Does your business need to legally disclose its carbon emissions?

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Does Your Business Need to Legally Disclose Its Carbon Emissions?

If your business has over 250 employees and a turnover of £36m or more, the answer is yes &#8211; you will need to disclose your company’s carbon emissions!
Navigating climate-related reporting is essential for UK businesses to ensure compliance and promote sustainability. SECR, TCFD, CRFD, ESOS, and UK SRS each play a critical role in enhancing transparency, improving energy efficiency, and managing climate disclosure-related risks. Understanding and adhering to these frameworks can help companies meet legal requirements, drive environmental and economic benefits, build stakeholder trust, support strategic goals, and contribute to global decarbonisation efforts.
<h2>Ensuring Compliance and Strategic Advantage</h2>
This article provides an overview of five key climate disclosure frameworks that UK businesses need to be aware of in 2024. These include: 
<ul>
<li style="font-weight: 400;" aria-level="1"><a href="#secr">Streamlined Energy and Carbon Reporting (SECR)</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="#tcfd">Task Force on Climate-related Financial Disclosures (TCFD)</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="#crfd">Corporate Responsibility and Financial Disclosures (CRFD)</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="#esos">Energy Savings Opportunity Scheme (ESOS)</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="#srs">UK Sustainability Reporting Standards (SRS)</a></li>
</ul>
<h2>Understanding the Evolving Regulatory Landscape</h2>
In today&#8217;s rapidly evolving regulatory landscape, businesses are increasingly required to disclose their environmental and sustainability practices. The UK policy landscape for climate disclosure is undergoing significant transformation as the government intensifies its commitment to addressing climate change and achieving net-zero. In recent years, the UK has implemented regulations to enhance transparency and accountability among businesses concerning their environmental impact.
<h2>Importance of Climate Disclosure-Related Reporting Frameworks</h2>
For UK companies, understanding the different climate disclosure-related reporting frameworks is crucial for compliance. The introduction of the Streamlined Energy and Carbon Reporting (SECR) framework in 2019 marked a pivotal shift, mandating large companies to disclose their energy usage and carbon emissions. Building on this momentum, the Task Force on Climate-related Financial Disclosures (TCFD) framework is set to become mandatory for large companies and financial institutions, emphasising the need for carbon accounting and strategic planning.

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<h2>Streamlined Energy and Carbon Reporting (SECR)</h2>
<h3>What is SECR?</h3>
SECR is a UK government initiative aimed at enhancing energy efficiency and reducing carbon emissions. It requires large businesses to report on their energy use, greenhouse gas emissions, and energy efficiency measures.
<h3>Who needs to comply? </h3>
SECR reporting became mandatory in 2019 and large companies and limited liability partnerships (LLPs) in the UK must comply. This includes those meeting at least two of the following: turnover of £36 million or more, balance sheet total of £18 million or more, or 250+ employees.
<h3>What needs reporting? </h3>
Companies must report:
<ul>
<li style="font-weight: 400;" aria-level="1">Total Energy Use: This includes the consumption of electricity, gas, and transport fuels.</li>
<li style="font-weight: 400;" aria-level="1">GHG Emissions: Both direct (Scope 1) and indirect (Scope 2) emissions must be reported.</li>
<li style="font-weight: 400;" aria-level="1">Energy Efficiency Actions: Details of the energy efficiency measures undertaken during the year.</li>
<li style="font-weight: 400;" aria-level="1">Narrative Description: A qualitative description of the energy efficiency measures implemented and the methodologies used for calculating energy use and GHG emissions.</li>
</ul>
<h3>Where, when, and how to report?</h3>
SECR information should be included in the directors&#8217; report section of the annual financial filings, with reporting required annually to align with the company’s financial reporting cycle. Companies must adhere to UK government guidelines to ensure accuracy and completeness.
For more detailed information, refer to the <a href="https://www.gov.uk/government/publications/academy-trust-financial-management-good-practice-guides/streamlined-energy-and-carbon-reporting" target="_blank" rel="noopener">UK Government&#8217;s Guidance on SECR</a>.

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<h2>Task Force on Climate-related Financial Disclosures (TCFD)</h2>
<h3>What is TCFD? </h3>
TCFD is an international framework to improve the reporting of climate-related financial information, aiming to provide consistent, comparable, and reliable disclosures.
<h3>Who needs to comply? </h3>
Initially voluntary, TCFD became mandatory in the UK from April 2022 for large companies, financial institutions, and publicly listed companies.
<h3>What needs reporting? </h3>
Companies must report on:
<ul>
<li style="font-weight: 400;" aria-level="1">Governance: The organisation’s governance around climate-related risks and opportunities.</li>
<li style="font-weight: 400;" aria-level="1">Strategy: The actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning.</li>
<li style="font-weight: 400;" aria-level="1">Risk Management: The processes used to identify, assess, and manage climate-related risks.</li>
<li style="font-weight: 400;" aria-level="1">Metrics and Targets: The metrics and targets used to assess and manage relevant climate-related risks and opportunities.</li>
</ul>
<h3>Where, when, and how to report? </h3>
TCFD-aligned disclosures should be included in the company&#8217;s annual financial filings, with reporting required annually, following the company’s regular financial reporting cycle. Companies should use the TCFD’s recommendations to ensure consistency and comprehensiveness in their disclosures.
It should be noted that TCFD recommendations, which align the UK public sector with global best practice, serve as the foundation for new international sustainability standards, such as those from the proposed sustainability standards from International Financial Reporting Standards (IFRS). 
For more details, refer to the <a href="https://www.gov.uk/government/publications/tcfd-aligned-disclosure-application-guidance/task-force-on-climate-related-financial-disclosure-tcfd-aligned-disclosure-application-guidance" target="_blank" rel="noopener">UK Government&#8217;s TCFD-Aligned Disclosure Application Guidance</a>.

