Mandatory carbon reporting for UK quoted businesses

Yesterday, Nick Clegg announced that the Government will enact legislation mandating that all companies listed on the London Stock Exchange (about 1,800 companies) must measure and report their greenhouse gas (GHG) emissions from April 2013.

Whilst this does not include private companies or those listed on the AIM market, the position will be reviewed in 2015, and in 2016 the Government will evaluate updated information to examine whether to extend the legislation to all large companies.

In June 2011 Defra began a cost-benefit analysis of introducing legislation that would require company directors’ reports to include information about GHG emissions. This was in response to the Climate Change Act 2008, which under section 85 obligated the Secretary of State to make regulations requiring directors’ reports of a company to contain GHG information, or lay before Parliament a report explaining why no such regulations have been made…

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