ENERGY COMPLIANCE: CARBON REPORTING AND COMPLIANCE

Businesses today are under increasing pressure to measure and reduce their carbon footprint, driven by compliance regulations, customer expectations, and supply chain requirements. Our comprehensive carbon reporting and reduction solutions empower businesses to meet these challenges while optimising costs.

carbon reporting

Helping your business navigate energy regulations and carbon reporting

Through our trusted partners, we support businesses in achieving compliance with in reporting commercial energy use. Their experts provide guidance on relevant regulations, industry standards, and best practices to ensure businesses stay on track.

Our partners conducts thorough audits and assessments to identify areas of non-compliance, offering actionable recommendations for corrective measures. Partnering with us means businesses can confidently meet their compliance obligations while enhancing energy efficiency and reducing costs.

Your business will gain access to our portal which will give you all data you need to reamin compliant, at your fingertips.

carbon reporting and compliance

Four reasons why carbon reporting is important?

carbon Regulatory Compliance

Regulatory Compliance

Many countries require businesses to report their carbon emissions as part of climate-related legislation. In the UK, the Streamlined Energy and Carbon Reporting (SECR) framework mandates large businesses to monitor and disclose their energy use and carbon emissions. Our trusted partners help businesses navigate these regulatory requirements, ensuring compliance while identifying opportunities for greater energy efficiency and cost savings.

cost savings with carbon savings

Cost Savings

Monitoring your carbon footprint can uncover inefficiencies in energy and resource use. By identifying these areas, businesses can implement targeted cost-saving strategies, such as improving energy efficiency and reducing waste. Our partners provide expert guidance to help businesses optimise their operations, lower expenses, and enhance sustainability.

customer services

Customer Expectations

Investors, customers, and stakeholders increasingly prioritise businesses that demonstrate environmental responsibility. Transparent carbon reporting strengthens your company’s reputation and aligns with ESG (Environmental, Social, and Governance) criteria. Our partners provide the expertise to help businesses meet these expectations, building trust and long-term value.

risk management<br />

Risk Management

Gaining insight into your carbon footprint allows businesses to proactively manage risks associated with climate change, including regulatory shifts, rising energy costs, and supply chain disruptions. Our partners provide expert support to help businesses navigate these challenges, ensuring resilience and long-term sustainability.

carbon reporting and compliance

The emissions you need to track for your carbon reporting

Emissions are classified into three key categories, known as Scopes, based on the Greenhouse Gas Protocol—the leading global framework for measuring and managing emissions.

Scope 1 – Direct Emissions

These emissions originate directly from your business operations, including fuel combustion in company vehicles and on-site energy production, such as gas heating or diesel generators.

Scope 2 – Indirect Emissions from Energy Use

This category includes emissions generated from the production of purchased electricity, steam, heating, and cooling that your business consumes.

Scope 3 – Indirect Value Chain Emissions

Scope 3 covers all other indirect emissions across your value chain. Often the largest share of a company’s carbon footprint, these emissions stem from sources such as supplier activities, employee commuting, waste disposal, and the use of sold products.

How we add value to businesses

  • SECR & ESOS Compliance – Our partners ensure businesses meet mandatory reporting requirements, helping them avoid penalties and regulatory risks.
  • Carbon Footprint Measurement – We track emissions across energy use, transport, and supply chains, providing businesses with full visibility of their environmental impact.
  • Supply Chain Carbon Reporting – With growing expectations for supply chain transparency, we assist businesses in collecting, analysing, and presenting emissions data.
  • Carbon Reduction Strategies – Our tailored action plans help businesses lower emissions, enhance sustainability, and achieve cost savings.
  • Access to Renewable Energy – We support businesses in transitioning to renewable energy sources, reducing carbon footprints and lowering long-term energy costs.
  • Custom Reports & Data Insights – Our advanced reporting tools provide ongoing tracking and insights to help businesses manage emissions effectively.
  • Certification & Accreditation – We help businesses obtain sustainability credentials, strengthening brand reputation and competitive advantage.
carbon reporting and compliance
ENERGY PROCUREMENT

Energy Procurement: Save on energy bills

We provide a complete energy procurement service for businesses of all sizes, from SMEs to larger multi-site operations across the UK. Our goal is to help your business save on energy bills, improve efficiency, and manage energy costs effectively. With our expert guidance, we ensure you secure the best energy deals, optimise your energy usage, and stay in control of your energy management.

carbon reporting and compliance experts

Contact our carbon reporting team

Accurately tracking and reporting your business’s carbon footprint is crucial for regulatory compliance, operational efficiency, and maintaining a strong brand reputation. While the process may seem complex, it delivers valuable benefits, including cost savings, risk management, and enhanced environmental responsibility.

