FRC consults on energy reporting taxonomy
8 Aug 2019
The Financial Reporting Council is consulting on an additional taxonomy to reflect the new reporting requirements for energy and carbon data introduced on 1 April 2019
8 Aug 2019
These apply to all large companies and LLPs as well as to all listed companies and supersede mandatory greenhouse gas (GHG) reporting which has been in force since 2013. The legislation requires these entities to report on greenhouse gas emissions, energy consumption and energy efficiency.
The draft streamlined energy and carbon reporting (SECR) is a proposed addition to the FRC taxonomies suite.
While it is not mandatory to tag SECR data, the FRC says the government is keen to enable companies that file their annual reports digitally to be able to report their SECR data in the same way to ensure the same level of transparency is available to external users.
The draft has been uploaded on Yeti, a live consultation programme, which enables preparers and interested parties to submit responses in relation to the SECR taxonomy as and when they wish or apply it in practice.
In addition to Yeti responses, BEIS and the FRC have raised some relevant questions to promote interest in the consultation and generate discussion about SECR taxonomy and its use.
These include whether the FRC has struck the right balance between the mandatory reporting requirements introduced under SECR while enabling organisations to go further and align to other commonly used methodologies such as the GHG protocol.
The regulator is interested in views on whether the taskforce for climate disclosure (TCFD) form part of the SECR taxonomy, and whether further tags covering detailed elements of the TCFD framework, or science based targets (initiative) be of value to filers and users.
The questions ask respondents if they think there is any danger of large groups filing at both group and company level, thus giving rise to double-counting, and seeks opinions on whether the breakdown is detailed enough to cover the scope of what individuals would like to tag.
The consultation also seeks views on whether the combined entry points of the SECR and other FRC taxonomies cause any issues for software houses or users of the digital reporting, and on how users will use the structured data and if this could be enhanced and facilitated in a final version of the SECR taxonomy.
Responses to these questions should be submitted via email to email@example.com. The consultation closes on 30 September.
Pat Sweet | 08-08-2019