Sustainability and Climate Related Reporting for Smaller Enterprises

Although small enterprises do not have to disclose their emissions data in their financial statements, more and more are being asked for this data by businesses with which they trade. Medium and Large entities are increasingly concerned with their Scope 3 emissions and are reaching down their supply chain to understand their indirect emissions.

Additionally, many smaller enterprises are developing and implementing their own emission reduction strategies and are looking to inform their stakeholders (employees, customers, lenders and shareholders) how they are performing.

In order to provide consistency and transparency in their reporting, small enterprises may choose to voluntarily follow an established framework such as the Streamlined and Energy Carbon Reporting requirements. These are set out in The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. This framework requires the disclosure of:-

  1. the annual quantity of energy consumed from activities for which the company is responsible, including the combustion of fuel…..; and
  2. the annual quantity of energy consumed resulting from the purchase of electricity, heat, steam or cooling by the company for its own use.

In addition to the quantities of energy set out above, the disclosures should include details of any methodologies used to calculate this information and must express the company’s annual emissions as a ratio in relation to a quantifiable factor associated with the company’s activities e.g. Kg of CO2 per unit of output.

Next Steps

We support our clients in calculating or certifying their emissions data so that they can report with confidence, clarity and consistency. For more information and a free consultation, please contact Arnold Hill & Co today.

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