sustainability

Business sustainability is a growing priority in 2026, as ESG reporting and regulatory compliance become central to how businesses operate. From reducing carbon emissions to managing sustainable business spend, companies are under increasing pressure to demonstrate measurable progress backed by reliable data. 

This shift is reflected across the market. According to Deloitte, 83% of business leaders increased their sustainability investments in the last year, signalling a move from long-term ambition to immediate action. 

In this guide, we cover why business sustainability matters, the key trends to watch, and where practical change can make the biggest difference. 

The importance of business sustainability 

Before we look at the sustainable practices growing in popularity, let’s first cover exactly why sustainability matters in a business sense. Fundamentally, sustainability is crucial for businesses looking for long-term success, balancing profit with responsibility and social accountability, all of which improves your reputation and compliance. But, let’s look into the different aspects in more detail: 

Environmental responsibility 

Holding your business accountable for its environmental impact helps you spot where practical changes can reduce emissions and waste. This works best when responsibility is shared across teams and made an everyday task, rather than scramble before an audit is due.  

Brand loyalty  

Ethical and sustainable choices show people that you genuinely care. And, it’s not just customers and investors, but your people too. Having sustainable practices in place creates a workplace culture that aligns with their values, improving retention and recruitment. People want their company to represent them and their beliefs after all.  

Compliance with legislation  

With environmental regulation increasing across the UK, being proactive helps you avoid last-minute pressure and penalties. With regulators like the CMA, FCA, and ASA now able to issue significant penalties for greenwashing, sustainability claims must be accurate, consistent, and supported by reliable data.  

Investor attraction  

Strong environmental, social, and governance practices make you more attractive to investors and build confidence with existing ones. Transparent reporting and realistic targets enhance your credibility and build trust with potential funders or stakeholders.  

Long-term viability  

Business sustainability is an ongoing process, not a one-off task. Embedding it into day-to-day operations puts you in a stronger position to adapt to new expectations and changes over time, especially when progress is reviewed and adjusted regularly.  

Trends to look out for 2026 

As sustainability becomes embedded into everyday operations, several key trends are shaping how businesses approach it in 2026. 

AI-led decision making 

The use of AI is becoming a key part of business sustainability; helping businesses to utilise high-level reporting, helping you act on sustainability insights rather than simply document them. 

Over 80% of companies already use AI to reduce carbon emissions, monitor sustainability metrics, and support reporting, with a further 16% planning to adopt it in the next year. And for good reason. By identifying patterns, risks, and inefficiencies, AI helps turn sustainability data into meaningful action—not just compliance. 

Beyond reporting, AI is also enabling innovation. Around 52% of those businesses are planning to use AI to develop more sustainable products and services, helping sustainability become part of the everyday. By encouraging looking at how your resources are used—or could be better used—you can make your environmental goals central to operational decisions, all with AI. 

Scrutiny around ESG 

ESG (Environmental, Social, and Governance) used to be something only large businesses needed to worry about. But, in 2026, that’s changed. Now, no matter your size, you need to be able to show how you operate responsibly—with the data to back you up.  

Customers, investors, partners, and even employees want clarity on how businesses treat people, manage resources, and make decisions. What was once a way of demonstrating compliance is now a way to build credibility; giving assurance that you not just recognise the need for sustainability, but that it’s ingrained in every aspect of your operations from how you spend money to what expenses you approve.  

For example, look at ESG-related travel. In our expense trends report, we found that the businesses within our data set logged enough journeys to equal an estimated 5,175 tonnes of CO2 (or 1,500 Olympic-sized swimming pools if you prefer to visualise). 

With £28.5m spend on mileage alone, it’s time to align spend with sustainability goals, taking the time to track carbon impact through energy and carbon reporting with the same importance as spend.  

Regulatory changes 

Regulations surrounding business sustainability are continuing to tighten, especially in the UK and EU. One of the biggest changes is the shift from Streamlined Energy and Carbon Reporting (SECR) to include UK Sustainability Reporting Standards (UK SRS); a development that brings a broader framework to sustainability. 

Coming into place at the start of this business year, the changes will include: 

• Reporting scope: SRS will go beyond reporting on energy and carbon emissions. It will now require the integration of sustainability and financial reporting, improved corporate governance, plans for carbon reduction, and full Scope 3 emissions reporting. 
• Global alignment: Built on ISSB’s IFRS S1 and S2 standards, UK SRS maintains consistency with international best practice, while adding UK-specific requirements. 

While UK SRS applies to larger businesses (with a turnover of £54 million, balance sheets of over £27 million, and more than 250 employees), its principles are shaping expectations across the wider market. 

In basic terms, businesses can no longer rely on high-level estimates or infrequent assessments of emissions. Regulators now expect sustainability data to be collected, maintained, and reviewed to the same degree as your financial data, with the ability to demonstrate accuracy and progress when required. So having reliable reporting processes will be your biggest ally for being better prepared for audits and reducing regulatory risk. 

Practical steps to prepare 

Approaching rising sustainability scrutiny starts with greater control over every day spend. Here are some practical steps you can implement now to help towards your sustainability goals: 

1. Prepare sustainability data to regulatory standards 

Where reporting is required, businesses must be able to produce audit-ready ESG data. This includes meeting UK Sustainability Reporting Standards, submitting Sustainability Disclosure Requirements where applicable, and reporting Scope 3 emissions for larger organisations. Even where formal reporting is not mandatory, adopting these standards early improves readiness and reduces future risk. 

2. Strengthen governance at the point of spend 

Everyday spending decisions have a cumulative impact on environmental performance. Clear policies, supported by consistent spend controls, help to make sure that sustainability requirements are applied the moment decisions are made—rather than relying on manual checks or (potentially inaccurate) retrospective reviews. 

3. Reduce reliance on estimates and manual processes 

Heavy use of assumptions, spreadsheets, and manual data handling increases exposure to error and scrutiny. More reliable, automated data capture improves reporting accuracy and gives businesses greater confidence when responding to audits or regulatory review. 

4. Embed sustainability into normal working practices 

Sustainability is most effective when it forms part of everyday activity. Building environmental considerations into expense policies, approval workflows, and spending processes supports responsible behaviour without adding complexity for employees. 

Making sustainability a part of everyday spend with Capture Expense  

As expectations around business sustainability increase—from regulators, investors, customers, and employees—organisations need practical ways to turn sustainability goals into measurable progress. Increasingly, that progress is driven by how everyday spending decisions are made, tracked, and reviewed. 

And that’s where Capture Expense comes in. We’re equipped with all you need to bring business sustainability into everyday practices—supporting informed decisions today, while preparing for what changes come next. 

Want to know more? Book a demo to find out how we can help you towards a more sustainable 2026. 

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. 

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.