How carbon reporting could impact your business

What are the UK and EU carbon reporting rules?

The UK and the EU are tightening their carbon reporting rules to help meet ambitious climate targets. This means companies need to be more transparent about their carbon emissions and overall environmental impact. This may mean new responsibilities, but it also opens the door to cost savings, efficiency improvements, and a greener reputation.

Unlike larger agencies, KMC helps businesses tackle these changes with practical, personalised support. From carbon reporting to adopting Green IT practices, we can help you take meaningful action without the headaches.

What’s changing?

New rules aim to get more businesses measuring and reporting their carbon emissions

• More businesses affected: Carbon reporting isn’t just for big companies anymore; smaller businesses in key supply chains or those receiving government funding will soon need to report their emissions too

• Broader scope: you’ll need to track direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2), and possibly emissions from your supply chain and products (Scope 3)

• Bigger Consequences: Non-compliance could lead to fines or a damaged reputation

The UK government is introducing stricter requirements under the Sustainability Disclosure Requirements (SDR) framework. These changes align with international standards like the ISSB's IFRS S1 and S2, which focus on sustainability and climate-related disclosures. The goal is to ensure transparency and comparability across businesses, aiding investors and stakeholders in making informed decisions.

Some of these include:

1. Sustainability Reporting Standards (SRS): drafts for the UK-specific standards will be consulted in 2025, building on IFRS S1 and S2. Once implemented, these standards will guide reporting for UK-listed and economically significant companies.

2. Transition Plans: businesses are encouraged to align with frameworks like the Transition Plan Taskforce’s Disclosure Framework, showcasing their journey to net-zero emissions.

3. Green Taxonomy: The government is working on criteria to classify economic activities as environmentally sustainable, which will impact investment decisions and disclosures.

While full adoption is expected by 2026, proactive businesses can benefit by preparing early, enhancing compliance, and gaining a competitive edge in sustainability​

Why Green IT matters more than ever

As carbon reporting grows stricter, technology offers both a challenge and a solution. Green IT practices focus on reducing the environmental impact of your technology infrastructure, making them a natural complement to carbon reporting efforts.

Here are some Green IT tips inspired by KMC’s blog “10 Ways to Be More Sustainable with Green IT”:

• Optimise energy efficiency: ensure your servers, data centres, and user devices are energy-efficient. Switching to cloud-based solutions and renewable energy can significantly reduce your carbon footprint.

• Reduce E-waste: upgrading software rather than hardware, and repairing devices instead of replacing.

• Choose sustainable partners: collaborate with IT vendors committed to sustainability and green practices.

• Rethink printing: go paperless or use energy-efficient printers to reduce waste

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Adopting Green IT not only supports compliance but also reduces costs and demonstrates your commitment to sustainability to customers and investors.

Why act now?

With stricter rules around the corner, now is the time to prepare. Taking action early means you can:

• Stay compliant: Avoid fines and future-proof your business.

• Cut costs: Save money with more efficient IT and energy use.

• Build trust: Show customers, partners, and investors that you’re serious about sustainability.

How KMC can help

KMC specialise in helping UK businesses meet sustainability goals without overcomplicating things, using a personalised customisable approach. Here’s how :

• Green IT strategies: from implementing energy-efficient systems to managing e-waste, KMC can provide tailored solutions as part of your digital transformation that align with your goals and latest legislation IT Leadership & Strategy

• Carbon audits: guide you through the new disclosure requirements and help you measure your carbon footprint (including emissions linked to your IT systems) Navigating ESG and Carbon Reporting

• Tailored plans: we offer bespoke guidance on integrating sustainability into your operations, so you can lead rather than follow, creating a step-by-step roadmap to help your business comply with the new rules and improve efficiency Digital Transformation for business leaders

• Project Management: we can also offer resource to help manage the transition. Safeguarding your digital projects: the benefits of using an external IT Project Manager

Get in touch today for your free consultation