When you must measure and report carbon emissions
You don’t normally have to measure and report carbon emissions if you are a small or medium-sized enterprise (SME).
Providing sustainability information
You may be asked for sustainability information by the public sector and any large businesses that you supply.
Public sector organisations and large businesses might ask for this so they can account for their greenhouse gas emissions in their annual reports.
As an SME, you might have to provide the following to access some supply chains:
- Carbon Reduction Plan (CRP): a document that summarises your current emissions and your plans to reduce these
- Net Zero Commitment: a public commitment (for example, published on your company website) to achieve net zero by 2050 or earlier
For example, businesses applying for government contracts of over £5 million per year must now have a Carbon Reduction Plan.
This could affect your business if you are involved in this size of contract.
Policies and regulations to reduce emissions
The UK government’s ‘Powering up Britain’ strategy includes a list of policies to help the UK meet its legally-binding target of net zero by 2050. Some of these policies have implications for SMEs.
For example, the Future Homes Standard and Future Buildings Standard aim to improve energy efficiency and reduce carbon emissions in new homes and non-domestic buildings.
Both standards will have an impact on the construction industry and related supply chains when they come into effect in 2025.