UK consults on mandatory CO2 reporting

The benefits of CO2 reporting include more information on how companies can cut their contribution to climate change and pare fuel bills, and better visibility for investors of their investments' vulnerability to tougher carbon cuts.

The UK government suggested four options in its eight-week consultation, which included stricter voluntary reporting for example including targets, or mandatory options for companies above a certain size.

"If the decision is taken to make corporate reporting of emissions mandatory, the regulations will need to set out what is expected of companies in terms of measurement, calculation and reporting of emissions," said the consultation document by the Department for Environment Food and Rural Affairs.

Under the present voluntary rules, some 62 percent of UK FTSE-listed companies reported figures on either climate change or energy use, it said.

The proposals are likely to draw some opposition as an additional reporting burden, but some groups supported them.

"Openness on carbon emissions by the UK's leading firms is an important part of sustainable business," said David Symons, director at environmental consultancy WSP Environment and Energy.

According to a survey by the UK-backed Carbon Trust Standard -- which encourages voluntary reporting -- some 70 percent of the public want businesses to mandatorily disclose emissions.

The consultation document can be found here - http://www.defra.gov.uk/consult/files/110511-ghg-emissions-condoc1.pdf

(Reporting by Gerard Wynn; editing by Keiron Henderson)