Written by Oliver Wagg 08 July 2010
UK companies may have to report their carbon emissions in annual reports from as early as next year, according to Trucost.

Citing a government policy paper, Trucost said under the UK Climate Change Act 2008 the government must introduce mandatory greenhouse gas reporting regulations by April 2012 or explain why it hasn't done so.

"Carbon disclosure by the UK's largest companies would act as a significant driver of emissions reduction and create a competitive advantage in the corporate sector by establishing a level playing field, allowing consumers and investors to make meaningful comparisons," the green paper says.

Trucost said companies could also see stricter rules for wider environmental reporting in annual reports - the coalition government plans to consult this summer on proposals to reinstate a requirement for large firms to produce an Operating and Financial Review.

The previous government dropped plans to make publication of an OFR mandatory. Since then, the Accounting Standards Board has issued a Reporting Statement of best practice on the OFR, recommending disclosure of water and energy use, waste and climate change, including greenhouse gas emissions.

Source: Ethical Investor Newsletter, 9th July 2010.
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