Andrea Smith, Technical Manager at CDP's presentation on the latest published version of the proposed amendment to the UK Companies Act 2006, requiring UK quoted companies to disclose Greenhouse Gas information in their Directors' Reports. Andrea was seconded to DEFRA to assist in the final stages of writing the proposed amendments. Please note that this presentation's content is based on CDP's understanding of the contents of the proposed regulation and may not represent the final version to come into force.

1. The Companies Act 2006 (Strategic Report and
Directors’ Report) Regulations 2013
Andrea Smith
Technical Manager
CDP

2. { UK - first to make it compulsory to report GHG emissions in annual report
{ Applies to quoted companies
{ Strategic report
{ Some reporting requirements removed
{ Some added:
• Human
rights
issues
• Women
on
the
board
• GHG
emissions
repor4ng
Regulation overview
Page 2

3. { In
the
Directors’
Report
{
Data
for
whole
company
-­‐
global
{
Applies
to
reports
prepared
in
respect
of
financial
years
ending
on
or
aAer
30
September
2013
{
The
GHG
repor4ng
year
may
be
different
to
the
financial
repor4ng
year
–
but
this
must
be
stated
Reporting of GHG emissions
Page 3

4. {
GHGs
in
tCO2e
from
ac4vi4es
for
which
the
company
is
responsible
including
•
the
combus4on
of
fuel
•
the
opera4on
of
any
facility
{
GHGs
resul4ng
from
the
purchase
of
electricity,
heat,
steam
or
cooling
by
the
company
for
its
own
use
{
Comply
or
explain
what
is
missing
and
why
{
State
methodologies
used
{
Give
at
least
one
emission
intensity
metric
{
Must
repeat
previous
year’s
data
for
these
points
(with
the
excep4on
of
first
repor4ng
year)
Reporting of GHG emissions
Page 4

5. When will my company have to start reporting?
Page 5
Your
usual
financial
year
Your
first
repor1ng
year
under
the
regula1on
1
January
to
31
December
1
January
2013
to
31
December
2013
1
April
to
30
March
1
April
2013
to
30
March
2014
1
October
to
30
September
1
October
2012
to
30
September
2013

6. {
No
requirement
to
have
the
data
verified.
{
Auditor
will
be
required
to
consider:
• whether
the
informa4on
is
consistent
with
the
financial
statements
• whether
the
informa4on
is
apparently
materially
incorrect
based
on,
or
materially
inconsistent
with,
the
knowledge
acquired
by
the
auditor
in
the
course
of
performing
the
audit
• the
need
to
qualify
their
report
if
they
become
aware
of
either
of
above
and
the
maYer
is
unresolved.
• They
are
not
required
to
consider
whether
the
directors’
report
complies
with
the
relevant
laws
and
regula4ons
but
if
they
become
aware
of
any
material
non-­‐compliance
then
they
would
need
to
discuss
the
maYer
with
management
and
those
charged
with
governance.
Verification
Page 6

7. {
If
companies
consider
that
repor4ng
emissions
from
ac4vi4es
for
which
they
are
responsible
means
that
they
will:
• Not
report
on
GHG
emissions
from
certain
opera4ons
covered
by
the
consolidated
financial
statement;
or
• Report
on
GHG
emissions
from
opera4ons
that
are
not
included
in
this
statement
they
must
make
this
clear
Reporting boundary
Page 7

8. {
Companies
can
use
the
methodologymethodologies
of
their
choice
• ISO14064
–
Greenhouse
gases.
Part
1
(2006)
• WRI
/
WBCSD
Greenhouse
Gas
Protocol:
A
Corporate
Accoun4ng
and
Repor4ng
Standard
(Revised
Edi4on)
• UK
Government
GHG
repor4ng
guidance
• Climate
Disclosure
Standards
Board
Climate
Change
Repor1ng
Framework
–
Edi1on
1.1
October
2012
•
Global
Repor4ng
Ini4a4ve
Sustainability
Repor4ng
Guidelines
Methodology
Page 8

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