Sustainability analysis has found that thousands of businesses face the prospect of reporting on carbon emissions for the first time, yet many may not have made suitable provision.
Analysis and reporting from sustainability experts Ecometrica have warned that many businesses could be caught out by the new reporting regulations on carbon emissions.
According to the research, more than 8,000 businesses in the UK will have to report on carbon emissions as part of their accounts for the very first time at the end of their financial year.
Worryingly though, it remains unclear how many of these organisations are ready for this.
It is necessary as part of the new Environmental Reporting Guidance set out by the government’s Department for Business, Energy and Industrial Strategy.
Under the guidance, Streamlined Energy and Carbon Reporting Regulations (SECR) will apply to financial years that started on or after April 1 2019.
Gary Davis is the CEO at Ecometrica. He said that companies now face “more onerous reporting requirements,” with larger unquoted firms and LLPs reporting on emissions for the very first time.
He said: “All large unquoted, large LLPs, and quoted companies, as defined by the Companies Act 2006, will have to comply with the new energy and carbon reporting framework.
“To reduce the additional burden on reporting companies, it is expected that the figures will be published in annual reports, alongside financial data.
“The UK government is extending mandatory carbon reporting requirements to more companies than the outgoing regulations, while encouraging those that aren’t required to report to disclose their sustainability data.”
In order to comply with SECR, large unquoted companies and LLPs will have to report their energy use and associated greenhouse gas emissions relating to gas, electricity and transport, as well as an intensity ratio, information relating to energy efficiency action, through the publication of annual reports.