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

Case studies

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Case study: Mulberry

<h2>About Mulberry</h2>
Established in Somerset in 1971, Mulberry has grown to become the largest maker of luxury leather goods in the United Kingdom. With a contemporary take on British heritage and a focus on responsible craft, the brand’s ambition is to create progressive luxury which is made to last.

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<h2>Issue </h2>
From its beginning in 1971, sustainability has been fundamental to the Mulberry ethos. In 2021, Mulberry celebrated its 50-year anniversary, and used that milestone to affirm its commitment to keeping these values at the heart of the brand, with the launch of the Made to Last Manifesto. The Manifesto laid out an ambitious commitment to transform the business to a regenerative and circular model by 2030, encompassing the entire supply chain from field to wardrobe. 
The manifesto is also underpinned by a bold commitment to achieve net-zero greenhouse gas emissions by 2035, across scopes 1, 2 and 3. All emissions associated with Mulberry’s UK operations and purchased leather are balanced through verified carbon credits from the World Land Trust, but the team at Mulberry knows that this alone is not a long-term solution. 
So for the last three years, the team has worked closely with the Carbon Trust to analyse and assess data from across the business and supply chain to establish a rigorous baseline to underpin their carbon reduction strategy. 
Mulberry has aligned their approach with the new Forestry, Land Use and Agriculture (FLAG) sector guidance published by the Science Based Target Initiative (SBTi) in 2022. They submitted proposed reduction targets to the SBTI in February 2023 and hope to have them approved and announced in 2024.  
Mulberry is already seeing some amazing success by investing in renewable energy. They achieved a 9.5% reduction in UK greenhouse gas emissions across scope 1 &amp; 2 over the last year (to April 2024). And a 360kW solar photovoltaic array installed at its Somerset factory will generate ten times more renewable electricity than the outgoing system &#8211; around 60% of the electricity needed to power the site each year. As raw materials sourcing represents 32% of Mulberry’s emissions, the brand is also committed to pioneering a hyper-local, hyper-transparent regenerative leather supply chain.
These commitments demand a reimagining of how the business operates, which requires each and every employee globally to engage with and share the brand vision. Fostering a culture of sustainability, where each employee understands how their day-to-day work contributes to the success of Mulberry’s net zero target, will be necessary to achieve these goals.

<h2>Solution </h2>
Mulberry was already well on top of its climate obligations, but in working with Ecologi it aimed to go beyond mitigating its business and leather footprint, ensuring that sustainability is part of every employee’s journey. The partnership helps develop deeper understanding, ownership and commitment around Mulberry’s 2035 net-zero target, among employees right across the business. 
For example, every new employee is welcomed and introduced to the topic of climate change and the businesses’ net-zero 2035 goal with the planting of one extra tree in Mulberry’s virtual “Welcome” forest.

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Additionally, every quarter the team calculates the carbon impact from all flights taken across the business and balances this amount by investing in carbon avoidance projects with Ecologi. This works alongside a new travel policy, which asks all business travellers to examine their environmental impact when planning work trips.
Mulberry also commits to ongoing reforestation by funding tree planting to mark significant internal milestones, celebrations and events, including their annual Festive Advent Calendar and retail training days.
Each of these initiatives is used as an internal communications opportunity to educate employees on Mulberry’s climate journey. Both the Ecologi virtual forest and Mulberry’s internal communication platform are used to share information across the business. The team regularly shares sustainability communications covering various topics to help broaden colleagues&#8217; knowledge.
Our very own Head of Commercial Operations, Charli Adamson, was also invited into Mulberry’s London office in early 2024 to present to the Made to Last Ambassadors &#8211; Mulberry’s internal network of sustainability champions. Charli showcased Ecologi’s suite of products and explained how the partnership is supporting Mulberry’s climate journey.

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<h2>Outcome</h2>
Since 2022, Mulberry has funded the planting of 1,300 trees and avoided 568 tonnes of CO2e &#8211; equivalent to 436 long haul flights.

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Mulberry’s work with Ecologi has allowed the team to further support internal communications for their Made to Last strategy, as part of a net-zero future. Fundamentally the partnership has helped to develop better employee understanding around net-zero and drive engagement in Mulberry’s net-zero 2035 target. 
Data from the HR department shows that almost every candidate who Mulberry interviews for a role mentions sustainability as part of the interview process.

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Head of Sustainability, Rosie Wollacott Phillips, said: “Our Made to Last Manifesto lays out our ambitious commitment to transform the business to a regenerative and circular model, and to become net-zero by 2035. We’re working closely with our partners on meaningful environmental and social projects to offset our carbon impact, while implementing our radical reduction strategy. Our partnership with Ecologi has supported employee understanding of our net-zero journey, from the first day employees join Mulberry with our tree planting scheme for new starters, to internal celebrations and travel.”

