Overview and key points
Carbon footprint reporting is becoming an important consideration for UK businesses, with potential compliance requirements depending on company size and structure. Here’s a quick overview outlining when reporting may be mandatory and why it can also support growth, tenders, investment and employee engagement.
Running a “sustainable” business goes beyond carbon reporting – it is fast becoming a key operational component that can have compliance and regulatory requirements attached to it depending on the size of your company.
The first step is simply understanding whether reporting is mandatory for your business.
Outside of this, you should consider how carbon footprint reporting can help secure new customers and support growth as well as attract and retain staff who value organisations with an eye on sustainability.
Does carbon footprint reporting affect your business?
Here’s a quick look at whether your business needs to complete mandatory carbon reporting.
- Are you a UK quoted company?
If yes, you are likely to have mandatory carbon and energy reporting obligations. 
Are you a large UK private company or large LLP?
If you meet at least two of the following tests — turnover of £36 million or more, balance sheet total of £18 million or more, or 250 or more employees — you are likely to be in scope of SECR.
Are you part of a wider group?
If yes, check the group position. A smaller business can still be affected by group-level reporting obligations.
Do you have 250 or more employees, or turnover above £44 million and a balance sheet total above £38 million?
If yes, you may need to comply with ESOS.
Are customers, lenders, investors, landlords or public-sector tenders asking for carbon information?
If yes, voluntary reporting may still be commercially important.
Are you growing quickly or planning investment, sale, funding or major tenders?
If yes, start preparing now by collecting energy, fuel and travel data. If no, keep light-touch records and review your position annually.
To fully understand the reporting requirements for your business and how to meet them, we recommend seeking professional advice. There are many companies offering various carbon footprint reporting services – we’ve partnered with Here’s The Plan for our SECR and ESOS reporting.
For more information, get in touch.
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