Flashcards in Chapter 12 - Reporting CSR And Sustainability Deck (12)
What are the UK statutory requirements for companies to report on social and environmental issues in the report and accounts?
CA2006 contains requirements for quoted companies to report on social and environmental issues in their strategy report, including information about:
- environmental matters
- company employees
- social, community and human rights issues
What are the main ABI guidelines to companies about ESG reporting?
- set ESG risks in the context of the whole range of issues facing a company
- contain a forward looking perspective
- describe the actions of boards to mitigating these risks.
What is the problem with the UK law on reporting on environmental and social issues?
There is no requirement on specifically what must be reported, only that there must be a report.
Why might companies decide to produce voluntary SE reports?
- a genuine concern for SE issues
- reputational protection
- competitive advantage
- pressure from institutions
- general public has lost trust
What might be the arguments against voluntary SE reports?
- insufficient awareness by managers and directors
- deterred by cost
- reluctant to disclose information that could be sensitive to competitors
- avoiding reputational damage if it presents unfavourable information.
What is triple bottom line reporting?
Another term for sustainability reports, reporting on economic social and environmental indicators.
How do triple bottom line reports differ in content to SEE reports?
There are greater quantitative reporting measures:
e.g. social = employee diversity
economic = profits
environmental = recycling rate
What is the limitation of triple bottom line reporting?
- no standardisation of measuring SE impacts
- if SE measures are not independently audited, with will be doubts over the reliability of reporting
What is the purpose of conversion factors for measuring waste, pollution and consumption of non-renewable resources?
To ensure standardisation that allows companies to be compared according to their sustainability. and size of their organisation.
What is the GRI Sustainability Reporting Framework?
A voluntary framework for sustainability reporting, seeking to standardise reports.
What types of disclosure should be included in a GRI G4 report?
1 General standard disclosures
2 Specific standard disclosures, suvdivided into:
a Disclosures on management approach