Compliance and Best Practice summary for

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Mandatory Reporting Requirements

This list below provides a summary of key mandatory ESG reporting requirements relevant to your business based on the information you have provided. It is intended as general guidance to help you navigate common regulations. Please note that this is not a definitive or exhaustive list, and you may need to consult with legal or regulatory experts for specific advice tailored to your business context.

Energy Savings Opportunity Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and reporting program in the UK designed to help large businesses identify energy efficiency opportunities. Companies must conduct energy audits every four years to evaluate their energy use and identify cost-effective savings. ESOS aligns with the UK’s broader climate goals and complements measures like the Streamlined Energy and Carbon Reporting (SECR).

EU Corporate Sustainability Due Diligence Directive (CSDDD)

The EU Corporate Sustainability Due Diligence Directive (CSDDD) introduces mandatory requirements for large companies to identify, prevent, and mitigate adverse impacts on human rights and the environment throughout their operations and supply chains. The directive aims to hold businesses accountable for unethical or unsustainable practices, promote responsible corporate behavior, and ensure compliance with international human rights and environmental standards. For EU-based companies, the directive applies to those with more than 1,000 employees and a net worldwide turnover exceeding €450 million. For non-EU companies, it targets those generating a net turnover of more than €450 million within the EU.

EU Deforestation Regulation (EUDR)

The EU Deforestation Regulation (EUDR) aims to combat global deforestation and forest degradation by ensuring that specific commodities and their derivatives placed on or exported from the EU market are deforestation-free. It requires companies to conduct due diligence to verify that their products were not produced on land deforested or degraded after December 31, 2020. The regulation replaces the previous EU Timber Regulation and expands its scope to include additional commodities.

European Sustainability Reporting Standards (ESRS)

The European Sustainability Reporting Standards (ESRS) are part of the Corporate Sustainability Reporting Directive (CSRD), providing detailed guidelines on how companies must disclose their sustainability-related information. The standards cover a wide range of Environmental, Social, and Governance (ESG) issues, such as climate change, human rights, biodiversity, and governance practices. ESRS aims to ensure companies provide consistent, comparable, and reliable sustainability information for stakeholders, particularly investors.

Procurement Policy Note (PPN) 06/21

Procurement Policy Note (PPN) 06/21 is a UK government policy that requires businesses to demonstrate their commitment to reducing carbon emissions. It applies to businesses bidding on UK government contracts worth over £5 million annually. You will need to comply if you intend to bid for any public sector contracts worth over £5 million annually (excluding VAT).

Streamlined Energy and Carbon Reporting (SECR)

The Streamlined Energy and Carbon Reporting (SECR) framework requires large UK companies to report their energy use, carbon emissions, and energy efficiency measures in their annual financial reports. The purpose of SECR is to increase transparency, encourage energy efficiency, and reduce carbon emissions across the UK economy. It complements other schemes such as the Energy Savings Opportunity Scheme (ESOS).

Task Force on Climate-related Financial Disclosures (TCFD)

The Task Force on Climate-related Financial Disclosures (TCFD) provides a framework for businesses to disclose the financial impacts of climate-related risks and opportunities, focusing on governance, strategy, risk management, and metrics and targets (including Scope 1, 2, and relevant Scope 3 emissions). In the UK, TCFD-aligned reporting is mandatory for publicly listed companies, large private companies, and LLPs with over 500 employees and £500 million turnover. Disclosures must be included in annual reports, detailing climate governance, risks, opportunities, and scenario analysis. This requirement, effective from April 2022, aims to increase transparency and support the UK’s Net Zero goals.

UK Modern Slavery Act (2015)

The UK Modern Slavery Act (2015) requires large businesses to publish an annual Modern Slavery Statement outlining the steps they have taken to identify, prevent, and mitigate risks of slavery, human trafficking, and forced labor in their operations and supply chains. This is aimed at promoting corporate accountability and transparency in addressing human rights abuses.

Voluntary Frameworks

The list below provides a summary of key voluntary frameworks that businesses can adopt to demonstrate leadership in sustainability, build trust with stakeholders, enhance transparency, and gain a competitive advantage. These frameworks often help companies align with global best practices, improve operational efficiency, and position themselves as forward-thinking organizations.

Carbon Disclosure Project (CDP)

CDP is a global, voluntary disclosure platform that helps companies, cities, and governments report and manage their environmental impacts. It focuses on three key areas: climate change, water security, and forests. Organizations disclose data on emissions, risks, opportunities, and resource usage, which is then scored by CDP and shared with investors, customers, and other stakeholders. CDP is aligned with frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) and is considered a gold standard for environmental reporting.

Science Based Targets Initiatives

The SBTi is a voluntary framework that helps companies set measurable, science-based emissions reduction targets aligned with limiting global warming to 1.5°C or well below 2°C, as outlined in the Paris Agreement. The initiative provides companies with sector-specific guidance, tools, and methodologies to determine emissions reduction pathways that align with climate science. Targets are independently validated by the SBTi to ensure alignment with the scientific benchmarks. The SBTi has also introduced a Net-Zero Standard, enabling companies to set long-term science-based targets to reach net-zero emissions by 2050.

Sustainable Business Alliance

The Sustainable Business Alliance (SBA) is dedicated to helping SMEs embark on their sustainability journey by offering practical tools and guidance for ESG reporting. Its simplified reporting framework is designed to meet the needs of smaller businesses, focusing on actionable and relevant sustainability practices rather than overwhelming complexity. The framework encourages SMEs to address key environmental, social, and governance (ESG) areas with a clear, step-by-step approach, aligning with regulatory expectations like the Greenhouse Gas Protocol while remaining accessible. SBA aims to provide a practical first step toward broader sustainability accreditation, supporting businesses in sectors facing increasing regulatory and customer demands for sustainability credentials.