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

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Meet our Impact Team

Ecologi’s mission is to inspire and empower businesses to accelerate global climate action. In everything we do, we’re guided by our company values:
<ol>
<li style="font-weight: 400;" aria-level="1">Planet first</li>
<li style="font-weight: 400;" aria-level="1">Always accountable</li>
<li style="font-weight: 400;" aria-level="1">Change-makers</li>
<li style="font-weight: 400;" aria-level="1">Act, together.</li>
</ol>
Because of our values, we put impact for our climate, nature and people, right at our heart: and this is driven by our Impact Team.

<h2>Meeting the Impact Team </h2>
The Impact Team is responsible for directing our efforts toward meaningful climate action aligned with the latest science and industry best practice. The team’s role encompasses several key areas, including:
<ul>
<li>Ensuring adherence to best practice through our research bases, rigorous due diligence processes, and expert understanding of key sustainability frameworks.</li>
<li>Building and managing relationships with some of the world’s leading implementation partners to facilitate the delivery of high-impact climate solutions.</li>
<li>Delivery of emissions measurement and reporting projects, assisting customers with data collection, emissions calculations, and helping them identify effective decarbonisation strategies.</li>
<li>Engaging with academia, including the stewardship of the Ecologi Climate Committee — our advisory network of academic and industry experts on topics relevant to our work.</li>
<li>Providing climate and sustainability expertise and strategic guidance to align our products and services with the latest in environmental science and industry best practices and to guide our internal policy.</li>
<li>Driving our industry forward through participating in industry advisory groups, policy advocacy groups, consortia and alliances with Ecologi’s peers and partners in corporate sustainability, </li>
<li style="list-style-type: none;"></li>
</ul>
In this article, we’ll meet the team making it all possible!

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<h2>Sam Jackson, Director of Climate Science &amp; Impact</h2>
MSc, MA, PIEMA REnvP, FRSA
Sam is department lead for Impact at Ecologi, and a member of Ecologi’s senior leadership team. He is responsible for providing climate and sustainability expertise and strategic guidance to the business, with the priority of aligning Ecologi’s products and services with the latest in environmental science and industry best practice. Sam is an advisor to a number of industry groups and a regular speaker at sustainability industry events.
Sam has a varied background in climate science, international operations, development, and environmental governance. In his early career, he worked primarily in the charity and sustainable tourism sectors before moving permanently into climate and corporate sustainability. Sam holds Master’s degrees in International Relations and Climate Change Science and Policy from the University of Exeter and the University of Bristol. He is a Practitioner Member of IEMA, a Registered Environmental Practitioner with the Society for the Environment, and a Fellow of the Royal Society of Arts.

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<h2>Eleanor Turner, Climate Solutions Manager</h2>
MSc, BSc, PIEMA 
Eleanor has a senior role within the Impact team, helping to guide our strategic direction and shape our theory of change, as well as supporting the team across all Impact functions. Eleanor leads much of our external engagement with academia, including managing the Ecologi Climate Committee: our advisory network of academic and industry experts across a wide range of topics relevant to our work. She also works cross-functionally around the business, to drive much of Ecologi’s own internal sustainability efforts.
Eleanor holds a Master’s degree in Environmental Science from the University of York, in addition to a Bachelor’s degree in Environmental Geography. Eleanor’s career began as a sustainability consultant within the engineering and construction industry, focusing on BREEAM assessments and decarbonisation across the public sector. Eleanor then moved to an in-house sustainability role within the consumer goods industry, focused on internal sustainability strategy and greenhouse gas inventory management, before joining Ecologi as our Climate Solutions Manager.

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<h2>George Gibson, Senior Carbon Accounting Manager</h2>
George provides technical expertise to support the development of the carbon accounting methodology underpinning our Ecologi Zero platform for businesses. George also leads the consultative delivery of emissions measurement and reporting projects with our customers, guiding them through data collection and helping them to identify decarbonisation strategies. Key to his role is ensuring compliance with the relevant standards and that the tool provides a comprehensive and accurate account of a business’ emissions.
With a degree in Economics and Management from Cardiff University, specialising in economic development, George has previously worked as a sustainability consultant providing insight into compiling greenhouse gas inventories to measure and report emissions, developing decarbonisation strategies, setting Science-Based Targets and supporting businesses in attaining B Corp certification.

