Carbon Reporting & Net Zero Update for NEPIC Members who report their carbon, or may need to report in the future

As UK and international efforts to address climate change continue, carbon reporting requirements are evolving and entering one of their most significant periods of change in over a decade.

Businesses, in particular those across the process, manufacturing and industrial sectors, are facing increasing expectations from customers, regulators, investors and supply chain partners.  Large and listed firms already face growing sustainability reporting demands from regulators and financial institutions, in the UK and abroad.  More businesses are finding ‘carbon footprint’ and ‘carbon reduction plan’ clauses written into Service Level Agreements and tender documents.

Three major developments have emerged in recent months, spanning greenhouse gas accounting standards, science-based target setting, and moves toward a single global reporting framework. Together, they signal a clear direction of travel for process industry businesses: away from high-level, estimate-based reporting and towards granular, evidence-based carbon accounting with far greater scrutiny of supply chain (Scope 3) emissions. Auditel, a leading specialist in carbon, energy and procurement solutions, has been tracking these developments closely and has shared their latest analysis, summarised below for NEPIC members.

1. Major Changes to Greenhouse Gas Accounting and Scope 3 Reporting

The GHG Protocol, which supplies the world’s most widely used greenhouse gas accounting standards is undertaking the most substantial review in over a decade – this includes a comprehensive revision of its Corporate Standard, Scope 2 Guidance, and Scope 3 Standard. Proposed updates are intended to improve accuracy, comparability and auditability. The biggest implications are likely to be felt within Scope 3 emissions, where organisations will be expected to improve data quality, increase supplier engagement and move away from estimated emissions towards more reliable primary data sources.

Key points for businesses:

• Scope 2 proposals point towards more granular, time-matched energy accounting and stricter rules on renewable energy claims
• Scope 3 revisions are expected to require disclosure of primary versus secondary (estimated) data, with a proposed coverage threshold as high as 95%
• A new Land Sector and Removals Standard (LSRS) introduces, for the first time, a structured framework for land-based emissions and carbon removals
• Collectively, these changes align with parallel updates to ISO, ISSB, UK SRS, and ESRS disclosure frameworks, pointing towards a more consistent global reporting baseline
• Updates are expected to continue through 2026, with finalisation anticipated around the end of 2027.

 

2. SBTi Net Zero Standard V2: From Ambition to Accountability

The Science Based Targets initiative (SBTi) has released Version 2.0 of its Corporate Net Zero Standard, representing a major shift in how organisations will be assessed against their climate commitments. Rather than focusing primarily on long-term targets, the revised framework places greater emphasis on implementation, measurable progress and accountability. Organisations will increasingly need to demonstrate how emissions reductions are being delivered in practice through robust transition plans, governance structures and ongoing performance monitoring.

Key points for businesses:

• Increased board-level accountability and governance expectations.
• Stronger focus on delivery and evidence of emissions reductions rather than commitments alone.
• Structured five-year review cycles replace reliance on distant target dates, with greater emphasis on yearly progress monitoring
• New, differentiated requirements based on organisation size and market context — larger and more mature organisations face more demanding expectations
• Scope 2 approach broadens beyond renewable electricity to a wider concept of Low Carbon Electricity (LCE), incorporating efficiency measures, on-site generation and PPAs
• Scope 3 becomes more flexible but no less accountable, allowing organisations to focus effort on their highest-emitting value chain categories while still demonstrating meaningful supplier engagement and reduction activity

 

3. ISO and GHG Protocol Move Towards a Single Global Carbon Reporting Standard

One of the most significant developments in recent years is the announcement that the International Organization for Standardization (ISO) and the Greenhouse Gas Protocol (GHG Protocol) will work together to develop a harmonised global standard for corporate greenhouse gas accounting. The objective is to reduce complexity, improve consistency and create a common framework for carbon reporting worldwide.  This builds on a strategic partnership established in 2025. While no immediate reporting changes are required, the direction of travel is clear: greater standardisation, stronger governance and increased scrutiny of emissions data.

Key points for businesses:

• The new framework is expected to combine the GHG Protocol’s Corporate Standard, Scope 1–3 accounting requirements, and ISO 14064-1 requirements into one common approach
• A coordinated public consultation is expected during 2027, giving organisations a chance to input before the standard is finalised
• There are no immediate changes to reporting requirements today – organisations should continue reporting against existing frameworks
• The announcement reinforces the broader trend towards greater international alignment, increased scrutiny of data quality and governance, and continued focus on Scope 3

Looking Ahead

Collectively, these developments signal a clear shift towards more transparent, evidence-based and globally aligned carbon reporting. For NEPIC members, particularly those operating within complex supply chains, the ability to demonstrate credible emissions data and deliver measurable decarbonisation outcomes will become increasingly important for compliance, customer requirements and competitive advantage.

If you would like to discuss what any of these changes mean for your organisation, whether you are starting your carbon journey, preparing for future reporting requirements, or looking to strengthen existing programmes – NEPIC members can take advantage of a free one-hour consultation. Please get in touch directly to arrange a time.

Jonathan Curren

Carbon, Energy & Procurement Solutions Advisor, Auditel

jonathan.curren@auditel.co.uk

0330 165 9897

 

For further market insight articles and updates, visit the Auditel news and insights page: https://auditel.co.uk/news/

Part 1: GHG Protocol updates: https://auditel.co.uk/carbonmarket/

Part 2: SBTi update: https://auditel.co.uk/carbonmarket2/

Part 3: ISO/GHG Protocol update: https://auditel.co.uk/carbonmarket3/