Arising from the current COP26 global warming conference, Sage, The ACCA and the ICC have called on urgent action to be taken to standardise and simplify carbon reporting to help SMEs join the race to Net Zero. Their new report titled ‘Think Small First’ calls on policymakers to remove the existing administrative burdens that come with carbon reporting:
- Lack of time,
- Complex guidance,
- Uncertainty about quantifying emissions.
The report states that the first step that needs to be taken to standardise carbon reporting is that large companies need to work together across all sectors to ensure that SME’s are being asked for information on a standard basis, the government can then underpin the consistency of these by coordinating a time when this information should be delivered. The report then states that this can then help develop an official standard that can then be built upon going forward.
The starting point for change should be to measure where you are now:
So should we now expect future statutory accounts for SME’s to set and disclose targets and actuals for this new KPI?