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<h2>Climate-related Financial Disclosure (CRFD)</h2>
<h3>What is CRFD? </h3>
CRFD enhances transparency and accountability by requiring companies to report non-financial information alongside financial data, focusing on environmental, social, and governance (ESG) impacts.
<h3>Who needs to comply?</h3>
CRFD reporting has been required since 2017 and applies to large companies and certain public interest entities in the UK meeting two out of three criteria: turnover of £36 million or more, balance sheet total of £18 million or more, or 250+ employees.
<h3>What needs reporting? </h3>
Companies need to report on various ESG aspects, including:
<ul>
<li style="font-weight: 400;" aria-level="1">Environmental: Impact on the environment, including emissions, resource use, and sustainability initiatives.</li>
<li style="font-weight: 400;" aria-level="1">Social: Employee-related matters, community engagement, and social responsibility activities.</li>
<li style="font-weight: 400;" aria-level="1">Governance: Corporate governance practices, including board diversity, anti-corruption measures, and compliance with regulations.</li>
<li style="font-weight: 400;" aria-level="1">Human Rights: Policies and practices related to human rights within the company and its supply chain.</li>
<li style="font-weight: 400;" aria-level="1">Anti-Corruption and Bribery: Measures taken to prevent corruption and bribery.</li>
</ul>
<h3>Where, when, and how to report? </h3>
CRFD information should be included in the non-financial statement section of the annual report, with reporting required annually, in line with the company’s financial reporting schedule. Companies must follow established guidelines and standards for reporting as part of the Non-Financial Reporting Directive (NFRD).
For detailed and specific guidance, refer to the UK government&#8217;s documentation on climate-related financial disclosures, accessible <a href="https://www.gov.uk/government/publications/climate-related-financial-disclosures-for-companies-and-limited-liability-partnerships-llps" target="_blank" rel="noopener">here</a>.

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<h2>Energy Savings Opportunity Scheme (ESOS)</h2>
<h3>What is ESOS? </h3>
ESOS is a mandatory energy assessment and energy-saving identification program established by the UK government to improve energy efficiency and reduce greenhouse gas emissions in large organisations.
<h3>Who needs to comply? </h3>
ESOS applies to large UK undertakings and their corporate groups, including those with 250+ employees, or an annual turnover in excess of £44 million, and an annual balance sheet total in excess of £38 million.
<h3>What needs reporting? </h3>
Companies must report:
<ul>
<li style="font-weight: 400;" aria-level="1">Total Energy Consumption: Across all buildings, transport, and industrial activities.</li>
<li style="font-weight: 400;" aria-level="1">Energy Audits: Detailed audits to identify cost-effective energy-saving measures, covering at least 90% of total energy consumption.</li>
<li style="font-weight: 400;" aria-level="1">Compliance Evidence Pack: Documentation of compliance, including details of audits, methodologies used, and identified energy-saving opportunities.</li>
</ul>
<h3>Where, when, and how to report? </h3>
Companies must maintain an internal evidence pack and submit a notification of compliance to the Environment Agency. ESOS operates in four-year compliance phases, with the current phase deadline in December 2023. To comply, companies must conduct energy audits in accordance with ESOS standards, compile the evidence pack, and submit the notification of compliance online through the Environment Agency’s ESOS portal.
For further details, please refer to the <a href="https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esos" target="_blank" rel="noopener">official ESOS guidance</a>.

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<h2>UK Sustainability Reporting Standards (UK SRS)</h2>
<h3>What is SRS? </h3>
The UK Sustainability Reporting Standards are guidelines developed to standardise sustainability reporting, based on the global baseline set by the International Sustainability Standards Board (ISSB) under the IFRS Foundation. These standards aim to provide consistent, comparable, and reliable ESG information.
<h3>Who Needs to Comply?</h3>
While currently voluntary, UK SRS adoption is increasing among large companies, particularly those with significant environmental impacts or that are publicly traded. The UK government will potentially be making UK SRS adoption mandatory in the future. 
<h3>What Needs Reporting? </h3>
Companies must report on:
<ul>
<li style="font-weight: 400;" aria-level="1">Environmental: Greenhouse gas emissions, energy use, water use, waste management, and biodiversity.</li>
<li style="font-weight: 400;" aria-level="1">Social: Labor practices, community engagement, human rights, and employee health and safety.</li>
<li style="font-weight: 400;" aria-level="1">Governance: Board composition, executive compensation, risk management, and anti-corruption measures.</li>
</ul>
<h3>Where, When, and How to Report? </h3>
Reports should be included in annual financial reports or published as separate sustainability reports. Reporting should follow UK SRS guidelines for standardised metrics and methodologies, typically conducted annually. Ensuring that reports are audited or verified enhances reliability and stakeholder confidence.
For more details, visit the <a href="https://www.gov.uk/guidance/uk-sustainability-disclosure-standards" target="_blank" rel="noopener">UK Government&#8217;s Guidance on UK Sustainability Reporting Standards</a>.

