WEBINAR 24 OCTOBER 2012Introduction to the Draft Greenhouse GasEmissions (Director’s Report) Regulations2013Lois Guthrie, ...
Q&As from the last webinar  cdsb.net/ukghgqa  • Timing  • Verification and enforcement  • Methodologies  • Reporting bound...
CDP & CDSB joint response to DEFRA Consultation  cdsb.net/UKGHGConsultationResponse                                       ...
And…..  •A round table meeting  •More questions  •Update to the CDSB Climate Change Reporting Framework                   ...
A recap - What’s in the regulation?       Companies within scope – Quoted companies (per section 385 of the Companies Act...
Upcoming UK regulation mandating GHG emissions reporting:                                  your questions answered  Lois G...
Boundaries   Reg 3(1) – a directors report must state the annual quantity of emissions….resulting   directly from the foll...
Materiality   “We recommend     that UK Government’s Guidance helps   companies to understand whether and to what extent t...
Regulation 5    “A directors’ report must state if relevant information included in the report    was obtained as a result...
Mandatory carbon reporting – key requirements                             Announced by Nick Clegg at Rio + 20 in June     ...
Carbon footprint reporting – discussion pointsKey issues around reporting    •   What is the boundary for reporting?    • ...
Disclosure rates from UK plc in 2012   Total Response rate in the FTSE index   • FTSE 100 – 96% - (Highest level of respon...
Emissions Boundaries used in the FTSE 600                                       Financial control                         ...
Verification – Basic stats from the FTSE 600 Scope 1                        Scope 2                                       ...
FTSE 600 - Intensity breakdown                                 Not Specified                                 unit of produ...
Consumer Discretionary - Breakdown of Intensities                Not Specified                                            ...
Consumer Discretionary - Breakdown of Intensities                                                            Not Specified...
YOURQUESTIONS            @CDSBGlobal
Spotlight on leases A property investor owns property and lets it on full repairing and insuring lease. The landlord has m...
Calculation methodologies                            @CDSBGlobal
Business Review vs Strategic Report Content Requirements    Business Review                                               ...
Thank you!Lois Guthrie   CEO   lois.guthrie@cdsb.net   Office: + 44 (0) 20 7415 7180 | Mobile: + 44 (0) 7740 988 391Mardi ...
Introduction to the draft greenhouse gas emissions(director's report) regulations
Introduction to the draft greenhouse gas emissions(director's report) regulations
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Introduction to the draft greenhouse gas emissions(director's report) regulations

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Please note that the contents of this presentation are outdated. For the most recent news, visit www.cdsb.net.
The Climate Disclosure Standards Board(CDSB) and the Carbon Disclosure Project(CDP) have hosted a webinar for the second time, to ensure your questions on the UK mandatory GHG emissions reporting legislation are answered. For further questions, please email us at info@cdsb.net.

