ACCA SBR ^INT Syllabus E. Interpret Financial Statements For Different Stakeholders - Framework for environmental and sustainability reporting - Notes ^{7 / 12}

We must not use up resources, social or environmental, without replacing them

Any that is not replaced is called the social or environmental footprint

Reporting Sustainability

• Voluntary

• Increasingly popular (often put on website too)

• Sometimes called ‘the triple bottom line’ (Profits, people and planet)

Environmental Reporting

1. Can be in the published annual report

2. Can be a separate report

3. No mandatory standards to follow

4. Covers inputs (Using up of resources)

5. Covers outputs (Pollution etc.)

Its voluntary basis causes problems:

Users can disclose the good but not the bad
No external influence means less confidence in the report

Benefits of an Environmental Report

• Can highlight inefficiencies

• Identifies opportunities to reduce waste

• Can create a positive image as a good corporate citizen

• Increased consumer confidence in it

• Employees like it

• Investors look for environmental concerns nowadays

• Reduces risk of litigation against it

• Can give competitive edge