Corporate climate reporting has never been more urgent or more scrutinised. As investor expectations rise and regulations tighten, companies are under pressure to prove not just their ambitions, but their actions.
To meet this demand for transparency and accountability, three frameworks have become essential: SECR, SBTi, and CDP. Each plays a distinct role in shaping how companies measure, disclose, and improve their climate performance. Together, they form the foundation of credible climate reporting.
Understanding the Frameworks
SECR – Streamlined Energy and Carbon Reporting
The UK’s SECR framework mandates energy and emissions reporting for large UK-based organisations as part of mandatory climate reporting. Introduced in 2019, it replaced the CRC Energy Efficiency Scheme and simplified corporate carbon disclosures.
🔍 Key Requirements:
- Scope 1 and 2 GHG emissions
- Annual energy consumption
- Energy efficiency actions taken
- Intensity ratios (e.g. emissions per £ turnover)
✅ Who Must Comply?
- Quoted companies
- Large unquoted companies
- LLPs meeting at least two of: 250+ employees, £36m+ turnover, £18m+ balance sheet
🎯 Purpose:
- Encourage transparency and energy efficiency
- Align business reporting with the UK’s net zero ambition
SECR serves as a regulatory baseline for many companies and often the first step toward more comprehensive climate action.
SBTi – Science Based Targets Initiative
The SBTi helps companies set carbon reduction targets that align with the Paris Agreement and current climate science. It’s become the gold standard for climate ambition and is increasingly favoured by investors and regulators.
🧭 Key Components:
- Commit to near-term (5–10 year) emissions reductions
- Submit targets for validation against SBTi criteria
- Disclose Scope 1, 2, and (if material) Scope 3 emissions
- Align long-term targets with a 1.5°C pathway
🌍 Why It Matters:
- Brings credibility to decarbonisation commitments
- Aligns with investor frameworks like TCFD and CSRD
- Demonstrates leadership in climate risk management
As of 2024, over 5,000 companies have committed to SBTi targets, including many of the world’s largest emitters.
CDP – Carbon Disclosure Project
CDP is a global non-profit that operates the world’s leading environmental disclosure platform. Companies voluntarily disclose data to CDP to inform investors, supply chain partners, and ESG ratings.
📝 What It Measures:
- Climate-related risks and opportunities
- Emissions across Scopes 1, 2, and 3
- Emissions reduction strategies
- SBTi alignment (if applicable)
🏆 Scoring System:
CDP grades companies from A to D across four levels:
- Disclosure
- Awareness
- Management
- Leadership
🔗 Why It’s Valuable:
- Recognised by over 680 investors with $130+ trillion in assets
- Demonstrates transparency and ESG maturity
- Influences procurement, finance, and partnership decisions
CDP is increasingly being used as a benchmark for climate performance, even in jurisdictions where disclosure isn’t mandatory.
How the Frameworks Connect
These three frameworks don’t compete — they complement each other:
| Framework | Focus | Role in ESG Strategy |
| SECR | Mandatory reporting (UK) | Foundation for emissions measurement |
| SBTi | Target-setting and validation | Aligns strategy with 1.5°C science |
| CDP | Voluntary public disclosure | Builds transparency and improves ESG ratings |
For example:
- A company may measure emissions under SECR,
- Set targets through SBTi, and
- Disclose progress to CDP.
Used together, these frameworks support a complete, actionable climate strategy.
Practical Steps for Implementation
Here’s how to navigate and integrate SECR, SBTi, and CDP:
- Map Your Emissions
- Conduct a full GHG inventory (Scopes 1, 2, and 3)
- Start with SECR-compliant metrics for UK operations
- Commit to Science-Based Targets
- Use the SBTi target-setting tool to model reductions
- Ensure Scope 3 is included if it exceeds 40% of total footprint
- Align Internal Processes
- Build cross-departmental collaboration: Finance, Ops, ESG, Legal
- Train staff on data collection and assurance procedures
- Submit to CDP
- Report climate data and risk assessments annually
- Use CDP’s disclosure feedback to improve systems
- Track, Report, Improve
- Reassess annually
- Communicate progress transparently to stakeholders
Conclusion
Climate disclosure isn’t a box-ticking exercise. It’s a cornerstone of corporate accountability in the net zero transition.
Frameworks like SECR, SBTi, and CDP provide the structure businesses need to measure, manage, and meaningfully reduce their carbon impact. Used together, they bring clarity to sustainability strategy and confidence to those watching.
The time for ambition is now. But ambition backed by action? That’s what will define corporate leadership in the decade ahead.
Frequently Asked Questions (FAQ)
What is SECR?
SECR stands for Streamlined Energy and Carbon Reporting. It requires qualifying UK organisations to include information about their energy use and greenhouse gas emissions in their annual reports.
What is SBTi?
The Science Based Targets initiative helps companies set emissions reduction targets that reflect current climate science. Businesses can submit their targets for validation to show that their plans follow recognised criteria.
What is CDP reporting?
CDP is a voluntary environmental disclosure platform used by companies around the world. Businesses report their emissions and explain how they are responding to climate-related risks.
How are SECR, SBTi and CDP different?
SECR focuses on mandatory reporting for qualifying UK organisations. SBTi supports credible target setting, while CDP gives businesses a way to communicate their environmental performance to external stakeholders.
Can businesses use these frameworks together?
Yes. A business may use its SECR data as a foundation for understanding emissions. It can then set reduction targets through SBTi and use CDP to report its progress publicly.
