In one month, quoted companies, large unquoted companies & large Limited Liability Partnerships (LLPs) will need to be able to comply with the requirements of the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 & the accompanying guidance document: Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance
Although, the new Regulations were published earlier on 6 November 2018, it is an appropriate timely reminder that they come into force on 1 April 2019 and apply to financial years starting on or after 1 April 2019.
It should be noted that the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 introduced changes to require quoted companies to report their annual emissions and an intensity ratio in their Directors’ Report.
The 2018 Regulations bring in additional disclosure requirements for quoted companies as well as the introduction of requirements for large unquoted companies and limited liability partnerships to disclose their annual energy use and greenhouse gas emissions, and related information.
The legislation affects:
- Quoted companies;
- Large unquoted companies;
- Large Limited Liability Partnerships (LLPs).
It should be noted that the Regulations affect any organisation which falls within the above three categories even if not for profit or if undertaking public activities e.g. are registered companies or are companies/LLPs owned by universities, academies or NHS Trusts.
Companies incorporated outside of the United Kingdom are not required to include energy and carbon information in their Directors’ Report under this legislation, including foreign parent companies of UK subsidiaries. The government encourages all private sector organisations which are not in scope of the legislation to report similarly, although this remains voluntary.
Please comment on your experiences in energy and carbon reporting & meeting this new compliance obligation.