Mandatory carbon reporting: the implications for business

  • -

Mandatory carbon reporting: the implications for business

carbon

Some five years ago, Ed Miliband, then climate change secretary, set a target of reducing greenhouse gas emissions by 80% by 2050 on 1990 baselines. Since then, measures such as the Carbon Reduction Commitment (CRC) have encouraged British businesses to contribute to the cause.

The introduction of mandatory carbon reporting for quoted companies, announced in June 2012, is the latest initiative. Although some ambiguities are yet to be sorted out, we now know one thing for sure: from October, companies will have to report their global carbon dioxide equivalent emissions in their financial reports.

Other questions have been answered too. Additional legislation in the Companies Act makes it the legal responsibility of the board of directors to “state the annual quantity of emissions in tonnes of carbon dioxide equivalent from activities for which that company is responsible”, with severe penalties (up to six months in prison) for any director who makes a misleading or false statement. “Carbon dioxide equivalent” (CO2e) is defined as emissions data from the six main Kyoto gases (carbon dioxide, methane, nitrous oxide, perfluorocarbons, sulfur hexafluoride, and hydrofluorocarbons). Defra has also released a methodology for converting, for example, litres of fuel used, number of miles driven or tonnes of waste into kilograms of CO2e.

But what impact will this have? The challenges of data collection, particularly for companies that operate across multiple premises scattered throughout different regions, Can be huge. This is where ENMATCan help.

 

Because ENMAT is a cloud based software platform it allows us to aggregate energy consumption from multiple sites, even if they are not in the same country.

ENMAT is a single application shared by many companies, allowing us to apply system updates globally simultaneously.

So, to calculate carbon emissions, for example ENMAT uses the DECC Carbon Emissions Factors to provide a more accurate reading of a site’s carbon emissions.

enmat-cloud

 


Register / Sign In

Contact Us

Call Us Free: 0800 054 2577
Email: savings@envantage.co.uk