New disclosures to shine a spotlight on energy efficiency
Draft regulations have been published to require new disclosures about emissions, energy use and energy efficiency action in directors' reports or energy and carbon reports. The Regulations will apply to financial years starting on or after 1 April 2019.
The draft Regulations will require:
- quoted companies to make statements in the directors' report concerning the company's energy use from activities for which the company is responsible and from purchases for its own use, and action taken to increase its energy efficiency;
- large unquoted companies to make statements in the directors' report concerning the company's greenhouse gas emissions, energy use and action taken to increase energy efficiency within the UK; and
- large LLPs to prepare an equivalent to the directors' report (an "energy and carbon report") for each financial year. The energy and carbon report must include statements concerning the LLP's greenhouse gas emissions, energy use and action to be taken to increase its energy efficiency in the same manner as is required of unquoted companies.
Detailed guidance on how to comply with the new obligations is expected to be published by January 2019.
Click here for the draft Energy and Carbon Report Regulations 2018.