Environmental reporting should be compulsory FTSE requirement, says Environment Agency

UK business does not take the environment seriously enough, Sir John Harman, Chairman of the Environment Agency, last week told a group of senior City figures.

Annual environmental reporting should be compulsory for all FTSE listed companies, Sir John said. Company Directors should be required to disclose how they identify and manage environmental risks and to report environmental performance against published targets.

Sir John Harman said that environmental performance is not about supporting needy environmental causes which benefit brand image, but about reducing the overall environmental impact of business which ultimately cuts companies' bills for waste disposal and pollution taxes.

Resource efficiency in particular is likely to be an increasingly significant economic driver in the future. As regulation and legislation shift more and more responsibility for reducing waste, pollution and resource use back onto producers, evidence of sound environmental management will be crucial for credit and risk rating.

Sir John said that businesses in the UK must become hugely more efficient in their use and conversion of resources and demonstrate it through regular reporting.

Fewer than 80 of the FTSE top 350 companies in the UK currently mention the environment in annual reporting, putting the UK far behind other European member states. From this year, France is requiring all publicly quoted firms to include data on environmental impact in annual financial reports by law. Danish companies have had to meet a similar requirement for several years.UK business does not take the environment seriously enough, Sir John Harman, Chairman of the Environment Agency, last week told a group of senior City figures.

Environmental reporting is covered in the new Workplacelaw Network guidance - Guide to Environmental Management Law and Practice 2002. The Guide costs £49.50 (10% discount for members) and is available by calling membership services on 0870 777 0202.
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