Carbon Reporting UK

Understanding Your Obligations and How to Report

UK Carbon Reporting Landscape 2026

7

Major Frameworks

Different reporting requirements for different company types

95%

Large Company Coverage

Estimated percentage of large UK companies affected

2027

UK SRS Mandatory

Proposed start date for UK Sustainability Reporting Standards

The Current Situation

UK carbon reporting has evolved from simple energy disclosure to comprehensive sustainability frameworks. Companies now face multiple overlapping requirements, each with different scopes, metrics, and deadlines. The key is understanding which apply to your organisation and how they connect.

Which Carbon Reporting Framework Applies to You?

Quick Assessment Tool

Step 1: Company Size & Type

✅ Large Company (SECR applies if 2+ criteria):
  • • Turnover: £36 million+
  • • Balance sheet: £18 million+
  • • Employees: 250+
📊 Listed Company:
  • • SECR automatically applies
  • • TCFD may apply (depends on size)
  • • UK SRS proposed from 2027

Step 2: Sector-Specific Requirements

🏭 High Energy Use
  • • UK ETS: >20 GWh/year
  • • ESOS: Energy qualification
  • • Enhanced SECR disclosure
🏦 Financial Services
  • • TCFD: Large banks/insurers
  • • PRA requirements
  • • Financed emissions (PCAF)
🏢 Other Sectors
  • • SECR (if large company)
  • • TCFD (if premium listed)
  • • UK SRS (future)
FrameworkWho Must ComplyWhat to ReportDeadlineStatus
SECR

Streamlined Energy & Carbon

Large companies (2+ size criteria) + all quoted companiesEnergy use, Scope 1&2 emissions, intensity ratioAnnual report deadlineMandatory
TCFD

Task Force on Climate Disclosures

Premium listed companies >£500m market cap + regulated financialGovernance, strategy, risk management, metrics & targetsAnnual report deadlineMandatory
UK SRS

UK Sustainability Reporting Standards

Listed companies (proposed 2027) + large private companies (TBC)Climate (S2) + general sustainability (S1), Scope 3 emissionsAnnual report deadlineProposed 2027
UK ETS

Emissions Trading System

Power generation >20MW, manufacturing >20GWh energy useVerified emissions, allowance surrender, monitoring plan31 March (report), 30 April (surrender)Mandatory
ESOS

Energy Savings Opportunity Scheme

Large undertakings meeting energy consumption criteriaEnergy audits, efficiency opportunities, board oversight5 December 2026 (Phase 3)Mandatory
CDP

Carbon Disclosure Project

Companies invited by CDP (voluntary response)Comprehensive climate questionnaire: governance to metricsJuly annuallyVoluntary
SBTi

Science Based Targets initiative

Companies making net-zero commitments (voluntary)Science-aligned emissions reduction targets and progressAnnual progress reportingVoluntary

How the Frameworks Connect

Data Flows & Synergies

Smart companies build their carbon reporting architecture once and use it for multiple frameworks.

📊 Foundation Data

  • • Energy consumption (kWh, kWh/£)
  • • Scope 1&2 emissions (tCO2e)
  • • Activity data and conversion factors
  • • Business metrics for intensity ratios

Used by: SECR, UK ETS, ESOS baseline

🔍 Enhanced Analytics

  • • Scope 3 value chain emissions
  • • Climate risk assessments
  • • Scenario analysis and modelling
  • • Reduction target pathways

Used by: TCFD, UK SRS, CDP, SBTi

🎯 Strategic Integration

  • • Net-zero transition planning
  • • Climate governance structures
  • • Financial impact quantification
  • • Stakeholder engagement strategy

Drives: Business strategy, investment decisions

Benefits of Integrated Approach

Efficiency Gains
  • • Single data collection system
  • • Automated report generation
  • • Consistent methodology and boundaries
  • • Reduced audit and verification costs
Strategic Value
  • • Coherent narrative across disclosures
  • • Enhanced credibility with stakeholders
  • • Better business decision-making
  • • Future-proofed for new requirements

Getting Started with Carbon Reporting

For First-Time Reporters

1

Determine Obligations

Use our assessment tool above to identify which frameworks apply to your business

2

Establish Boundaries

Define organisational and operational boundaries using equity share or control approach

3

Collect Baseline Data

Gather energy bills, fuel receipts, travel data for Scope 1&2 calculation

4

Calculate & Report

Apply DEFRA conversion factors, prepare disclosures, consider third-party verification

🚨 Common First-Year Mistakes

Data Quality Issues

  • • Using wrong version of DEFRA conversion factors
  • • Mixing calendar and financial year data
  • • Double-counting energy consumption
  • • Missing significant emissions sources

Methodology Errors

  • • Inconsistent boundary definitions
  • • Wrong location-based vs market-based factors
  • • Inappropriate intensity metrics
  • • Inadequate quality assurance processes

Navigate UK Carbon Reporting with Confidence

Get expert guidance on your carbon reporting obligations and implementation strategy