Financial Times

Need for environmental, transparency reporting
More companies in Sri Lanka should be looking at the issue of environmental reporting and transparency, according to Roger Adams, Executive Director, Technical at the UK-based Association of Certified Chartered Accountants (ACCA).
Speaking at a recent workshop organised by ACCA Sri Lanka, on environmental, social and sustainable reporting, which was aimed at educating and encouraging Sri Lankan companies to report on environmental and social issues, he said that more than 50 percent of companies in Europe were involved in environmental reporting while only one company in Sri Lanka (Ceylon Tobacco) was involved.

Adams defined environmental reporting as, "The provision of information about the environmental impact and operational performance of an entity that is useful to relevant stakeholders to ascertain their relationship with the reporting entity." Adams was in Colombo for the official launch of the ACCA Sri Lanka awards to companies for excellence in environmental, social and sustainability reporting. The first cycle of awards will commence in November 2004 when ACCA Sri Lanka invites organisations to submit their reports.

"Environmental reporting increases accountability, demonstrates responsible business, increases transparency and openness, reduces corporate risk, builds trust with stakeholders and addresses their needs," Adams said giving reasons as to why environmental reporting is important. He stressed the importance of the role played by stakeholders, saying that stakeholder views must be prioritised.

"Environmental reporting strengthens dialogue with stakeholders, aligns corporate vision and principles with internal business practices and activities and managers risks and protects reputations," he said. Adding that "completeness, credibility and communication are the three key factors which make a good report." A report should include a good corporate context, key environmental impacts, environmental policy and management commitment and environmental targets and objectives in order to have completeness.

An environmental report should include a CEO statement, organisational profile, environmental policy statement, key environment impacts, targets and achievements and an independent verification statement," he explained.

Touching on how to report on sustainability Adams said, "Sustainability reporting is an intricate interaction between environmental, economic and social issues and helps to improve transparency." Social reporting includes workplace health, safety, employee retention, labour rights, human rights and wages while economic reporting includes job creation, labour productivity, expenditures on outsourcing and investment on training on other forms of human capital.” Aspects of environmental and sustainability reporting, its impact on transparency and on the sustainable development on business activity were also referred to by Adams in his presentation. (RS)

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