Streamlined Energy and Carbon Reporting
In April 2018 the UK Government consulted on its approach to Streamlined Energy and Carbon Reporting. This included looking at how best to get companies to report, how many companies should report, and what should be included in the reporting framework.
In July 2018 the UK Government then published its response to the consultation. Currently the requirement for reporting Greenhouse Gas emissions (GHGs) is limited to companies that are quoted on the main market of the London Stock Exchange (with specific details attached). But, as a result of this consultation, this requirement will be extended to cover around 11,900 companies using the same threshold as the Energy Savings Opportunity Scheme (ESOS).
Notably, much of the Government’s response is in line with The Financial Stability Board’s Taskforce on Climate-related Financial Disclosures, which makes clear recommendations on future reporting. This highlights not only the joining up between financial and non-financial reporting but also the importance of this group’s ongoing work and recommendations.
Who does this effect?
This requirement will affect:
- All large UK incorporated unquoted companies with:
- At least 250 employees, OR;
- Annual turnover greater than £36million and an annual balance sheet of greater than £18million.
- Large Limited Liabilirt Partnerships (LLP's) obligated to report SECR in an annual report equivalent to a director’s report.
- However, if an organisation can prove it is a low energy user (<14,000 kWh in a 12-month period). They will not be required to disclose.
What will need to be reported?
- Scope 1 and scope 2 reporting methodology and intensity measure (scope 3 voluntary)
- Report on global energy usage (where practical)
- Narrative on energy efficiency in financial year
- Energy use as a minimum to include:
- Transport (road, rail, air, and shipping)
- Scope 1 +2
- Report on year of annual report plus include data on previous year.
Where will a company have to place information?
Annual directors report (or equivalent for LLPS)
When will this start?
It is stated that it is the UK Government’s intention to introduce this framework in 2019.
Want to find out how Streamlined Energy and Carbon Reporting will impact your business? Click here to contact our expert energy management team or call +44 (0)1235 753 000.