UK government announces plan for mandatory greenhouse gas emission reporting

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20 Jun 2012

The United Kingdom Deputy Prime Minister, Nick Clegg, has announced at the Rio+20 conference that all businesses listed on the Main Market of the London Stock Exchange will have to report their levels of greenhouse gas emissions from the start of the next financial year (April 2013).

The UK is the first country to make it compulsory for companies to include emissions data for their entire organisation in their annual reports.  The new regulations will be introduced from April 2013 and will be reviewed in 2015, before ministers decide whether to extend the approach to all large companies from 2016.


Guy Battle, Deloitte’s Head of  Sustainability in the United Kingdom, issued a press release on the announcement and said:

“Increased regulation will create a step change in carbon measurement and reporting, but what’s key is how this can add value for businesses. This isn’t purely about compliance.  It’s about ‘good’ business sense and taking this regulatory push as an opportunity to identify new carbon strategies and potential cost savings. By contrast, the Carbon Reduction Commitment is an example of legislation that has pushed through an agenda, but some organisations may argue it wasn’t the best way to progress towards a long-term, valuable solution for companies.

Businesses need to think strategically so their operations can be managed effectively and sustainably over the long-term.  In addition to finance and carbon reporting, considering matters surrounding supply chain, ethical trading or health and safety can strengthen performance and promote growth.  Affected organisations will need to be nimble in their approach - some groups are more prepared than others to measure their global carbon footprint.  Companies will need to consider promptly and carefully how this information will be disclosed, and what governance and related processes will be required to meet these requirements.”

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