Mandatory Carbon Reporting

Since October 2013, under the Companies Act 2006 (Strategic and Directors’ Reports) Regulations 2013, quoted companies are required to report their annual greenhouse gas (GHG) emissions in their directors’ report; this is classed as Mandatory Carbon Reporting.

Quoted companies in the UK are those that are incorporated and whose equity share capital is officially listed on the main market of the London Stock Exchange, or is officially listed in a European Economic Area, or deals on either the New York Stock Exchange or NASDAQ.

Carbon Reporting The First Step

The plan is that carbon reporting will be the first step in encouraging companies to make reductions in their emissions. Measuring and reporting GHG emissions allows companies to begin to understand their emissions, set realistic and achievable targets and put in place carbon management initiatives to reduce emissions in the future. It is thought by Defra (the UK Department for Environment, Food and Rural Affairs) that this will result in savings of around four million tonnes of carbon dioxide equivalent emissions by 2021.

Establishing a Reporting Method

There are no specified rules for calculating carbon emissions therefore it is up to individual businesses to establish a robust method which can be replicated year on year. Carbon Focus can work with your organisation to review the most appropriate scope and boundaries for carbon reporting and establish the most effective method for calculating and presenting findings.