New digital tool launched for easier energy and carbon reporting

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BUSINESSES can now digitally report energy and carbon data in the same way as financial information.

A new digital tool will make it easier and more convenient for businesses to comply with energy and carbon reporting rules.

The Streamlined Energy and Carbon Reporting taxonomy allows businesses to report their energy and carbon data when they file digital accounts with Companies House.

Director of Digital at Companies House Ross Maude commented on the scheme: “This is a fantastic example of cross-government working to deliver a digital service that addresses an important issue.

“Understanding the role businesses have in reducing energy and carbon emissions is central to delivering the UK’s ambition to reach net zero by 2050.

“Through effective collaboration, we can make it easier for businesses to play their part.”

The Taxonomy has been developed by the Financial Reporting Council in collaboration with Companies House and the Department of Business, Energy and Industrial Strategy and enables businesses to report information in XBRL format.

Many companies already submit accounts using XBRL, but this is the first time it has been utilised to capture environmental data in annual reports.

Streamlined Energy and Carbon Reporting legislation, which came into force on 1 April 2019, requires all large UK companies and large limited liability partnerships, as well as all quoted companies, to report on their annual energy use, greenhouse gas emissions and energy efficiency actions they have taken.

Other businesses can also include the disclosures on a voluntary basis.

Companies House and the Financial Reporting Council are responsible for ensuring businesses comply with the Streamlined Energy and Carbon Reporting reporting requirements.

Project Director for Taxonomies at the Financial Reporting Council, Jennifer Guest, added: “Enabling companies to file their Streamlined Energy and Carbon Reporting reports digitally within their annual financial report is an important step in improving transparency of companies’ energy reporting.

“The Streamlined Energy and Carbon Reporting taxonomy has been carefully designed so it can be used with other accounting taxonomies making it simple and easy to use.”