Climate Change is the number one concern facing our planet and there is a great opportunity for leading businesses to reduce risk, save money and innovate.
In addition, there are legal and market drivers, e.g. under the Companies Act 2006 (Strategic and Directors’ Reports) Regulations 2013, quoted companies are required to report their annual greenhouse gas (GHG) emissions in their directors’ report. In August 2018, BEIS (Department for Business, Energy & Industrial Strategy) responded to the consultation on Streamlining Energy and Carbon Reporting (SECR) and announced that:
~ All large businesses, as defined by the Companies Act 2006 (unquoted organisations with at least 250 employees, or those that have an annual turnover greater than £36m and balance sheet total above £18m), will be required to report their GHG (carbon) emissions and energy use from next April under a new framework. (This is new as before they only had to comply with ESOS if they were in ESOS scope and not publicly report results).
~ This extends the current requirement that has applied to quoted companies since 2013 and aligns the threshold with the ESOS regulations. Quoted companies will now also be mandated to report on global energy use (this is new because before they were only mandated to report on GHG emissions).
~ These plans aim to align existing initiatives such as the Energy Savings Opportunity Scheme (ESOS) and Mandatory Greenhouse Gas Reporting (MGHG).