As we move through 2026, carbon reporting isn’t an emerging idea anymore—it’s part of day-to-day business. Even if mandatory requirements don’t yet apply to you, expectations surrounding sustainability have shifted, shining a light on global standards and government reporting benchmarks, Many stakeholders now want clear, credible emissions data, too.
We cover all you need to know about energy and carbon reporting, emissions data, integrated reporting, and more, so you’re fully prepared for the year ahead with sustainability and government compliance in mind.
Government guidance on energy and carbon reporting
The Sustainability Reporting Guidance outlined by the government provides a clear framework for environmental and climate related disclosures.
That said, its structure mirrors global best practice, so many organisations use it as a benchmark for high quality reporting and Streamlined Energy and Carbon Reporting (SECR) compliance.
Key points from the guidance include:
- Carbon data should sit alongside financial data: emissions information is expected to be part of integrated reporting, with the same level of scrutiny and accountability.
- Scope 1 and Scope 2 reporting is the minimum: Scope 3 greenhouse gas emissions should be included where they’re material (for example, official business travel).
- Offsets must be transparent: if you use carbon offsets, you must report volumes, types, integrity and spend, without suggesting they replace emissions reduction.
This works well when reporting is planned early but be aware that adding in data retrospectively can be time consuming and harder to defend.
What businesses are expected to report in 2026
For 2026, the focus is firmly on quality over quantity. In practice, that means:
- Scope 1 emissions: direct emissions under your control, most commonly company vehicle fleets.
- Scope 2 emissions: indirect emissions from purchased energy, such as electricity and heating.
- Scope 3 emissions where material: especially official business travel, mileage and fuel—areas where good expense data makes a real difference.
- Carbon offsets (if used): volumes, types and expenditure must be disclosed.
Good news—you don’t have to report every Scope 3 category. But if something is material to readers of your report (customers, investors, partners, or auditors), it should be included with clear data and explanation.
Unless you can claim a low energy consumption exemption, the Streamlined Energy and Carbon Reporting framework is mandatory for all quoted companies. It also applies to unquoted companies and Limited Liability Partnerships that meet at least two of the following criteria:
- more than 250 employees,
- turnover of more than £36m,
- and a balance sheet total of more than £18m.
In short, a lot of organisations fall into scope without realising it. If you’re close to these thresholds, it’s worth checking early rather than assuming you’re exempt.
Minimum carbon reporting requirements
Here’s a full breakdown of the minimum SECR reporting requirements for businesses, covering both non-financial and financial information.
| Type | Non-financial information | Financial information |
| GHG emissions – Scope 1 (direct) | Mandatory reporting of all Scope 1 emissions from sources owned or controlled by your organisation. This includes fuel combustion in boilers and emissions from equipment such as air conditioning units or fleet vehicles. An analysis of related gas consumption in kilowatt hours should also be included. | Gross expenditure on the purchase of energy and expenditure on reported areas of energy. |
| GHG emissions – Scope 2 (energy indirect) | Mandatory reporting of all Scope 2 emissions from energy supplied by another party. This includes electricity used in buildings, along with purchased heat, steam and cooling. An analysis of related energy consumption in kilowatt hours should be included. |
Gross expenditure on energy purchases, plus expenditure linked to the reported areas of energy use.
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| Carbon offsets | Central government bodies that purchase carbon credits should report the total volume of credits purchased and retired during the reporting period in tonnes of carbon dioxide equivalent. This also includes the type of credits used, whether they relate to reduction or removal, whether they’re nature based or technology based, and details of credit integrity. | Total expenditure on carbon credits against each of the categories opposite. |
| Waste organisation and management | Absolute values in metric tonnes for waste from your estate, including total waste, recycled waste, ICT waste recycled reused and recovered externally, composted or food waste, waste incinerated with energy recovery, waste incinerated without energy recovery, and waste sent to landfill. |
Total spend on waste disposal, including contracts, specialist waste streams and licences, with expenditure shown against each waste category.
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Why data quality matters more in 2026
One of the biggest shifts this year is how carbon data is treated.
Sustainability reporting is now expected to be part of annual reports and accounts, not just a separate add-on. That means:
- Data needs clear boundaries, consistent methods, and audit-ready records.
- Where Scope 3 emissions are included, you either need to provide the data or have a clear explanation as to why it’s missing—along with plans to improve it.
A lot of organisations don’t realise that finance systems already hold some of their strongest emissions evidence. Expense and mileage records, in particular, are often more reliable than estimates pulled together later.
Why expense and mileage data is central
Mileage claims, fuel receipts, and travel expenses are some of the richest data sources when it comes Scope 3 reporting because:
- They show real, day-to-day business travel activity.
- They support your material decisions (distance travelled, vehicle type, and fuel category all matter).
- They naturally fit with integrated reporting, where traceability and accuracy count.
When this data is patchy, reporting relies more heavily on assumptions. That’s allowed—but under the guidance, those assumptions will need explaining and justifying.
For example, one organisation may only include mileage claims linked to client travel because it’s clearly material, while explaining why occasional ad hoc travel isn’t yet captured in detail.
Practical steps for 2026
To make things easier for your SECR reporting this year:
- Map your data sources: start with expenses, mileage, energy, and fuel records.
- Apply materiality filters: not everything needs reporting, but anything material needs data or a clear explanation.
- Build capture into everyday processes: collect vehicle type, fuel type, travel purpose, and distance at the point of claim; software like Capture Expense can track this for you automatically as expenses are submitted.
- Think ahead to audit: align sustainability data with financial reporting boundaries and keep clear records of everything to avoid scrambling to find the data you need later.
This approach works best when finance and sustainability teams work together—but it’s still manageable for smaller teams with the right systems in place.
Capture your energy and carbon reporting data
We know that being sustainable is no longer a nice to have, so we support reporting of Scope 1, 2, and 3 carbon emissions, giving you credible, integrated evidence of your commitment to environmental responsibility.
Using carbon reporting with Capture Expense makes you regulation ready, giving you the data you need now and in the future for less headaches later on. Find out more about how it works.
Find out more about Capture Expense
We’re so much more than just an app to track your business expenses. From saving days reconciling your credit cards to getting customised insights in an instant with your finance copilot, here’s everything you need to know about Capture Expense.