The government has published its plan for new Streamlined Energy and Carbon Reporting (SECR) regulations.
The plan outlines a replacement for current CRC Energy Efficiency Scheme which will be scrapped next year as businesses complain it is too complex.
This new mandatory reporting framework (SECR) aims to streamline and simplify carbon and energy reporting in order to increase compliance. As a result of the new regulations, the amount of businesses required to comply with reporting legislation is set to increase significantly.
The new regulations will come into effect at the start of April 2019.
The Department for Business, Energy and Industrial Strategy (BEIS) stated that unquoted companies must report energy usage, transport and carbon emissions through their annual company reports.
Quoted companies will continue to report their global GHG emissions and intensity metric but will also be required to additionally disclose their global total energy use.
Companies will be exempt from the regulations if it is not practical for them to collate and publish data, or if it would be "seriously prejudicial" to the interests of the company.
It is hoped that the new reporting regulations will lead to a change in behaviour by businesses in terms of making employees aware of energy efficiency, thus encouraging good practice. The reports will also make companies more transparent to investors, forcing them to act responsibly in terms of energy usage.
An impact assessment carried out by the government shows that the simplified regulations could save businesses £20m a year in administration costs but cause a £2.1bn increase in capital costs due to increased energy efficiency measures.
The assessment also expects to reduce non-traded greenhouse gas emissions by 5 million tonnes and traded emissions by 7.9 million tonnes.