UK: the Climate Change Bill and company reporting - goodbye to clause 80

[Update (28 November): see here]. In early June, when the Climate Change Bill received its Second Reading in the House of Commons, the Government indicated (see HC Hansard, 9 June, col 124) that it was still considering whether to retain Clause 80. Clause 80 would require those companies publishing a Business Review to report on their level of greenhouse gas emissions; it had been inserted into the Bill in the House of Lords.

The Bill has now reached the Committee stage in the House of Commons and earlier this week Clause 80 was debated and then removed from the Bill.  Government Minister Phil Woolas MP gave two main reasons for the removal of clause 80:

• the power of the Government to impose new reporting requirements already exists in Section 416(4) or 468 of the Companies Act (2006)
• clause 80 lacked sufficient guidance on the manner in which greenhouse gas emissions should be reported

This is not, however, where the story ends because the Government has inserted two new clauses into the Bill the purpose of which is provide guidance on the measurement of greenhouse gas emissions. The possibility remains, therefore, that additional reporting requirements may be introduced. These two new clauses appear below. It should also be pointed out that under Section 417 of the Companies Act (2006), quoted companies are required, "to the extent necessary for an understanding of the development, performance or position of the company's business" to include within their Business Review "information concerning "environmental matters (including the impact of the company's business on the environment)". For further information about the Bill, including the official record of debates, see here.  Update (29 October 2008): further changes have taken place - see here.

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New clause 6 - Guidance on reporting

(1) The Secretary of State must publish guidance on the measurement or calculation of greenhouse gas emissions to assist the reporting by persons on such emissions from activities for which they are responsible.
(2) The guidance must be published not later than 1st October 2009.
(3) The Secretary of State may from time to time publish revisions to guidance under this section or revised guidance.
(4) Before publishing guidance under this section or revisions to it, the Secretary of State must consult the other national authorities.
(5) Guidance under this section and revisions to it may be published in such manner as the Secretary of State thinks fit.

New Clause 7 - Report on contribution of reporting to climate change objectives

(1) The Secretary of State must—

(a) review the contribution that reporting on greenhouse gas emissions may make to the achievement of the objectives of Her Majesty’s Government in the United Kingdom in relation to climate change, and 

(b) lay a report before Parliament setting out the conclusions of that review.

(2) The report must be laid before Parliament not later than 1st December 2011.

(3) In complying with this section the Secretary of State must consult the other national authorities.

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