The Institute of Chartered Accountants for England & Wales (ICAEW) in association with the Environment Agency has today launched a new guide on reporting environmental issues in annual financial statements.
The publication is aimed at those preparing, auditing and using annual financial statements published by businesses.
Recent changes to company law have clarified the position on reporting environmental performance for many large and listed companies. The guide, Reporting on environmental issues and annual financial reporting has been written to provide guidance to all organisations on reporting environmental issues.
Written in a question and answer style with examples of good practice, the guide covers the legal requirements placed on companies with regard to environmental reporting, and includes annexes on EU environmental directives and the environmental implications of existing accounting standards.
Howard Pearce, Head of Environmental Finance from the Environment Agency said, "Both our organisations support enhanced disclosure and greater transparency in public reporting and we believe that this will include strategic information, risk assessment, analysis of value drivers and key environmental performance indicators. This paper has been written to support this stance and to help companies to address these requirements when producing their financial reports."
"Individuals and investors are focusing on the environmental performance of organisations more than they have ever done before because of its materiality both reputationally and financially." commented Richard Spencer, Head of Sustainability at the ICAEW, "Measuring, managing and reporting the impacts an organisation has on the environment will help to drive internal change and deliver real benefits for the organisation in question, the environment and wider society."
"Whilst the paper has been written with the needs of accountants in mind," continued Richard "It has value to all those involved with financial reports. Directors and users of financial statements will find the guide of benefit."
Environmental issues and annual financial reporting is available for download from environment-agency or icaew.com/corporate responsibility
Media enquiries:
ICAEW Deborah McSkimming, ICAEW Press Office, on 0207 920 8679 or email
Environment Agency Nathan Green, Environment Agency Press Office, on 0207 863 8710 or email pressoffice@environment-agency.gov.uk