Is a sustainability report mandatory in the UK?

A full sustainability report is not mandatory for all UK companies, but SECR requires qualifying large companies to report energy and emissions in their Directors’ Report. Listed companies must also make TCFD-aligned climate disclosures. The UK is developing broader sustainability disclosure requirements based on the ISSB standards.

What framework should I use for my sustainability report?

Start with your mandatory requirements (SECR for UK large companies). If you have EU exposure, prepare for CSRD/ESRS. For voluntary reporting, GRI Standards are the most comprehensive global framework. If your audience is primarily investors, consider ISSB/IFRS S1 and S2. Many companies use multiple frameworks and cross-reference between them.

Sustainability Report

A sustainability report is a publication by an organisation disclosing its environmental, social, and governance (ESG) performance, including greenhouse gas emissions, climate targets, and sustainability initiatives.

What is Sustainability Report?

Sustainability reports provide stakeholders — investors, customers, employees, regulators, and the public — with a comprehensive view of an organisation’s ESG performance. They typically cover environmental topics (emissions, energy, waste, water), social topics (workforce, diversity, health and safety, community), and governance topics (ethics, risk management, board oversight).

The reporting landscape is converging around several major frameworks. The CSRD requires ESRS-aligned sustainability reporting for EU-scope companies. The ISSB’s IFRS S1 and S2 provide a global baseline for investor-focused disclosures. GRI Standards remain the most widely used voluntary framework globally. In the UK, SECR provides the mandatory minimum for climate-related disclosures.

Best practice sustainability reports include verified emissions data, science-based targets with progress tracking, transition plans with specific milestones, and honest disclosure of challenges and areas for improvement. The shift from voluntary to mandatory reporting means that sustainability reports are increasingly subject to the same rigour as financial reports.

Practical Examples

A FTSE 350 company publishes its annual sustainability report aligned with GRI Standards and the TCFD framework, including verified Scope 1, 2, and 3 emissions and progress against its SBTi target.

A mid-sized manufacturer prepares its first sustainability report, using SECR as the minimum requirement and adding voluntary disclosures on waste, water, and supply chain engagement.

A financial services group integrates its sustainability reporting into its annual report, reflecting the increasing convergence of financial and non-financial disclosures under the ISSB framework.

How Climatise Helps

Climatise generates the emissions data, charts, and analysis needed for the environmental section of sustainability reports, supporting SECR, CSRD, CDP, GRI, and ISSB disclosure requirements.

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