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<h2>Katie Pownall, Impact Partnerships Manager</h2>
MBiol, MRSB, ACIEEM
Katie works closely with Ecologi’s reforestation and other implementation partners, ensuring that funding from our community goes to the best projects, and sharing stories about the projects with the Ecologi community. As Ecologi continues to grow, Katie is helping to identify new types of impact projects, enabling Ecologi customers to fund cutting-edge climate action with some of the most well-respected organisations around the world.
Katie has a Master’s degree in Biology from University of York, where she focused on ecology and conservation, and during which she worked in the North York Moors National Park’s Conservation department, where she gained knowledge about protected species, habitat management, and on-the-ground conservation work. This  hands-on experience combined with her understanding of the theory of conservation and ecology helps Katie to guide Ecologi’s decisions so that we optimise our positive impact on people, biodiversity, and the planet.

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<h2>Lucy Gemmell, Carbon Portfolio Manager</h2>
In her role as Carbon Portfolio Manager, Lucy drives our in-house due diligence to identify top-tier carbon avoidance and removal projects, manages our relationships with project developers, and helps to educate customers in ensuring they are communicating about their impact correctly. In her work, she manages our relationships with a number of our key strategic impact partners including Sylvera and Earth Blox. Lucy originally joined Ecologi in 2022 as part of our Commercial team and spent a year working cross-departmentally, immersing herself in the voluntary carbon market before transitioning permanently into the Impact team. 
Lucy has a diverse background, having managed a boutique real estate brokerage in her earlier career and chaired the board of an education-based NGO in Johannesburg, South Africa. She is currently pursuing a Master&#8217;s degree in Climate Change and Development, following the recent completion of an ESG Specialisation from the Corporate Finance Institute.

Alongside the Impact team, we have some incredible individuals who assist us in reaching our goals and supporting our work. Collaboration is at the heart of everything we do, and their contributions help us stay on track and maintain momentum.

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<h2>Monsoon Modi, Commercial Operations Executive</h2>
Monsoon originally joined Ecologi in 2022 as part of our Customer Success team and spent a year working cross-departmentally before moving into the Commercial team, now as an Operations Executive. 
Key to her role is optimising commercial projects, building commercial resources and providing support for small businesses along their sustainability journey. Monsoon also supports the Impact Team with internal educational material, project reports and administrative tasks. 
With a degree in Politics and International Relations, Monsoon is currently pursuing a Master&#8217;s degree in Environmental Sustainability at the University of Edinburgh.

<h2>Climate Committee </h2>
Ecologi’s Climate Committee was founded in 2021 to bring together industry experts and research professionals who sit outside of the business to bring specialist knowledge and support to maximise our climate impact. Our committee members bring best-practice thinking, and ongoing developments with regard to global climate science, carbon accounting methodology, nature-based projects and the voluntary carbon market through our three working groups, Nature, Climate and Policy.
The committee supports the Impact team through providing expert knowledge across specialist fields which help shape the future of the team, and the wider business. In turn, this improves our internal decision-making and strategy development through staying at the forefront of industry developments and innovation.

Schedule a call

Case studies

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Case study: the Focusrite Group

<h2>About the Focusrite Group </h2>
<a href="https://x.ecologi.com/focusritegroup" target="_blank" rel="noopener">Focusrite</a> is not your average audio technology group. This passionate bunch is united by a single objective: to smash through barriers and unleash boundless creativity in the world of sound.
Founded in 1985 and based in High Wycombe, this team of over 500 is on a mission to remove barriers to creativity. And they believe that technology can play an important role in breaking down other barriers too, including geographical, social, economic, and even environmental. 
Focusrite is an organisation that’s driven by purpose, with a keen desire to be a force for good in the world. Responsible practices are an essential part of how they do business, and that includes keeping a keen eye on their impact on the environment.

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<h2>Issue</h2>
Focusrite has been working to reduce its environmental impact for many years and in 2020 developed a carbon accounting process that now provides near real-time data on Scope 1, 2, and 3 GHG emissions.
This progress has allowed the team to set goals, but they are in the process of applying to set Science Based Targets (SBT) to replace them. In the meantime they are already aligning their approach with SBT guidelines. 
As a UK-based company, Focusrite is committed to 2050 as the ultimate deadline for net-zero, but they want to get there quicker. So their approach is not to set a net-zero target year until they have gone through the SBT application process by 2026 at the latest, and instead use carbon reduction metrics and targets to set them up for long-term success.

