Mandatory carbon reporting announced for all large UK companies

All large companies will be required to report their carbon emissions and energy use from next April under a new framework announced by the UK government yesterday.

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The proposals will apply to all unquoted organisations with at least 250 employees, or those that have an annual turnover greater than £36m and balance sheet total above £18m.

These firms will join all listed companies that have been mandated to report their carbon performance since 2013, with the new rules intended to help deliver an energy efficiency boost of 20% by 2030.

IEMA described the move as a “significant step forward” after working on the issue for almost a decade, and contributing extensive research to the initial carbon reporting consultation in 2012.

The sustainability body was singled out for praise in the government’s response document after organising a series of workshops with energy professionals as part of the consultation process last year.

IEMA policy lead, Nick Blyth, said: “We are very pleased to see some of our central recommendations adopted. The government’s commitment towards a reporting requirement for all large businesses is a significant step forward.

“Mandatory reporting will support improved energy management and provide a helpful level playing field for businesses.”

The Department for Business, Energy and Industrial Strategy (BEIS) said the new Streamlined Energy and Carbon Reporting (SECR) framework would replace the “rigid” CRC Energy Efficiency Scheme.

Businesses will report carbon emissions in their annual reports under the new rules, cutting administrative burdens and aligning with the Taskforce on Climate-related Financial Disclosures.

The government said its combined policy package of introducing the new SECR framework, closing the CRC scheme, and increasing climate change levy rates, would provide a net societal benefit of up to £1.5bn.

“We will continue to support BEIS with professional evidence on the important contribution of mandatory reporting, and offer practical support and guidance,” Blyth added. 

 

Image credit: iStock

Author: 

Chris Seekings is a reporter for TRANSFORM

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