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UK Government Consult on Mandatory Reporting of GHG Emissions

17th May 2011 by Madlen King

Last week the UK Government’s Department for the Environment, Food and Rural Affairs (DEFRA) opened a public consultation on the implementation of regulations within the UK for the mandatory reporting of greenhouse gas (GHG) emissions within the director’s report.

Section 85 of the Climate Change Act 2008 requires the Government to make regulations, under the Companies Act 2006, by 6 April 2012 requiring the directors’ report of a company to include information about GHG emissions, or to lay a report before Parliament explaining why no such regulations have been made. This consultation aims to inform Ministers’ decision on whether to introduce such regulations. 

The consultation document presents four different options, a voluntary approach and three mandatory approaches: to mandate quoted companies; to mandate all large companies; or to mandate all companies whose electricity consumption exceeds a threshold – linked to the CRC qualification criteria.

The consultation document proposes options that cover absolute emissions of all 6 GHG’s, together with an intensity ratio. It proposes the reporting of scope 1 and scope 2 emissions, with scope 3 reporting ‘encouraged’. However organisations currently reporting under other regulated schemes (e.g. the EUETS) can use this data for the purpose of meeting any mandatory reporting requirements. The document also requests input on mandating verification of the claims made.

The consultation document can be found here and the closing date for the consultation is 5th July 2011.

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