a corporate stand alone environmental performance report

to make recommendations concerning the way(s) in which environmental performance is communicated in external corporate reporting and to suggest ways in which the use of environmental performance indicators can be improved

lists the following potential quot internal benefits quot of an EMS reduced environmental incidents and liability, increased efficiency, improved environmental performance, and improved corporate culture.

corporate environmental policy statement

(ii) for financial market users in particular, there is a need to understand how corporate environmental strategy and performance impacts on financial performance and shareholder value.

corporate commitment to continuous environmental improvement

Statement of corporate environmental policies description of environmental audit procedures and coverage

ENVIRONMENTAL FINANCIAL ACCOUNTING AND REPORTING AT THE CORPORATE LEVEL

II. LINKING ENVIRONMENTAL AND FINANCIAL PERFORMANCE

quot ISO 14031.5 Environmental Management Environmental Performance Evaluation quot . Working draft.

(b) Identification of key environmental performance indicators and their relation to financial performance.

segmented environmental performance data (if not provided in the environmental review (see below)

All corporations should adopt environmental policies which form part of their corporate responsibility.

The Bank also supports UNCTAD s work on environmental aspects of corporate financial accounting.

C. Best practice in measuring and communicating environmental performance

Environmental performance data re emissions, resource use, efficiency measures

Table 3. Financially relevant ( eco financial ) environmental performance indicators

quot Valuing the environment how Fortune 500 CFOS and analysts measure corporate performance quot .

At present these stakeholders find it difficult to interpret corporate environmental disclosures on a systematic basis because (a) of the voluntary nature of such reporting, and (b) because the general lack of standardization regarding the computation and disclosure of environmental performance indicators inhibits intercompany comparison.

improving the credibility of corporate environmental reporting activities by formalizing the external attestation process.

Civil society and corporate sector, which would contribute to the initiative, ruled by principles of corporate responsibility and social, cultural, environmental and technical sustainability.

72. Possibly because of the relative novelty of environmental performance measurement, it appears that there is no one single accepted way of defining or measuring environmental performance.

80. In general the weight of available evidence indicates a strong (and growing) interest in corporate environmental performance not just from the relevant national or regional environmental regulator, but from a variety of other stakeholders, most noticeably those from the financial sector (bankers, insurers, fund managers, etc.).

C. Best practice in measuring and communicating environmental performance 69 71

Category 3 non financial but quantified verifiable data regarding environmental performance

75. The above table reveals the diversity in environmental performance indicators.

(ii) Environmental accounting examination of national standards and regulations for environmental financial accounting, and identification of key environmental performance indicators and their relation to financial performance (Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting)

73. The generic categories of environmental performance indicators identified by James and Bennett (1994) provide perhaps a useful synthesis of the current approach to monitoring, measuring and reporting environmental performance.

The ISO 14001 standard, however, does not state specific environmental performance criteria.

developing single (or multiple) index models to give an aggregate environmental performance

Although the environment has played a larger role in corporate strategy over the last decade, it is nevertheless apparent that annual reports at present fail to convey either the significance of environmental issues to the reporting entity or any adequate description of how corporate management is attempting to integrate environmental strategy into overall corporate strategy.

As UNDP streamlines its performance management systems, corporate learning strategies will be leveraged to further strengthen staff competencies.

The new challenge currently facing the world was to go beyond short term environmental performance and to strive for environmental sustainability.

D. Methods used by leading edge enterprises in measuring and communicating environmental performance

Environmental and Financial Performance Are They Related? Washington Investor Responsibility Research Centre (IRRC).

UNCTAD is also undertaking a joint project with the Copenhagen School of Business, on corporate environmental management systems .

78. Once measured, environmental performance is being communicated via a number of different media and some companies use two, three or four different avenues to convey their environmental performance record to interested stakeholder groups.

The ISO 14000 series also comprises standards for environmental labelling, environmental performance evaluation, life cycle assessment, and the related terms and definitions.

Targets and performance indicators relating to the Core Corporate Commitments for Children in Emergencies (CCCs) were also being developed.

The establishment and maintenance of an effective EMS enables an organization to anticipate and meet growing environmental performance expectations, to ensure ongoing compliance with national and or international environmental requirements and to support the continual improvement of its environmental performance. UNIDO, op. cit., page 12.

II. LINKING ENVIRONMENTAL AND FINANCIAL PERFORMANCE A SURVEY OF BEST PRACTICE TECHNIQUES 62 83

With regard to stand alone environmental reports, KPMG finds that 23 of companies surveyed (13 in 1993) produce corporate environmental reports, in addition to their annual report to shareholders.

It is the repository of cutting edge sustainable technologies, pioneering research and development, world class management, and leadership in environmental sustainability. Yet at the same time, the corporate sector lobbies aggressively to gut environmental regulations, slash corporate tax rates, and avoid their own responsibility for ecological destruction.

D. Methods used by leading edge enterprises in measuring and communicating environmental performance 72 79

developing a widely accepted range of standardized environmental performance indicators suitable for external reporting purposes