On 18 July 2018, the draft Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 were published.
The draft Energy and Carbon Report Regulations 2018 introduces new requirements to disclose information about emissions, energy consumption and energy efficiency action by quoted companies, large unquoted companies and large LLPs in their directors' (or equivalent) reports.
Quoted companies will be required to make statements in the directors' report concerning the company's energy use from activities for which the company is responsible and from purchases of electricity, heat, steam or cooling for its own use. They must also describe the principal measures, if any, taken to increase its energy efficiency.
Large unquoted companies will be required to disclose the company's greenhouse gas emissions, energy use for which the company is responsible and action taken to increase energy efficiency within the U.K..
Large LLPs will be required to prepare an equivalent report to the directors' report (an "energy and carbon report") for each financial year. The contents requirements mirror the disclosure requirements that apply to large unquoted companies.
There are exemptions from these disclosure requirements if making the statements would be seriously prejudicial to the interests of the company or LLP or if only a small amount of energy (40,000 kilowatt hours or less) has been used in the relevant financial year.
If approved by Parliament, the regulations will come into force on 1 April 2019 and have effect in respect of financial years beginning on or after 1 April 2019. Detailed guidance on how to comply with these new obligations is expected to be published by January 2019.
The draft Energy and Carbon Report Regulations 2018 can be found here:
