UK Compliance Guide

Carbon Reporting Requirements

Navigate UK carbon reporting obligations including SECR, ESOS, and TCFD. Understand what you need to report, when, and how to achieve compliance.

11,900+
UK companies required to report under SECR
£5k-50k
Typical penalty for non-compliance
3
Emission scopes to track
2025
Expanded TCFD requirements

UK Reporting Frameworks

Understand which carbon reporting requirements apply to your business

SECRMandatory
Streamlined Energy and Carbon Reporting

Mandatory reporting of energy use and carbon emissions for qualifying large companies in their Directors' Report.

Large UK companies and LLPs
Annual (with financial statements)

Key Requirements:

  • Total UK energy consumption (kWh)
  • Scope 1 and 2 greenhouse gas emissions (tCO2e)
  • Intensity ratio (e.g., emissions per revenue)
  • Energy efficiency actions taken

Applies if you meet:

  • 250+ employees, or
  • £36m+ annual turnover, and
  • £18m+ balance sheet total
ESOSMandatory
Energy Savings Opportunity Scheme

Mandatory energy assessment scheme requiring large enterprises to audit energy use and identify savings opportunities.

Large UK undertakings
Every 4 years (Phase 3: June 2024)

Key Requirements:

  • Total energy consumption assessment
  • Energy audits covering 95% of consumption
  • Identification of energy saving opportunities
  • Lead assessor sign-off

Applies if you meet:

  • 250+ employees, or
  • £44m+ annual turnover, and
  • £38m+ balance sheet total
TCFDMandatory
Task Force on Climate-related Financial Disclosures

Climate-related financial risk disclosures covering governance, strategy, risk management, and metrics.

Premium-listed companies, large asset owners
Annual (with financial statements)

Key Requirements:

  • Climate governance structures
  • Climate-related risks and opportunities
  • Scenario analysis (1.5°C and 2°C+)
  • Climate risk management processes

Applies if you meet:

  • Premium-listed companies
  • UK-registered companies with 500+ employees and £500m+ turnover
  • Large asset managers and owners
CDPVoluntary
Carbon Disclosure Project

Global disclosure system for environmental data, often requested by investors and supply chain partners.

Voluntary (investor/customer driven)
Annual (typically July)

Key Requirements:

  • Comprehensive emissions inventory
  • Climate governance and strategy
  • Targets and performance tracking
  • Climate risks and opportunities

Applies if you meet:

  • No minimum threshold
  • Often requested by major investors
  • Supply chain requirements from large buyers

Understanding Emission Scopes

The GHG Protocol divides emissions into three scopes for comprehensive carbon accounting

1
Scope 1: Direct Emissions
Emissions from sources owned or controlled by your organisation

Examples:

  • Company vehicles (fleet)
  • On-site fuel combustion
  • Manufacturing processes
  • Fugitive emissions (refrigerants, gas leaks)

Data Required:

  • Fuel consumption records
  • Vehicle mileage logs
  • Process emissions data
  • Refrigerant top-up records
2
Scope 2: Indirect Energy Emissions
Emissions from purchased electricity, heat, steam, and cooling

Examples:

  • Purchased electricity
  • District heating/cooling
  • Purchased steam
  • Grid electricity for EVs on-site

Data Required:

  • Electricity bills (kWh)
  • Heat/steam invoices
  • Grid emission factors
  • Renewable energy certificates
3
Scope 3: Value Chain Emissions
All other indirect emissions in your value chain

Examples:

  • Business travel
  • Employee commuting
  • Purchased goods and services
  • Product use and disposal

Data Required:

  • Travel booking data
  • Supplier emissions data
  • Procurement spend data
  • Product lifecycle assessments

Annual Reporting Timeline

A typical 12-month cycle for carbon reporting preparation and submission

Month 1-2
Planning
  • Define organisational boundaries
  • Identify reporting requirements
  • Assign responsibilities
  • Set up data collection systems
Month 3-8
Data Collection
  • Gather utility bills and invoices
  • Collect travel and transport data
  • Request supplier information
  • Document methodologies
Month 9-10
Calculation
  • Apply emission factors
  • Calculate Scope 1, 2, and 3
  • Quality assurance checks
  • Verify against benchmarks
Month 11-12
Reporting
  • Prepare disclosure documents
  • Internal review and sign-off
  • External verification (if required)
  • Submit and publish reports

Need Help with Carbon Reporting?

Use our calculator to estimate your emissions, or explore our resources for detailed guidance.