New Mandatory Greenhouse Gas Emissions Reporting Legislation
On June 12th, the UK Government laid before parliament the redrafted Mandatory Greenhouse Gas Emissions reporting legislation. The legislation requires companies to report their Greenhouse Gas Emissions as part of their Annual Reports. It also provides for voluntary reporting by any organisation. The regulations specify those listed companies which are required to comply, it specifies detail around the definition of organisational boundaries, and what should be included in the report.
Key Points:-
All UK incorporated companies listed on the main market of the London Stock Exchange or on a European Economic Area market or whose shares are dealing on the New York Stock Exchange or NASDAQ must include their Greenhouse Gas Emissions report as part of the annual returns.
The report must include:
The company’s scope 1 and scope 2 emissions as a minimum. Including scope 3 emissions is recommended but is not a requirement in year 1.
Scope 1: Fossil fuels such as natural gas, fuel consumed by company owned or leased vehicles, fugitive emissions such as refrigerants, and any process emissions.
Scope 2: Electricity from the national grid and any purchased heat steam or cooling.
Scope 3 (optional): Business travel, inbound and outbound freight, waste, water and key upstream and downstream value chain (supply chain) emissions.
Emissions for all company operations, processes and activities occuring not just in the UK, but for all global operations must be included in the report.
Emissions must be stated in Carbon Dioxide Equivalent accounting for all 6 Kyoto Protocol gases (CO2, CH4, N2O, PFCs, HFCs and SF6).
Reports
The emissions report must include at least one “Key Performance Indicator” which takes the form of a CO2e intensity indicator as a measure of business inputs or outputs. For example, tonnes CO2e per unit of production produced. With the exception of the first reporting year, subsequent reports must state the preceding year’s performance in order to provide a continuum in the reports.
When
Companies will be required to submit their Greenhouse Gas Emissions report for their first financial year ending after October 1st 2013.
What Next?
Contact Carbon Action to help you prepare for this new responsibility. Carbon Action provide support through the UK, Europe and beyond on GHG legal compliance issues and are the knowledge and education partners of the CDP as well as being providers of ISO 14064 education to Governments, industry and academia.
You can contact us through email at info@carbonaction.co.uk or by phone on +44 207 397 8500.
