Carbon neutrality refers to the balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere, resulting in a net-zero carbon footprint. The globally recognised standard for verifying carbon neutrality has been PAS 2060:2014. However, this standard is being phased out in 2024, as it is re-designated as ISO 14068, reflecting the evolving landscape of…

An s.172 Statement, required under the UK Companies Act, mandates that directors explain how they have fulfilled their duty to promote the success of the company while considering the interests of stakeholders, including employees, customers, suppliers, and the environment. This statement must be published on a stand-alone web page and should include a materiality assessment and relevant case studies. Many…

The Task Force on Climate-related Financial Disclosures (TCFD) provides a framework for companies to disclose climate-related financial risks and opportunities, promoting transparency and accountability in corporate governance. As a derivative of the TCFD, the EU’s Corporate Sustainability Reporting Directive (CSRD) mandates comprehensive ESG, GHG reporting, climate change scenario modelling, and board-level engagement, making these disclosures critical for businesses. Understanding the…

The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation designed to prevent carbon leakage by imposing a carbon price on imports of certain goods from countries with less stringent climate policies. For UK businesses, CBAM represents a significant regulatory shift, with implications that will increase over time as the regulation expands in scope, affecting a broader range of products…

The GHG Protocol is the world’s most widely used framework for measuring and managing greenhouse gas (GHG) emissions. It provides comprehensive guidelines for organisations to calculate their carbon footprints across various scopes, ensuring accuracy and consistency in GHG reporting. Understanding and applying the GHG Protocol is crucial for businesses aiming to reduce their environmental impact and meet regulatory and sustainability…

An SECR Report, or Streamlined Energy and Carbon Reporting, is a mandatory disclosure for large UK companies detailing their energy use and carbon emissions, including Scope 3 emissions where material. Failing to report all material emissions, especially those related to “bought-in” goods and services (Scope 3 category 1), can lead to litigation for greenwashing, underscoring the importance of accurate reporting…

A PPN06/21 Carbon Reduction Plan is a mandatory requirement for suppliers bidding on major government contracts in the United Kingdom, ensuring that they commit to reducing their carbon emissions in line with national net zero targets. Understating emissions by failing to include all material sources poses significant risks, including legal liabilities, reputational damage, and the potential for contract disqualification. Understanding…

A Net Zero Statement is a public declaration by a company outlining its commitment to reducing its greenhouse gas emissions to net zero by a specified date. For businesses in the United Kingdom, unscientific, marketing-led guesses in such statements can pose significant corporate liability, exposing companies to legal risks, reputational damage, and financial penalties. Understanding a Net Zero Statement What…

Biodiversity Net Gain Monitoring is a key aspect of Environmental, Social, and Governance (ESG) practices, ensuring that development projects not only minimise their impact on biodiversity but also contribute to a net positive effect on ecosystems. It involves regular assessment and tracking of biodiversity outcomes to ensure that businesses are meeting their environmental commitments. Understanding Biodiversity Net Gain Monitoring What…

Tree planting for carbon offsets is often marketed as an ethical solution to combat climate change, but in many cases, it amounts to greenwashing. While planting trees can play a role in environmental stewardship, it is frequently used as a way for companies to obscure ongoing harmful practices rather than making meaningful reductions in their carbon footprints. Understanding Carbon Offsets…