Five energy & carbon reporting schemes businesses should know

As stakeholders demand clearer insight into how organisations manage energy and emissions, businesses are expected to lead with data-backed action. That means getting to grips with the schemes shaping the UK’s regulatory landscape.

We’ll help demystify five key reporting schemes that every energy-intensive businesses should understand: ESOS, SECR, CCA, UK ETS, and TCFD. We’ll break down what they are, who they apply to, and what’s expected from businesses to take control of compliance and use it to fuel progress.

What it is:

A mandatory energy assessment and energy-saving identification scheme for large UK organisations.

Who it applies to:

Organisations with 250+ employees or an annual turnover above £44 million, and an annual balance sheet total over £38 million.

What’s required:

Every four years, qualifying businesses must conduct energy audits across their buildings, processes, and transport. These audits must be completed by a qualified ESOS lead assessor. From 2025 onwards, participants also have to complete annual action plans and reports on these plans which will need to be signed off by a board-level director.

Key points:

Why it matters:

ESOS is more than compliance, it’s a route to operational efficiency and emissions reduction. Done right, it can influence board-level energy strategy and unlock untapped value.

What it is:

A UK reporting framework introduced to simplify emissions reporting and encourage greater transparency on energy use and efficiency actions. 

Who it applies to: 

Companies that are listed on a public exchange, those larger companies not listed and large limited liability partnerships (LLPs). Under the SECR’s definition, LLPs and companies are considered ‘large’ if they have a turnover of £36 million or more, or a balance sheet of £18 million or more as well as 250+ employees. In order to be required to report, the company has to meet two out of the three criteria. 

These companies are exempt for SECR if they can prove that their energy usage during the reporting period is less than 40 MWh. 

What’s required: 

Annual disclosure of energy use, GHG emissions, and energy efficiency actions in Directors’ Reports or equivalent. 

Key points:

Why it matters: 

SECR ties emissions accountability to financial performance. It prompts leadership to assess how energy decisions impact the bottom line and ESG credibility.

What it is:

A voluntary government-backed scheme offering eligible companies in energy-intensive industries a discount on the Climate Change Levy (CCL) in exchange for meeting energy efficiency targets. 

Who it applies to:

Businesses in eligible sectors, typically manufacturing or industrial operations with significant energy consumption. 

What’s required: 

Participants commit to energy or carbon reduction targets over defined periods and submit annual performance reports. 

Key points:

Why it matters:

CCA delivers direct financial savings while reinforcing sector-led carbon reduction. The new version of the scheme will now run between 2026 and 2033, with target periods running yearly and certification schemes running for two years. It will remain a valuable incentive for energy-intensive businesses.

What it is:

A cap-and-trade scheme introduced post-Brexit to replace the UK’s participation in the EU ETS. Its aim is to reduce GHG emissions in power, industrial, and aviation sectors by charging businesses in these energy-intensive sectors for the emissions they produce. 

Who it applies to:

Energy-intensive industries (e.g., chemical plants, and steelmaking), power stations, and aviation operators. 

Manufacturers emitting over 20MW thermal output from a combustion source are generally in scope. 

What’s required: 

Annual emissions reporting, surrender of emissions allowances, and trading of allowances within a carbon market. 

Key points:

Why it matters:

The UK ETS scheme is a market-based scheme that encourages decarbonisation through economic incentives. It affects competitiveness and investment planning in carbon-intensive sectors. 

Recently, the UK government and the EU have announced that they are working on linking up their respective carbon markets. This means that carbon allowances issued by either the EU or the UK can be recognised by either jurisdiction. 

What it is:

A global framework promoting consistent climate-related financial risk disclosures across governance, strategy, risk management, and metrics. TCFD helps businesses and investors understand how climate change could impact financial performance, now and in the future. 

Who it applies to:

Mandatory for premium-listed companies on the London Stock Exchange, as defined by the UK Financial Conduct Authority (FCA). These are companies that meet the UK’s highest standards of regulation and governance, typically large, well-established businesses. Since 2022, large UK-registered companies (with £500m+ turnover and 500+ employees) have also been brought into scope. Voluntary adoption is increasing across sectors such as financial services, real estate and energy-intensive industries, where climate risk is particularly material. 

What’s required: 

Annual disclosures integrated into corporate reports, aligned with TCFD’s four pillars, which are: 

• Governance
• Strategy
• Risk management
• Metrics & targets 

Key points: 

Why it matters:

TCFD drives climate resilience at the highest level. It connects sustainability risks with financial outcomes, which is a priority for investors, regulators, and stakeholders.

With the energy and carbon reporting frameworks moving quickly, staying informed isn’t just optional; it’s imperative. These five schemes don’t just reflect compliance needs; they highlight how seriously governments, markets, and the public now take environmental responsibility. 

By understanding and embracing these frameworks, your organisation not only avoids penalties, it builds resilience, unlocks savings, and leads with purpose.