UK Policies: SECR and ESOS

In the UK, over 15,000 medium and large businesses will be directly affected by Streamlined Energy and Carbon Reporting (SECR) and The Energy Savings Opportunity Scheme (ESOS) .  Let's delve into each:

SECR

Streamlined Energy and Carbon Reporting (SECR) is the UK government's initiative to drive action towards a low-carbon economy and direct benefits like transparent reporting, stakeholder engagement, and carbon emission mitigation.

SECR applies to companies that meet two or more of the following criteria in a financial year:

• More than 250 employees
• Over £36m annual turnover
• Over £18m on annual balance sheet

SECR is currently under review for alignment with International Financial Reporting Standards (IFRS) requirements, potentially expanding the reach to include scope 3 emissions, requiring businesses affected to expand the reporting parameter and introduce supply chain engagement to mitigate these emissions.

 

ESOS Phase 3 (5th June 2024 Deadline)

The Energy Savings Opportunity Scheme (ESOS) mandates energy audits every four years for large UK organisations.

Phase 3, with a deadline of 5th June 2024, requires compliance from organisations with 250+ employees or annual turnover exceeding £44M and an annual balance sheet totaling over £38M. Non-compliance can result in fines of up to £50,000.

Last year's updates strengthened reporting requirements, including 95% of total energy consumption, public disclosure of recommendations, and mandatory annual progress reviews.

 

EU Policies: Corporate Sustainability Reporting Directive (CSRD) and Business Travel Reporting

Outside the UK, the EU's CSRD comes into effect this year, impacting approximately 50,000 businesses. It mandates double materiality measurement and disclosure of emissions and sustainability risks. The directive aims to drive accountability, transparency, and sustainable practices, requiring companies to report various ESG metrics to enhance understanding and response.

Netherlands: Business Travel & Commuting Reporting

In the Netherlands, the Work-Related Mobility of Persons (WPM) mandate requires businesses with 100+ employees to report the total kilometers travelled per transport and fuel type; this is an interesting example of government-mandated gathering of raw carbon-relevant data.

Effective from July 1st, 2024, this initiative promotes transparency and accountability, encouraging organisations to thoroughly measure and report their carbon emissions.

Global Policies: ISO Net Zero Guidelines

The ISO Net Zero Guidelines are the first end-to-end net zero governance framework available, aimed  at aligning organisations in their approach to achieving net zero. Our partners, Planet Mark proudly endorses the guidelines, being among the first global early adopters. They have integrated these guidelines into their internationally recognised Net Zero Programme to ensure their members adopt credible targets and robust strategies.

Building upon its proposal for a full standard is underway intending to launch at COP30.

By staying informed and proactive, you can stay ahead of the curve on net zero policy and legislation remaining at the forefront of change.

 

Keep ahead of net zero policy with these resources

Here are a few tools and resources Andrew Griffiths, Director of Policy & Partnerships, Planet Mark and Sarah Goodenough, Head of Policy, Climate Policy Radar shared during the webinar that help businesses keep ahead of these policies:

1. Planet Mark Carbon Policy Tracker: Receive a tailored report based on your business size/location
2. Climate Policy Radar: Data science and AI for researching climate change policies and laws
3. Climate Action Tracker: Understand and compare the impact of national policies and targets on net zero
4. UK Green Building Council Newsletter: A brilliant resource, especially for the built environment
5. Government Updates: Subscribe to mailing lists such as the UK DESNZ for the latest information

In conclusion, staying abreast of evolving net zero policies is crucial for businesses navigating the sustainability landscape. With tools like the Planet Mark Carbon Policy Tracker and Climate Policy Radar, staying proactive is within reach.

If you are looking to get on a pathway to net zero, our partners are here to help. Planet Mark is an internationally recognised business certification and trusted net zero provider. Get in touch to embark on your sustainable business journey today.