Friday, July 19, 2013

Measuring and Reporting Environmental Impact

Measuring and Reporting Environmental Impacts:

  • From the 1st October 2013 the 'Companies Act 2006 (Strategic & Directors Report) Regulations 2013' will require all UK quoted companies to report on their greenhouse gas emissions as part of their annual directors report.



  • This affects all UK incorporated companies listed on: the main market of the London Stock Exchange, a European Economic area market of whose shares are dealing on the New York Stock Exchange or NASDAQ.


There is a newly structured annual report being created with a section called 'The Strategic Report', within this, companies will be required to report on environmental matters.

Where appropriate the use of Key Performance Indicator's will also have to be reported; if the annual report does not include this information, then it must point out omissions.

Useful Terminology...

  • Greenhouse Gasses - carbon dioxide, nitrous oxide, hydroflurocarbons, perflurocarbons and sulphur hexafluroide. Carbon dioxide is expected to be responsible for 2/3rd's of the anticipated future global warming

  • Carbon Footprint - the total amount of greenhouse gas emissions caused by an organisation, product, event or person

  • Climate Change - rising global temperatures bringing changes in weather, rising sea levels and increased frequency and intensity of extreme weather caused by the release of greenhouse gasses.


Benefits of Reporting...

  • Provides Increased visibility into an organisations energy consumption - making it easier to budget and target energy use and costs

  • Benefit from lower energy and resource costs

  • Gain a deeper understanding of exposure to the risks of climate change

  • Demonstrates organisations leadership and responsibility, which will strengthen green credentials in the marketplace


Using environmental KPI's can be helpful in capturing the link between environmental and financial performance

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