MANDATORY CARBON REPORTING
All companies that are UK incorporated and has equity share capital officially listed on the London Stock Exchange; or is officially listed in a European Economic Area; or is admitted to dealing on either the New York Stock Exchange or NASDAQ, are required to measure and report Greenhouse Gas (GHG) emissions.
Companies are required to report on the greenhouse gases produced by their entire business operations in their Annual Reports. Participating companies must report on all emissions of the 6 Kyoto gases (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride) from Scope 1 and 2 sources. Companies must also state in the directors report if they have excluded items.
The Government had suggested that it was scrapping the regulations as part of the Business Energy Tax and Reporting Reform however the decision was reversed in March 2016 when confirmation that it would remain was announced. The scheme was extended to capture many more businesses as a replacement for the Carbon Reduction Commitment. It was renamed the Streamlined Energy and Carbon Reporting (SECR) requirements – the reporting requirements remain the same for those captured within MCR.
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