1.7 Environmental reporting

Question 1

What is environmental reporting?

Answer 1

The process of externally communicating the environmental effects of an organisations economic actions through the corporate annual report or a separate one.

Question 2

Which companies have a greater burden of environmental reporting?

Answer 2

Those involved in industries such as chemical, gas, petroleum and pharmaceuticals.

Question 3

What is the environmental audit report?

Answer 3

An assessment of the extent to which an organisation meets the set criteria or standards that help to minimise harm to the environment.

Question 4

What are the economic implications of environmental reporting relating to risk management?

Answer 4

Financial, legal and reputation impacts

Question 5

What are the economic implications of environmental reporting relating to marketing advantages?

Answer 5

Public image and brand enhancement by demonstrating its environmental responsibilities. Irresponsible business are now likely to lose market share.

Question 6

What are the economic implications of environmental reporting relating to legal needs?

Answer 6

A business could be required to provide environmental reporting by law, especially if it is within a regulated market.

Question 7

What are the economic implications of environmental reporting relating to ethics?

Answer 7

Showing a commitment to accountability and transparency

Question 8

What are the economic implications of environmental reporting relating to compliance an accounting requirements?

Answer 8

Annual reviews are expected to include environmental matters

Question 9

What are the economic implications of environmental reporting relating to Green/Ethical investors?

Answer 9

Companies with better environmental performance are more likely to receive backing by trustees of funds.

Question 10

What are the economic implications of environmental reporting relating to employee interests?

Answer 10

Applicants increasingly look at the environmental performance of a business.

Question 11

What are the economic implications of environmental reporting relating to integrated reporting?

Answer 11

Standalone environmental reporting is increasingly rare, with companies moving to more integrated approach.

Question 12

What are the economic implications of environmental reporting relating to value-added reporting?

Answer 12

Environmental matters are often used to add value to reports when communicating with stakeholders.

Question 13

What is an environmental management system?

Answer 13

A system for implementing and maintaining policies for environmental protection.

Question 14

What are the essential elements of an environmental management system?

Answer 14

• organisational structure
• planning
• processes and procedures
• training
• implementation
• monitoring
• maintaining a policy
• reporting environmental performance to stakeholders

Question 15

What is the most common environmental standard?

Answer 15

ISO14001.

Question 16

What does EMAS stand for?

Answer 16

EU Eco-Management and Audit Scheme

Question 17

What is the EU Eco-Management and Audit Scheme?

Answer 17

A voluntary tool for eco-management audits, developed in 1993 by the European Commission.

Question 18

What are the key steps of EMAS? (EU Eco-Management and Audit Scheme)

Answer 18

• conducting a review of the organisation’s activities, products and services
• adopting an environmental policy
• establishing an EMS aimed at achieving organisational objectives and regulatory compliance
• carrying out internal environmental audit
• preparing an environmental statement
• independent verification of the environmental review
• registering with an EMAS competent body
• using the verified environmental statement to market activities with the EMAS logo.