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Mandatory Emissions Reporting: A step nearer following Defra report

The case for government legislation to force businesses to report

emissions has been boosted by new research which found more than half of

companies voluntarily measuring  carbon emissions claimed it led to a net

benefit for business.

Cost savings, improved green credentials and better relationships with

investors and customers were among the additional bonuses experienced by

companies that actively tried to reduce greenhouses gases.

Research carried out on behalf of the UK’s Department for Environment,

Food and Rural Affairs (Defra) found firms were using emission

measurements to set future targets for reduction and to influence wider

business plans.

A majority of companies, 53 per cent, admitted that regular emission

reports had been instrumental in triggering a change in behaviour within

their own organisation and raised interest in environmental matters to

boardroom level.

Businesses reported that being seen to be green by actively reporting

their own emissions and setting targets to reduce them had strengthened

their brand in the eye of investors and customers ,as well as creating

estimated energy savings ranging from £200,000 to £60 million over five

years.

“I am pleased to see that the many companies already voluntarily

involved in reporting GHG emissions are finding the process beneficial

to their business and investors. I am also delighted to see that the act

of reporting is encouraging attempts to reduce emissions,” said Lord

Henley, UK Environment Minister.

“The next steps for Government will be to consider the findings of the

report. We’ll be announcing a way forward in early 2011.”

The positive results from this latest research will help inform the

Government’s decision on whether to make GHG reporting mandatory and an

announcement is due to be made early next year. The Climate Change Act 2008

requires government to introduce legislation for mandatory reporting by 6 April

2012, or explain why this hasn’t happened.

“It is encouraging to find that many companies see GHG reporting as

beneficial to their business. The emission figures seem to act as a

catalyst for other changes within the company resulting in wide ranging

benefits for both the environment and the business,” said Bob Watson,

Chief Scientific Advisor to the UK government.

“Tackling climate change is something we need to do together so it’s

great to see the positive contribution being made by many British

companies.”

However, before the government introduces mandatory emissions reporting

experts have called for a unified approach to how reporting is done.

“There are already a number of existing schemes, such as the EU

Emissions Trading Scheme, the Carbon Reduction Commitment and Climate

Change Agreements, which are used by firms to report their emissions and

plan for reductions,” said William Dick, Director of Be Seen Go Green

Environmental Consultants.

“There needs to be a simple and unified approach which will make life

easier for businesses and encourage more to measure their emissions and

make behavioural changes within organisations.

“When you consider that the cost of instigating a measurement procedure

is around £50,000 for most big companies and the average savings are a

minimum of £200,000 then it should be a fairly easy decision to make yet

many companies still need to be convinced to make the first move. This

research will help.”

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