In this blog Paul Mason, our Project Coordinator for VONNE’s Going Green Together project, writes about the recently introduced SORP 2026 and reflects on the impact this will have on VCSE organisations, as well as the positive benefits and opportunities it can bring.
Sharper focus
The Charities SORP, or Statement of Recommended Practice, sets out how UK charities must prepare their annual accounts and trustee reports.
The arrival of the Charities SORP 2026, effective for financial periods beginning on or after 1 January 2026, marks one of the most significant shifts in charity reporting for over a decade. Alongside modernised accounting standards and a new tiered reporting framework, the 2026 SORP places a greater emphasis than ever before on environmental, social and governance (ESG) matters – including how charities manage and report on their environmental impact.
Tier 3 charities, those with income over £15 million, must now include a dedicated sustainability section within their Trustees’ Annual Report. This should explain how the charity manages environmental issues, including key performance indicators on climate-related risks or explaining how their activities contribute to wider environmental outcomes for example.
Sustainability reporting for Tier 1 (income up to £500,000) and 2 (£500,000 to £15 million) charities remains optional but is strongly encouraged. The SORP suggests that charities should consider:
- How their work impacts communities and the environment
- How they manage ESG risks
- Any additional information that key stakeholders might reasonably want to know.
Demonstrating action and commitment
This provides a great opportunity for VCSE organisations, regardless of income levels, to reflect and take stock of what you currently do when it comes to annual reporting. Rather than it just being an annual thing, consider what can you do to demonstrate your ambitions and ongoing commitment to environmental sustainability, as part of your wider ESG responsibilities. How can you make this part of the day-to-day, rather than it just being a reporting requirement?
Although not mandatory for Tier 1 and 2 organisations, the benefits of doing this are clear. It can:
- Meet growing requirements from many funders or commissioning authorities to demonstrate your ‘green credentials’
- Enhance understanding and transparency of your key values and aims amongst key stakeholders – ranging from the people and communities you support, through to potential new partners and funders
- Identify opportunities to improve operational efficiency, leading to cost savings
- Help with staff retention or attracting new talent.
How Going Green Together can help
Having a robust Environmental Sustainability Policy is an important starting point.
This sets out your organisational approach, ambitions and often commits to specific action to reduce environmental impact – For example, this could be by reducing staff travel or by committing to using eco-friendly suppliers for good and services.
Going Green Together is also here to help. Now in its second phase of delivery, the project was set-up to provide help and practical support for VCSE organisations to act and reduce their environmental impact. We are excited to be working in partnership with Cumbria CVS on an upcoming workshop that will take place on 11 March 2026 (10am to 12:30) that will support participating organisations to write their own environmental policy – in real-time during the session! You can find out more information and sign-up to the workshop at the following link:
It would be brilliant to see you there.
To find out more about Going Green Together, please visit our website where you can register as a member to gain access to resources, including our Sustainability Pathway tool, and stay informed about future workshops and events.