Only 25% of finance departments ready for GHG reporting

LESS THAN 25% of companies have accounting software for incoming mandatory environmental reporting a survey at an ICAEW event has revealed.

The revelation that the majority of companies lack accounting software was highlighted in a report by sustainability consultancy Verco, in association with the ICAEW.

Earlier this year, the government announced that all companies which are listed on the London Stock Exchange, will be required to report their greenhouse gas (GHG) emissions as part of their annual report. The requirement, which was made law earlier this year, means if a company is unable to produce GHG emissions data they can be referred to the Financial Conduct Authority and forced to re-issue their report.

However, according to the research less than 20% have a GHG governance or data management plan in place.

“With the regulations recently approved by Parliament it is important that affected companies work swiftly toward full compliance and ensure they minimise reporting risk,” said Robert Bartosik, financial analyst at Verco.

“Once compliance is achieved companies should consider using GHG emissions data as a potentially valuable management information,” he added.

More than 25% of companies surveyed have third party assurance of the data they have gathered, while 55% use a third party to calculate the information needed for the annual report.

The survey included 30 companies and an in-depth survey of a further 12. Included in the 12 were four FTSE 100 businesses, five FTSE 250, one small cap company and two subsidiaries.