Quoted companies are required to report their annual greenhouse gas emissions in their directors’ report. 

Quoted companies are those that are UK incorporated and whose equity share capital is officially listed on the main market of the London Stock Exchange; or is officially listed in a European Economic Area; or is admitted to dealing on either the New York Stock Exchange or NASDAQ.

Carbon reporting is the first vital step for companies to make reductions in emissions. By measuring and reporting green house gas emissions companies can begin to set targets and put in place carbon management initiatives to reduce emissions in the future.  Defra (the UK Department for Environment, Food and Rural Affairs) has estimated that reporting will contribute to saving four million tonnes of CO2 emissions by 2021.

There is no prescribed methodology under the regulations, but for effective emissions management and transparency in reporting it is important that robust and accepted methods are used. This means that a suitable, widely recognised independent standard such as the green house gas Protocol Corporate Standard is referred to. The accounting approach covers emissions from all activities globally and all relevant greenhouse gases are included

All businesses have the opportunity to reduce their carbon emissions and the business case for doing so is growing ever stronger. Higher and more volatile fuel energy costs are increasing the value of energy savings. Companies that manage their carbon emissions responsibly can enhance their brand value and make themselves more attractive to potential customers and investors.

Comes from the Companies Act 2006 (Strategic and Directors’ Reports) Regulations 2013.