Codan's Path to Decarbonisation: Ensuring Mandatory Climate Reporting Compliance and Sustainability

Overview 

Client: Codan

Industry: Communication Equipment Manufacturing

Service Area: Carbon & Circularity

Codan, a leading ASX-listed company specialising in metal detectors and communication equipment, faced an imminent challenge: upcoming mandatory climate reporting requirements.

As a Tier 1 company (large entities with $ 500M+ revenue, $ 1B+ assets, or 500+ employees), Codan was required to disclose its Scope 3 emissions and disclose material information about climate-related risks and opportunities for the FY26 reporting period.

The Challenge

About Codan

Codan operates at a multi-national scale in high-tech markets across three major business units:

• Minelab – Manufactures metal detectors for both recreational and professional use.

• Tactical Communications – Provides radio communication solutions for military and NGO’s. This also includes HF radios and LMR (Land Mobile Radios), and while largely tactical it also serves NGO’s and UN agencies. Codan has supplied to UN World Food Program, Red Cross and Médecins Sans Frontières.

• Zetron – Specialises in first responder control room systems.

Codan manufactures metal detectors for both recreational and professional use.

With a strong market presence and operations spanning multiple countries, Codan recognises the importance of sustainability in maintaining its competitive edge and meeting stakeholder expectations. By investing in carbon accounting and decarbonisation strategies, the company aims to align with evolving regulatory standards and industry best practices.

Where They Started

Codan lacked the necessary research and studies to support robust carbon reduction targets on a global scale. To prepare for regulatory changes and reinforce its commitment to sustainability, Codan engaged Perspektiv to develop its baseline global carbon footprint for FY22/23 and create a comprehensive carbon reduction strategy. The objective was to ensure compliance while positioning Codan as a proactive leader in corporate sustainability.

The company had previously worked with Perspektiv to develop its national carbon footprint for FY22/23, laying the groundwork for more detailed carbon accounting and reduction initiatives.

However, with the impending regulatory shifts, Codan needed a more structured approach to:

• Assess its national and international carbon footprint comprehensively.

• Identify key areas for carbon reduction across Scope 1, 2, and 3 emissions.

• Establish a clear, evidence-based decarbonisation strategy.

• Prepare for mandatory climate-related disclosures in FY26.

Our Approach: Readiness for Mandatory Climate Reporting

Perspektiv employed a structured, data-driven approach to ensure Codan met its compliance and sustainability goals. Our methodology included:

1. Global Baseline Definition – Building on the national organisational carbon inventory for FY22/23, additional data from overseas activities were integrated to build a global baseline footprint for FY22/23 covering all Scope 1, 2 and relevant Scope 3 emissions to pinpoint high-impact areas.

2. Stakeholder Engagement – We facilitated workshops with Codan’s project team to identify viable carbon reduction opportunities.

3. Decarbonisation Planning – We developed a strategic roadmap detailing:

   1. The decarbonisation potential of each identified opportunity.

   2. Implementation advice and timing.

   3. A projected timeline for emission reductions.

4. Readiness for Mandatory Reporting – We provided Codan with insights and recommendations to enhance its carbon footprinting process and ensure smooth compliance with upcoming climate-related disclosures.

   
   

The Results

Key Outcomes

Through this initiative, Codan achieved significant progress in its sustainability journey.

• Two years of carbon inventories - covering baseline year FY22/23 and subsequent year FY23/24 with clearly defined boundaries, calculation and tracking methods consistent with relevant standards and guidelines.

• Enhanced Compliance Readiness – The company is better prepared for mandatory climate-related reporting, reducing regulatory risks.

• Improved Internal Capabilities – By refining its carbon footprinting processes, Codan is equipped with the tools and knowledge to sustain its decarbonisation efforts long-term.

What This Means for Codan

Codan’s proactive approach to sustainability not only ensures compliance with evolving regulations but also strengthens its reputation as an environmentally responsible company. With an actionable decarbonisation strategy in place Codan is well-positioned to navigate future regulatory landscapes and meet stakeholder expectations.

Codan’s progress and Perspektiv’s contribution can be seen in Codan’s annual report (pages 32-43), highlighting their exemplary ESG strategy and reporting.

What Codan Had to Say

Riley Berry, Legal Counsel at Codan, shared:

"Codan has worked with Patrick Jeannerat and his outstanding team at Perspektiv for several years. Their expertise and dedication have been instrumental in helping us measure and understand our carbon footprint.

As a company operating in the technology sector, we recognise the critical importance of accurately tracking and managing our greenhouse gas emissions. From the outset, Perspektiv demonstrated unparalleled expertise and commitment. They meticulously analysed our operations, collected and processed vast amounts of data, and provided us with a clear, actionable roadmap for improvement. Thanks to their diligence, we are now in a robust position to comply with the latest mandatory reporting legislation and can confidently navigate the evolving regulatory landscape.

One of the most remarkable aspects of working with Perspektiv is their ability to make the complex simple. Carbon accounting can be a daunting process, but Patrick and his team have a gift for breaking down intricate concepts into clear, understandable terms. Their patient and attentive approach ensured that our team, regardless of their technical background, could fully grasp and engage with the information. Whether it was answering questions, providing updates, or delivering detailed reports, they consistently exceeded our expectations.

Thanks to their exceptional work, we have made significant strides in understanding our environmental impact and strengthening our sustainability practices. We are deeply grateful for their guidance and support and highly recommend Perspektiv to any organisation seeking top-tier carbon accounting and sustainability services."

Codan’s partnership with Perspektiv has resulted in a strong, actionable decarbonisation strategy that ensures regulatory compliance and positions the company as a sustainability leader in its sector. This project has further strengthened Codan’s relationship with Perspektiv, reinforcing Perspektiv as a trusted partner in sustainability.

If your organisation is looking to navigate complex climate-related regulations, obtain robust and verifiable quantitative metrics, develop a robust decarbonisation strategy, or improve sustainability practices and performance, Perspektiv can help.

Get in touch with us today to start your journey.