| ACCA Global | | Andrew George MP | | AXA Investment Managers | | Bank of America Merrill Lynch | | Barry Sheerman MP | | BIFFA | | BT | | CIWEM | | Dinah Nichols CB | | Drivers Jonas Deloitte | | eftec | | Emma Howard Boyd | | Environment Agency | | Environmental Industries Commission | | Environmental Sustainability Knowledge Transfer Network | | Forestry Commission | | Friends of the Earth | | Green Alliance | | Herbert Smith LLP | | IEEP | | IEMA - Institute of Environmental Management and Assessment | | Institution of Civil Engineers | | Jason McCartney MP | | John Edmonds | | Johnson Matthey | | L&Q Group | | Lord Teverson | | Lord Whitty | | Martin Horwood MP | | Michael Meacher MP | | MITIE | | National Grid | | Ownergy | | Pamela Castle OBE | | Pepsico | | Peter Jones OBE | | Professor Paul Ekins | | RSPB | | SEPA | | Sir John Harman | | SKM Enviros | | SmartestEnergy | | Speechly Bircham | | Sustain | | Tim Yeo MP | | UK Green Building Council | | Willmott Dixon Group | | WWF | | WYG | | Carbon Costs 2009Wednesday 15th July 2009 |
Introduction by Chair
Colin Challen MP, Chairman of the All Party Parliamentary Climate Change Group, welcomed the guests to the annual joint event with the Aldersgate Group on carbon reporting which continues to generate extensive interest. This is the last meeting before the summer recess, and the APPCCG will be focusing on the lead up to Copenhagen in the Autumn. |
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Defra Minister Dan Norris MP outlined key points from the joint DECC and Defra consultation on guidance on how to measure and report greenhouse gas emissions.
This will form the start of a three stage process which will lead to the introduction of mandatory carbon reporting by 2012 unless the government explains why this will not be the case. It is more comprehensive than current guidance, building on international developments. A wide range of stakeholders are being consulted and Defra is hosting a number of events throughout the country. It distinguishes between standard practice (minimum requirements) and best practice for those who would like to show real leadership in this challenge and more comprehensively address carbon risks and opportunities. |
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Lindsay Harris, the Defra lead for carbon reporting, supplemented the Minister's introduction with three main points:
(1) The scope of the guidance is broad, covering both direct and indirect emissions; (2) a key objective is to achieve greater consistency through a clear framework which is suitably balanced with the need for flexibility in certain instances (such as using the financial control approach); and (3) the guidance aims to be simple, easy to read and jargon free so it is accessible to a wide audience. In the questions that followed before the Minister had to depart, there was a discussion about the reporting of on-site renewable energy generation (which under the current guidance would be shown in the emissions balance sheet alongside the purchase of foreign carbon offsets and the purchase of green tariffs) and whether there should be standard practice for institutional investors to report to their clients on the management of environmental risks. The Minister welcomed the attendees to write to him directly with any further comments or suggestions.
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Paul Dickinson, Chief Executive of the Carbon Disclosure Project (CDP), thanked the Aldersgate Group and Rory Sullivan for their leadership on the carbon reporting agenda.
The CDP is an independent not-for-profit organisation which holds the largest database of corporate climate change information in the world, acting on behalf of over 475 institutional investors. CDP acts as Secretariat to the Climate Disclosure Standards Board (CDSB). Lois Guthrie then outlined the work of CDSB, a consortium of business and environmental organisations focused on the development of a global framework to facilitate the corporate disclosure of climate change-related data. It has launched proposals designed to assist directors in the inclusion of climate change-related information in companies' annual reports, and comments are invited by 25 September 2009. CDSB has collaborated with DEFRA and the CBI in the development of the CDSB draft reporting framework with a view to achieving alignment on disclosure rules wherever possible.
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Rory Sullivan, in his role as Head of Responsible Investment at Insight Investment, one of the UK's largest asset managers, argued that current corporate reporting on climate change currently falls short of what is required by institutional investors to enable them to adequately assess climate change-related risks.
He also noted that key issues were the lack of consistency in the scope and boundaries of reporting, the lack of consistency in the use of emission calculation protocols and the common lack of clarity on the assumptions underpinning reported greenhouse gas emissions and related data. As Chair of the CBI Carbon Reporting Working Group, he discussed the CBI report, All Together Now, which outlines the principles that the CBI believes should underpin a mandatory reporting regime. He noted that there is broad agreement between CBI and Defra on most technical issues such as the scope of emissions reporting, CO2 equivalence and consistency with the Greenhouse Gas Protocol. He argued that the bigger challenges relate to implementation, such as the support that will be required by reporting companies, the level of verification that will be required and the manner in which materiality is interpreted. He suggested that addressing these questions should be a priority for Defra over the next 12 months, as an integral part of the move towards mandatory reporting. |
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Peter Young, Chairman of the Aldersgate Group, drew on the very positive announcements made today across Government on strategies for a low carbon and resource efficient economy.
This transition will affect every aspect of the economy and effective carbon reporting will be at its heart. Many of the criteria critical for success have been discussed already. The CDSB report demonstrates a mechanism that can work internationally and the engagement of the Aldersgate Group and CBI membership show that the business community is up for the challenge. The Defra guidance is very welcome and there is now a need for greater consistency rather than flexibility - we need a common standard where investors and consumers can make meaningful comparisons. The Defra guidance must also maximise the business benefits for corporate investments in domestic, on-site renewable energy generations and the Aldersgate Group will continue its dialogue with Government on this issue. If the UK proceeds with an effective mechanism quickly, there are clear early mover advantage opportunities for UK businesses and job creation.
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Further Information
The Defra consultation closed on Friday 7th August. To access the Aldersgate Group response, click here. Defra will publish the final guidelines at the end of September, alongside guidance on the term carbon neutral. The CDSB consultation closes on the 25th September, for more information click here. |
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