by Shane Henson — July 4, 2012—All businesses listed on the Main Market of the London Stock Exchange will have to report their levels of greenhouse gas emissions from the start of the next financial year under plans announced by the British Deputy Prime Minister at the Rio+ 20 Summit. Rio+20 is the short name for the United Nations Conference on Sustainable Development, which took place in Rio de Janeiro, Brazil, in June 2012. It was created to serve as an historic opportunity to define pathways to a “safer, more equitable, cleaner, greener and more prosperous world.”
The U.K. is the first country to make it compulsory for companies to include emissions data for their entire organization in their annual reports. The introduction of the reports, following consultations with leading businesses, will enable investors to see which companies are effectively managing the hidden long-term costs of greenhouse gas emissions, say U.K. officials.
More than 30 billion tons of carbon dioxide (CO2) are emitted globally each year by burning fossil fuels, and the concentration of CO2 in the Earth’s atmosphere is reportedly now higher than at any time in at least the last 800,000 years. U.K. officials say they are committed to cutting U.K. carbon emissions to 50 percent of 1990 levels by 2025, and as businesses are a major contributor to carbon emissions and other pollutants, the new regulations are needed.
The regulations will be introduced in April 2013 and will affect the approximately 1,800 companies listed on the Main Market. They will then be reviewed in 2015, before ministers decide whether to extend the approach to all large companies from 2016.
While the reporting is compulsory, U.K. officials say many businesses recognize the need to reduce their harmful emissions for the benefit of the planet and support the regulations. “It saves companies money on energy bills, improves their reputation with customers, and helps them manage their long-term costs, too,” explained Deputy Prime Minister Nick Clegg.
U.K. officials say this compulsory approach will:
- Provide the first step in enabling companies to manage and reduce emissions
- Mean more transparency from companies
- Provide a single consistent standard
- Provide information to businesses that could save money through reduced energy costs
