THE ESSENTIAL ELEMENTS OF ENVIRONMENTAL REPORTING

The contents of an environmental report can sometimes be extensive and overwhelming. However, a good environmental report should include the following elements:

 
 
 

• A statement of the environmental policy covering all aspects of the business.
• The management systems which reduce and minimise environmental risks.
• Details of environmental training and expertise.
• A report on the company's environmental performance.
• Details of any environmental offence that resulted in enforcement actions, fines, etc.
• A report on historical data for key indicators and a comparison with the corporate targets.
• A simple environmental statement of financial position and statement of comprehensive income including income and values derived from environment, expenditure on natural resources, licences, investment in anti-pollution equipment, etc.

There are arguments for giving organisations the freedom to determine the contents of such reports. Standardised reports may fail to capture important information in individual organisations and may lead to 'compliance' rather than 'relevance'.

On the other hand, best practice would encourage consistency, comparability and reliability, providing a common framework which companies and stakeholders might find useful.