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Introduction to the draft greenhouse gas emissions(director's report) regulations

  1. 1. WEBINAR 24 OCTOBER 2012Introduction to the Draft Greenhouse GasEmissions (Director’s Report) Regulations2013Lois Guthrie, Executive DirectorClimate Disclosure Standards Board @CDSBGlobal
  2. 2. Q&As from the last webinar cdsb.net/ukghgqa • Timing • Verification and enforcement • Methodologies • Reporting boundaries • Reporting practices • Breakdown • Narrative • Harmonization • Geographical limits to reporting? @CDSBGlobal
  3. 3. CDP & CDSB joint response to DEFRA Consultation cdsb.net/UKGHGConsultationResponse @CDSBGlobal
  4. 4. And….. •A round table meeting •More questions •Update to the CDSB Climate Change Reporting Framework @CDSBGlobal
  5. 5. A recap - What’s in the regulation? Companies within scope – Quoted companies (per section 385 of the Companies Act 2006) Disclosures (Reg 3) GHG emissions (CO2, CH4, N2O, HFCs, PFCs, SF6) Stationary & mobile combustion Manufacturing processes Fugitive emissions Purchased electricity, heat, steam or cooling Calculation methodology (including for activities subject to other reporting regulation (Regs 4 & 5) Intensity ratio (Reg 6) First year information (Reg 7(2)) Changes in information for first reporting year (Reg 7(3)) Period for which GHG emissions are reported IF different from director’s report period (Reg 7(4) @CDSBGlobal
  6. 6. Upcoming UK regulation mandating GHG emissions reporting: your questions answered Lois Guthrie Gordon Wilson Jenny Harrison Stuart Wright Chris Havers Mardi McBrienExecutive Director, Chairman, CDSB Technical Director Manager Senior Account Manager, Managing Director, Working Group; Sustainability Services, Sustainability Services, CDSB CDP CDSB Senior Manager, Climate Deloitte LLP, Deloitte LLP, Change UK lead for carbon & UK lead for carbon and Sustainability, integrated reporting carbon footprinting KPMG LLP,UK @CDSBGlobal
  7. 7. Boundaries Reg 3(1) – a directors report must state the annual quantity of emissions….resulting directly from the following activities undertaken by the company…. (a) Combustion of fuel in any premises, machinery or equipment operated, owned or controlled by the company; (b) The use of any means of transport, machinery or equipment operated owned or controlled by the company; (c) The operation or control of any manufacturing process undertaken by the company Section 415(2) - for a financial year in which the company is a parent company and the directors require group accounts, the directors’ report must be a consolidated report relating to the undertakings included in the consolidation Do activities that are operated owned or controlled go into the consolidated report? @CDSBGlobal
  8. 8. Materiality “We recommend that UK Government’s Guidance helps companies to understand whether and to what extent they are entitled or required to apply materiality determinations or de-minimis criteria in preparing GHG emissions results for inclusion in the Directors’ Report”. Only to the extent necessary for an understanding of the performance, position or development of the company? @CDSBGlobal
  9. 9. Regulation 5 “A directors’ report must state if relevant information included in the report was obtained as a result of the company’s compliance with………the CRC Energy Efficiency Scheme Order 2010” GHG Directors’ Report Regs CRC Scheme Global in scope UK only GHG emissions per financial Based on who pays the electricity consolidation bill Will adjustment be required or will CRC Scheme information be treated as representing compliance? @CDSBGlobal
  10. 10. Mandatory carbon reporting – key requirements Announced by Nick Clegg at Rio + 20 in June Scope - all UK incorporated quoted companies… (CA 06 definition) iewith equity shares listed on main market of London Stock Exchange, EEA regulated, NYSE or NASDAQ Scopes1 and 2 ie Boundary issues Global carbon direct emissions and likely – financialfootprint (numerical) indirect (from Intensity ratio consolidation rather disclosure in consumption). required than operational directors’ report Scope 3 remains control voluntary Consultation period (on draft statutory instrument) ends 17 October Effective date – periods ending after April 2013 or October 2013 In 2015 Government will consider expanding to all large companies from 2016 Source: Deloitte LLP
