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Considering the prominence that the UK government and the entire world regards the environment, with a clean and sustainable environment currently being shared slogans, corporates have been forced to act with due diligence when reporting for environmental pollution. Companies…
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Download file to see previous pages... a better comprehension of the risks it is exposed to as a result of climate change and can potentially reduce its costs of energy and other resources as at will gain a positive reputation in the currently competitive corporate sector. The following report explains the UK legal requirements currently upheld and the main voluntary guidance on environmental reporting.
The Companies act of 2006 requires all quoted UK companies to accurately and truthfully pinpoint and report on GHCs (greenhouse gases) that they produce. Quoted companies hereby refer to all UK incorporated companies as well as those whose shares are traded in the NASDAQ, New York Stock Exchange, European Economic Area, or the London Stock Exchange (Global Reporting Initiative, 2006). As a legal framework, the company’s annual report must include the information on emissions to the extent that individuals and government agencies will be able to comprehensively understand the company’s business. This includes the use of KPIs (key performance indicators) such as utility bills if and when applicable in the report. Failure to include the GHCs emissions can be considered to be a violation of the law unless the accountant clearly indicates in the omissions sections that the GHCs emission information was omitted (Pahuja, 2009).
The Institute of Chartered Accountants in cooperation with the Environment Agency in Wales and England has published direction on environmental reporting that has been helpful in reporting on environmental impacts and social impacts. When collecting data for and reporting on environmental impacts, the law requires that the following principles are upheld.
Data collected and reported must properly portray the impacts that the organization has had on the environment. Being relevant will make the information helpful to internal and external users who might need to make various decisions based ion the report. Similarly, accuracy should be attained by reducing uncertainties in the ...Download file to see next pagesRead More
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