London, 20th June 2012 – The UK Government has announced today that all firms listed on the London Stock Exchange will have to disclose their greenhouse gas emissions from April 2013. Nick Clegg has commented on this move ahead of his attendance today at the UN Rio+20 Earth summit.
According to Mr Clegg, “While nine out of 10 chief executives say sustainability is fundamental to their success, only two out of 10 record the resources they consume.” The UK government intends to give sustainability reporting “a global push” and hopes that other countries will follow suit.
Abigail Dean, Director, Upstream Sustainability Services at Jones Lang LaSalle commented: “This will be a welcome announcement to many in the real estate sector as leading businesses have been pushing the government on this issue. The sustainability team at Jones Lang LaSalle has been working with its clients to publicly report their emissions for over 15 years and these organisations will be in a strong position to meet the demands of these regulations. This announcement sends a strong message about the UK’s commitment to reducing emissions."
"Listed companies who are not already collecting this information will need to move fast to ensure they are prepared come next April. There are many large players in the property sector who are not listed but these organisations may find that their stakeholders have increased expectations of them to publicly report their emissions. Those who are already recording their emissions for the CRC will be well prepared, although the dual reporting requirements will be viewed as onerous by many."
Further details on the reporting requirements are expected to be released later today. Whilst the initial announcement covers the 2,500 or so firms listed on the London Stock Exchange, ‘large non-listed companies’ may be required to report on their greenhouse gas emissions after a review, expected in 2015.