Do small businesses have to report on sustainability in the UK?
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Short answer: most UK sustainability reporting laws only apply to large or listed companies. If you're a small or medium-sized business, you're probably not legally required to publish a sustainability report.
But "not required by law" isn't the same as "nobody will ask". This guide goes through the main UK rules, who they apply to, and the handful that do reach smaller businesses.
The short version
- Big reporting rules (SECR, ESOS, climate disclosures) start at around 250 employees or tens of millions in turnover.
- Some rules reach almost everyone: workplace recycling, and F-gas leak checks if you run commercial fridges or air conditioning.
- The real pressure on small businesses usually comes from customers, tenders and lenders — not the law.
The rules that apply to larger companies
These are the rules people usually mean when they talk about "sustainability reporting". The thresholds below are simplified — always check the official guidance if you're close to one.
| Rule | What it asks for | Who it applies to |
|---|---|---|
| Streamlined Energy & Carbon Reporting (SECR) | Energy use, Scope 1 & 2 emissions, an intensity ratio and efficiency actions in the annual Directors' Report | All UK quoted companies, plus large unquoted companies and LLPs meeting two of: 250+ employees, £54m+ turnover, £27m+ balance sheet |
| Energy Savings Opportunity Scheme (ESOS) | Measure total energy use and carry out energy audits every four years, with an action plan | UK businesses with 250+ employees, or £44m+ turnover and £38m+ balance sheet |
| Climate-related Financial Disclosures | Climate governance, risks, scenario analysis and targets in the strategic report | UK companies with 500+ employees that are listed or have over £500m turnover |
| Gender pay gap reporting | Six pay gap figures published each year | Employers with 250+ employees |
| Modern Slavery Act statement | An annual, board-approved statement on preventing slavery in your business and supply chains | Organisations doing business in the UK with £36m+ global turnover |
The rules that can reach smaller businesses
Workplace recycling
In England, Simpler Recycling means workplaces with 10 or more employees have had to separate dry recyclables, food waste and general waste since 31 March 2025. Micro-firms (fewer than 10 employees) follow from 31 March 2027. Wales, Scotland and Northern Ireland have their own rules.
F-gas leak checks
If you run refrigeration, air conditioning or heat pumps, larger systems (holding 5 tonnes CO₂-equivalent or more — roughly a commercial fridge or office air-con unit) need regular leak checks by a certified technician, with records kept.
Packaging (EPR)
If you put packaged goods on the UK market, packaging Extended Producer Responsibility can apply. Businesses with £1m+ turnover handling 25+ tonnes of packaging a year must report data; over 50 tonnes (and £2m+ turnover) also pay fees.
UK Carbon Border Adjustment Mechanism (CBAM)
From 1 January 2027, importers of aluminium, cement, fertilisers, hydrogen and iron & steel above a £50,000 annual threshold will need to register and pay a carbon levy.
Where the pressure really comes from
For most small businesses, the questions arrive from other organisations rather than the government:
- Large customers that report on their supply chain send questionnaires to suppliers. Here's how to answer one.
- Central government contracts worth over £5m a year require a published Carbon Reduction Plan, and smaller public tenders increasingly ask for one too.
- Banks and investors ask about climate risk and emissions, especially for larger loans or green finance.
The good news: the same few basics answer most of these requests — a carbon footprint estimate, a sustainability policy and a named person who's responsible.
Check exactly what applies to you
Thresholds depend on your employees, turnover, balance sheet, sector and where you operate, and several rules change over the next few years. Granular's free questionnaire checks all of them for you and flags anything you're close to.
See exactly what applies to your business
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Take the free check →Frequently asked questions
Does SECR apply to small businesses?
Not usually. SECR applies to all UK quoted companies and to large unquoted companies and LLPs that meet two of: 250+ employees, £54m+ turnover or £27m+ balance sheet. Small and medium private companies are generally outside it.
Do micro businesses have to follow workplace recycling rules in England?
Yes, from 31 March 2027. Businesses in England with 10 or more employees have had to follow Simpler Recycling since 31 March 2025; micro-firms with fewer than 10 employees follow from 31 March 2027.
Do I need a Carbon Reduction Plan to win public contracts?
It's required for UK central government contracts worth over £5m a year under PPN 006. Smaller public tenders, including some councils and NHS bodies, increasingly ask for one or something similar.
Found this useful? Pass it on to someone who's been asked the same question.
Official sources
- GOV.UK — Environmental reporting guidelines (SECR) (opens in a new tab)
- GOV.UK — Energy Savings Opportunity Scheme (ESOS) (opens in a new tab)
- GOV.UK — Climate-related financial disclosures (opens in a new tab)
- GOV.UK — Gender pay gap reporting (opens in a new tab)
- GOV.UK — Transparency in supply chains (Modern Slavery Act) (opens in a new tab)
- GOV.UK — Simpler Recycling: workplace recycling in England (opens in a new tab)
- GOV.UK — Packaging EPR: who is affected (opens in a new tab)
- GOV.UK — UK CBAM policy summary (opens in a new tab)
- European Commission — F-gases (opens in a new tab)
This guide is educational and not legal advice. Thresholds are simplified and rules change, so always confirm with the official source or an adviser.
Keep reading
- ESG3 min readWhat is ESG? A plain-English guide for small businessesThe three letters everyone uses, explained in plain English — and what they actually mean for a business your size.
- E3 min readWorkplace recycling rules in England (Simpler Recycling): what businesses need to doWho Simpler Recycling applies to, the dates for micro-firms, and the four steps to get set up.
- E3 min readCarbon Reduction Plans for public sector contracts (PPN 006) explainedWhen UK government tenders need a Carbon Reduction Plan, what goes in it, and how to write one.