  11. 11. Carbon footprint reporting – discussion pointsKey issues around reporting • What is the boundary for reporting? • How will you collate the information? Are some countries going to be harder than others? Do you need a better process or to train your people? • How can you get it in time for publication within the annual report? • How robust is the data? You need appropriate controls, systems, validation checks • Who will be responsible for producing this information and for managing performance? • How will you inform the Audit Committee and get their input as to what they will want to see in order to feel satisfied things are under control? • How will you consider assurance? Will you audit the information internally or seek independent assurance before this information is published in the annual report?Key issues regarding the data - Now you have to measure this, how will you then use the information? - How can you get the value from doing this?.. Source: Deloitte LLP
  12. 12. Disclosure rates from UK plc in 2012 Total Response rate in the FTSE index • FTSE 100 – 96% - (Highest level of response ever) • FTSE 350 – 68% 238 companies are disclosing emissions related data and much more in the FTSE main market. With a further 31 FTSE listed businesses outside of the FTSE 350 disclosing. A wealth of information is available for businesses who currently do report, and those who do not report. CDP is here to share the information and promote best practice in report with the power of climate data. @CDSBGlobal
  13. 13. Emissions Boundaries used in the FTSE 600 Financial control Operational control Other Equity share Climate Change Reporting Framework (CCRF) @CDSBGlobal
  14. 14. Verification – Basic stats from the FTSE 600 Scope 1 Scope 2 @CDSBGlobal
  15. 15. FTSE 600 - Intensity breakdown Not Specified unit of production square meter megawatt hour (MWh) square foot Other metric tonne of product passenger kilometer billion (currency) funds under management unit hour worked kilometer barrel of oil equivalent (BOE) unit of service provided liter of product @CDSBGlobal
  16. 16. Consumer Discretionary - Breakdown of Intensities Not Specified unit of production square meter megawatt hour (MWh) square foot Other metric tonne of product passenger kilometer billion (currency) funds under management unit hour worked kilometerExamples of ‘Other’ categories barrel of oil equivalent (BOE)- per housing unit completed, - Unit of sold items, - per 1000sq ft of salesfloor, - per retail Outlet(Pub/Hotel/Restaurant), - Per cremation and funeral, -Number of Set Top Boxes in customer homes @CDSBGlobal
  17. 17. Consumer Discretionary - Breakdown of Intensities Not Specified unit of production Other metric tonne of product Examples of ‘Others’ categories - 000 tonnes of ore milled, - Ounces of PGM produced, - metric tonnes CO2e (net) per tonne of cementitious product, - tonne of fine Copper @CDSBGlobal
  18. 18. YOURQUESTIONS @CDSBGlobal
  19. 19. Spotlight on leases A property investor owns property and lets it on full repairing and insuring lease. The landlord has minimal involvement and the tenants pay all the energy bills. Does the property investor need to report GHG emissions from the tenants’ energy use? @CDSBGlobal
  20. 20. Calculation methodologies @CDSBGlobal
  21. 21. Business Review vs Strategic Report Content Requirements Business Review Strategic Report A fair review of the company’s business (417(3)(a)) No change (414C(2)(a)) A description of the principal risks and uncertainties facing the company No change (414C(2)(b)) (417(3)(b)) Balanced & comprehensive analysis of …development & performance…. No change (414C(3)(a)) during the financial year (417(4)(a) Balanced and comprehensive analysis of he position of the business at No change (414C(3)(b)) the end of the year (417(4)(b)) Quoted companies only – main trends and factors likely to affect the No change (414C(4)(c)) future development, performance and position of the business (419(5)(a)) A description of the company’s strategy (414C(4)(a)) A description of the company’s business model (414C(4)(b)) Quoted cos - Information about environmental matters (417(5)(b)(i)) No change (414C(d)(i)) Quoted cos - Information about he company’s employees (417(5)(b)(ii) No change (414C(d)(ii)) Quoted cos - Information about social and community issues Social, community & human rights issues (415(5)(b)(iii)) (414C(d)(iii)) Essential contractual arrangements (417(5)(c)) Deleted A breakdown of the number of persons of each sex who are employees, directors and managers @CDSBGlobal
  22. 22. Thank you!Lois Guthrie CEO lois.guthrie@cdsb.net Office: + 44 (0) 20 7415 7180 | Mobile: + 44 (0) 7740 988 391Mardi McBrien COO mardi.mcbrien@cdsb.net Office: + 44 (0) 20 7415 7180 | Mobile: + 44 (0) 7920 463 046 Skype: mardi.mcbrien.cdp.cdsb www.cdsb.net | @CDSBGlobal Carbon Disclosure Project, Registered Charity no. 1122330. A company limited by guarantee registered in England no. 05013650. @CDSBGlobal

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