A report published recently, commissioned by the government found that large businesses which are measuring and reporting their greenhouse gas emissions are experiencing net benefits, such as cost savings and energy efficiencies.

The measuring and reporting process has led to increased boardroom pressure to tackle climate change, reduce carbon emissions and achieve energy and operational savings, whilst also improving the firm’s brand image.

Seventy two percent of companies surveyed as part of the report stated that they now have a climate change strategy designed to reduce greenhouse gas emissions.

Alan McGill, partner at PwC said:

The range and wealth of information now available to companies means the existing corporate reporting model has to change. Comparable, credible information eneables businesses to be held to account on their performance, and forces them to become more economically efficient around energy and environmental impacts.

Te report also found that most firm believed that the costs of reporting are not financially overburdening to the business, with 65% of those surveyed spending up to £50,000 on reporting emissions and over 50% spending less than £50,000 on measurement.

Benefits were reported in energy and other resource savings. While there was no discrete pattern arising from the responses, around 14% of respondents quantified energy cost savings of over £200,000, suggesting that the benefits could be substantial for some companies.

In advance of a decision by the government on mandatory reporting legislation early next year, nearly half of the respondents identified pressure from investors as the biggest driver in measuring and reporting. Companies said the distinction between voluntary and mandatory reporting is already blurred with schemes such as CDP evolving to become quasi – mandatory. Many companies responding to the survey were also subject to the EU Emissions Trading Scheme or the Carbon Reduction Commitment, requiring measurement and reporting of emissions.

The government is expected to decide on mandatory environmental reporting in the coming weeks.

The report is available from Pwc’s Media Centre.