New sustainability reporting guidelines

and regulations - UK

What’s new

• EA Environmental reporting guidelines

• The Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013

• The reporting guidelines address mandatory requirements for GHG emissions reporting

Which companies will be affected?

• Quoted companies incorporate in the UK and listed in New York, UK and EEA countries

• Large companies

• Medium sized companies

New format for a ‘business review’

• The new format will replace the current ‘business review with a ‘strategic report’

• Companies to report on:

– Their strategy

– Business model

– Gender diversity

What about environmental and human rights issues?

• To the extent necessary for the understanding of the development, performance or position of companies business, include information about:

-social, community and human rights issues

• Where no information is provided it must be clearly highlighted in the content

Key challenges

• Determining if company subject to mandatory reporting (GHG regulations)

• Identifying the scope of emissions

• Gathering sufficient and accurate information

• Ensuring data is accurate and verified

Beware the repercussions!

• Potential for more penalties

• Litigation for misrepresentation

• Lack of transparency for investors or other stakeholders

• Fines for non-compliance!

Solutions

• Better management of sustainability risks- our sustainability legal register monitors future legislation and is directed at strategy management though its design

• Better reporting- see the CLT envirolawreporting package at www.clt-envirolaw.com/resources

www.clt-envirolaw.com