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BST Hyde Park 2013 - London - MLA - Andrew Land

<h2>Challenges</h2>
The team at Focusrite use emissions data to guide action, and their emissions are largely dominated by their hardware products, which account for 96% of GHG emissions. 
They have already made good progress in reducing the use of aluminium, plastic, and product packaging, with many more areas under review. As they roll out changes across their product range, the team aims to increase the pace of their reductions, with any new products being designed from more sustainable materials from the start.
Focusrite is striving to become a sustainability leader in its industry, setting the standard for peers to emulate. Environmental stewardship is a big part of that, and the message from the entire employee base is that they want to support nature beyond their value chain. This is why they reached out to Ecologi to help them do more good for our planet.

<h2>Solution </h2>
Focusrite has worked with Ecologi since 2021. Ecologi supports the team to fund tree planting for internal initiatives like employee charity fundraising, but also to offset the wood used in their products. The wood used is already FSC certified, so by planting trees with Ecologi they replace more than they consume. 
Focusrite also works with Ecologi to support projects to mitigate any remaining Scope 1 and 2 emissions they can’t avoid. So far they have funded 17 projects, including a solar power project in Morocco, supplying high efficiency cookstoves in Somalia, and preserving Amazonian rainforest in Brazil.
The team isn&#8217;t shy about sharing Focusrite’s success. They talk about their climate impact prominently in their annual report and employee newsletter, and dive into the details in their dedicated environment and climate reports. 
Taking such positive climate action has boosted Focusrite’s reputation with customers and colleagues alike. They have enjoyed press coverage for their tree planting, which positioned them as a leader in their industry, and they have even had employees join the company purely because of their environmental sustainability programme.

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<h2>Outcome</h2>
Since 2021, the Focusrite Group has funded the planting of 89,080 trees, supported the prevention of 132 tonnes of CO2e from being emitted, and funded the removal of 81 tonnes of CO2e from the atmosphere. In total 17 different projects have been funded.

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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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What happened at COP29

This year’s Conference of the Parties is underway in Baku, Azerbaijan and will run until the 22nd of November. Our team at Ecologi are monitoring the daily events to give you real-time analysis and reactions to the developments and agreements taking place. 
What is COP29? Click <a href="https://x.ecologi.com/articles/uncategorised/what-to-expect-at-cop29" target="_blank" rel="noopener">here</a> for a comprehensive guide to all things COP29. 
What happened at COP28? Click <a href="https://x.ecologi.com/articles/blog/whats-happening-at-cop28" target="_blank" rel="noopener">here</a> to read a full report of the event in 2023.

