Compulsory greenhouse gas emissions reporting for listed businesses
Business support for mandatory reporting
The UK is the first country to make it compulsory for companies to include emissions data for their entire organisation in their annual reports.
The introduction of the reports will enable investors to see which companies are effectively managing the hidden long-term costs of greenhouse gas emissions.
The decision follows the consideration of extensive evidence and the detailed analysis of consultation responses to gain the views of businesses and individuals, the majority of which supported a mandatory reporting approach to:
- Provide the first step in enabling companies to manage and reduce emissions;
- Mean more transparency from companies;
- Provide a single consistent standard; and
- Provide information to the business that could save them money through reduced energy costs.
The plans are also backed by leading employer and environmental organisations including the CBI and the Aldersgate Group. Andrew Raingold, Executive Director for the Aldersgate Group, welcomed the announcement:
“The vast majority of businesses strongly welcome the introduction of mandatory carbon reporting. This is an area where corporate executives have been demanding more regulation from government to provide greater clarity and transparency.
“Our detailed analysis demonstrates that this announcement will lead to huge cost savings for businesses as opportunities to reduce their energy use become more apparent. Over three quarters of UK adults expect that businesses should be required to report their emissions, as demonstrated by a Populus poll that we published last month.
“This statement should pave the way to extend the requirements to all large companies in due course and demonstrates genuine UK leadership at the Rio+20 Earth Summit.”
The new regulations will be reviewed in 2015, before ministers decide whether to extend the approach to all large companies from 2016.