<h2>An overview of climate disclosure requirements for UK businesses</h2>

<h2>Conclusion</h2>
Navigating climate-related reporting is essential for UK businesses to ensure compliance and promote sustainability. SECR, TCFD, CRFD, ESOS, and UK SRS each enhance transparency, improve energy efficiency, and manage climate disclosure-related risks. Understanding and adhering to these frameworks can help companies meet legal requirements, drive environmental and economic benefits, build stakeholder trust, support strategic goals, and contribute to global decarbonisation efforts.

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<h2>Ready to take climate action?</h2>
Our team of experts can help your business tackle the hurdles of climate disclosure requirements in the UK. If this article has inspired your business to start funding climate action, talk to our team today.

Schedule a call with our team

20 climate actions businesses can take in 2025

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20 impactful climate actions businesses can take in 2025

Transform your business sustainability while driving growth with these proven strategies for medium-sized enterprises. Our comprehensive guide helps organisations implement practical climate solutions that enhance both environmental impact and bottom line.

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Reduce Business Risk

1. Commit to net-zero.Future-proof your business with a robust net-zero strategy. Clear roadmaps help protect against future regulatory changes and market shifts. Read our <a href="https://ecologi.com/articles/blog/uk-corporate-sustainability-standards-explained">analysis</a> of the existing sustainability standards, such as ISO 14068, that shows how leading companies are successfully navigating this transition.
2. Make your office more energy efficient. Power down printers, use motion-sensor lights, and choose laptops over desktops. These practical steps reduce operational vulnerabilities while protecting against energy price volatility.
3. Green business pensions. Your business pensions could be secretly funding fossil fuels. Sustainable pension funds deliver 21 times more environmental impact than traditional green initiatives while reducing exposure to stranded assets.

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Make Financial Savings for Your Business

4. Switch to a renewable energy supplier. Strategic selection of providers like <a href="https://www.ecotricity.co.uk/" target="_blank" rel="noopener">Ecotricity</a> and <a href="https://octopus.energy/" target="_blank" rel="noopener">Octopus</a> can reduce operational costs while enhancing energy security. Renewable energy contracts often offer price stability and protection against market volatility.
5. Reduce business travel and flights. Optimise travel spending through strategic planning. Implementing hybrid meeting solutions reduces costs while maintaining productive relationships. Video calls offer an efficient alternative when in-person meetings aren&#8217;t essential.
6. Buy refurbished tech. Only 17.4% of e-waste was recycled in 2019. Smart IT procurement through providers like <a href="https://helloklyk.com/" target="_blank" rel="noopener">Klyk</a> deliver professional-grade equipment at reduced costs while supporting circular economy principles.

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Drive Deeper Employee Engagement

7. Enroll your leadership team in a carbon literacy course. Transformational change starts at the top. Investing in leadership team climate literacy builds the foundation for informed decision-making and organisational adaptation. Our recommended e-learning course with Seed Culture equips executives with practical knowledge to drive sustainable growth. Get in touch and find out more <a href="https://ecologi.com/page/schedule-a-call">here</a>.
8. Engage colleagues through sustainability lunch and learns. Knowledge-sharing creates organisational momentum. Regular sessions with sustainability experts energise your team and generate innovative solutions. Creating a culture of environmental awareness drives engagement across all levels of your organisation.
9. Reward green travel and commuting. Transform daily commutes into engagement opportunities. The <a href="https://www.bike2workscheme.co.uk/" target="_blank" rel="noopener">Bike2Work</a> scheme and other sustainable transport initiatives boost employee satisfaction while reducing your corporate carbon footprint. Recognition programs for green commuting build community and demonstrate your commitment to employee wellbeing.

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Communicate Your Company's Sustainability Work Effectively

10. Create a sustainability page on your website. Showcase your climate journey through dedicated digital real estate. Transparent communication of your goals, progress, and initiatives builds trust with stakeholders and demonstrates leadership. Regular updates keep your audience engaged and inspired.
11. Fund meaningful climate action projects. Share the impact of your investments with compelling storytelling. Regular updates about supported projects and their outcomes demonstrate your commitment to meaningful action. With Ecologi, you can showcase verified impact metrics such as the number of funded trees, carbon avoided or removed through impact projects, that resonate with stakeholders.
12. Level up your business strategy by listening to a business climate podcast. Stay informed and share knowledge through thought-leading content. Shows like Outrage + Optimism and GreenBiz 350 provide valuable insights that can be shared across your communication channels.
13. Join the Million Tree Pledge. Demonstrate your commitment to long-term environmental impact. This ambitious <a href="https://www.milliontreepledge.org/">initiative</a> shows your business is serious about climate action, contributing to global reforestation efforts while building a lasting environmental legacy that resonates with stakeholders.
14. Work with sustainable suppliers. Transform your supply chain to showcase comprehensive sustainability commitment. Working with verified sustainable suppliers enhances your reputation and influences industry standards. The <a href="https://www.gov.uk/government/publications/green-claims-code-making-environmental-claims/green-claims-and-your-business">CMA checklist</a> provides a framework for evaluating and optimizing supplier partnerships.
15. Celebrate wins! Share your sustainability victories, both big and small, on LinkedIn and other platforms. Regular communication of achievements inspires other businesses while positioning your brand as a sustainability leader. Remember, it&#8217;s about progress, not perfection.

