- 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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