In 2008, the United Kingdom legally committed to reduce Greenhouse Gas emissions by 80% by 2050 (against a 1990 baseline), through the introduction of the Climate Change Act.
Consequently, the Companies Act (Strategic Report and Directors’ Reports) Regulations 2013, introduced the legal requirement for ‘quoted companies’ to report on greenhouse gas (GHG) emissions for which they are responsible within their Annual Financial Report. This is commonly known as Greenhouse Gas Emissions (GHG) Reporting or Carbon Accounting.
These regulations stipulate that:
- GHG Reporting will need to be in the Annual Directors Report, alongside Financial Reports.
- The regulation requires that the six main greenhouse gases arising from operations are reported, not just the carbon emissions arising from consumption of electricity and gas, as is currently the case with the UK’s
- Carbon Reduction Commitment (CRC).
- Beyond the initial year, you will be required to repeat the emissions data disclosed in your previous report alongside the present year, making it easier to compare performance.
- You will be required to express your emissions by way of at least one intensity ratio to allow for performance comparison with similar companies.
Imvelo has Carbon Accounting consulants who understand the technicalities of the legislation and GHG requirements, in order to make Carbon Calculations a useful tool for your organisation, regardless of your size or sector.
Benefits of reporting:
There are direct benefits to your organisation in measuring and reporting GHG Emissions, including:
- Reduce energy and resource costs.
- Understanding the risks of climate change.
- Enhance your business’ green credentials.
- Comparing environmental KPIs to establish and understand the link between environmental and financial performance.
- Investors, shareholders and other stakeholders are increasingly demanding better environmental transparency in annual reports and accounts.
- Organisations of all sizes are increasingly required to measure and report on their environmental performance through PQQ’s and Tenders in order to secure future work.