The UK Government is to introduce a regulation requiring reporting of greenhouse gas (GHG) emissions by UK quoted companies. This is to be reported in their annual company accounts. All businesses listed (~1600) on the London Stock Exchange will have to report their levels of greenhouse gas emissions from April 2013 under plans announced by the government.
The UK is the first country to make it compulsory for companies to include emissions data for their entire organisation in their annual reports but what the requirements are and how it will work is still yet unclear.
The reports will enable investors to see which companies are effectively managing the hidden long-term costs of greenhouse gas emissions. The majority of businesses responding to the consultation support the change and government plans are also backed by leading employer and environmental organisations. The government will review the first two years of reporting by quoted companies in 2015 and then take a further decision in 2016 on whether to extend the reporting requirement to all large companies.
What can I do now?
Many companies will already be reporting greenhouse gas emissions, however if you currently aren’t then benchmarking may be appropriate at this stage in readiness for later monitoring and reporting.