Last November, the EU adopted the Corporate Sustainability Reporting Directive (CSRD), with fines and penalties for those failing to disclose their indirect (Scope 3) emissions. The phase-in period for CSRD begins on the 1st January 2024 and the UK has matched this timeline.

The directive increases the range of companies mandated to report, with almost 50,000 affected, and sets stricter requirements on the range of issues and quality of data which companies must disclose. 

The UK now requires large companies to report on their climate-related risks in line with the global Taskforce on Climate-related Financial Disclosures (TCFD), while the EU’s CSRD means that companies will be required to publish detailed information on sustainability performance.

Given the increasing appetite of investors and customers for engaging with sustainability leaders, stronger ESG metrics can also become a powerful competitive advantage.

In a poll of UK-based businesses to assess their readiness for Scope 3 reporting under CSRD, 96% had heard of the directive, 71% had measured their carbon footprint and while 40% were already to comply, 25% said they will not be able to meet the deadline.

There are warnings that many companies are underestimating what it will take to turn intent into action, with 40% overwhelmed during the last reporting period and 35% admitting that embedding ESG in the annual reporting process would be a squeeze with current lead timelines and staff levels.

One-third of the companies polled are delegating responsibility to the chief sustainability officer, another third to the chief executive and almost all said they are either hiring a specialist or enlisting an external auditor, while just under half are investing in digital solutions for emissions measurement and analysis.

Business leaders are uneasy about their new responsibility for reporting not only their own emissions but those upstream and downstream, and critically, businesses need to not only report, but also take steps to make reductions and improvements.  

The penalties are substantial; UK firms are set to be charged up to £40 per tonne of CO2 emissions misreported under the new regulations and consumers can be unforgiving which puts their reputations at risk.

With Scope 3, businesses have to think about their role as a supplier to customers and their role as a customer to suppliers and be able to accurately measure and report on emissions to understand where they are starting. 

Our MVT Eco module is already prepared for Scope 3 reporting of emissions that are not produced by your company and are not the result of activities from assets owned or controlled by you.

To request a demo or learn more, please EMAIL Ian Powell.

Sustainability is good for business, because it builds brand value, meets consumer expectations, attracts talent and creates new opportunities, which is why Metro has been certified Carbon Neutral for two years and why we share the most important developments in sustainability.

Despite today’s economic uncertainties, consumers are still open to sustainable products if they are affordable and offer value, with 46% expecting brands to take the lead on bringing about sustainable change.

Wind-powered sustainability 

Fitted with giant, rigid British-designed sails (or wings), the cargo ship Pyxis Ocean's maiden journey, from China to Brazil, will provide the first test of the WindWings and is an opportunity to assess whether a return to the traditional way of propelling ships could be the way forward for moving cargo more sustainably at sea.

Folded down when the ship is in port, the 123 ft wings are opened out when it is in open water, to catch the wind, rather than rely solely on its engine and are expected to reduce a cargo ship's lifetime emissions by 30%.

Each wing saves one-and-a-half tonnes of fuel per day, so with four wings on a vessel, six tonnes of fuel is saved, which is equivalent to 20 tonnes of CO2 saved each day. The numbers are massive.

The wing sail technology on Pyxis Ocean was spun out of Sir Ben Ainslie's 2017 America's Cup boat design, with the firm behind to predicting that this voyage will be a turning point for the maritime industry and that by 2025 half the new-build ships will be ordered with wind propulsion.

UK businesses not ready for emissions reporting

Large businesses and SMEs which trade in the EU will need to conduct sustainability reporting to stricter standards from January 2024, but 60% are not prepared and risk penalties of £40 per tonne of CO₂ emissions misreported.

The Corporate Sustainability Reporting Directive (CSRD) was initiated in January and requires businesses which trade in the EU to conduct sustainability reporting to stricter standards from January 2024, with research finding that 60% of businesses may not be prepared to meet the new requirements for Scope 3 emissions reporting by the deadline.

Scope 3 refers to indirect emissions that are caused not by an organisation itself, but by other businesses and activities somewhere along the value chain, which often account for a huge portion of a company’s overall value chain emissions and can be 60-90% of the overall carbon footprint.

Companies that don’t properly report their Scope 3 emissions before the January deadline not only risk fines but also losing customers, with 49% saying they would look elsewhere if a business were to be fined for non-compliance and 17% saying they would never use that business again.

Certified carbon neutral for two years, Metro has joined the West Midlands Net Zero Business Pledge, to support efforts to make the West Midlands a net zero carbon economy by 2041. 

We are committed to zero landfill waste as part of our WM Net Zero Business Pledge, installing new recycling bins at our Birmingham HQ, together with more electric charging points, as we are replacing our fleet with electric vehicles within the next 12 months.

Metro is measuring and monitoring the emissions of every shipment, by every mode, for all of our customers, with offsetting alternatives, so they can work towards carbon neutrality in their global supply chain. 

Our MVT Eco module has reported over 100,000 shipments, with a total CO2 equivalent of more than 300,000 tonnes in 2023.

MVT Eco uses reporting methodology that is in conformance with the Global Logistics Emissions Council (GLEC) and incorporates 30 pre-built charts and downloadable statements, to simplify Scope 3 reporting compliance for customers in the EU and UK.

The MVT ECO module is available free-of-charge to customers on their MVT dashboard. To request a demo or discuss your requirements, please EMAIL Simon George.