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Attract Eco-Conscious Customers

16. Switch to green web hosting. Your digital infrastructure matters to environmentally conscious customers. Providers like <a href="https://krystal.uk/" target="_blank" rel="noopener">Krystal</a> hosting offer 100% renewable energy solutions that demonstrate your commitment to sustainability at every touchpoint.
17. Measure your business&#8217; carbon footprint. Professional carbon accounting builds trust with eco-conscious customers. Our carbon footprinting solution, <a href="https://zero.ecologi.com/signup">Ecologi Zero</a>, provides verified data that proves your commitment to measurable impact. If you don&#8217;t measure it, you can&#8217;t manage it.
18. Opt for a low-carbon website. Choose providers like <a href="http://create.net" target="_blank" rel="noopener">create.net</a> or <a href="https://wearecomplexcreative.com/" target="_blank" rel="noopener">Complex Creative</a> to design and build an environmentally conscious website. A carbon-efficient digital presence shows attention to detail in your sustainability efforts.

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Ignite Innovation and Productivity

19. Upskill by reading the latest business climate literature. Start a company Book Club with works like Bill Gates&#8217; <a href="https://www.gatesnotes.com/My-new-climate-book-is-finally-here">How to Avoid a Climate Disaster</a> and <a href="https://www.koganpage.com/product/the-solutionists-9781398609327">The Solutionists</a> from Solitaire Townsend. Continuous learning inspires innovative thinking and creative climate solutions across your organization.
20. Buy upcycled office equipment. Transform your workplace through innovative resource management. Pre-loved furniture and equipment create inspiring spaces while reducing waste. This approach demonstrates creative problem-solving and encourages innovative thinking.
BONUS. Implementation Strategy. Success in sustainable business transformation comes from methodical implementation. Begin with initiatives that offer immediate impact while building toward longer-term goals. Regular measurement and communication of progress maintains momentum and demonstrates leadership. Focus on creating business value alongside environmental impact, and share successes to inspire industry-wide change.

<h2>Your Next Steps</h2>
Ready to accelerate your business sustainability journey? Our team specialises in helping mid-sized businesses implement effective climate strategies and funding high-quality, high-impact climate action in the UK and globally. Contact us to discuss how these approaches can be tailored to your specific business needs and growth objectives.

Schedule a 30-minute discovery call with our climate experts

Regenerative agriculture: Reviving ancient practices for carbon removal

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Regenerative agriculture

In this article, we’ll cover;
<ul>
<li style="font-weight: 400;" aria-level="1">What is regenerative agriculture</li>
<li style="font-weight: 400;" aria-level="1">The core principles of regenerative agriculture</li>
<li style="font-weight: 400;" aria-level="1">What is soil organic carbon and its role in carbon removal</li>
<li style="font-weight: 400;" aria-level="1">How regenerative agriculture fights against climate change</li>
<li style="font-weight: 400;" aria-level="1">Which Sustainable Development Goals (SDGs) does soil organic carbon support?</li>
</ul>

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Introduction to regenerative agriculture
As the world grapples with the intensifying effects of climate change, the need for sustainable solutions has never been more urgent. A promising approach to addressing this challenge lies in regenerative agriculture, a farming method that not only focuses on improving soil health but also actively works to sequester carbon dioxide (CO₂) from the atmosphere. Inspired by ancient agricultural practices that have long understood the importance of working in harmony with nature, regenerative agriculture offers a profound pathway to carbon removal and climate change mitigation.

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<h3>What is regenerative agriculture?</h3>
Regenerative agriculture is more than just an agricultural technique; it is a holistic approach to farming that emphasises the restoration of soil health and the rejuvenation of ecological systems. This approach goes beyond conventional farming practices, which often use harmful substances and depletes the land, leading to increased greenhouse gas emissions. In contrast, regenerative agriculture creates a more sustainable relationship with the earth, prioritising both environmental health and food production. By using methods that improve soil quality, enhance biodiversity, and enable natural nutrient cycles, regenerative agriculture provides a way to work with nature rather than against it.
At the heart of regenerative agriculture is the idea of improving soil health. Healthy soil serves as one of the planet’s most effective carbon sinks, with the ability to absorb and store vast quantities of CO₂ from the atmosphere. By implementing farming practices that increase the organic matter in the soil, regenerative agriculture helps sequester carbon while simultaneously improving soil fertility and crop yields.
Regenerative agriculture is based on photosynthesis whereby plants absorb CO₂ from the atmosphere and convert it into sugars, which fuel their growth. Some of these sugars are released through the plant roots into the soil, where they feed beneficial microorganisms. These microorganisms, in turn, support plant health by enhancing nutrient availability, improving soil structure, and offering natural pest protection. This symbiotic relationship between plants and soil organisms is key to building soil organic matter, increasing its carbon-sequestering capacity, and enhancing soil fertility.

