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Who Advocates Enviro Financial Disclosure?



6/23/2001

Recently the European Commission adopted a Recommendation on recognition,
measurement and disclosure of environmental issues in the annual accounts
and annual reports of EU companies.
See:
http://europa.eu.int/comm/internal_market/en/company/account/news/01-814.htm

The Recommendation clarifies existing EU
accounting rules and provides guidance to improve the quality,
transparency and comparability of environmental data available in companies’
annual
accounts and annual reports. The current lack of a common set of rules and
definitions means that environmental information disclosed by companies is
often inadequate and unreliable. This makes it difficult for investors and
other users of financial statements to form a clear and accurate picture
of the impact of environmental factors on a company’s performance or to make
comparisons between companies.

Why do you think the European Commission even bothered to make such a
financial environmental accounting recommendation?

Outside of the Research Committee of the Institute of Chartered Accountants
of Scotland (http://www.csear.org ) I don't know of any European
environmental NGO, Sustainable NGO, and or Economic NGO calling for stricter
financial environmental accounting by companies.

Do you?

In the US, Canada, and South America there are no organizations dealing with
sustainable business/community activities actively calling for stricter
financial environmental  accounting by companies.

Not one.

The US Federal government, state governments, city governments, municipal
governments, and pubicly traded companies on the stock exchange are all
under legislative mandates to fully file without misrepresentation a
financial report of their performance and that includes environmental
energy,
 depreciation, liability, toxic torts, and cleanup costs.

But there is misrepresentation in the departure of filing these
environmental performance costs and the excuse is there is no guidelines and
or stakeholder interest in the field.

Companies like IRRC (http://www.irrc.org ) however are making money
providing the service of corporate environmental financial performance.

My question to this listservice is:
Can there be long term progress in environmental performance by companies or
governments without transparency of codified financial environmental
performance?

Best Wishes,
Donald Sutherland