ACCA calls for UK emissions to align with global standards

Global accountancy body ACCA has reiterated its call for support in driving the maximum level of cooperation between international and regional sustainability reporting, in response to the UK government’s consultation on Scope 3 emissions reporting. 

A global baseline is vital for the consistent and comparable reporting of greenhouse gases. However, regions and countries around the world will have differing public policy objectives, which may drive different reporting requirements.   

According to ACCA, organisations should be given clear and consistent guidance to support them to collect and analyse Scope 3 data, to reduce the risk of exposure to undue cost and effort.   

In a response to the UK government’s consultation, looking at the costs, benefits and practicalities of reporting, ACCA is clear in its stance that the responsibility for making judgements and determinations rests with the reporting entity. 

Complying with the IFRS sustainability standards requires significant judgement, especially when the boundaries between ‘climate-related’ topics and other topics (i.e. water, biodiversity, social matters) can be blurred.  

ACCA believes that the greatest challenge for organisations is in data collection and the quality of that data. However, the benefits accrued from this reporting for stakeholders outweigh the additional burden that is undoubtedly imposed in business.  

The Streamlined Energy and Carbon Reporting Regulation (SECR) – the UK’s carbon reporting legislation – is a valuable tool for promoting corporate sustainability, however, it is urging the government to ensure that the burden is not too heavy on small and medium sized businesses (SMEs).   

ACCA has recommended a phased roll out of SECR for SMEs and that the government needs to ensure that SECR is aligned to the ISSB standards. It is also important, the accountancy body argues, that there are reasonable penalties for non-compliance.   

Jessica Bingham, policy and insights lead, (EEMA & UK), ACCA, said: “The SECR regulations in many ways achieve their original objectives and assist in a smoother transition to future sustainability related reporting.  

“We believe that the regulations have increased awareness of climate change and encouraged businesses to take action to reduce their emissions. They have also provided valuable information to investors and other stakeholders about the environmental performance of businesses.”