The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)
Following the public consultation last year, I can announce today that the Government will introduce a regulation requiring reporting of greenhouse gas (GHG) emissions by quoted companies in April 2013. Mandatory reporting of GHG emissions by all quoted companies will provide transparency enabling investors to see how listed companies are managing their carbon liabilities. This is essential information for investors who wish to assess medium to long-term risks. Business groups have called for regulation to create a common standard on GHG reporting and a level playing field, and to create transparency for investors and wider stakeholders.
We will collect evidence from the first two years of reporting by quoted companies and take a further decision in 2016 on whether the reporting requirement should be extended to all large companies.
This decision meets the requirement in section 85 of the Climate Change Act 2008 to make regulations under section 416(4) of the Companies Act 2006 requiring the directors’ report of a company to contain such information as may be specified in the regulations about emissions of GHG for which a company is responsible. A report to Parliament was laid on 27 March 2012 to conform with the Climate Change Act.