Business must do better on climate change reporting – ACCA

London, 9 August: Even companies with a good reputation for sustainability reporting are failing to report adequately on their impact on climate change, according to the Association of Chartered Certified Accountants (ACCA).

In a study released today, ACCA examined the sustainability reports produced by 42 UK-based companies, all working in high- or medium-impact sectors such as aviation, chemicals, electricity generation and construction.

Although the companies scored well on some criteria – 80% included a climate change policy statement, while 89% provided some data on carbon dioxide emissions – ACCA was not giving out any gold stars. In particular, the companies failed to present product-based climate change policies.

Roger Adams, executive director of ACCA, said: "Companies whose products give rise to significant carbon emissions need to report and allocate responsibility for them more clearly."

Of those that make products with a significant impact on climate change, only 25% included a product-based climate change policy in their sustainability report. No organisation set out any targets for reducing greenhouse gas emissions relating to their high-impact products.

More generally, 57% disclosed short- or medium-term emissions targets, but only 43% produced targets looking further than five years ahead.

Adams said: "The report does not make entirely comfortable reading. The companies we analysed included many of the leading sustainability and corporate and social responsibility reporters, but while particular issues were handled well, no single company was found to be reporting evenly across all the key climate change issues – especially those relating to product impacts and initiatives to reduce carbon emissions. And reporting, even at this patchy level, is not widely practiced or monitored."

However, the report does pick out some good examples of sustainability reporting on specific issues. For example, Transport for London – the body responsible for London's public transport system – clearly sets out its impacts and the reasons for trends in its performance. National Grid, which runs the UK's electricity and gas transmission systems, has set a long-term target to reduce emissions by 60% by 2050.