by Ann Withanee — May 20, 2011—The U.K. Environment Agency analyzed data from 458 FTSE All-Share companies listed in May 2010. Data was obtained from the statutory annual reports and accounts for financial years ending May to December 2009, and January to April 2010.
It found 99 percent of companies made some reference to an environmental topic in their 2009-2010 annual reports. “However, many of these references are still at a very basic level,” said the Environmental Disclosure report for 2009/2010.
Two-thirds of companies are reporting quantitatively on their environmental impacts. This is a “marked increase on the 42 percent which did this in 2006.”
The report noted that 22 percent of companies are making quantitative disclosures, following government guidelines, for climate change and energy use. “But only 12 percent reported on waste and 10 percent reported on water use in line with the latest government guidance.”
The biggest percentage increase in environmental topics discussed between 2006 and 2009-10 was for environmental management systems, up from 33 percent to 61 percent.
Discussion of pollution, biodiversity and land use, and environmental procurement increased significantly on 2006 levels out of the other key environmental topics examined. Biodiversity or land use was referred to by 57 percent of companies and 33 percent made a reference to environmental procurement.
The agency began its disclosure reports in 2004 by request of the government that was looking to establish a baseline before the new Companies Act became law in 2006.
The agency said the report was completed to help companies understand legal obligations regarding disclosing environmental impacts, where the legislation can be found and where the guidelines exist. It also gives investors company information for when they review how FTSE companies are managing and measuring their environmental impacts and related risks.
For more information, visit U.K.’s Environmental Agency site.
