What Is Carbon Reporting?
Carbon reporting is the systematic measurement and reporting of an organisation’s greenhouse gas (GHG) emissions. It includes emissions from electricity consumption, fuel use, supply chains, and from other sources .
Regular and accurate carbon reporting supports carbon neutrality and net-zero strategies, improves transparency, and enables compliance with mandatory legal frameworks, such as Streamlined Energy and Carbon Reporting (SECR).
As environmental reporting standards and legislation tighten and stakeholder expectations rise, becoming a critical requirement for UK businesses of all sizes.
Whether driven by regulation, investor scrutiny, supply chain pressure or customer demand, accurate carbon reporting helps organisations understand GHG sources, track, and most importantly reduce emissions and costs.
Mandatory Carbon Reporting in the UK
One of the most important frameworks for UK businesses is the SECR Regulations which applies to larger companies. This is to comply with the Companies (Directors’s Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 which implement government policy on SECR.
The qualification is for UK-incorporated companies and LLPs which meet two or more of the following criteria:
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Turnover of £36 million or more
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Balance sheet total of £18 million or more
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250 or more employees
Under SECR, qualifying organisations must include carbon emissions data in their annual financial reports alongside energy use. This includes Scope 1 and Scope 2 emissions, and for many, an estimate of Scope 3 emissions (such as business travel and employee commuting).
What does SECR require?
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Total energy use (kWh) from electricity and fossil fuel sources
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Scope 1 and Scope 2 emissions (tonnes CO₂e)
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A carbon intensity metric (carbon emissions relative to output)
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Description on energy efficiency actions taken/planned during the reporting year
SECR reporting must be consistent year-to-year, and include narrative explaining methodology and reduction measures (actual and planned). It usually includes a year on year carbon performance metric relative to a baseline year.
Understanding Emission Scopes
Accurate carbon reporting depends on understanding the three GHG Protocol emission scopes:
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Scope 1 (Direct emissions): Emissions from sources owned or controlled by the company (e.g., boilers, company-owned/operated transport vehicles).
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Scope 2 (Indirect energy emissions): Emissions from purchased electricity, heat, or steam and other sources such as imported cooling and compressed air
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Scope 3 (Value chain emissions): Indirect emissions outside the company’s direct control (upstream and downstream of the supply chain) with a total of 15 sub-categories such as employee travel)
Under SECR, reporting Scopes 1 and 2 is mandatory and Scope 3 is voluntary. However increasingly Scope 3 is coming under scrutiny as for many companies Scope 3 represents the bulk of their GHG emissions.
Carbon Reduction Policy and Plans
We help companies by gathering data and producing compliant SECR Reports. We also produce carbon reduction policies and strategies in support of carbon neutrality and net zero objectives.
Carbon Reporting and Compliance
Introduction
Man-made climate change is the largest threat to humanity and the planet. Therefore, any responsible organisation has a plan and targets to reach net zero by 2050 or sooner.
We support companies with SECR, GHG Protocol, Science Based Targets initiative (SBTi), Carbon Reduction Plans, including to Public Sector Procurement Standards, ISO 14064 and ESG reporting.