If your charity’s financial year started on or after 1 January 2026, your first SORP 2026 reporting year is already underway.
That matters, because the data your trustees will need to report is being created right now. It’s sitting in your energy bills, travel claims, supplier invoices and HR systems.
For the UK’s largest charities, SORP 2026 turns sustainability reporting from a nice-to-have into a must. For everyone else, it sets a clear direction of travel that funders and commissioners are already following.
Here’s what’s changed, who it applies to, and how to get ready without piling more work onto already stretched teams.
What is SORP 2026, and when does it apply?
SORP 2026 applies to accounting periods starting on or after 1 January 2026. For charities with a calendar year end, 31 December 2026 is the first year it applies.
The Charities Statement of Recommended Practice (SORP) sets out how UK charities preparing accruals accounts should produce their annual accounts and Trustees’ Annual Report (TAR). The new edition launched in October 2025, and it’s the most significant update to charity reporting in years.
The changes that matter most:
- Tiered reporting. Requirements now scale with gross income, across three tiers.
- A new sustainability section. The TAR now covers environmental, social and governance (ESG) matters, and it’s mandatory for the largest charities.
- Impact reporting. Charities must explain the difference their work made, not just what they did.
- Accounting updates. A five-step model for recognising income, and leases brought onto the balance sheet, in line with FRS 102.
When will you feel it? If your year runs January to December, your first SORP 2026 TAR covers 2026 and gets written in 2027. If your year runs April to March, your first SORP 2026 year started on 1 April 2026 and ends on 31 March 2027.
Either way, the 12 months of data you’ll be reporting on is being generated right now.
Which charities have to report on ESG?
Only Tier 3 charities, those with gross income above £15 million, must include ESG reporting in their TAR. For Tiers 1 and 2 it’s optional, for now.
| Tier | Gross income | Sustainability (ESG) reporting | Principal risks |
|---|---|---|---|
| Tier 1 | Up to £500,000 | Optional | Not specifically required |
| Tier 2 | £500,000 to £15 million | Optional | Must describe principal risks, including environmental and cyber risks |
| Tier 3 | Over £15 million | Mandatory = a summary of how the charity responds to and manages ESG | As Tier 2 |
Two things are worth noting here.
First, Tier 2 charities aren’t completely off the hook. Environmental risk now has to appear in their principal risks disclosure, so trustees need to understand their exposure.
Second, “optional” doesn’t mean “irrelevant”. Grant-makers, commissioners and major donors are asking the same questions whatever your tier. The charities that start measuring now will have a credible story to tell when they’re asked.
What do Tier 3 charities actually need to report?
Tier 3 trustees must summarise how the charity is responding to and managing ESG matters. The SORP doesn’t prescribe a fixed set of metrics. That gives you flexibility, but it also puts the onus on you to choose measures that stand up to scrutiny.
It does give examples of what to include:
- Environmental: the key performance indicators (KPIs) you use to track progress against targets for managing climate-related risks and opportunities, plus how those KPIs are calculated.
- Social: employee engagement and wellbeing, board diversity and inclusion, and how you support your local community.
- Governance: privacy, cyber and data security, and business ethics.
Already publishing this in a standalone impact or sustainability report? You can link to it from the TAR rather than repeating it.
The environmental piece is where most charities get stuck. “How your KPIs are calculated” means a clear methodology, reliable data and recognised emission factors, such as the UK Government’s DEFRA conversion factors.
SORP 2026 doesn’t specifically require a carbon footprint. But in practice, a properly calculated one is the most credible environmental KPI you can report: Scope 1 and 2 emissions as your baseline, plus the Scope 3 categories that matter most to your operations.
If you’re a large charitable company, the SORP also reminds you of your existing environmental reporting duties under the Companies Act, such as Streamlined Energy and Carbon Reporting (SECR). Get your carbon data right once, and it can serve both.
What’s at stake if you leave it late?
The risk isn’t only a compliance gap. It’s a weaker case for funding, contracts and public trust.
- Regulatory scrutiny. The SORP is developed by the UK’s three charity regulators and approved by the Financial Reporting Council. A TAR that misses Tier 3 requirements may be flagged by your auditor and draw questions you’d rather not answer.
- Funding. Grant-makers, trusts and institutional funders increasingly want evidence of how you manage environmental and social risk. Credible numbers strengthen every application.
- Contracts. Bidding for major central government contracts? You may need a Carbon Reduction Plan under PPN 006. NHS suppliers face their own carbon requirements under the NHS Net Zero Supplier Roadmap.
- Reputation. Vague or unsupported environmental claims invite challenge from donors, journalists and beneficiaries. Measured, explainable data protects you.
The real pinch point: leave data collection until year end and you’ll be rebuilding 12 months of energy bills, mileage claims and supplier spend under deadline pressure, while your trustees wait to sign off.
How to get SORP 2026-ready in six steps
The charities that find this easy will be the ones that start now, not in the month before sign-off.
- Confirm your tier. Check your gross income for the current year. If you’re growing towards £15 million, plan as though you’re already Tier 3.
- Decide what matters most. The SORP lets you focus on what’s relevant to your work. An environmental charity will face closer scrutiny on climate impact, while a social welfare charity may lead on people and governance
- Set your carbon baseline. Start with Scope 1 and 2: gas, fuel, fleet and electricity. Then identify the Scope 3 categories that matter, such as business travel, procurement and commuting.
- Choose KPIs you can measure and explain. Use a recognised methodology and DEFRA emission factors, and keep it consistent so year-on-year comparisons hold up.
- Collect data through the year, not at the end. Assign owners, set a monthly or quarterly rhythm and keep evidence in one place.
- Brief your trustees early. They approve the TAR and own the narrative. Give them time to understand the numbers before they’re asked to sign.
How Enistic helps charities report with confidence
We handle the complexity, so your team can stay focused on your mission.
Enistic has helped organisations measure and report their carbon since 2002, and is trusted by more than 300 medium-to-large organisations. We pair an AI-powered platform built in-house with our own carbon consultants and auditors, so you get accurate numbers and the expertise to explain them.
- Less time chasing data. Our AI platform cuts the data collection burden, bringing energy, travel and spend data into one place.
- Numbers that stand up to scrutiny. A 100% compliance record across 5,000+ reports since 2002. Audited by the Big 4.
- A named consultant, not a helpdesk. Your consultant becomes part of your team, helping you choose the right KPIs and shape a clear narrative for your TAR.
- One simple monthly payment. No hidden costs, which makes life easier for finance teams answerable to trustees.
- Data that works harder. The same carbon footprint can support SECR, a PPN 006 Carbon Reduction Plan, Science Based Targets and your next funding bid.
It’s why 98% of our clients renew with us.
SORP 2026: Quick answers
Does SORP 2026 apply to my charity?
If you prepare accruals accounts, yes, for accounting periods starting on or after 1 January 2026. What you need to report depends on your income tier.
Does SORP 2026 require charities to report carbon emissions?
Not specifically. Tier 3 charities must summarise how they manage ESG matters, and the SORP suggests KPIs for climate-related risks with an explanation of how they’re calculated. A robust carbon footprint is the most reliable way to deliver that.
Is ESG reporting mandatory for smaller charities?
No. Tier 1 and 2 charities may choose to report on ESG. Tier 2 charities must, however, include environmental and cyber risks in their principal risks.
Can we refer to a sustainability report we already publish?
Yes. If you already report on these matters elsewhere, you can link to it from your TAR.