Our trusted partners specialise in energy audits, carbon footprint analysis, and tailored strategies to help businesses reduce emissions. Take the next step toward sustainability—contact our team today to learn more about our carbon reporting services.

Get in touch with a member of our team regarding Carbon Reporting

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Carbon reporting and compliance FAQs

What is Energy and Carbon Compliance Reporting?

The Greenhouse Gas Reporting Solution offered by our partners is designed for UK organisations looking to voluntarily measure and disclose their global greenhouse gas emissions through the CDP (Carbon Disclosure Project) scheme. It is also suitable for listed UK PLCs who are legally required to report their emissions as part of their annual report.

Our partners’ CDP team has extensive experience in greenhouse gas analysis and reporting, offering guidance on identifying the correct scope, data sources, and using the right conversion factors to compile a timely, accurate, and auditable report. By outsourcing the reporting process to our partners, organisations can alleviate the burden of gathering, analysing, and reporting their global emissions data, ensuring legal compliance and enhancing their Corporate Social Responsibility (CSR) credentials.

What are Climate Change Agreements (CCA)?

In the 2020 budget, Chancellor Rishi Sunak announced the extension of the voluntary Climate Change Agreement (CCA) scheme, which had previously closed to new applicants in October 2018. The scheme will now be open to new participants until March 2025. This extension provides businesses with an opportunity to participate in the government’s efforts to tackle climate change while benefiting from tax relief. As Climate Change Levy (CCL) rates rise, this initiative allows eligible businesses, especially energy-intensive ones, to save money in challenging economic times.

How do Climate Change Agreements work?

CCAs are voluntary agreements that energy-intensive sectors can enter to receive a reduction of up to 90% on the Climate Change Levy (CCL) in exchange for committing to specific energy efficiency targets. Manufacturers in sectors like mineralogy and metallurgy may qualify for up to 100% relief. The scheme encourages businesses to contribute to the global effort to reduce carbon emissions while benefiting from significant financial incentives.

What is Streamlined Energy and Carbon Reporting (SECR)?

SECR (Streamlined Energy and Carbon Reporting) replaces the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, mandating businesses to report their energy consumption and carbon emissions annually. The main goal of SECR is to enhance transparency in carbon reporting and support the UK’s ambition to achieve a net-zero carbon target. SECR also broadens the scope of the existing Mandatory Carbon Reporting regulations, extending to an estimated 11,900 businesses across the UK.

Who Needs to Comply with SECR?

SECR applies to:

  • Quoted companies
  • Large UK companies with over 250 employees, an annual turnover of more than £36m, or an annual balance sheet of over £18m.

Exempt from SECR:

  • Public sector organizations
  • Private companies consuming less than 40,000 kWh per year.

Reporting Requirements

  • Large UK unquoted companies and LLPs must report energy consumption and emissions from UK electricity, gas, and transport.
  • Quoted companies must report the same, plus onsite emissions such as refrigerants, industrial gas emissions, fuel oil, LPG, coal, and emissions from overseas operations.

Additionally, businesses must disclose the measures they are taking to improve energy efficiency.

What Do Companies Report?

  • Quoted companies will report global greenhouse gas emissions and emissions intensity under the mandatory GHG scheme, as well as global energy usage, including Scope 1 sources like refrigerants.
  • Large unquoted companies need to report UK energy use, associated Scope 1 and 2 emissions, and an intensity metric, with a minimum energy use calculation for electricity, gas, and transport.

Both quoted and unquoted companies must report on energy efficiency measures. However, they do not need to report their ESOS (Energy Savings Opportunity Scheme) recommendations and actions taken on them.

Voluntary Reporting

Scope 3 emissions, such as those from employee commuting or waste disposal, are voluntary for all eligible businesses.

What are Energy Intensive Industries (EIIs) Exemption?

