26 September 2002
CIMA is calling for environmental reporting on a principles basis to be fully incorporated into the Operating and Financial Review, which it recommends should be mandatory for listed companies. It will be inviting the FSA to join a large number of investment specialists and other leading bodies at a meeting to discuss these proposals.
Charles Tilley, Chief Executive, CIMA, said:
"The current listing requirements are the embodiment of short termism. We will be inviting the Environment Minister and FSA to a meeting with key players, including investment specialists and relevant bodies and institutions, to discuss these issues and find a way forward."
Speaking on 26 September at the launch of CIMA's report on environmental cost accounting, written in association with Forum for the Future, Rt Honourable Michael Meacher (MP), Minister for the Environment, reinforced the business benefits outlined in the report of managing and reporting on the environmental risks faced by companies:
"Saving money is not the only or even the most important reason to look carefully at how your business interacts with the environment. Your stakeholders are increasingly concerned that environmental and other non financial considerations are taken into account in the day to day running of the business and in formulating business strategy. Shareholders want to know that you're managing risk and identifying business opportunities. Customers want to know that the products and services they buy from you are not causing irreparable damage to the environment. And your employees want to feel good about what they do and who they work for."
He added:
"Accountants are in a unique position to review business costs and highlight opportunities to improve resource productivity. They can point the way towards producing more goods and services with fewer inputs of materials and utilities, and with less pollution and waste. Improving resource productivity will increase business efficiency, and hence profits."
Charles Tilley, Chief Executive, CIMA, said:
"Leading companies now recognise that managing and reporting their environmental impact simply makes good business sense. Aside from the increasing pressure for greater disclosure, continuous improvement in performance and greater accountability, there are real benefits to be gained. Reducing costs, adding value, identifying risks and enhancing reputation are the positive drivers for change that we need to promote. And long term, companies that don’t respond to these challenges will simply not be the companies of the future."
Baxter Healthcare Corporation, a US based company that spent several years developing the environmental financial statement methodology, now sees savings and avoided costs from environmental investments actually exceed its environmental related expenditure.
Environmental Accounting: An Introduction and Practical Guide is published by CIMA in association with Forum for the Future. Environmental Cost Accounting: An Introduction and Practical Guide is £21.95 and is available from publishing.sales@cimaglobal.com or at www.cimapublishing.com.
If you would like more information please contact Lottie Muir
Phone: +44 (0)20 8849 2407
Email: lottie.muir@cimaglobal.com
