Accountants Not Ready For Carbon Reduction Legislation

Tue, 29 Sep 2009

Many UK accountants are unaware and unprepared for the government’s upcoming environmental legislation, according to new research.

A survey of 1,000 accountants, carried out by insurance and energy management company RSA, found that 39 per cent of accountancy firms across the UK are unaware of the Carbon Reduction Commitment (CRC) and 60 per cent are not prepared for its consequences.

Scheduled to take effect from April 2010, the CRC will force all large companies - those that spend over £500,000 a year in energy costs - to pay for their carbon emissions in relation to the amount of energy they use.

Alex Matthias, the RSA’s energy management leader, said: "CRC will be an important issue for many years to come and it is vital that organisations take advantage of the potential financial benefits by acting now rather than leaving it to the last minute and risking their company's reputation and bottom line."

According to estimates by the RSA, a company which has an annual energy bill of £500,000 will need to spend £30,000 on allowances (6 per cent of energy spend) and £25,000 (5 per cent) on compliance related administration costs.

The government estimates that up to 6,000 companies could take part in the eco-friendly scheme in the first year.
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