The Confederation of British Industry (CBI) has called for a clearer system for firms to report their business energy efficiency.
According to the CBI, there is a lack of consistency about how carbon emissions are reported and this makes it difficult to gauge exactly how sustainable companies in Britain are.
Speaking at the CBI's Low-Carbon Business Breakfast, Dr Neil Bentley, director of business environment at the association, said the government needs to ensure carbon reporting fits in with other low-carbon reporting regulations, including the EU Emissions Trading Scheme (ETS).
"The government must clarify how many businesses will be covered by mandatory reporting," he said.
"We recommend businesses under the EU ETS and the CRC represent a logical first step, as they would have already put in place carbon management strategies."
A recent report produced by the Carbon Disclosure Project found that the business energy, utilities and materials sectors, which cover just 24 firms in the FTSE 100, are responsible for 87 per cent of all FTSE 100 reported emissions.