From 1 October 2013 the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 requires all UK quoted companies to report on their greenhouse gas emissions as part of their annual Directors’ Report. That requirement affects all UK incorporated companies listed on the main market of the London Stock Exchange, a European Economic Area market or whose shares are dealing on the New York Stock Exchange or NASDAQ.
The government encourages all other companies to report similarly, although this currently remains voluntary.
Further details and guidance is published on the DEFRA website
In a recent article on Accountingweb, Nathan Wimble, commercial director at The CarbonNeutral Company states: “Reporting on your businesses’ carbon footprint may seem like a long way off, but supply chain pressure has been building for some time and the spread from FTSE 100 companies to SMEs is inevitable”.
He explained that, with the introduction of mandatory carbon reporting (MCR) policy, all of a sudden nearly all of the FTSE 100 are measuring their carbon footprint and it’s a matter of time before they start asking their suppliers what they’re doing as well.
Ronald Duncan, Chair of the BASDA Green SIG, comments:
“Currently only listed companies need to report their carbon footprint. This applies to all listed companies and not just the FTSE 100. The current position is reporting scope 1 and 2 (Electricity, Gas, Travel etc) and not yet scope 3 supply chain footprint. A number of large organisations such as the NHS have moved into scope 3.
Inevitably these large organisations – once they have their own house in order – will pass the action down the supply chain. for example – the NHS is focused on pharmacy suppliers first, and organisations such as M&S have initiated ‘Plan A’.”
For more information about BASDA and the Green SIG, please contact info@basda.org