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<h2>Is your business ready to take climate action?</h2>
If this article has inspired your business to start its climate journey, talk to our team today.

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Carbon credits explained

In this guide we’ll cover:
<ul>
<li>What are carbon credits?</li>
<li>How do carbon credits work?</li>
<li>How are carbon credits created?</li>
<li>How are carbon credits bought and sold?</li>
<li>How much are carbon credits worth?</li>
<li>Why should a business consider buying carbon credits?</li>
<li>Are carbon credits a good investment for businesses?</li>
<li>Are carbon credits tax deductible?</li>
<li>How Ecologi can support your business&#8217; carbon reduction strategies</li>
</ul>

The climate challenge requires a range of innovative solutions. As businesses work to decarbonise their value chains they must also invest in emission avoidance or removal projects beyond their own operations, the SBTi refers to this as &#8220;<a href="https://sciencebasedtargets.org/beyond-value-chain-mitigation" target="_blank" rel="noopener">beyond value chain mitigation</a>&#8220;.
Reducing operational emissions is key, but it can take time. So while on the journey to net-zero it’s also important for businesses to make a more immediate impact by funding high quality climate action today. Purchasing carbon credits helps businesses do just that.
Purchasing carbon removal credits is particularly beneficial towards the end of the net-zero journey, because once a business has reduced its emissions by at least 90%, it can use these carbon credits to balance its remaining, unavoidable emissions and reach net-zero.

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Net-zero graph

<h2>What are carbon credits?</h2>
Carbon credits provide funding (‘carbon finance’) to projects in exchange for activities which avoid or remove emissions from our atmosphere, while also achieving other benefits such as community development, protecting vulnerable ecosystems or installing energy-efficient technology. When your business purchases carbon credits it directly funds these projects, and after purchase that credit is permanently retired so it can&#8217;t be reused.
They are referred to as either ‘Carbon Avoidance’ and ‘Carbon Removal’ credits. Each carbon credit represents one metric tonne of greenhouse gas emissions that’s been avoided e.g. through <a href="https://ecologi.com/projects/morocco-solar">switching to renewable energy</a>, or removed from the atmosphere, e.g. by locking carbon safely away through the production of <a href="https://ecologi.com/projects/carbon-hill-biochar">Biochar</a>.

<h2>How are carbon credits created?</h2>
The process begins with project developers designing projects with the aim of avoiding or removing carbon dioxide/ carbon dioxide equivalent emissions.
When the developer establishes their project – such as a solar power plant – they can opt to go through a stringent assessment methodology developed by a carbon standards organisation (like the Gold Standard and the Verified Carbon Standard), to assess the real-world reductions of emissions which will be caused as a result of the project activity.
This impact is measured in tonnes of carbon dioxide (tCO2) or tonnes of carbon dioxide equivalent (tCO2e). Carbon dioxide equivalent refers to a unit of measurement that is used to standardise the climate effects of various greenhouse gases based on their global warming potential over a specific timeframe. The tonnes of carbon dioxide equivalent that has been reduced (or removed) by the project activity, is represented by a ‘carbon credit’ which is issued to the project developer. The carbon credit is often considered as a permit or licence to emit that one tonne of carbon dioxide (or carbon dioxide equivalent).

<h2>How do carbon credits work?</h2>
Carbon credits are generated through various emission reduction or removal projects, including <a href="https://ecologi.com/impact-shop/support-certified-afforestation-projects">afforestation</a>, <a href="https://ecologi.com/impact-shop/support-biochar-carbon-removal-projects">biochar</a>, <a href="https://ecologi.com/impact-shop/support-certified-blue-carbon-projects">blue carbon removal</a> and <a href="https://ecologi.com/impact-shop/support-renewable-energy">renewable energy production</a>. 
These projects are rigorously assessed and verified to ensure that they result in real and measurable emissions reductions. Once validated, the projects are issued carbon credits proportional to the amount of CO2 equivalent emissions they prevent or remove from the atmosphere.
Carbon credits are issued to projects by carbon standards, which are organisations that set criteria for how projects can earn credits. There are several carbon standards, and each one has its own set of criteria.

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At Ecologi, we work with three carbon standards: 
<a href="https://verra.org/programs/verified-carbon-standard/" target="_blank" rel="noopener">Verified Carbon Standard</a> includes the Climate, Community and Biodiversity Standard (CCBS) and the Sustainable Development Verified Impact Standard (SDVista) certifications.
<a href="https://www.goldstandard.org/" target="_blank" rel="noopener">Gold Standard</a> assesses projects based on their contributions to the UN Sustainable Development Goals (SDGs), as well as emissions avoidance or removal.
<a href="https://puro.earth/puro-standard-carbon-removal-credits/" target="_blank" rel="noopener">Puro Standard</a> is a dedicated standard for carbon removal credits (which actively absorb existing emissions out of the atmosphere through natural or technological processes).

