UK government consults on a streamlined approach to energy and carbon reporting

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16 Oct, 2017

The Department for Business, Energy and Industrial Strategy (BEIS) has published a consultation which proposes a “streamlined and more effective energy and carbon reporting framework” for the UK.

The proposals are split between UK quoted companies and UK unquoted companies.

UK quoted companies (mandatory reporting)

It is proposed that:

  • all UK quoted companies continue to have to report annual their global greenhouse gas emissions (scope 1 and scope 2)and an intensity metric.
  • Such companies also should be required to report total global energy use across all energy types.
  • Scope 3 GHG reporting would remain voluntary.

UK unquoted companies within a threshold

The consultation seeks views on those UK unquoted companies for which reporting should be made mandatory. It asks whether it should apply to:

  • All large (based upon employee numbers and financial tests) companies formed and registered under the Companies Act 2006 and their corporate groups; or
  • UK companies who use more than 6GWh of qualifying electricity in a year; or
  • UK companies who use a different energy use threshold.

It is proposed that those UK unquoted companies which meet the required threshold should report:

  • energy use and associated greenhouse gas emissions. It is proposed to restrict the scope to electricity, gas and energy used for transport; and
  • an intensity metric which means “at least one ratio which expresses the reporting company’s annual emissions in relation to a quantifiable factor associated with the company’s activities”.

UK unquoted companies outside a threshold and small companies

It is proposed that UK unquoted companies outside of a threshold are encouraged to provide information on a voluntary basis. 

BEIS indicates that small companies and groups would be potentially exempt even if they meet the GWh threshold.

Companies will be required to include the above information within their annual reports.

The consultation indicates that further guidance might be needed to allow companies to comply with the above proposals. It also asks for views on options to improve the reporting regime in the future.

Comments are requested by 4 January 2018.

A press release and the full consultation are available on the BEIS website.

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