Clegg orders mandatory reporting from 2013

18th July 2012


Related Topics

Related tags

  • Mitigation ,
  • Management/saving ,
  • Reporting



After months of delay, the deputy prime minister has confirmed that new legislation will be created requiring some of the UK's largest businesses to reveal the amount of greenhouse gases their operations emit

In a speech at the UN Earth summit in Rio, Nick Clegg announced that from April next year all 1,200 companies listed on the London Stock Exchange will be required to include data on greenhouse-gas (GHG) emissions in their annual reports, with the obligation likely to apply to some 24,000 large UK businesses from 2016.

The government hopes the introduction of mandatory disclosure will encourage companies to improve their energy efficiency.

“Counting your business costs while hiding your greenhouse-gas emissions is a false economy,” said Clegg.

“Being energy efficient makes good business sense. It saves companies money on energy bills, improves their reputation with customers and helps them manage their long-term costs too.”

The new regulation, the first of its type in the world, should save four million tonnes of CO2 by 2021, according to Defra.

Business and environment groups, including the CBI, the Aldersgate Group and Friends of the Earth, many of which have lobbied the government in favour of mandatory reporting over the past year, welcomed the news.

The measure was also supported by more than 90% of IEMA members surveyed in 2010, who argued that forcing firms to report their GHG output would be an important tool to motivate businesses to better manage their emissions.

Martin Baxter, IEMA’s executive director of policy, said: “Mandatory reporting will deliver benefits for both the UK economy and the environment, and turn the environment into a mainstream business opportunity.”

However, he warned that the real benefits of mandating GHG disclosure will not be seen until it is introduced for all large businesses, as the majority of listed businesses already report their emissions.

“We strongly urge government to speed up the process of introducing mandatory reporting on GHG emissions to all large companies as soon as possible,” he said.

IEMA expects draft regulations implementing the policy to be published by the end of July.

Confirmation of the regulatory change has also prompted renewed calls for the Carbon Reduction Commitment Energy Efficiency scheme (CRC) to be scrapped.

David Workman, director-general of the Confederation of Paper Industries, which previously argued against the introduction of mandatory reporting, warned of the dangers of increasing the regulatory burden on businesses.

“The paper industry already has a climate change agreement, we are within the EU emissions trading scheme and we’re subject to the CRC. There is a very real danger of overkill here,” he said. “At a time when Whitehall is supposed to be reducing red tape, we want to know whether mandatory reporting is something new or if it will replace the CRC.”

Rhian Kelly, the CBI’s director for business environment policy, agreed: “To avoid unnecessary duplication, the government now needs to scrap the CRC.”

In a new report on UK environment legislation, the CBI strongly criticised the CRC. “The overwhelming business view is that it is damaging, rather than driving, business investment,” it states.


Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.

Transform articles

Weather damage insurance claims hit record high

Weather-related damage to homes and businesses saw insurance claims hit a record high in the UK last year following a succession of storms.

18th April 2024

Read more

The Scottish government has today conceded that its goal to reduce carbon emissions by 75% by 2030 is now “out of reach” following analysis by the Climate Change Committee (CCC).

18th April 2024

Read more

The Science Based Targets initiative (SBTi) has issued a statement clarifying that no changes have been made to its stance on offsetting scope 3 emissions following a backlash.

16th April 2024

Read more

While there is no silver bullet for tackling climate change and social injustice, there is one controversial solution: the abolition of the super-rich. Chris Seekings explains more

4th April 2024

Read more

One of the world’s most influential management thinkers, Andrew Winston sees many reasons for hope as pessimism looms large in sustainability. Huw Morris reports

4th April 2024

Read more

Alex Veitch from the British Chambers of Commerce and IEMA’s Ben Goodwin discuss with Chris Seekings how to unlock the potential of UK businesses

4th April 2024

Read more

Regulatory gaps between the EU and UK are beginning to appear, warns Neil Howe in this edition’s environmental legislation round-up

4th April 2024

Read more

Five of the latest books on the environment and sustainability

3rd April 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close