AEA urges businesses to get a head start on mandatory reporting

Since these articles were published, AEA Technology plc’s business, operating assets and employees were acquired on the 8 November 2012 by Ricardo plc and transferred to a new subsidiary, Ricardo-AEA Ltd. All employees were transferred to Ricardo-AEA Ltd as part of the acquisition and remain available for the execution of all projects via the new company, as are the entire capability and resources previously represented by AEA Technology plc. All individuals remained at previous locations with all offices being retained.

UK businesses can get a head start on the government’s requirements for mandatory reporting of greenhouse gas emissions (GHGs) announced last month by taking action now, according to leading environmental consultancy AEA.

From April 2013 all quoted businesses listed on the Main Market of the London Stock Exchange will have to report their levels of GHGs and potentially large companies from 2016. Although further details on mandatory reporting are not expected until the autumn, there are steps businesses can take before then, advises Ricardo-AEA carbon management knowledge leader Christine St John Cox.

She points out that the Environment Agency’s most recent report on environmental disclosures by quoted companies shows that in 2009/10 annual reports, only 22% were reporting this information in line with government guidance.

“This shows that even the most proactive quoted businesses may need to reconsider their approach to annual reporting,” said Christine St John Cox.

“Companies should therefore instigate a review of their reporting procedures, data quality and data recording to see if they meet the current company reporting guidelines. They will then be in an excellent position to understand the requirements when they are announced, the implications for their business and what they need to do to comply.

“The sooner companies start to monitor and report their greenhouse gases the better as they have so much to gain in terms of financial savings,” she maintained. “So even if a company is not potentially affected by the new rules until 2016, or even currently exempt from mandatory reporting, taking action now should pay dividends.”

In Christine St John Cox’s view, a growing number of businesses are reporting to enhance their brand and reputations so it will become even more important for those companies to report accurately with the introduction of mandatory reporting.

“Consistent transparent reporting will reduce exposure to future climate change legislation, and provide more information for investors,” she said. “The verification and assurance of GHG emissions will therefore become increasingly important considerations in the months ahead so companies should also review their options on this front too.”

You can read the announcement in full here: http://www.defra.gov.uk/environment/economy/business-efficiency/reporting/

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