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Do Companies Have to Report Carbon Emissions?

Do Companies Have to Report Carbon Emissions?

The threat of irreversible climate change is real and we’re now seeing the first signs of these impacts, both around the globe and in our local towns and communities. To tackle this, the UK government has called for greater action from businesses to help reach their 2050 net-zero Carbon target . One of the levers being employed by the UK Government is a new reporting mechanism  developed by the Department for Business, Energy and Industrial Strategy – the Streamlined Energy and Carbon Reporting Framework (SECR). 

So, what does SECR mean for businesses in terms of what they  have to report ? According to current UK law, ‘large’ companies must report their greenhouse gas emissions each year.  Companies are defined as ‘large if they meet at least two of the following three criteria – have  a gross income of £36 million or more, have  a balance sheet of £18 million or more or ave over 250 employees. 

 We’ve produced this short guide for companies that are required to measure, report and track their carbon emissions under SECR . Simply keep reading to learn more about carbon emission reports.

Why Do Companies Need to Report Their Carbon Emissions?

We all have to do our part to tackle the ever-growing problem that climate change brings to our world. From increasing greenhouse gas emissions to melting ice caps, each year we see more evidence of how our carbon emissions are damaging our planet, and now provisions have been put in place that move us  one step closer to safeguarding our future. But why does change need to start with big businesses?

The truth is that large corporations play a big role in climate change, and any steps they make to go green have a big impact. In fact, the University of Manchester published that since 1988, 100 businesses are responsible for 71% of all greenhouse gas emissions. In an effort to monitor and reduce these emissions in the UK, the government enacted the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, which declares that all qualifying businesses must report their greenhouse gas emissions each year. 

By monitoring their emissions and usage, businesses are able to recognise what impact their company has on the environment. The report asks Directors to examine what actions they can take to reduce their carbon footprint, such as exploring the option of more sustainable supply chains or setting a target for lowering energy use. These reports can also be used by companies to explore methods to save money, improve sustainability and unlock additional market opportunities e.g. winning new clients and customers who are increasingly persuaded by environmental performance as well as price and quality.

What is the Current UK Law on Carbon Footprints?

Asking businesses to report on their emissions is part of a larger picture. In the UK, the government has set out a target to achieve net-zero carbon emissions  by 2050. This ambitious target has made it a legal requirement for all businesses to hit this target although not all companies are mandated to take action now; it is sensible through for all organisations in the UK to get started on measuring and  reporting on their annual carbon emissions as soon as possible to avoid their hand being forced in the future (and unlock the benefits). As it stands, there is no legal requirement for specific measurements that businesses have to keep in line with. However, a new Environment Bill has been proposed, which would work as a tax on carbon emissions. Currently, only a limited number of industries are taxed under this legislation. 

Why is it Important to Reduce Your Carbon Emissions?

There are many different reasons why taking action  to reduce your carbon emissions is important from increasing the quality of the air we breathe, to creating a more sustainable future for the organisation through to improving your bottom line. 

Reducing Your Carbon Footprint for Your Business with Boxfish

Lead the way in your industry on becoming greener with the expert help from Boxfish. We’re specialists in reducing your energy use and carbon footprint in your business, which not only plays a role in saving our planet, but also saving you on unnecessary costs. Our experts are ready to provide you with your free consultation, and assist with any carbon emissions report needs. Simply explore our website to learn more, or contact one of our helpful team members today. 

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