The UK: What Mandatory Emission Disclosure Means for Businesses.
- ayshasathar101
- Aug 5
- 3 min read
In this era where climate change is no longer a threat but a reality and need for transparency in how businesses measure and disclose their Greenhouse Gas emissions has become very crucial.
The United Kingdom has taken a stance by introducing mandatory emission disclosures, a move that’s reshaping how companies report their environmental impact and plan for a sustainable future.
A New Chapter for Corporate Responsibility
Nowadays, when walking into the boardroom of a large UK company, The CEO, CFO, and Sustainability Officer are not only poring over profit margins but also analysing the company’s carbon footprint. This focus on emissions and climate risks is becoming an everyday reality, driven by evolving government regulations.
Since April 2019, thousands of companies have been required to disclose their energy use and greenhouse gas emissions under the Streamlined Energy and Carbon Reporting (SECR) framework.
Then, from April 2022, the scope widened with the Task Force on Climate-related Financial Disclosures (TCFD) guidelines. These guidelines require reporting on governance, strategy, risk management, and metrics around climate issues.
Who’s affected?
Publicly listed companies
Banks and insurance companies
Private companies employing over 500 employees with annual turnover exceeding £500 million
Large Limited Liability Partnerships (LLPs) meeting the same thresholds
These entities must embed disclosures in their statutory annual reports, accessible to stakeholders and investors, strengthening trust and transparency.
What should be revealed?
Under SECR, companies must reveal:
Their total UK energy consumption
Scope 1 and Scope 2 greenhouse gas emissions (direct emissions and indirect emissions from energy use)
Actions taken to improve energy efficiency
The methodology behind emissions calculation
At least one emissions intensity ratio, such as emissions per unit of revenue
SECR reporting is mandatory for certain types of businesses, including those with 250 or more employees, an annual turnover exceeding £36 million, or a balance sheet total exceeding £18 million. Large unquoted companies and limited liability partnerships (LLPs).
The TCFD disclosure requirement is more strategic in nature.
For example, companies must describe:
How their governance system oversees climate-related risks
How climate considerations influence their business strategy
Risk management processes regarding climate issues
Targets and metrics used to track climate-related performance
How does Aviva Navigate Mandatory Emission Disclosures?
Aviva, a UK-based insurance and financial services giant has been delivering measurable results and sharing them openly.
Aviva took early steps to go beyond compliance. Recognising that climate disclosure is now a driver of long-term resilience, the company set one of the UK’s most ambitious emission reduction targets, which was to cut its operational carbon footprint by 50% by 2023 compared to 2019 levels.
They implemented:
Switching to 100% renewable electricity across all UK and Irish operations ahead of schedule and Upgrading energy systems in offices and operations.
Comprehensive tracking and independent verification of emission data aligned with the demanding Task Force on Climate-related Financial Disclosures (TCFD) framework.
Scope by Scope: Aviva tackles emission across all three scopes.
Scope 1 & 2: These include direct emissions from company facilities and emissions from purchased energy. Aviva successfully reduced these by half, a milestone many aspire to but a few achieve.
Scope 3: Representing emissions across its value chain suppliers and investment portfolio.
51% of suppliers by spend have set validated science-based targets, progressing toward the 70% target by end of 2025
The company also actively engages with major emitters in its portfolio, hosting supplier summits that promote science-based targets and accountability.
Why it matters?
Its commitment to measurable Scope 1 & 2 reductions and active Scope 3 engagement show the path other UK companies can follow.
For investors, customers, and communities alike, Aviva’s climate journey offers hope sustainability driven by action, not just words.
Aviva has committed to fully decarbonizing its supply chain by 2040
As companies navigate this change, the path toward a greener economy becomes clearer and more achievable.
As always, let this be your reminder to know that climate knowledge isn’t reserved for experts. It belongs to you, too.
Concept Writer and Researcher: Aysha Abdul Sathar
Reviewer: Pratiksha More
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