'Carbon emissions' refer to greenhouse gases (GHGs) contributing to global warming. Depending on your location in the UK, the size of your business, and the sector you operate in, you may need to follow specific laws and regulations regarding carbon emissions. This blog will explore when to register emissions, why it's essential, and which data you need to collect. We'll also cover relevant laws that may affect your business.
When to measure and report carbon emissions
If you are not a large business, you are generally not obliged aren't yet obligated to measure and report your carbon emissions. However, there are certain exceptions (small listed entities). However, CO2 emissions are important if you are bidding for a central government contract, you may be required to measure and report them to help the government meet its sustainability goals. Although you are not directly required to report CO2 emissions, larger companies have obligations that can impact you. Additionally, various laws require you to report emissions based on factors like your number of employees, financial turnover, or balance sheets. Here are some examples:
- Streamlined Energy and Carbon Reporting (SECR) requires large companies and LLPs to report their energy use and carbon emissions. While it primarily targets larger businesses, SMEs might also be affected if they are part of the supply chain for these companies.
- The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for large organisations. However, SMEs may still be influenced if they are part of a larger group that qualifies or seeks to demonstrate energy efficiency to larger clients.
- The UK Emissions Trading Scheme (UK ETS) replaces the EU ETS in the UK and sets a cap on the total amount of greenhouse gases emitted by sectors covered by the scheme. While it mainly targets large energy users, the cost and availability of energy can indirectly impact SMEs.
The benefits of reporting your carbon emissions
Although all these regulations primarily target larger companies, it is nevertheless beneficial for SMEs to measure and report their emissions. Many larger businesses and government bodies also require suppliers to provide sustainability information, including carbon emissions data. Having this information available can help you secure and maintain contracts. By tracking your emissions, you can determine whether you meet the thresholds for current or future regulations and be prepared for any new rules that may arise. Moreover, understanding your energy use and emissions can highlight areas where you can improve efficiency, reduce costs, and enhance your sustainability efforts. Finally, you can achieve savings and cost benefits by understanding your emissions.
What would you need to provide
As a supplier, you may be asked to provide sustainability information to public sector organisations and large companies. This helps them account for their greenhouse gas emissions in their annual reports. Here's what you might need to provide:
- Carbon Reduction Plan (CRP): This document summarises your current emissions and outlines your plans to reduce them. It shows that you are actively working to lower your carbon footprint.
- Net Zero Commitment: This public commitment is to achieve net zero emissions by 2050 or earlier. It demonstrates your commitment to sustainability.
- Emissions and usage data: Understanding your energy consumption and emissions is important. Your larger clients might request this information, and you will be prepared if future regulations require you to report your emissions. Additionally, you will be able to achieve cost savings.
Investing in these themes improves your sustainability, enhance your credibility with large customers and ensure that your business is future proof.
Start your sustainability reporting and communication today. Contact us so that we can help you measure, improve, and communicate your environmental impact.
