Sustainability Reporting with Business Central: UK SRS, SECR, CBAM and Your Supply Chain
Sustainability reporting has moved from the annual report into everyday business. Large customers ask their suppliers for emissions data, lenders link financing terms to ESG performance, and UK rules such as SECR, the new UK Sustainability Reporting Standards (UK SRS) and the upcoming UK CBAM create formal obligations. The good news: much of the data you need already lives in your ERP. Sustainability Management in Business Central helps you capture and report it without a separate system.
Key takeaways for leaders
- Even companies outside formal reporting rules increasingly need emissions data to win and keep customers and to secure financing.
- The UK government published the final UK SRS in February 2026, and the UK CBAM starts on 1 January 2027.
- Business Central has built-in Sustainability Management for tracking Scope 1, 2 and 3 emissions, energy, water and waste.
- Version 27 added CBAM and EPR calculations, and version 28 adds carbon footprint information on sales documents.
- Recording emissions where transactions happen, in purchasing, production and travel, is far more reliable than collecting them in spreadsheets at year-end.
The UK Reporting Landscape
- SECR (Streamlined Energy and Carbon Reporting): quoted companies and large unquoted companies and LLPs must already report energy use and greenhouse gas emissions in their annual reports.
- UK SRS: the Department for Business and Trade published the final UK SRS S1 and S2, based on the international ISSB standards, on 25 February 2026. They are voluntary for now, and the FCA is consulting on requiring listed companies to use them.
- UK CBAM: from 1 January 2027, importers of goods such as aluminium, cement, fertilisers, hydrogen, and iron and steel will need to account for the carbon embedded in those goods.
- Exports to the EU: EU importers of goods covered by the EU CBAM will ask UK suppliers for emissions data.
Most importantly, large customers that report their own Scope 3 emissions ask their suppliers for data. For many UK SMEs, that is the real driver.
What Business Central Sustainability Management Offers
- Sustainability journals and accounts to record emissions by scope and category, in the same way you post financial transactions.
- Emissions captured from purchases: emission factors can be linked to purchase documents, so Scope 3 data is captured as you buy.
- Energy, water and waste tracking, which supports SECR energy reporting.
- All gases measured as CO2 equivalents.
- CBAM and EPR calculations (version 27). Extended Producer Responsibility for packaging is also a live topic for UK businesses.
- Social and governance data for employees.
- Carbon footprint on sales documents, so you can share product footprints with customers (version 28).
From Compliance to Competitive Advantage
Sustainability data is not only a reporting burden. Companies that can quickly answer a customer’s request for product carbon footprints win tenders, including public sector contracts that ask for carbon reduction plans. Energy tracking reveals cost-saving opportunities. Transparency about the supply chain reduces risk. With the data in your ERP, sustainability becomes part of everyday management decisions, not a once-a-year exercise for consultants.
Getting Started
- Define the scope: what do customers, lenders and regulators actually ask you for?
- Set up Sustainability Management with accounts, categories and emission factors, such as the UK government’s conversion factors.
- Start with Scope 1 and 2, which cover fuel and energy, and then add the most important Scope 3 categories.
- Connect to purchasing so emissions are captured automatically.
- Report and improve: use the built-in reports and Power BI to track progress.
Frequently Asked Questions
Does Business Central support SECR reporting?
Business Central Sustainability Management records energy use and greenhouse gas emissions by scope, which provides the data you need for SECR disclosures in your annual report.
What are the UK Sustainability Reporting Standards?
UK SRS S1 and S2 are the UK’s versions of the international ISSB standards for sustainability and climate-related disclosures. The final standards were published in February 2026 and are currently voluntary.
When does the UK CBAM start?
The UK Carbon Border Adjustment Mechanism starts on 1 January 2027 and applies to imports of goods such as aluminium, cement, fertilisers, hydrogen, and iron and steel.
Do we need a separate sustainability system?
Not necessarily. For many small and medium-sized companies, Business Central’s built-in Sustainability Management covers the core needs, because the data comes from the same transactions as your financial data.
The companies that handle sustainability best treat it like finance: recorded at the source, controlled and reported from one system.
Would you like to set up sustainability tracking in Business Central or prepare for customer ESG requests? Contact us or book a call with one of our experts.
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