Big firms will be forced to reveal climate costs

EVERY large company in the UK will be forced to reveal climaterelated financial risks under a new Government scheme expected to become law by the end of the year.

Published by the Department for Business, Energy and Industrial Strategy, the proposals will apply to every quoted company with more than 500 employees, as well as private firms and partnerships with a similar sized workforce and a turnover of more than £500million. Disclosure

of climate-related financial risks has previously been voluntary, but the Government believes it needs to go further.

The move is part of Prime Minister Boris Johnson’s declared ambition to make the UK carbon neutral by 2050. It is a first among the G20 group of nations, which includes the European Union, the US, Canada and China. It comes as the Government revealed greenhouse gas emissions fell by almost 9 per cent last year – the largest decline since records began in 1990. Total emissions are nearly 50 per cent lower than 30 years ago. A slump in traffic and business activity contributed to the decline, while the use of more renewable power also helped.

Many firms support efforts to cut emissions, but the proposals are likely to cause great concern. British

Chambers of Commerce coexecutive director Hannah Essex said: ‘With many firms simply trying to stay afloat as they weather the coronavirus storm and the end of the Brexit transition period, it’s no surprise some haven’t engaged yet on the drive to net zero.’

However, the Green party’s Molly Scott Cato urged the Government to extend the law to include full reporting on environmental, social and governance impacts.