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<h3> The core principles of regenerative agriculture</h3>
Regenerative agriculture encompasses a range of practices designed to restore and maintain healthy ecosystems. These practices not only contribute to carbon removal but also help to increase agricultural productivity and resilience. The core principles of regenerative agriculture include:
<ol>
<li style="font-weight: 400;" aria-level="1">Soil Health Improvement: At the foundation of regenerative agriculture is the improvement of soil health. This involves increasing soil organic matter (SOM) and enhancing soil microbiology. Techniques like<a href="https://www.oneearth.org/cover-crops-and-their-myriad-benefits/" target="_blank" rel="noopener"> cover cropping</a>, <a href="https://thinkregeneration.com/tr-journal/f/regenerative-research-tillage-no-till-systems" target="_blank" rel="noopener">no-till farming</a>, <a href="https://greenamerica.org/blog/methods-regenerative-agriculture-4" target="_blank" rel="noopener">composting</a>, and<a href="https://rodaleinstitute.org/why-organic/organic-farming-practices/rotational-grazing/" target="_blank" rel="noopener"> rotational grazing</a> help restore soil fertility and boost the soil’s <a href="https://www.zevero.earth/blog/regenerative-agriculture-reduce-ghg-emissions" target="_blank" rel="noopener">carbon sequestration </a>potential.</li>
<li style="font-weight: 400;" aria-level="1">Biodiversity Promotion: Regenerative agriculture encourages the integration of diverse plant and animal species into farming systems. By promoting<a href="https://www.themomentum.com/articles/how-regenerative-farms-support-biodiversity-and-food-systems" target="_blank" rel="noopener"> biodiversity</a>, regenerative farming helps<a href="https://www.researchgate.net/publication/384891298_Regenerative_Agriculture_and_Soil_Health_Enhancing_Biodiversity_through_Sustainable_Farming_Practices" target="_blank" rel="noopener"> create resilient ecosystems</a> that naturally control pests, promote pollination, and support soil health.</li>
<li style="font-weight: 400;" aria-level="1">Water Management: Healthy soils play a critical role in water retention, reducing runoff and erosion while increasing drought resilience. By improving water infiltration and holding capacity, <a href="https://www.researchgate.net/publication/367540401_Regenerative_Agriculture-A_Literature_Review_on_the_Practices_and_Mechanisms_Used_to_Improve_Soil_Health" target="_blank" rel="noopener">regenerative agriculture enhances the water cycle</a>, ensuring crops receive the moisture they need, even in arid conditions.</li>
<li style="font-weight: 400;" aria-level="1">Reduced Chemical Use: Regenerative farming minimises or eliminates the use of synthetic chemicals, such as pesticides, herbicides, and chemical fertilisers. This reduction enables natural nutrient cycling, reduces environmental contamination, and encourages a healthier farming ecosystem.</li>
<li style="font-weight: 400;" aria-level="1">Adaptive grazing techniques: Using rotational grazing enhances regenerative agriculture by promoting soil health, increasing carbon sequestration, and supporting biodiversity. These methods allow pastures to recover between grazing periods, improving vegetation growth and soil organic matter while reducing erosion.</li>
</ol>

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What is soil organic carbon and its role in carbon removal?
<a href="https://www.openaccessgovernment.org/what-is-soil-organic-carbon-soc/120702/" target="_blank" rel="noopener">Soil organic carbon (SOC)</a> is the carbon component found in organic matter within the soil. It is a crucial element in soil health and plays a fundamental role in carbon sequestration. The restoration of degraded soils and the implementation of regenerative agricultural practices have the potential to significantly increase SOC levels, effectively removing CO₂ from the atmosphere.
Healthy soils act as one of the earth’s largest carbon reservoirs, storing more CO₂ than both the atmosphere and vegetation combined. If managed effectively, soils could sequester up to 5 billion tonnes of CO₂ annually (<a href="https://openknowledge.fao.org/items/b05a2539-f9e0-470c-b258-dabfc38dcd0e" target="_blank" rel="noopener">FAO, 2021</a>). This makes soil restoration and the management of SOC a critical strategy for addressing climate change.

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<h3>How regenerative agriculture fights against climate change</h3>
As global efforts to combat climate change intensify, regenerative agriculture serves as a powerful tool for carbon removal. The process of soil carbon sequestration not only helps to mitigate the effects of climate change but also enhances the resilience of agricultural systems in the face of extreme weather events, droughts, and soil erosion.
By adopting regenerative practices such as no-till farming, cover cropping, and agroforestry, modern agriculture can restore the land’s ability to sequester CO₂ while simultaneously boosting soil fertility and increasing crop yields. These methods create a virtuous cycle whereby healthy soils support healthy crops, which in turn provide food for humans and livestock while contributing to a healthier planet.
At COP21 in Paris, where the Paris Agreement was signed, the 4 per 1000 Initiative was also introduced, highlighting soil carbon sequestration as a critical strategy for achieving global climate goals. By enhancing soil health and increasing carbon storage in the ground, regenerative agriculture provides a scalable solution for reducing atmospheric CO₂ and mitigating the impacts of climate change. (<a href="https://climateaction.unfccc.int/Initiatives?id=4per1000_Initiative_Soils_for_Food_Security_and_Climate" target="_blank" rel="noopener">Global Climate Action, 2023</a>)