<h2>How are carbon credits bought and sold?</h2>
Carbon credits are bought and sold on the Voluntary Carbon Market (VCM) through various platforms and exchanges, similar to how stocks are traded. Businesses can purchase carbon credits either directly from project developers, through brokers, or on carbon credit trading platforms.
Trading carbon credits can happen in both voluntary and compliance markets. In the voluntary market, businesses purchase credits voluntarily to balance their emissions, demonstrate environmental responsibility and meet their sustainability goals. 
The compliance market on the other hand operates within regulated emissions trading schemes, where businesses must acquire a sufficient number of credits to comply with regulatory requirements.

<h2>How much are carbon credits worth?</h2>
The carbon credits price fluctuates based on factors such as market demand and regulatory frameworks. The forces of demand and supply apply, just as they do with other commodities traded in financial markets. The credibility of the emission reduction project, its co-benefits beyond emissions avoidance or removal reduction, the scale and location of the project, and the technologies used, will also all influence credit pricing.
The carbon credit price can range from around £3 to £50 per tonne (or even higher for innovative removals technology) of carbon dioxide equivalent (CO2e) on the voluntary carbon market.

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Verified Afforestation, Reforestation and Revegetation ARR projects

<h2>Why should a business consider buying carbon credits?</h2>
Investing in carbon credits offers numerous benefits for your business:
Environmental responsibility: By purchasing carbon credits, your business can demonstrate its commitment to mitigating climate change, supporting climate impact and assisting the transition to a more sustainable and resilient future.
Brand reputation: The purchase of carbon credits on the journey to net-zero can enhance a company&#8217;s reputation and drive competitive advantage by appealing to environmentally-conscious consumers.
Investor appeal: Contributing to carbon avoidance and removal projects through the purchase of carbon credits can appeal to environmentally-responsible investors, attracting investment capital to the business.
Risk management: Investing in carbon credits can hedge against future regulatory changes or carbon pricing mechanisms, reducing the financial risks associated with carbon emissions.
Employee engagement: Supporting climate impact by buying carbon credits can engage employees and foster a sense of pride and purpose among staff members.

<h2>Are carbon credits a good investment for businesses?</h2>
Financially supporting carbon avoidance and removal projects through the purchase of high-quality carbon credits is crucial for our transition to net-zero, as it decreases the amount of greenhouse gases entering our atmosphere. 
Ultimately, the decision to invest in carbon credits will be led by a businesses sustainability goals, regulatory environment and financial considerations. 
Carbon credits can offer great environmental benefits and enhance corporate reputation, but not all carbon credits are created equal. Like all markets, there will be some carbon credits that are low quality, but there are also many high-quality carbon credits that finance real, verifiable emissions avoidance and removals. Businesses should carefully assess the credibility and impact of the projects associated with the credits before making investment decisions.
At Ecologi, we only work with carefully selected partners, and all of our projects are verified and high quality.

<h2>Are carbon credits tax deductible?</h2>
In the UK the purchase of carbon credits can be tax deductible under certain circumstances. However, tax regulations can vary, and the deductibility of carbon credits depends on factors such as the purpose of the investment, the nature of the business, and compliance with the relevant tax laws and regulations. 
Businesses should consult with tax professionals or legal advisors to determine the tax implications of carbon credit investments specific to their situation.

<h2>How Ecologi can help you fund high-quality carbon credits</h2>
At Ecologi, we understand that carbon markets can be complicated and hard to navigate. Our expert team can consult with your businesses and help you take the right steps to choose the highest quality projects when you purchase carbon credits. 
We select the projects we support according to our climate impact regionalisation strategy, which focuses on directing funding towards locations and projects with the greatest potential impact. We will only ever support high-quality projects that meet our strict criteria and are verified by the Gold Standard, Verified Carbon Standard or Puro Standard.
The projects we support, which you can fund through our Impact Shop or through our automations and integrations, are also independently scrutinised by organisations like our friends at Sylvera.
We’re committed to trust and transparency, which is why we never re-trade carbon credits (we only retire them ourselves) and publish all carbon credit retirements on our Public Impact Ledger.

