As businesses around the world, including here in the UK, face increasing pressure to reduce their environmental impact, one question often arises: Does my business legally need to disclose its carbon emissions?
It’s a great question, and the answer isn’t always straightforward. Sustainability is becoming more important than ever, and we’re all becoming more aware of the consequences of our carbon footprint. But what exactly does the law say, and what are your responsibilities when it comes to carbon emissions disclosure? Let’s break it down to make it easier to understand.
Legal Requirements and the Size of Your Business
In short, whether or not you have to disclose your carbon emissions in the UK depends largely on the size of your business. Let’s take a closer look at what this means.
If you’re a ‘small’ business (defined as having fewer than 250 employees or annual revenues under £36 million), there is no legal requirement to disclose your carbon emissions. That’s right—if you’re running a smaller business, the legislation around carbon emissions disclosure doesn’t apply to you.
But, even if it’s not required by law, disclosing your emissions can still be a smart move. If your business is working hard to reduce its carbon footprint, being transparent about your efforts can be a powerful tool. More and more consumers are actively looking to spend their money with companies that prioritise sustainability. By showing your commitment to reducing emissions, you could build trust with your customers and strengthen your brand’s reputation.
What About Larger Businesses?
Now, if your business falls into the category of ‘larger’ (250 or more employees or revenues over £36 million), the rules are different. Under The Companies (Directors’ Report) and Limited Liability Partnerships Regulations 2013, larger businesses are legally required to disclose their carbon emissions. This legislation was updated in 2018 to include energy usage, too.
But it doesn’t stop there. In 2019, the Streamlined Energy and Carbon Reporting (SECR) Framework came into play. This framework requires larger businesses to report not just their direct emissions (like fuel used for company vehicles) but also indirect emissions (like energy usage in office buildings or emissions from the supply chain).
The transparency provided by these reports is key. It ensures that all stakeholders—shareholders, investors, customers, and the public—can see the efforts businesses are making to reduce their carbon footprint and improve their energy efficiency.
What’s New in 2025?
In 2025, more regulations were added to the mix. The introduction of the Task Force on Climate-related Disclosures (TCFD) means that businesses must now disclose their climate-related risks, financial impacts, and the steps they are taking to address climate change in their operations. This includes adding an ‘intensity ratio’ metric to the information already required. In simple terms, companies need to show how their carbon emissions are changing relative to their business activities.
This is an important addition because it helps provide a clearer picture of how businesses are progressing toward their sustainability goals. The TCFD also aims to standardise climate-related disclosures so stakeholders can make more informed decisions based on consistent, comparable data.
The Benefits of Disclosure
Even if you’re not legally required to disclose your carbon emissions, there are several benefits to being transparent about your environmental impact. Aside from the obvious advantage of being seen as a responsible business by consumers, there’s also the fact that regulations are constantly evolving. If and when the laws change—whether at a local, national, or international level—being proactive about carbon emissions can ensure your business is already compliant with new requirements.
Having your emissions data ready and up-to-date not only positions your business as a leader in sustainability but can also help avoid any potential legal complications in the future.