The <a href="https://4p1000.org/?lang=en" target="_blank" rel="noopener">4 per 1000 Initiative</a> &#8211; Soils for Food Security and Climate is a global effort launched in 2015 during  COP21 (the Paris Climate Conference) to promote soil health as a key strategy for combating climate change and enhancing food security. The initiative&#8217;s name, &#8220;4 per 1000,&#8221; comes from the concept of increasing the amount of carbon in the world&#8217;s soils by just 
 0.4% per year (or 4 grams per kilogram) could have a significant impact on reducing the rise of atmospheric CO₂.
<h3>Goals and Objectives</h3>
The main objective of the 4 per 1000 Initiative is to increase the global soil organic carbon (SOC) stocks through sustainable agricultural practices. This increase in soil carbon can potentially offset a significant portion of annual global greenhouse gas emissions, stabilising the climate while improving soil fertility. Key goals include:
<ul>
<li style="font-weight: 400;" aria-level="1">Climate Mitigation: Enhance soil carbon sequestration to absorb CO₂ from the atmosphere, reducing the impact of greenhouse gas emissions.</li>
</ul>
<ul>
<li style="font-weight: 400;" aria-level="1">Food Security: Improve soil health, which leads to better crop yields, increased food security, and more sustainable agricultural systems.</li>
</ul>
<ul>
<li style="font-weight: 400;" aria-level="1">Sustainable Land Use: Promote agricultural practices that are regenerative and sustainable, like agroecology, agroforestry, cover cropping, no-till farming, and crop rotation.</li>
</ul>
<h3>How It Works</h3>
The 4 per 1000 Initiative encourages countries, farmers, scientists, and stakeholders to adopt agricultural techniques that increase soil carbon content. The idea is that even a small annual increase in soil carbon content (by 0.4%) globally would sequester enough CO₂ to help offset current anthropogenic emissions, particularly from fossil fuels and deforestation. 
(The International “4 per 1000” Initiative, 2016)

The 4/1000 initiative

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<h3>Which Sustainable Development Goals (SDGs) does Soil Organic Carbon support?</h3>
Soil organic carbon management is directly tied to several of the United Nations Sustainable Development Goals (SDGs), which focus on creating a more sustainable and equitable world. These goals include:
<ul>
<li>SDG 15: Life on Land – Regenerative agriculture contributes to land restoration and biodiversity conservation, ensuring the health of ecosystems and the protection of natural resources.</li>
<li>SDG 13: Climate Action – Soil carbon sequestration plays a vital role in climate mitigation by capturing CO₂ and reducing greenhouse gas emissions.</li>
<li>SDG 2: Zero Hunger – SOC improvement boosts soil fertility, increasing agricultural productivity and food security, particularly in regions facing food insecurity.</li>
</ul>
The management of soil organic carbon is also instrumental in achieving broader environmental objectives. As soil carbon levels increase, so does soil health, which in turn supports increased agricultural productivity, improved water retention, and better resistance to erosion and drought.

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<h3>The future of regenerative agriculture</h3>
The future of agriculture lies in practices that restore rather than deplete the earth’s resources. By adopting regenerative agricultural methods, we can revive the health of the soil, promote biodiversity, and mitigate the effects of climate change. However, this will require a concerted effort from farmers, policymakers, scientists, and consumers alike to support and invest in regenerative farming techniques.
Regenerative agriculture provides a powerful solution for carbon removal and climate change mitigation. By drawing inspiration from Indigenous wisdom and combining it with modern scientific understanding, regenerative agriculture offers a pathway to a sustainable future—one that is rooted in harmony with the earth. By restoring soil health and enhancing its ability to sequester CO₂, we can create a more resilient, sustainable, and food-secure world for generations to come.

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<h2>Why your business should fund regenerative agriculture</h2>
Supporting regenerative agriculture is an impactful way for your business to drive meaningful climate action. By funding projects through Ecologi, you can help restore ecosystems, improve food security, and combat climate change through soil carbon sequestration. Investing in these initiatives not only helps the planet but also demonstrates your commitment to innovation, responsibility, and long-term resilience. Speak to the Ecologi team today to explore how your business can make a lasting impact.
Fewer than 50FTE? Visit our <a href="https://ecologi.com/impact-shop/regenerative-agriculture">Impact Shop</a> to fund Regenerative Agriculture carbon removal today.

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Why tree-planting isn’t the whole story

With the launch of <a href="https://ecologi.com/solutions/impact-funds" target="_blank" rel="noopener">Ecologi’s Forests and Landscapes Impact Fund</a>, we are working with our partners to pioneer the next phase of corporate financing for nature restoration.
In this article, we’re going to explain a step-change in our industry’s understanding of how to restore nature: shifting the focus from inputs to outcomes.

