Social and Environmental Reporting

Question 1

What is social and environmental reporting?

Answer 1

The process of communicating the social and environmental effects of organisations’ economic actions to particular interest groups within society and to society at large

Question 2

What do entities typically include in their social and environmental reporting

Answer 2

• employees
• health and safety
• minority and equity issues
• community
• engagement with indigenous communities
• environmental strategies, policies, impacts and performance, such as energy use, water usage, emission control and waste control,
• climate change disclosures

Question 3

What is a triple bottom line (or sustainability) report?

Answer 3

Reports about the economic, environmental and social performance of an organisation

Question 4

What is sustainability?

Answer 4

The capacity for development that can be sustained into the future without destroying the environment in the process

Question 5

What is eco-justice?

Answer 5

A focus on intergenerational (long term focus) and intragenerational (meet the needs of current inhabitants) equity, which considers social justice

Question 6

What is eco-efficiency?

Answer 6

A focus on the efficient use of resources to minimise their impact on the environment

Question 7

What are the 3 reasons for companies engaging in voluntary social and environmental reporting?

Answer 7

1. Competitive pressures, seeking competitive advantage
2. Pressure from powerful stakeholders
3. Legitimacy

Question 8

What is the journal entry for EA’s at the start and end of the year?

Answer 8

Start - Dr EA Asset, Cr Deferred income
End - Dr Deferred income, Cr Income
Amount will depend on how long the life of the EA’s are

Question 9

What is the journal entry to settle emission liabilities?

Answer 9

Dr Emission expense, Cr Emission liability

Question 10

What is the journal to settle the mismatch of EA’s?

Answer 10

Dr EA Asset, Cr Revaluation gain (OCI)