Main UK legal requirements
The main legal requirements for reporting environmental information are contained in Companies Act 2006 (Strategic Report and Directors’ Reports) Regulations 2013. The general requirements are contained in section 414 C (7b(i)) which requires a company to report information about environmental matters (including the impact of the company’s business on the environment).
Specific requirements in respect of reporting greenhouse gases are contained in Directors’ Report “Part 7” of Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 which came into effect for reporting periods beginning on and after 30 September, 2013.
Main UK legal requirements (cont)
These requirements require companies to state the annual quantity of emissions in tonnes of carbon dioxide equivalent from activities for which that company is responsible including— (a) the combustion of fuel; and (b) the operation of any facility (s15(2)) and the annual quantity of emissions in tonnes of carbon dioxide equivalent resulting from the purchase of electricity, heat, steam or cooling by the company for its own use (s15(3)).
However, section 15(4) states that the requirements of s15 (2) and (3) apply only to the extent that it is practical for the company to obtain the information in question; but where it is not practical for the company to obtain some or all of that information, the company must state what information is not included and why.
Main UK legal requirements (cont)
In terms of s16 of the regulations, the directors’ report must also state the methodologies used to calculate the information disclosed under paragraph 15(2) and (3) of the regulations. In addition, s17 requires that the directors’ report must state at least one ratio which expresses the quoted company’s annual emissions in relation to a quantifiable factor associated with the company’s activities.
Companies are also required to disclose comparative figures for the previous period in terms of the information provided under s 15 (2) and (3) and s 17 with the the exception of the first year for which the directors’ report contains such information (s 18).
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