<h3>Read our guide to funding high-quality carbon credits</h3>
<div class="ecologi-video-full-width"><iframe src="https://cms-assets.offset.earth/app/uploads/20230914115954/Document_Ad_Funding_Carbon_Credits_01-1.pdf" width="960" height="1357" frameborder="0" allowfullscreen="allowfullscreen"></iframe></div>
 📁 Download the guide <a href="https://cms-assets.offset.earth/app/uploads/20230914115954/Document_Ad_Funding_Carbon_Credits_01-1.pdf" target="_blank" rel="noopener">here</a>

<h2>How Ecologi can support your carbon reduction strategies</h2>
We’re your trusted partner in taking climate action, offering a range of products and services to businesses of all sizes. From <a href="https://zero.ecologi.com/signup">calculating your company’s carbon footprint</a>, to tree planting and reforestation, to funding certified carbon avoidance and reduction projects via our <a href="https://ecologi.com/business/impact-shop">Impact Shop</a>, we’re here to support your entire climate journey. 
If you’re looking for a custom climate impact solution, or for those who are not sure where to start, our team of experts can create a tailored solution to suit your needs.

Speak to our team about funding high impact, high integrity climate solutions

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Case study: Kinetic Software

<h2>About Kinetic Software</h2>
<a href="https://ecologi.com/kineticsoftware" target="_blank" rel="noopener">Kinetic Software</a> was founded in 1998 with a mission to develop innovative software solutions for university accommodation and conferencing, and help deliver the best student and customer experience possible.
Now Kinetic is the technology partner of choice to leading universities and colleges all around the world. They supply software for over 350 customers, from the University of Nevada in Las Vegas to Monash in Australia, not to mention over 80% of the universities in the UK.

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<h2>Issue </h2>
Kinetic Software is still relatively early in its climate journey. The story began when the business signed up to the SME Climate Hub Pledge to halve emissions by 2030, and reduce them to zero by 2050. Following this stake in the ground moment an internal Green Team was formed, with colleagues volunteering from all around the business to help identify the right sustainability goals, motivations and actions to realise their ambition.

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Environmental stewardship is very much knitted into the cultural DNA of Kinetic. The team has planned community days to support the rangers at a local country park, arranged litter picks around the offices, explored fitting solar panels at their facilities, and promoted hosting and cloud-based solutions to help customers reduce energy use.
Every employee can feel the benefit. Kinetic’s package of green employee benefits includes a company electric vehicle scheme, cycle to work programme, and free thermal camera loans for improving home energy efficiency.

<h2>Challenges</h2>
Financial constraints were an initial barrier to overcome at the start of the Kinetic climate journey. The cost of funding carbon avoidance for all UK employee emissions can add up to quite a large and complex investment if not handled in the right way. However, Ecologi helped to ease the burden by making all costs quick and easy to calculate, clearly transparent, and affordable for the business.

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Blog_Case_Study_Kinetic_Banner_Quote

<h2>Solution </h2>
Since partnering with Ecologi, the Green Team has started to make some real changes at Kinetic. One of their first actions was to mitigate the emissions of their annual user conference by using our Impact Shop to purchase carbon avoidance equivalent to the footprint of the event. They also worked with Ecologi to plant trees for every attendee.
Now, as part of Kinetic’s employee benefits scheme, the team has decided to work with Ecologi to set up a Climate Action Workforce. This simple monthly subscription mitigates the emissions of all Kinetic employees, funds climate impact on their behalf, and offers a more meaningful perk to reward the team.
But Kinetic isn&#8217;t stopping there. The next step on their climate journey will be to calculate the business’s carbon footprint, and build an emissions reduction plan based on those findings. They are also exploring how our API and product integrations could support their cloud-based conferencing and student offerings in the future.
Sharing success is important to the team at Kinetic. They are currently working on a new website, and plan to place their climate achievements centre stage to inspire partners, customers and colleagues alike. They also regularly update employees on monthly carbon avoidance and tree planting, with links to the most recent projects and planting locations.

<h2>Outcome</h2>
Since October 2023, Kinetic Software has funded the planting of 1,380 trees, avoided 239 tonnes of CO2e and supported eight projects.

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Blog_Case_Study_Kinetic_Banner_Profile

Kinetic has also enjoyed improved brand reputation and already noted an increased ability to attract and retain talent. Moving forward, communicating and showcasing the success of the Kinetic Green Team to internal and external audiences will be a company priority. The transparent, tangible and measurable impact that comes from working with Ecologi will be a key component of this.
Alan Gore, Software Developer and Sustainability Associate at Kinetic Software, said:
<blockquote>We&#8217;re a fairly new sustainability team trying to drive change in our business and wider industry, and Ecologi has given us a way to make a meaningful impact quickly and affordably. It has started conversations and supported us in creating a package of green benefits for employees that marks us out in the sector.</blockquote>

<h2>Is your business ready to take climate action?</h2>
If this article has inspired your business to start its climate journey, talk to our team today.

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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