Businesses and MPs call on Mandelson to deliver mandatory carbon reporting

Green business think tank the Aldersgate Group has today issued an open letter to Lord Mandelson calling on the Business Secretary to enact powers in the Climate Change Act that would make it mandatory for listed firms to report on their carbon emissions.

The letter was signed by more than 40 businesses and NGOs, such as Aviva, BSkyB, National Grid, and Friends of the Earth, and more than 50 MPs, including Liberal Democrat leader Nick Clegg and Conservative Shadow Climate Change Minister Greg Barker MP.

It commended the government's introduction of voluntary guidance on corporate greenhouse gas reporting, but argued that with only half of FTSE350 companies currently disclosing their carbon emissions there was a strong case for making carbon reporting mandatory.

"Now that the voluntary guidance is published, it is clear that making this mandatory for all large UK organisations would ensure greater accountability and transparency," the letter states. "This will help companies identify cost savings through greater resource efficiency and more effectively address material climate risks and opportunities. It would also create a level playing field, allowing investors and consumers to make meaningful comparisons, thus driving further emission reductions."

It went on to argue that the administrative costs of mandatory reporting would be offset by the cuts in emissions that the resulting data would help enable.

It also argued that imposing mandatory reporting requirements would help to cement the UK's position as a global leader in the development of a low carbon economy, and bolster the City of London's ability to establish itself as a carbon trading hub.

Paul Monaghan, a signatory of the letter and head of social goals at The Co-operative, said that the current voluntary approach to carbon reporting had proved ineffective. "The advocates of voluntary reporting have had their way for over a decade and still just half of the UK's largest businesses report their greenhouse gas emissions," he observed. "Legislation is long overdue, and we will not see investors begin to systemically factor climate change into their decision making until this nettle is grasped."

The Department of Business, Innovation and Skills was unavailable for comment at the time of going to press.