Environmental Reporting
Environmental reporting refers to companies’ publication of information based on environment-related data connected to their business activities. The published information covers areas including the environmental burden associated with their operations and the status of their eco-minded efforts. Environmental reporting allows businesses to adequately communicate their green management practices to users of their products or services.
In addition, environmental reporting is a way for companies to be accountable to society with respect to the natural resources they use in the course of their business activities. Reporting companies can provide useful information to help guide the decisions made by their stakeholders and can promote communication on environmental themes.
Key Functions of Environmental Reporting
As a communication tool connecting companies with society, environmental reporting has external (societal) functions. At the same time, it has internal functions as a means of enhancing companies’ environmental awareness and other measures within their own business operations. These two types of functions prompt companies to undertake eco-friendly steps as part of their voluntary business activities.
The following three items are external functions of environmental reporting:
- ・ An information disclosure function based on the company’s accountability to society
- ・ A function providing useful information to stakeholders
- ・ A function to enhance environmental and other activities through a “pledge and review” cycle between the company and society
Internally, environmental reporting has the following two functions:
- ・ A function defining and revising the company’s direction, targets, action plans, etc. for its environment-related measures
- ・ A function enhancing awareness and inspiring action among managers and employees
There is a need for companies to keep these functions in mind when publishing environmental reports.
International Links
The following are links to organizations and other entities around the world engaging in discussion of environmental information disclosure.