This year, the Government faces a unique opportunity to turn environmental reporting from a niche activity within business and make it mainstream, delivering carbon and financial benefits to UK businesses. The 2008 Climate Change Act provides for the introduction of a mandatory requirement for businesses to regularly report on their greenhouse gas (GHG) emissions, if implemented this will need to be introduced by 6 April 2012.
Over 80% of business professionals who were surveyed by the Institute of Environmental Management and Assessment (IEMA) say that mandatory reporting of GHG emissions should be introduced for companies as it can deliver significant benefits, with those reporting emission reductions achieving an average of 9% CO2 savings over the last two years. These professionals recognise first hand that GHG reporting is an essential enabling tool encouraging companies to cut their GHG emissions and reduce costs.
In 2010 IEMA surveyed over 1,600 environmental professionals working in business, to gain a deeper understanding of their work and progress on energy and carbon reduction. These business practitioners clearly indicated that greenhouse gas (GHG) reporting by businesses is central to progress and plays a unique role in transforming companies towards low carbon leadership - up to 85% saying that they want to go beyond achieving legal compliance. Essential is the underlying principle of quantification and monitoring, often a pre-requisite in any business before implementing actions on energy and carbon reduction.
Reporting highlights the subject of GHG management to organisations and helps drive the momentum for action on carbon reduction both inside the business at a senior level, and also externally to clients, customers and investors. A clear relationship has been identified between GHG reporting and companies achieving higher reductions in their CO2 emissions. Although IEMA has seen incremental growth in reporting over the past 10 years, there needs to be a significant step-change if the UK's carbon budgets are to be achieved.
Reporting is an essential enabling tool, helping businesses to review and sustain progress in greening the business, helping to achieve financial savings and supporting related benefits in competitiveness and corporate reputation. IEMA members are in the front line working inside businesses and making the case for carbon and energy reduction. Of the business professionals IEMA surveyed 90% identified cost savings as a benefit of reporting, and around 80% said improving their reputation amongst stakeholders, customers and investors was also a benefit.
The more businesses that report on their GHG emissions, the greater the financial and carbon benefits. Practicing professionals are clear that GHG reporting by businesses can make a unique contribution to overall energy and carbon reduction, to business competitiveness and in helping companies to adapt and prepare for the future green economy.
Jan Chmiel is chief executive of the Institute of Environmental Management and Assessment
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