Streamlined Energy and Carbon Reporting

Overview

We're seeking views on the UK government’s proposals for a streamlined and more effective energy and carbon reporting framework.

Reporting is proposed to be done within companies’ annual reports, which shareholders can request, and are filed with and made available by Companies House. It is proposed to apply to certain UK companies formed and registered under the Companies Act 2006, and potentially Limited Liability Partnerships (LLPs). It proposes applying either energy use, or company size thresholds when determining to whom the framework will apply. It also proposes continuing to require UK quoted companies, regardless of size, to report.  

Companies and groups eligible for the small companies regime would potentially be exempt if not otherwise exempted by other thresholds. There is also potential for voluntary participation by organisations outside this scope.

The consultation also seeks views on other policy mechanisms such as regulation and incentives, that can work with reporting to drive energy efficiency. We request evidence at the end of this paper seeking views on a possible central reporting portal managed by an administrator further in the future.

Why your views matter

Improving energy efficiency in business can boost productivity, support growth, improve security of energy supplies and help decarbonise the economy. Embracing the challenges this places on our businesses and creating a policy and regulatory environment that supports this transition will deliver long-term benefits for the UK economy.

A public consultation, ‘Reforming the business energy efficiency tax landscape’, was conducted in 2015. A significant number of respondents to that consultation agreed that mandatory reporting of energy use and carbon data is an important element of the landscape and that board/senior management sign-off for these reports could deliver significant benefits. However, a significant number of respondents also highlighted the need to rationalise and simplify the landscape.

The UK government announced in the March 2016 consultation response that it will work to abolish the CRC Energy Efficiency Scheme (CRC) after the 2018-19 compliance year. Given the significant support for maintaining mandatory reporting, the UK government also announced that we will consult on a simplified energy and carbon reporting framework for introduction by April 2018. Decisions by the Devolved Administrations on their approach on CRC closure will be informed by a range of issues.

What happens next

We will summarise all responses and place this summary on the GOV.UK website. This summary will include a list of names or organisations that responded but not people’s personal names, addresses or other contact details.

Responses will provide vital supporting evidence to the development of a UK reporting framework policy & Impact Assessment. However, it is important to note that responses will be part of a wider initiative to develop the reporting policy framework and they will have to be assessed on this basis, as well as in relation to each other.  They will also need to be assessed in relation to government priorities, such as on the Industrial Strategy (Business energy roadmap 2017) and in the context of changing circumstances.