The UK government has set a target to achieve carbon net zero by 2050, compelling businesses to drastically reduce their greenhouse gas emissions. To support this, larger companies are required to disclose their environmental impact through frameworks such as the Streamlined Energy and Carbon Reporting (SECR) and the Task Force on Climate-related Financial Disclosures (TCFD). Companies with over 250 employees, annual turnovers exceeding £36 million, or balance sheets over £18 million must comply, reporting their energy use, carbon emissions, and sustainability strategies. This reporting covers Scope 1, direct emissions from fuel use, Scope 2, indirect emissions from electricity use, and Scope 3, business travel. TCFD also requires companies to disclose the financial risks to their business from climate change and decarbonisation.

These regulations are expected to extend to smaller companies as the UK intensifies its climate action. By the mid-2020s, medium-sized enterprises may also be required to report on their carbon footprints and implement sustainability measures. This expansion will affect members of the AGS, as they will need to adopt comprehensive environmental management practices and increase transparency in their operations.

Early compliance and proactive adaptation will be essential for AGS members. They will need to invest in cleaner technologies and enhance their sustainability initiatives to align with the upcoming regulations. This shift not only helps in meeting regulatory requirements but also positions these companies competitively in a market increasingly driven by environmental consciousness and sustainability.

Article provided by Murray Bateman, Director, Geo-Integrity Ltd