Are you affected?
All UK companies listed on the Main Market of the London Stock
Exchange will have to measure and report greenhouse gas (GHG)
emissions. It excludes non-UK registered companies, companies
listed on AIM and privately owned companies.
We expect the regulation to have a 'comply or explain' clause
that may mean some companies do not need to report.
What will you have to report?
- Emissions: Material GHG emissions in CO2 equivalent (all six
Kyoto gases)
- Emission sources: Scope 1 (direct) and scope 2 (indirect
emissions from purchased electricity, heat or steam)
- Organisation boundary: to be defined by company but likely to
be based on a financial control or equity share approach to be
consistent with the financial report. It will include global
operations.
The regulation is unlikely to specify rules or guidance to
follow, but instead allow companies to choose (and disclose) the
methodology, and framework or standard, they use.
Our carbon reporting
diagnostic service can help you ensure that your
organisation's reporting meets regulatory requirements as well as
your corporate objectives.
Where will you have to report?
Emissions should be reported in the Director's report of the
Annual Report and Accounts.
There is no requirement for GHG emissions to be assured or
verified, however financial auditors must ensure that statements
made in the Director's report are not inconsistent with the rest of
the report. Additionally, Directors may themselves wish to
follow this route prior to sign-off.
When will you have to report?
The new regulation will be introduced in April 2013. As
such, emissions will first be reported in the 2013/14 Annual Report
(usually published around June 2014).
However, we expect companies will have to align GHG reporting
with their own financial reporting year. The regulation is
unlikely to be applied retrospectively, so those following calendar
years will only begin measurement from January 2014, and report in
the 2014 Annual Report (usually published around February
2015).
Why is mandatory carbon reporting being brought
in?
The UK has committed to cutting carbon emissions to 50% of 1990
levels by 2025.
Carbon reporting is the first vital step for companies to make
reductions in emissions. By measuring and reporting GHG emissions
companies can begin to set targets and put in place carbon
management initiatives to reduce emissions in the future.
Defra has estimated that reporting will contribute to saving
four million tonnes of CO2e emissions by 2021.
How will carbon reporting impact on your
business?
It will be necessary to assess your readiness for carbon
reporting and ensure you have the necessary systems, processes and
resources in place.
Ultimately, carbon reporting will help
your business understand its carbon emissions and identify
opportunities to reduce costs, improve your reputation and manage
long term business risks.
View a video of our briefing session: Mandatory Carbon Reporting: Are
you prepared? (August 2012)
Why work with us?
Trusted
Over the last ten years we have worked with 75% of the FTSE 100
and carbon footprinted hundreds of companies globally to help
identify risks and opportunities, including:
Coca-cola - We have been working
with Coca-Cola since 2007 to reduce the carbon footprint of its
most popular UK products . Energy efficiency is now central to
its business strategy.
JCB - When
JCB decided to make energy efficiency part of its strategic
planning process turned to us for advice. In the first six
months of implementation, JCB's energy costs
were cut by £728,000.
Experienced
Our experience of corporate carbon
footprinting and certification means
that we understand how carbon reporting can
deliver significant cost savings and enhance corporate reputation
and provide new revenue opportunities.
Results
Our results speak for themselves. To date, we have delivered
47MtCO2 and £4.5 billion
cost savings for the companies we have worked with.
Want our help with carbon reporting?
Find out more about our carbon reporting diagnostic
service.
Get in touch by calling us on 020 7170 7000, or fill in our
online contact
form.