Consulting business on greenhouse gas reporting
Defra has opened a consultation on reporting of greenhouse gas emissions in business, seeking views on options for more widespread and consistent reporting.
Environment Minister Lord Henley explained the Government’s desire for more reporting of emissions:
“We want to see more businesses reporting their emissions, but a balance has to be struck to ensure we are not adding any unnecessary burdens. Our aim is to increase the number of companies which actively manage and report their emissions, so we want to hear from businesses how they think we will achieve more widespread and consistent reporting.”
The consultation asks whether regulations should be introduced to make it mandatory for some UK companies to report on their greenhouse gas (GHG) emissions or whether the Government should continue to encourage measuring and reporting of GHG emissions on a voluntary basis. Four options are presented:
- Enhanced voluntary reporting;
- Mandatory reporting for all quoted companies;
- Mandatory reporting for all large companies;
- Mandatory reporting for all companies whose UK energy consumption exceeds a threshold.
Any new regulations will be aligned with forthcoming proposals from the Department for Business, Innovation and Skills (BIS) on a new narrative reporting framework, including coverage of social and environmental matters. The Government’s Plan for Growth (March 2011) announced its intention to simplify the narrative reporting framework for quoted companies to make it clearer and more focussed.
Defra research has shown that reporting emissions has helped companies achieve reductions and cost savings, increase interest at board level of environmental issues and improve their environmental image with clients and investors.
Lord Henley described some of the benefits:
“Many companies are already reporting their greenhouse gas emissions and seeing the benefits for themselves, because it’s not only good for the environment but also good for business. Companies found that they saved money by focussing attention on energy efficiency, improved their green image with consumers and became a more attractive proposition to potential investors.”
Under the Climate Change Act, the Government is required to look at introducing regulations requiring businesses to report their emissions. The consultation sets out three different options for mandatory reporting and one option for voluntary reporting. Defra is gathering views from businesses and other interested parties prior to taking that decision.
Defra will consider the responses to the consultation alongside other considerations such as the potential impact on business of each option, the government’s drive to reduce regulation where possible, and the review of current evidence published in November last year. The consultation closes on 5 July 2011 and a decision on the direction the Government will take is expected to be made in the autumn.
Further reading
- Consultation on GHG emissions: summary and full consultation documentation;
- The contribution that reporting of greenhouse gas emissions makes to the UK meeting its climate change objectives: A review of the current evidence (pdf)
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