Lords call for carbon reporting standards

The House of Lords have passed an amendment to the Climate Change Bill so that all companies will have to publicly disclosure their greenhouse gas emissions in their annual reports.

A coalition of UK businesses, NGOs and government agencies said such transparency will create a level playing field for UK business, making them more accountable to consumers and investors and is likely be a significant driver for emission reductions in the corporate sector.

The Aldersgate Group has been leading a campaign for the introduction of such measures, gaining support from major corporations, NGOs, and MPs.

During the Lords debate, it was argued that mandatory carbon reporting was a ‘litmus test’ of the Government’s attitude to combating climate change, and that any further delay would not reflect the urgency of the problem.

“We need a proper system of accounting, supported by guidance and the accounting profession to ensure not simply that carbon is effectively traded on a verifiable and equitable basis but also to change the way in which companies behave.

Aldersgate Group member, Lord Whitty

Lord Rooker, speaking on behalf of the Government, accepted the amendment outright, as opposed to holding a vote, due to the considerable support it received.

Aldersgate Group member, Lord Whitty, who tabled the original amendment, said: ‘We need a proper system of accounting, supported by guidance and the accounting profession to ensure not simply that carbon is effectively traded on a verifiable and equitable basis but also to change the way in which companies behave.’

Andrew Raingold, Public Affairs Manager, Aldersgate Group, said: ‘Its seems that the Government is finally waking up to the fact that the current lack of rules is impeding progress. The Lords overwhelming supported the need for greater openness in the reporting of company emissions, creating a level playing field in the process, and this vital piece of legislation should not be watered down in the Commons.’

In support of an Aldersgate Group letter to the Prime Minister in November last year, Mayor of London, Ken Livingstone, said: ‘We need a clear and common standard so that we can track and compare CO2 emissions from businesses. We can still avert catastrophic climate change, but it will require very significant and immediate emissions reductions, which can only be achieved if all parts of society - governments, businesses and individuals - take responsibility for making their own contribution.’