I recently attended the annual Accounting for Sustainability Forum in London held just before Christmas. Joining me was Lee White (the Institute’s Executive General Manager – Members) together with a 200 strong contingent from the international accounting and business communities, investors, government, academia and civil society. Addressing us at St James’s Palace State Apartments, HRH the Prince of Wales, and the Chancellor of the Exchequer, the Rt Hon George Osborne, joined forces to highlight the role businesses have to play in ensuring the future of the planet.
The fifth annual gathering of The Prince’s Accounting for Sustainability Forum stressed the ever present need for businesses to put a value on, and better account for, the social and environmental impacts of their activities. At the Institute, we have always advocated the use of Broad Based Business Reporting as a recognised method of reporting for non-financial activities.
The importance of accounting for sustainability was brought to life by a short film called ‘Business Leader or Eco-Warrior’ starring Sir Richard Branson and Dragon’s Den stars Theo Paphitis and Deborah Meaden.
Several important steps were taken to increase the profile and prominence of sustainability reports in particular. The Chancellor announced the UK Government’s plan to fully implement sustainability reporting across its business divisions starting April 2011. This is a very significant step for a government and it will be interesting to see whether other countries, including Australia, follow this show of leadership.
Should our government perhaps take a step in this direction as well? I believe they should. Sustainability reporting is relevant to everyone including government. Taking a similar step here in Australia would be a signal to the market of the importance government is placing on sustainability.
What will it mean for government departments preparing financial statements? Basically, it will be mandatory for all central government departments and the National Health Service (NHS) to publish a sustainability report in their annual reports, which will encompass carbon emissions, waste management and use of finite resources – reflecting the integrated reporting requirements recommended by Accounting for Sustainability.
Other non-financial components of the sustainability report include direct and non-direct greenhouse gas emissions, the absolute cost of waste disposal and data on water consumption. Sustainability reporting does matter. What are governments doing about it?
Friday, January 7, 2011
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