<h2>Overall sentiment &#8211; COP29 wrap-up</h2>
The overall sentiment at COP29 reflects a little bit of progress and an awful lot of frustration. As is often the case at the climate COPs, any progress that does get made is often overshadowed by the missed opportunities – and this one is no exception on that front.
The largest positive from this COP is in the agreements made on operationalising carbon market standards under Article 6 of the Paris Agreement. This consensus signals hope for greater transparency, higher standards, and clear opportunities for businesses to engage in global climate action projects, in a new carbon market managed under the UN framework. These draft documents on Article 6 were published on the first day of the COP and have stayed relatively static since then – indicating that agreement was achieved early. They did come under criticism though, with the Presidency offering up documents to be accepted as-is, with no opportunity for countries to scrutinise the wording.
The COP as a whole, and its broader negotiations on a range of other topics, have been marred by tensions, frustrations, and geopolitics. Proceedings were thrown somewhat, by world leaders disappearing from the world leaders’ summit at the conference and reconvening in Brazil (next year’s COP host country) for the G20 – leading to <a href="https://www.gov.br/planalto/pt-br/media/18-11-2024-declaracao-de-lideres-g20.pdf" target="_blank" rel="noopener">a multilateral G20 declaration</a> which seemed to both celebrate and chastise the country negotiators back in Baku. 
Geopolitics making things difficult – COP29 has taken place against a backdrop of heightened geopolitical tensions between a wide range of countries, which have diverted attention and resources away from climate action and have complicated negotiations. Add to that the problems coming from the COP itself – from country boycotts, to backhanded oil and gas deals, to threats to drop out of the Paris Agreement by Argentina (a threat which was later clarified as rescinded) and by the USA (which is likely to be upheld under the incoming administration) – and it’s easy to wonder how nearly 200 countries can be convinced to agree on anything at all. Let alone an issue with the gravity, urgency, and complexity of climate change.
Poor management by the Presidency – if you’ve followed our daily coverage you’ll have spotted over the past two weeks how this COP has felt quite chaotic and frenetic. It hasn’t really felt throughout proceedings that the Presidency is in control of things – and this applies on the diplomatic level but also in a practical sense, with uncomfortable stories coming out of the conference centre about poorly-managed bathroom facilities and catering. On the draft decisions, the Presidency’s strategy has been cavalier and uncharitable, with something of a ‘take-it-or-leave-it’ attitude to negotiations which isn’t helpful or conducive to compromise. On the last day of the COP, the Climate Action Network awarded the Azerbaijani Presidency their Fossil of the Day award because it “doesn’t understand the gravity of the Presidency, or for that matter the value of civil society”. This is a damning assessment, but one which is hard to disagree with.
Somehow, fossil fuels are still the elephant in the room – we heard from UNEP before COP29 started that <a href="https://www.unep.org/resources/emissions-gap-report-2024" target="_blank" rel="noopener">global emissions are still rising</a>, driven by continued fossil fuel use – and yet COP29 has failed to advance any fossil fuel reduction commitments. In Dubai last year, we saw the agreed cover text mention the “phase-down of unabated coal power”, the “transitioning away from fossil fuels in energy systems” and the “phasing out inefficient fossil fuel subsidies” (which was pretty weak in itself). This year, the fossil fuel lobby was typically massive – with over 1,700 fossil fuel lobbyists in attendance. Despite the overwhelming scientific evidence showing that fossil fuels must stay in the ground, the dominance of fossil fuel interests has continued to undermine progress, with the Arab Group in particular this year refusing to back any texts that reference the phasing out of fossil fuels. The COP29 texts on the UAE dialogue and the Mitigation Work Programme (which ought to have been used to further the outcomes of last year’s Global Stocktake) were meant to enhance climate mitigation. The final version of the MWP fails to mention the transition away from fossil fuels, the 1.5ºC warming goal or the Global Stocktake and its outcomes, and the UAE dialogue on how to proceed on the Global Stocktake wasn’t adopted at all. Interestingly, the earliest drafts did mention the 1.5ºC warming goal and the seriousness of 2023 being the warmest year on record. As the drafts progressed this messaging was removed, despite many calling for the final text to be more ambitious and specific. A deal on the MWP was adopted during the closing plenary session without any intervention. 
Article 6 and UK government provide a few reasons to be positive for businesses 
Whilst the overall sentiment at this year’s COP29 has been disappointment, particularly regarding the pace of global climate action and the lack of firm commitments from key global players, there are still some glimmers of hope for businesses. Among the more promising developments is the aforementioned progress on Article 6 of the Paris Agreement and the UK government’s climate commitments. The outcomes on Article 6 pose a step forward for businesses. By advancing frameworks for international carbon markets, COP29 has created a clearer pathway for companies to engage in high-quality carbon offsetting and trading, fostering transparency and credibility in the process. This opens up new opportunities for organisations globally to progress towards net-zero targets whilst supporting climate action projects and global emission reductions. 
The UK government’s renewed focus on climate policy has created incentives such as increased funding for green technology, support for nature based projects and streamlined regulation for sustainable investment, catalysing innovation and market growth. The developments at COP29 have reinforced the role of businesses as a key actor in the fight against climate change when world leaders fall short on agreeing ambitious climate goals. Through embracing innovation, adopting bold emission reduction targets and funding climate action, companies can fill the leadership gap and accelerate progress where governments falter.

COP29 - Daily updates 

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The two-week conference, scheduled for November 11th-22nd will bring together representatives from all countries that have agreed to be bound by the UNFCCC. The conference takes place annually to negotiate new measures, develop policy and review progress against the goal of limiting climate change.
Azerbaijan, the host nation, has received its fair share of criticism for becoming this year’s COP president. Oil and Gas make up 92.5% of the country’s GDP per capita, and President Ilham Aliyev has stated his support for oil and gas producing nations to continue investing in the sector, clashing with last year’s COP28 outcome in which all nations called for accelerating the transition away from fossil fuels.

