Isra-Mart srl:Announcement on corporate carbon reporting rules due this month

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Isra-Mart srl news:

The government has today confirmed it will announce how it plans to proceed with proposed mandatory carbon reporting rules before the end of this month.

The commitment, contained in the coalition's new carbon action plan, confirms the government will announce "a way forward" on whether to enact powers in the Climate Change Act requiring company directors to report on greenhouse gas emissions by the end of the first quarter of 2011.

Under the Climate Change Act the government has until April 2012 to either impose mandatory reporting requirements on companies or explain to parliament why it has decided not to introduce such regulations.

Industry insiders said they had it on good authority that the government will launch a consultation this month on whether or not to introduce new rules, which will leave the full range of options open.

"It is likely to be a short consultation as the government will want to give businesses at least a year's notice before introducing any new rules and it has to make a decision by May 2012 under the Climate Change Act," said one source. "I would expect a decision by May this year, which would mean a short, eight-week consultation."

It remains unclear whether or not the government will impose rules requiring firms to include information on their carbon footprint in their annual reports. However, the new carbon plan states that "government will continue to encourage companies to measure and report their greenhouse gas emissions, as there is evidence showing the benefits to companies and to other stakeholders from public disclosure of emissions data".

There is also widespread support for mandatory reporting across the corporate sector, with the CBI joining green business groups such as the Aldersgate Group, the Green Alliance and the Carbon Disclosure Project to voice support for the proposals.

However, sources remain uncertain whether the rules will be adopted, noting that while there is considerable support for the move within government, the coalition's "one-in, one-out" pledge for new regulations could present a barrier to adoption.