Anthony Butcher

Businesses that publish environmental reports will have their deadlines for filing accounts and tax returns extended under new plans adopted by the Liberal Democrat Autumn Conference today.

To comply, companies will have to write a one-page report detailing their carbon emissions, sustainability and environmental policy. Rather than coerce businesses into adopting the measure with more regulations, the proposal aims to encourage businesses to act responsibly.



A copy of the motion follows:


Accounting for the Environment

Conference notes that:
i) While the UK domestic economy is currently estimated to contribute just 2% of global emissions, UK companies are responsible for between 12%–15% of emissions globally when international operations are taken into account.

ii) The Labour Government restricted the Operating and Financial Review (OFR) in the Company Law Reform Bill to require only the 1,300 firms publicly quoted on the London Stock Exchange to submit environmental and social strategies.

iii) Even for London Stock Exchange companies the OFR requirement is only enforceable by company shareholders, and legal action can only be taken if a director’s failure to consider these issues leads to financial loss.

iv) The absence of a standardised reporting format can hinder meaningful comparison between companies of their relative environmental performance, even in the same industrial sector.

Conference believes that:

A) Liberal Democrats must take a lead in calling for effective, standardised and simple environmental reporting for business.

B) Environmental reporting should be extended to a wider list of organisations than are included in the London Stock Exchange.

C) In the medium term, the Liberal Democrats should explore potential ways to improve environmental reporting through incentives instead of through punitive regulations but, to achieve this, a robust and simple reporting system is required.

Conference proposes that:

1. Large and medium-sized organisations and all government departments are encouraged to include a one-page report, based on a standard and simple template, covering:
a) Level of carbon emissions for current and the prior year, with commentary.
b) Use of raw materials and sustainable sourcing.
c) Environmental policy, including recycling.

2. As an incentive for compliance, organisations which fulfil the reporting requirements may apply for filing extensions for submission of accounts to Companies House and for tax returns.

3. All small organisations on the accepted definition are entitled to assistance in setting environmental objectives through the Department of Business, Enterprise and Regulatory Reform.




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