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<h2>The key talking points and priorities in the run up to COP29</h2>
This year, priorities are focused on climate finance, with COP29 being coined the Finance COP, this is reiterated by the programme of scheduling with Finance, Investment and Trade taking priority spot on the first day of discussions.
Energy and Science are also high on the agenda, while Nature and Biodiversity and Oceans and Coastal Zones take more of a back seat, only being scheduled for the final day before negotiations; naturally, this comes as a disappointment as this signals these areas of discussion are considered lower priority when compared with energy and finance.
It is likely momentum and attendance will decrease by the end of week two and could undermine the urgency needed to address the implications of climate change on nature globally and reduce their integration into wider climate strategies.
The following key priorities are expected to lead discussions at COP29;
<h3>New Collective Quantified Goal (NCQG)</h3>
Developing countries, particularly those most vulnerable to climate change, require substantial financial support to transition to green economies and adapt to climate impacts. COP29 aims to agree on a new commitment to provide annual climate finance to developing countries, replacing a goal of $100 billion per annum set in 2009 at COP15. The World Economic Forum states that ‘the NCQG must be ambitious yet realistic, balancing the financial capacities of developed countries with the urgent needs of developing nations’.
<h3>Growing the loss and damage fund</h3>
Established and operationalised at COP27 in Sharm El-Sheikh, the loss and damage fund acknowledges the disproportionate burden that climate change places on vulnerable nations. It is a financial mechanism that helps countries cope with the loss and damages they face due to climate change – this includes loss of life, damage to infrastructure and displacement.
At COP29, there is hope to see significant progress in the fund’s operationalisation and funding. Countries are expected to make substantial pledges to the fund to ensure it can meet the needs of developing countries. To date, major contributors include the UAE, Germany and the United States. Other big-emitting countries such as China and Saudi Arabia are yet to announce their intention to contribute to the fund.
<h3>Nationally Determined Contributions (NDCs)</h3>
At COP29, nations will be encouraged to commit to more ambitious and robust Nationally Determined Contributions; these are climate action commitments made by countries to reduce their greenhouse gas emissions and contribute to climate change mitigation, aligning with the goal of limiting global warming to 1.5 degrees Celsius.
NDCs are submitted every 5 years to the UNFCCC, and with the next global stocktake approaching NDCs are to be put forward by February 2025, demonstrating increased ambition and concrete action plans. At COP29, there is likely to be a push to provide financial and technical support to developing countries to enable them to outline and implement NDCs of their own.
<h3>Article 6 of the Paris Agreement</h3>
Article 6 of the Paris Agreement aims to promote the use of carbon markets to achieve their climate targets. At COP29 we can expect discussions with regards to how a robust and well-regulated international carbon market can be developed and maintained. A key goal of COP29 is to finalise the rulebook for Article 6, which will provide clear guidelines for its implementation, and address concerns with regards to the quality of carbon credits, double counting and sustainable development.

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<h2>Who is attending COP29</h2>
With just 2 months to go until COP29 kicks off, there has been minimal discussion with regards to which World Leaders we can expect at the event.
From the UK, Ed Miliband, the newly appointed Secretary of State for Energy and Net Zero, is confirmed to be leading UK negotiations for COP29. However, with the USA election taking place just 5 days before COP29 begins, it is unlikely that the President will be in attendance. As the event draws closer, we can expect more countries to confirm which delegates will attend.

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<h2>What to expect during COP29</h2>
An anticipated 40,000 participants are heading to COP29, almost half the number of attendees than at <a href="https://x.ecologi.com/articles/blog/whats-happening-at-cop28" target="_blank" rel="noopener">COP28</a> in Dubai last year; this poses the question of if bigger is necessarily better, fewer attendees reduce the environmental impact of the conferences, with the UN Climate Chief Simon Stiell <a href="https://www.climatechangenews.com/2024/04/24/peak-cop-un-looks-to-shrink-baku-and-belem-climate-summits/" target="_blank" rel="noopener">saying he hopes to see fewer people attending COPs </a>as size does not necessarily translate to the quality of outcomes.
COP29 still presents a crucial opportunity to make significant strides in climate action, by focusing on climate finance and reaffirming climate goals, countries can collectively work together to provide the funding and tools necessary to shape the trajectory of global climate efforts.

<h2>Partner with us for COP29 and beyond</h2>
Over the next 12 months we want to support as many businesses as possible to tackle climate change.
If your business is interested in a partnership to help scale climate action or starting its climate journey during COP29 or beyond, get in touch.

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

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