something that you need in order to continue providing your goods and services to your largest customers. It’s worth the value that you will get out of it.”

The DCP: a practical starting point

Schneider Electric’s Decarbonization Champion Program (DCP) was designed for exactly this moment. Built for electrical businesses navigating the intersection of compliance pressure and commercial opportunity, DCP provides the practical framework, expert guidance and data tools to help businesses move from awareness to action.

Whether you’re preparing for your own future reporting obligations, responding to customer data requests, or simply looking to strengthen your position in a sustainability-conscious market — DCP offers a clear, supported path forward.

As Zembrodt puts it: “Once people understand the risks and the opportunities, they’re really excited to take action. Simple things like reducing your energy consumption through energy efficiency measures is an absolutely fantastic way to reduce your costs, reduce your risk, reduce your carbon footprint.”

Book a free 15-minute 1:1 strategy session with a local DCP expert to find out what the July 2026 changes mean specifically for your business. Or watch the Pacific Sustainability Session on-demand for a 15-minute sector overview.