I thought it might be worthwhile to draw attention to likely changes to the Companies Act which will include new obligations for companies to report on their carbon emissions as early as 2012.  This change could bring a whole new market opportunity to the accountancy profession.  It will also bring a need for us all to embrace new technologies to address this requirement.

You may ask whether this is really likely to happen.

The Climate Change Bill, which went through parliament in November, sets out a very serious timetable of work in order that the Government can introduce mandatory reporting in 2012. 

In May of this year the UK Government will commence a public consultation on carbon emission reporting for UK businesses. 

By October of this year they will be obliged to publish guidance on the measurement and calculation of carbon emissions.  The guidance would be intended to provide clarity and consistency of reporting, in order that reports can be more easily understood and compared. 

By December 2010 the Government must review the contribution that carbon reporting can make to reducing UK emissions.  It is expected to look at the benefit to the climate, and the business costs that arise from emissions reporting for UK businesses. 

By April 2012 UK Government must either make regulations under the Companies Act 2006, requiring that the Directors report includes greenhouse gas emissions reporting, or explain in a report before parliament why such regulations have not been made. 

With this firm statement of intent from the UK Government surely business and the accountancy profession, should start preparing for the task ahead now?