Mandatory carbon reporting: the implications
Likely to be scope 1 and 2. But 3?
So the post announcement dissection begins! Exactly what actions will Defra impose on companies need to do to comply with mandatory carbon reporting requirements?
According to the Government’s Impact Assessment on the implied focus for Mandatory Carbon Reporting will initially be on scope 1 and 2 emissions. Our estimates suggest that 30% of those on the London Stock Exchange will need to take action to comply, although companies under the CRC or have a Climate Change Agreement or report to the Carbon Disclosure Project will probably only need minor adjustments making to current reporting regimes.
What the Mandatory Carbon Reporting does not recognise is that investors, in particular, have an interest in understanding scope 3 (or supply chain) emissions.
Managing supply chain emissions is centrally risk management with companies building on the current ISO14064 and GHG Protocol standards as well as Defra’s own reporting advice. Notably, the Carbon Disclosure Project already covers scope 3 emissions.
Envido’s carbon specialists can review and update your reporting needs, but we think that energy and carbon reduction requires a more diagnostic approach.
League tables, corporate reports and registries have a role to play – but measuring (via smart metering), prioritisation and implemenation of efficiency projects is the only way organisation’s save money, energy and carbon and boost investor confidence.