PracticeAccounting FirmsAccountants unprepared for environmental legislation

Accountants unprepared for environmental legislation

A recent survey shows that over 60% of accountants are unprepared for the government's environmental legislation to be implemented next year

Nearly four in ten accountancy firms are unaware of the upcoming environment
legislation which will affect all large companies.

The Carbon Reduction Commitment will take effect from April 2010 and will
force all companies to pay for their carbon emissions in relation to their
energy usage.

RSA, the insurer and energy management company, surveyed 1,000 accountants
which also found 39% were unaware of the CRC and 60% were unprepared for its
consequences.

Alex Matthias, energy management leader at RSA, said: “CRC will be an
important issue for many years to come and it is vital that organisations take
advantage of the potential financial benefits by acting now rather than leaving
it to the last minute and risking their company’s reputation and bottom line.”

All companies which spend roughly more than £500,000 per annum on their
energy bills will be part of the scheme, with the government estimating there
could be up to 6,000 including public sector taking part in the first year.

The RSA estimates that allowances will amount to 6% of an organisations
current energy spend and a further 5% for administration costs.

A rough estimate means that a company which spends £500,000 per year on
energy, will need to spend £30,000 on allowances and £25,000 on compliance
related administration costs.

Further reading:

FDs face ‘double whammy’ on carbon bills

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