Amendments to the Companies Act 2006 require UK quoted companies to report GHG emissions in their Directors’ Reports. Use the CDSB Climate Change Reporting Framework to comply.
The Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 list the CDSB Climate Change Reporting Framework as a method for compliance.
- All UK incorporated quoted companies (Companies Act 2006 definition) i.e. with equity shares listed on London Stock Exchange Main Market, EEA regulated, NYSE or NASDAQ are required to report their GHG emissions in their Directors’ reports.
- To allow investors to incorporate climate risk into analyses;
- To meet Government’s emission reduction objectives;
- To increase the number of companies reporting GHG emissions.
- Global emissions must be reported, not just those in the UK. Several boundary settings are possible, including that of the Climate Change Reporting Framework which takes into account both financial and GHG reporting standards. Find out more in the guidance to the regulation;
- Emissions of all greenhouse gases: Companies are responsible for all greenhouse gases as outlined by the Kyoto Protocol, not just their CO2 emissions;
- Scopes 1 and 2 only. The reporting requirements are only for direct emissions and indirect emissions from purchased electricity and gas.
- Emissions must be included in the Annual report to Directors or Strategic Report (see our guidance for details).
- Use the Climate Change Reporting Framework (Version 1.1) to comply with the regulations, as referenced in Defra’sEnvironmental Reporting Guidelines (see Chapter 2).