<h2>Landscapes in a global context</h2>
At the end of 2023, the <a href="https://www.unep.org/resources/state-finance-nature-2023" target="_blank" rel="noopener">State of Finance for Nature Report</a> from the UN Environment Programme described just how underfunded nature-based solutions are.
The UNEP report found that $200 billion USD per year is provided to nature-based solutions – a tiny percentage of the $6.7 trillion USD which is provided annually to activities which directly harm nature. In order to meet our climate, biodiversity and restoration targets (as well as reducing nature-harmful financial flows), almost three times this annual amount of nature-positive investment is required by 2030.
As well as scaling-up the financial flows, we must create multifunctional landscapes where people and wildlife can thrive. This method was described in the recently-updated <a href="https://www.undp.org/sites/g/files/zskgke326/files/2023-09/undp-gef-integrated-spatial-planning-workbook-2023-en.pdf" target="_blank" rel="noopener">UNDP Integrated Spatial Planning Workbook</a>, to provide implementation guidance in support of the Kunming-Montreal Global Biodiversity Framework. The landscapes we restore will only remain in a healthy state if those living within them are able to exist harmoniously alongside nature.
As such, our approach holds that any restoration projects that the Ecologi community supports must maintain this holistic approach, and generate lasting positive impacts on people and biodiversity, as well as on our climate. 
Any restoration project exists within its own ecological and social landscape, and through working alongside local communities and carefully designing the project activities to be holistic and enduring, the projects we support are much more than just ‘tree-planting programmes’.

<h2>Planting trees is not the whole story</h2>
Nowadays, some of the basic principles of nature restoration are quite widely understood – for example, most prospective funders are aware of the importance of planting locally-native species. But other critical aspects of project design don’t receive the attention they deserve, because funders are often only thinking in ‘per-stem’ terms, about how many trees have been ‘paid for’ and planted. This means there is a risk of private funding being directed to projects that are not necessarily producing the most impactful results for people, biodiversity and the climate. 
Tree-planting plays an important role in successful nature restoration projects. However, there are many other important elements required to run an impactful project – which also require funding. At Ecologi, we have always sought out partners who go beyond tree-planting, incorporating many other environmental and socioeconomic elements to their projects in order to produce the most positive outcomes. 
Whilst historically we have often championed the number of trees funded for planting by the Ecologi community, it would be wrong to think of this as the main (or only) success metric for how successful our projects have been in restoring nature.

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Our aim then, is to make other restoration outcomes as well-understood as the number of trees planted. At Ecologi, we’d love to see a world where the public and businesses are able to appreciate and communicate the cascading positive impacts of funding a landscape restoration project which go beyond how many trees have been planted.
Equipped with this more holistic understanding, businesses who want to do good will put their money towards the very best initiatives, and enable us to collectively have a bigger impact on our planet’s future.

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<h2>What is landscape restoration?</h2>
Our partners on the ground have been thinking this way the whole time – but the demand-side understanding is very much stuck in the past; if corporate funders are only focused on the input of how many trees they are ‘paying to plant’, then it’s very likely that they are missing out on understanding crucial wider components of effective landscape restoration.
We spoke to each of our long-term restoration partners to gather their thoughts.
<h3>The social aspect</h3>
The level of involvement of local communities in a nature restoration project is among the strongest indicators of project success, because it is local people who will manage the landscape into the long-term future. If we are serious about restoring ecosystems, then we need to root our restoration efforts in the community itself. It is they, their children, and their children’s children who will look after the forest as it grows and returns to health – a process of decades and centuries. 
We also cannot discount the social and economic realities of the communities themselves. The most impactful restoration programmes are those which align the needs and aims of the community with the needs and aims of the ecological restoration activities; otherwise, the structural foundations of the project will always be weak.

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Local and Indigenous Peoples’ knowledge is also critical to help sustain a landscape restoration project.
Often, important local historical context is held and shared by local people who have seen the landscape change in their lifetime and have anecdotal evidence passed down through the generations. This knowledge could not be found anywhere else, and it can be instrumental in developing successful outcomes.

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To truly understand the impact of a project, we need to look beyond the solitary ‘trees planted’ metric, and seek out a wider set of indicators which include the social, to help us to understand which projects are generating the most positive impact.
<h3>The ecological aspect</h3>
We then need to consider the ecological angle. Ecosystems around the world are in desperate need of restoration and protection. We know how important restoring tree cover is for our climate, but restoring other elements of landscapes is also vitally important for planetary health, biodiversity, and livelihoods.
From rivers and streams that provide us with clean water, to soils where we grow our food, and wetlands that keep carbon locked away, every part of a landscape needs consideration when designing a restoration project. Tree-planting can be an effective way of supporting many elements of a landscape, but it is just one tool we can use – and trees are not the right intervention everywhere.

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So when we think about a project area – a polygon on a map which could be hundreds or even thousands of hectares in area – it is very unlikely that a singular intervention like tree-planting is going to be appropriate uniformly across the whole area. The topography could vary in altitude or aspect (slope direction), and different areas within the polygon could have different wind exposure, rain shadows, soil compositions, wildlife grazing patterns, and so on. There might be existing primary forest which needs preservation rather than new saplings planting amongst it. There might be rivers, streams, lakes or peat bogs. There might be people living in the project area – with houses, facilities and roads or pathways which all need to be factored in.

