Are you ready for Mandatory Greenhouse Gas Reporting?

Posted on: Friday, 14 June 2013 by Rachael Dillon

From 30 September 2013, quoted companies (all businesses listed on the Main Market of the London Stock Exchange) will be obliged to report their greenhouse gas (GHG) emissions in Annual Company Reports. This week, the Department for Environment, Food and Rural Affairs (Defra) has published official guidance for the requirements which were originally confirmed last year. Defra has taken the opportunity to overhaul the range of guidance available to businesses on GHG and Environmental Reporting. The new 135-page guide replaces previous voluntary GHG guidance and Environment Key Peformance Indicators guidance. It’s a one stop shop to recording and reporting GHG emissions whether you are obliged to report or not and is well worth reviewing. Monitoring emissions and considering the impact of your company on the environment can in the long rule deliver cost savings and impress existing and perspective customers. Defra recommends that companies not covered by the regulation should voluntarily report emissions.

Under mandatory obligations, quoted companies will need to report scope 1 (direct emissions such as own transport, heating) and scope 2 emissions (indirect - electricity) will need to be reported. Scope 3 (indirect emissions such as sub-contractor transport and employee travel) is excluded but encouraged. Verification of the data is not required but is recommended. The new regulations will be reviewed in 2015, before Ministers decide whether to extend the approach to all large companies from 2016.

Meanwhile, Defra has also published updated conversion factors for 2013.  The Department has reviewed the format of its conversion factors to make it easier for companies to find the most relevant information via a web-based tool.

More information on recording and reporting GHG emissions can be found here and the Logistics Carbon Reduction Scheme is a good way to track your freight emissions.
 

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