UK HM Treasury Sustainability Reporting Guidance 2026-27 (FReM) 2.67-2.69: Carbon sequestration on the estate: estimate and report removals only where robust data and appropriate methods exist, follow emerging best practice, present removals clearly separately from gross emissions, and apply them only to residual emissions

What does 2.67-2.69 require?

Carbon sequestration removes carbon dioxide from the atmosphere into sinks such as plants, soils and oceans or artificial carbon capture and storage, and the Paris Agreement allows sinks as a form of offset against net emissions. Public sector estates often hold natural assets with sequestration potential such as freshwater habitats, ponds and peat bogs, but estate-level accounting is complex and may add little to sustainability performance. Where robust data and appropriate methodologies exist, organisations may estimate and report carbon removals; any such reporting should follow emerging best practice (for example peatland carbon models), must be presented clearly separately from gross emissions, and should be aligned to accepted boundaries, applied only to residual emissions.