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UK emissions and regulatory reporting requirements in 3 minutes or less

For many businesses, sustainability frameworks like Energy Savings Opportunity Scheme (ESOS), Streamlined Energy & Carbon Reporting SECR, and Carbon Reduction Plans may seem like just another compliance requirement.

However, if handled correctly they can provide a structured approach to improving efficiency, reducing energy costs, and strengthening long-term resilience. Businesses can identify points of waste, streamline operations, and future-proof against rising energy prices.

Rather than viewing them as an obligation, businesses should see these schemes as a guide to better energy management, cost savings, and sustainability success. And Whilst they are all focussed on sustainability, they each focus on a different angle.   

Energy Savings Opportunity Scheme (ESOS)  

Companies need to comply with the ESOS legislation if they, or another UK-based company of their corporate group are Registered or based in the UK or a UK establishment and that they:

  • Employ 250 people or more or
  • Have an annual turnover greater than £44m, and an annual balance sheet greater than £38m

Why ESOS is useful: Instead of seeing a costly audit, businesses can use ESOS as an opportunity to uncover areas of energy waste and implement cost-saving improvements. 

How it helps your business: 

  • Identifies inefficiencies in energy use across buildings, industrial processes, and transport. 
  • Highlights quick wins and long-term strategies for reducing energy waste. 
  • Often results in lower operational costs and improved performance without major capital investment. 

Streamlined Energy & Carbon Reporting (SECR)  

Quoted companies of any size that are already obliged to report under mandatory greenhouse gas reporting regulations need to take part in carbon reporting.

Other business that need to comply with SECR are UK registered, unquoted companies incorporated in the UK that meet the definition of ‘large’ under the Companies Act 2006. This means that two of the following apply:

  • A Turnover of £36m
  • £18m or more in balance sheet assets
  • 250 UK employees.

Note that the criteria for ‘large’ differs from the ESOS Regulations.

Why it’s useful: SECR is more than just reporting, it’s a way to track your business’s energy trends and identify cost-cutting opportunities. 

How it helps your business: 

  • Encourages businesses to actively monitor energy consumption and carbon emissions. 
  • Identifies areas where operational adjustments can reduce waste. 
  • Drives informed decision-making about energy efficiency investments. 

Carbon Reduction Plans (CRPs) 

  • Who it applies to: Businesses bidding for public sector contracts over £5M. 

Why it’s useful: CRPs don’t just meet government requirements; they enhance your brand, attract eco-conscious customers, and position you for sustainable growth. 

How it helps your business: 

  • Encourages businesses to set long-term emissions reduction targets. 
  • Improves competitiveness in supply chains increasingly focused on sustainability. 
  • Helps secure new business opportunities and strengthens resilience against future regulatory changes. 

The Business Benefits of Embracing Sustainability 

Rather than being a burden, these requirements can lay a roadmap for businesses to reduce waste, cut costs, and improve operational efficiency. When implemented effectively they can lead to lower energy bills and reduced wasted power use through simple operational changes. 

Access to detailed energy data enables smarter business decisions, allowing for strategic planning and more informed investments. Additionally, embracing sustainable practises boosts your green credentials and can strengthens your business’s market position, attracting customers, investors, and supply chain partners who value responsible practices. 

Get in touch 

Our team can help you turn these compliance hurdles into opportunities for smarter energy use and long-term cost savings. As well as assisting with ESG analysis and reporting which is a headache in its own right. 

Talk to a member of our team to explore how the UKs various sustainability schemes can work to your advantage.