What does SORP 2026 actually mean for charities’ ESG and carbon reporting? Sustainable Energy First has received a few questions on this, so our Energy Advice Hub team has put together a straightforward guide to what’s required, what isn’t, and where good energy and carbon data can help.
What is SORP 2026?
The Charities Statement of Recommended Practice (SORP) is the framework that sets out how charities preparing accruals accounts should report their finances and activities.
SORP 2026 is the current version of the framework, replacing the previous SORP for accounting periods beginning on or after 1 January 2026. It covers a range of charity accounting and reporting requirements, including what trustees need to include in their Annual Report.
For charities looking at the environmental side of their reporting, the relevant section is the guidance on environmental, social and governance (ESG) matters.
SORP 2026 uses three reporting tiers based on income:
- Tier 1: income up to £500,000
- Tier 2: income between £500,000 and £15 million
- Tier 3: income over £15 million
The tier a charity falls into determines which reporting requirements apply.
What does SORP 2026 mean for ESG reporting?
For Tier 1 and Tier 2 charities, ESG reporting is voluntary. Trustees can explain how environmental, social and governance matters are being managed, but they are not required by SORP to report specifically on climate or carbon.
For Tier 3 charities, ESG reporting is required within the Trustees’ Annual Report.
This means Tier 3 charities need to provide a summary of how environmental, social and governance matters are being managed. Where relevant, this could include environmental and climate-related risks and opportunities, policies and objectives, governance arrangements and performance measures.
The SORP framework gives climate-related KPIs as an example of information that could be included, along with a description of how those KPIs have been calculated.
The important point is that SORP focuses on how environmental matters are being managed and reported, rather than prescribing a particular environmental reporting framework.
Does SORP 2026 require carbon reporting?
No.
SORP 2026 does not require charities to produce a Carbon Reduction Plan or report a specific set of Scope 1, 2 or 3 emissions.
So, it’s important not to interpret the ESG requirements as a new carbon reporting regime.
For a Tier 3 charity, however, environmental and climate-related matters need to be considered as part of its reporting. Where these matters are relevant to the organisation’s activities, strategy or risks, good-quality energy and carbon data can provide useful evidence of what is being managed and whether progress is being made.
Why does this matter for trustees?
The practical question for trustees is less about producing another report and more about whether the organisation has the information it needs to understand and demonstrate its environmental performance.
For example, a charity with an emissions reduction target might track:
- Energy consumption
- Scope 1 and Scope 2 emissions
- Energy or emissions intensity
- Progress against emissions reduction targets
- Renewable energy use
- Energy efficiency improvements
- The performance of specific decarbonisation projects
SORP does not prescribe a set of environmental KPIs. The right measures will depend on the charity, its activities, buildings and environmental risks.
This matters because the organisation can explain what it is measuring, why it matters and whether it is making progress.
And while SORP does not require a full Scope 3 assessment, charities looking to understand their environmental impact may need to look beyond the energy used in their buildings. Depending on the organisation, material emissions could sit in areas such as purchased goods and services, business travel, employee commuting, waste or investments.
For charities already reporting under SECR or completing ESOS, existing energy and emissions data can provide a useful starting point. These processes can help establish a consistent evidence base, although they do not necessarily provide a complete picture of an organisation’s wider environmental impact.
What should charities do now?
There are three useful questions to ask:
- Which SORP tier are we in?
Confirm your income tier and understand what the corresponding Trustees’ Annual Report requirements mean for your organisation.
- What environmental information do we already have?
Review existing energy, emissions and sustainability data. If you already complete SECR, ESOS or other energy management work, there may be useful information you can build on.
- Do we have enough data to demonstrate progress?
Consider whether your existing information allows you to understand your key environmental risks, track progress against objectives and explain your performance.
For Tier 3 charities, having this information in place can make it much easier to provide meaningful environmental reporting rather than just describing commitments or intentions.
SORP 2026: what charities need to know about carbon
SORP 2026 is not a new carbon reporting requirement. It does not require charities to produce a Carbon Reduction Plan or publish Scope 1, 2 and 3 emissions.
For Tier 3 charities, it does mean environmental matters form part of the information that needs to be considered and reported in the Trustees’ Annual Report.
This makes reliable environmental data more useful.
For trustees, the focus should be on having a clear understanding of energy use, emissions, environmental risks and progress against relevant objectives – and being able to provide the evidence behind the organisation’s reporting.
If you’d like further advice, please contact the experts at Sustainable Energy First via the contact form below.
