A call for the Government to act on its pre-election pledge and commit to mandatory carbon reporting for all large organisations has been made in an open letter to ministers from The Aldersgate Group, a coalition of businesses, environmental groups and individuals concerned that high environmental standards must be a major part of future economic growth and international competitiveness.
In its open letter, published today, the group iargues that “a clearer, stronger signal is needed now for the introduction of mandatory carbon reporting in the UK that is consistent with international standards”. Signatories to the letter include Aviva, AXA Investment Managers, Biffa, BT, Centrica, Jupiter, Lend Lease, Microsoft, National Grid, Pepsico UK, RSA, RSPB, Siemens, Scottish and Southern Energy, The Co-operative, Veolia, Willmott Dixon, WWF and over 25 MPs.
The letter has been published on the same day that WWF-UK and The Cooperative Financial Services publish a new report claiming that oil companies are increasing the carbon emissions of their fuels by developing unconventional fossil fuels such as tar sands. This report, 'Toxic fuels: toxic investments' is said to provide the case for mandatory carbon reporting by highlighting how oil companies such as BP and Shell could face billions of pounds in future carbon liabilities as the cost of carbon rises.
”It is hard to see how the government’s green ambitions will be met without more robust measurement and reporting of carbon emissions," said Peter Young, Chairman of the Aldersgate Group and author of the group's letter. "Greater transparency will help create a level playing field, drive emission reductions and address the growing concern over corporate green washing.
Identifying cost savings
“Carbon reporting is not a burden. It is about identifying cost savings and opportunities. There would also be significant benefits associated with UK leadership, cementing the City’s position as the global centre for climate finance.”
And Steve Waygood, Head of Sustainability Research and Engagement, Aviva Investors, one of the signatory members of the Aldersgate Group letter, said: "We believe that climate change represents a profound market failure. There is a clear need for much tougher policy measures on the international stage, as well as at the national level. While Copenhagen failed to deliver internationally, the UK is well placed to make carbon reporting mandatory in the UK. This would provide investors with an informed basis on which to make our investment decisions.”
Voluntary initiatives have had some success in mobilising the UK’s biggest organisations to address their environmental impact more fully, says the Aldersgate Group. However, last year’s Carbon Disclosure Project shows that only just over half of the FTSE 350 disclosed their carbon emissions — and there has been little improvement in the last few years.