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Our partners have always been concerned with all of this and more, and we want to bring that understanding to our customers and funders who support their projects through Ecologi.

<h2>Our partners and landscape restoration</h2>
The physical planting of trees can be very cheap. But prioritising high-quality projects that deliver meaningful benefits to the people and wildlife who live there – something Ecologi believes in strongly – comes with other considerations, which cost money.
When our community entrusts funds to Ecologi to support climate action projects, we take our responsibility very seriously and our team works tirelessly to ensure that money is directed towards the most impactful projects, delivered by organisations committed to making a real difference for our planet. It’s not really about ‘paying to plant trees’.

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To date, Ecologi has funded over 50 incredible reforestation projects on 3 continents with 11 partners, and what made them truly impactful was that they have always been being delivered holistically. In reality, each of these is much more than ‘tree planting’ projects. That’s why two of our supported partners <a href="https://www.unep.org/news-and-stories/press-release/nature-staging-comeback-un-recognizes-seven-world-restoration" target="_blank" rel="noopener">were announced as UN World Restoration Flagships</a> in 2024, and one of them <a href="https://earthshotprize.org/winners-finalists/accion-andina/" target="_blank" rel="noopener">won the Earthshot Prize</a> in 2023. 
Consequently, we’ve been able to report on incredible benefits brought to local people and wildlife by these projects, from the development of new sustainable income streams enabling local people to send their children to school, to the installation of irrigation systems providing clean drinking water.

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<h2>How can my business make a difference?</h2>
On your business’s road to net-zero, you have two central objectives:
<ol>
<li style="font-weight: 400;" aria-level="1">First: measure your business’s emissions, set ambitious reduction targets, and reduce your emissions across all scopes as much as possible, as quickly as possible.</li>
<li style="font-weight: 400;" aria-level="1">Then: support the global transition to net-zero and the restoration of nature by contributing to climate and nature projects around the world. </li>
</ol>
Under this second step, you’ll come across the phrase ‘Beyond Value-Chain Mitigation’ (BVCM), and it’s a crucial part of your business’s sustainability story. Without businesses taking responsibility for supporting restoration efforts worldwide, we will not reach <a href="https://www.unep.org/resources/state-finance-nature-2023" target="_blank" rel="noopener">the levels of nature-positive financing required</a> to address the linked climate and biodiversity crises.

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Supporting long-term, large-scale initiatives delivered in partnership with local people can be one of the most effective ways of restoring nature.
Businesses should choose projects that allow them to report on all the impacts they’re contributing towards. Not only will this allow them to demonstrate the variety of ways their business is contributing towards a better future, but by demonstrating a more sophisticated approach to funding climate action.

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<h2>How can Ecologi help?</h2>
Here at Ecologi, we are determined to make it easy for businesses to fund meaningful and holistic climate projects, whilst tackling their own emissions. 
Our <a href="https://ecologi.com/solutions/impact-funds" target="_blank" rel="noopener">Impact Funds</a> direct funding towards a range of incredible, holistic projects that are making a difference to local people and biodiversity as well as our climate. As we’ve explored in this article, this means funding much more than simply planting trees, and we want to shift business’ mindsets away from thinking about funding the planting of a specific number of trees, and towards thinking about contributing an amount of money towards holistic forest and landscape restoration.
Some of our partners have already made this shift in communicating the projects’ benefits, including Eden: People+Planet (formerly Eden Reforestation Projects).

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<h2>How to support Impact Funds today</h2>
You can contribute to the Impact Funds via the <a href="https://ecologi.com/impact-shop" target="_blank" rel="noopener">Ecologi Impact Shop</a>, or if you&#8217;d like to discuss your climate action goals in more detail then schedule a call with our experts by filling in the form below.

Climate Disclosure	SECR	TCFD	CRFD	ESOS	UK SRS
Legal requirement?	Yes	Becoming mandatory in the UK	Yes (part of NFRD)	Yes	No, but increasingly adopted
Who needs to comply?	Large companies and LLPs in the UK	Large companies, financial institutions, publicly listed companies	Large companies and public interest entities in the UK	Large UK undertakings and corporate groups	Voluntary - Large and publicly traded companies
Specific criteria includes	Over 250 employees. Turnover of £36m+	Over 500 employees. Turnover £500m+	Over 500 employees. Turnover £500m+	Over 250 employees. Turnover of £44m+	Voluntary - Not specified
What to report?	Energy use, GHG emissions, energy efficiency actions	Governance, strategy, risk management, metrics & targets	Environmental, social, governance impacts, human rights, anti-corruption	Energy consumption, energy audits, compliance evidence pack	Environmental, social, governance metrics
Where to report?	Annual financial filings	Annual financial filings	Annual reports	Environment Agency online portal	Annual or sustainability reports
When to report?	Annually, since 2019	Annually, from April 2022	Annually, since 2017	Every four years, next in Dec 2023	Annually, voluntary

Does Your Business Need to Legally Disclose Its Carbon Emissions? Here’s What You Need to Know

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Why tree-planting isn’t the whole story: transforming our thinking about restoring our planet

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