Xero and Sumday join forces to bolster SME climate reporting demands

Xero and carbon accounting software provider, Sumday, have come together to help small businesses track and share their carbon footprint to remain compliant.

As part of the partnership, Sumday would provide Xero customers with 12 months of free access to its carbon accounting tools to empower them to understand their environmental impact and work towards a sustainable future.

“This partnership helps provide the essential carbon reporting capabilities small businesses need to meet the escalating demand from larger corporations and government departments for transparent supply chain emissions data,” Xero said.

“By simplifying this process, Xero and Sumday will reduce this administrative burden for small businesses, helping them focus on serving their customers.”

Angad Soin, Xero managing director AU, NZ and global chief strategy officer, said the goal of the partnership was to empower small businesses to put themselves in the best position to retain existing customers and capitalise on new business opportunities.

“Despite uncertainties surrounding the future of carbon reporting legislation in Australia, major businesses are proactively driving the push toward decarbonisation and sustainability reporting,” Soin said.

“We know small businesses will look to their accountants and bookkeepers for help in their area, and we’re pleased that this offering will also provide training, templates and resources to help enhance their carbon accounting skills.”

For Xero customers, the 12-month free access to Sumday would allow them to link financial data from Xero directly into Sumday, which would help streamline the carbon accounting process, access to Sunday’s online academy to upskill on carbon accounting practices, and the ability to create profiles to efficiently communicate sustainability-related data.

Customers would have access to supply chain engagement tools that allowed small businesses to share their emissions data with larger clients and request information from their suppliers.

Accountants and bookkeepers would also get extra resources and support to help them offer comprehensive carbon accounting services to their clients.

Tamara Somers, GM sustainability and impact at Xero, said the partnership with Sumday puts powerful tools in the hands of small businesses so they feel prepared and able to drive towards a more sustainable future.

“We know small businesses have a lot on their plate, and tackling emissions reporting can seem overwhelming at first, but rather than seeing it as a burden, we encourage small businesses to see it as an opportunity to discover new efficiencies and appeal to environmentally conscious customers. It could be the difference between winning or losing a contract,” she said.

Jessica Richmond, chief executive and co-founder of Sumday, echoed these sentiments and noted that small businesses sometimes needed help and that accountants should play a key role.

According to Richmond, by making carbon accounting an accessible and routine tool, small businesses would be empowered to account for their environmental impact.

“Having been a small business owner myself, I understand the challenges these businesses face in making time to get across a new area. Our tools are making it easy for small businesses to understand their impact at a high level, before going deeper and helping improve the quality of their carbon accounting,” she said.

“Through this partnership with Xero, we’re putting carbon accounting tools in the hands of those who understand the business and want to deliver auditable accounting that generates meaningful insights as well.”