Are mandatory Carbon Audits on the horizon? What SMEs can do to prepare

In 2019, the UK government introduced the Streamlined Energy and Carbon Reporting (SECR) policy, aiming to make energy and carbon reporting clearer and more straightforward. Initially aimed at *larger companies, the policy is now poised to extend its reach, potentially making carbon reporting mandatory for smaller businesses in the not-so-distant future.


In 2019, the UK government introduced the Streamlined Energy and Carbon Reporting (SECR) policy, aiming to make energy and carbon reporting clearer and more straightforward. Initially aimed at *larger companies, the policy is now poised to extend its reach, potentially making carbon reporting mandatory for smaller businesses in the not-so-distant future.


So, what is SECR?

SECR requires businesses to report on their energy use (Scopes 1 and 2, with Scope 3 being optional) and their efforts in lowering carbon emissions, thus promoting energy efficiency. The policy aims to simplify reporting and serves as an impetus for companies to become more energy-conscious and reduce their carbon footprint.


The climate crisis calls for action from businesses of all sizes. As the UK works towards net-zero emissions by 2050, SMEs are recognised as key contributors, accounting for around 40% of the UK’s non-household greenhouse gas emissions. 


Although not currently required by law to report emissions like their larger counterparts, SMEs significantly impact the UK's environmental efforts. Adopting sustainable practices is not only beneficial for the environment but also supports their growth and resilience.


Understanding and adapting to potential legislative changes can be challenging for SMEs, but that's exactly where our Carbon Audit service can help. We recognise the unique challenges and opportunities facing SMEs in today's eco-conscious landscape and provide comprehensive support to navigate these changes.


Our business+boosting Carbon Audit includes carbon reporting and analysis, Reduction Plans, and Sustainability Statements, all designed to help manage your environmental impact effectively in key areas such as travel and energy use. With our bespoke services, we ensure your business is not only compliant with upcoming regulations but also positioned as a leader in sustainability.


*A company is classified as 'large' under SECR if it meets two of the following criteria: turnover of £36 million or more, balance sheet total of £18 million or more, or 250 employees or more.

Small businesses can Transform the world!

For more information on RfM Transform’s Carbon Audit service and to discover how we can guide your business through the complexities of carbon reporting and sustainability strategies, get in touch. Together, we can turn your business into a beacon of environmental responsibility and sustainability.

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