2025 Climate Compliance Guide for UK Businesses

As we step into 2025, the urgency for climate action is more pronounced than ever. For businesses in the UK, staying ahead of the curve isn't just about corporate responsibility; it's about being prepared for the evolving landscape of climate legislation. At Net Zero Now, we specialise in guiding businesses towards net zero and beyond, ensuring compliance with current and upcoming net zero regulations.

Key 2025 Climate Action Regulations and Their Impact on Businesses

1. Streamlined Energy and Carbon Reporting (SECR): For Larger Enterprises

• What Is It? SECR is a UK regulatory requirement mandating certain businesses to report their energy use and carbon emissions, along with related actions.
• Who Needs to Comply? UK companies with over £36 million annual turnover, £18 million balance sheet total, or 250 employees.
• Why It Matters: SECR compliance showcases your company’s commitment to energy efficiency and carbon reduction, while ensuring alignment with mandatory reporting standards.
• Deadlines: Annual reporting is required.
• Our Role: We simplify the SECR reporting process, ensuring your data is accurate and your narrative around energy efficiency is compelling.

2. Public Procurement Notice (PPN) 06/21: Essential for Government Contractors

• What Is It? PPN 06/21 is a UK Government notice requiring suppliers to demonstrate their commitment to carbon reduction for contracts above certain thresholds.
• Who Needs to Comply? Businesses seeking government contracts over £5 million or NHS contracts over £10,000.
• Why It Matters: Compliance is crucial for accessing lucrative government contracts and showcasing carbon reduction efforts. From April 2024, all new NHS procurements will require this.
• Deadlines: As applicable for procurement contracts.
• Our Role: We streamline the creation of your Carbon Reduction Plan, aligning it with PPN 06/21 standards.

3. Task Force on Climate-related Financial Disclosures (TCFD): Transition to IFRS Monitoring

• What Is It? TCFD provided a framework for disclosing financial information related to climate risks and opportunities. As of October 12, 2023, the TCFD has fulfilled its remit and disbanded. The Financial Stability Board (FSB) has tasked the International Financial Reporting Standards (IFRS) Foundation with monitoring companies' progress on climate-related disclosures.
• Who Needs to Comply? Large UK companies with more than £500 million turnover and 500 employees, particularly in sectors like banking, insurance, and those listed on AIM. Companies are now guided by IFRS standards that build upon TCFD’s principles.
• Why It Matters: Climate-related financial transparency remains essential for helping stakeholders understand and manage risks. The IFRS Foundation ensures continuity and evolution of these critical disclosure practices.
• Deadlines: Ongoing, with updates as IFRS guidelines are developed and implemented.
• Our Role: We assist businesses in aligning with IFRS climate-related standards, ensuring compliance and strategic integration of financial disclosures with climate goals.

4. Corporate Sustainability Reporting Directive (CSRD): For Businesses with EU Operations

• What Is It? CSRD is an EU regulation extending climate-related reporting requirements to more companies, including UK businesses with links to EU markets.
• Who Needs to Comply? Large companies with more than EUR 40 million net turnover, significant EU operations, or EU subsidiaries.
• Why It Matters: The CSRD represents a significant shift towards comprehensive climate action reporting, promoting greater transparency and accountability.
• Deadlines: Phased in from 2024, with initial reports due in 2025.
• Our Role: We provide support in understanding CSRD implications, assisting in report preparation to ensure compliance and strategic advantage.

5. Anti-Greenwashing Measures: For All Businesses Making Environmental Claims

• What Is It? New UK regulations empower authorities to impose fines on businesses making unsubstantiated or misleading environmental claims.
• Who Needs to Comply? All businesses using environmental messaging in marketing or reporting.
• Why It Matters: Accurate claims build consumer trust and avoid regulatory penalties.
• Deadlines: Enforced from spring 2025.
• Our Role: We review your environmental messaging, ensuring claims are evidence-based and compliant.

In Conclusion

2025 brings updated environmental regulations for UK businesses, underscoring the importance of climate compliance and proactive carbon accounting measures. Our range of net zero services, from GHG reporting to compliance with evolving mandates, is designed to make this transition seamless and efficient.

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