To help businesses in Energy Intensive Industries (EIIs) stay competitive against counterparts in countries with lower energy costs, the government offers exemptions from the indirect costs of renewable energy policies. To take advantage of these savings, EIIs must apply and be approved for EII exemption certificates.

Are you part of an Energy Intensive Industry?

Typically, EIIs include sectors such as steel, chemicals, engineering, and brick-making, where energy usage constitutes a significant portion of production costs.

Seizing the Opportunity to Save

Businesses that spend more than 20% of their total site cost on electricity can claim an exemption of up to 85% of the Contracts for Difference (CfD) and Renewables Obligation (RO) costs. Additionally, the existing Feed-In-Tariff (FiT) compensation scheme may be converted into an exemption scheme, though further information from the government is awaited.

EII exemptions are not retroactive, so if you believe your business qualifies, it’s essential to act quickly to claim your entitlement. However, determining eligibility and preparing an effective application can be challenging when you’re focused on day-to-day operations.

What are Energy Savings Opportunity Scheme (ESOS) & Audits?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment program in the UK for organizations that meet specific criteria. The deadline for phase three ESOS reporting is December 5th, 2023. Failure to conduct an ESOS audit and submit the results by this date could result in significant fines for non-compliance.

ESOS requires eligible companies to conduct energy audits of their buildings, industrial processes, and transportation every four years to identify opportunities for cost-effective energy savings.

Who is eligible for ESOS?

Organisations that meet one or more of the following criteria are required to comply with ESOS:

  • Employ 250 or more employees.
  • Have an annual turnover of more than €50 million (approximately £40 million) and an annual balance sheet total of more than €43 million (approximately £35 million).
  • Are an overseas company with a UK registered establishment that employs 250 or more UK employees who pay income tax in the UK.

How can Inenco help with ESOS compliance?

  1. Obtain the services of a Lead Assessor
    The shortage of approved Lead Assessors is a significant challenge for many businesses. Our partners offer qualified Lead Assessors with extensive industry experience to meet your business needs.

  2. Address data gaps and establish data collection systems
    Collecting accurate energy data can be challenging. Our partners assist in setting up efficient data management systems and streamlining the data collection process so businesses can begin early.

  3. Conduct site audits
    Identifying areas for energy consumption reduction and demand management is essential for cost savings. ESOS audits help uncover areas for improvement, and our partners develop strategies to implement energy-saving measures.

  4. ESOS report and evidence pack
    Our partners will prepare and present an ESOS report with actionable recommendations for cost mitigation, enabling you to address energy cost increases and improve energy efficiency.

What is CFD - Taskforce for Climate-related Financial Disclosures (TCFD)?

The Taskforce for Climate-related Financial Disclosures (TCFD) is a framework designed to assist organisations in reporting their climate-related risks and opportunities in a consistent and comparable manner. The goal of TCFD is to provide investors and stakeholders with enhanced information to assess climate-related risks and opportunities, thereby supporting informed decision-making and strategic planning.

In the United Kingdom, TCFD disclosures are mandatory for larger organisations, ensuring transparency on the financial risks posed by climate change.

Who Needs to Comply with TCFD?

The updated reporting mandate applies to several categories of UK companies, including:

  • Companies with more than 500 employees and either transferable securities listed on a UK regulated market or operating as banking or insurance firms.
  • UK AIM companies with over 500 employees.
  • Companies with more than 500 employees and a turnover exceeding £500m.
  • Limited Liability Partnerships (LLPs) with over 500 employees and a turnover surpassing £500m.

How We Can Help with TCFD Reporting

We will guide your organisation through the TCFD reporting process, ensuring compliance while aligning with evolving stakeholder expectations. Our goal is to help present your organisation’s climate-related performance transparently, ensuring you present the best possible image.

  1. Collaborating with Your Team
    We will work closely with your accounting team to ensure the accurate reporting of the significant financial risks associated with climate change.

  2. Defining Key Metrics
    We will take a practical approach to define both qualitative and quantitative reporting measures, helping identify relevant metrics and targets that align with your strategy.

  3. Ensuring Clear and Accurate Disclosures
    By helping define the key metrics, we ensure the disclosures are both accurate and relevant, enabling stakeholders to make informed decisions about your climate-related risks and opportunities.