ENVIRONMENTAL REPORTING AWARD 2006

Transcription

1 ENVIRONMENTAL REPORTING AWARD 2006 MINISTRY OF ENVIRONMENT & NATIONAL DEVELOPMENT UNIT

2 TABLE OF CONTENTS Information Sheet on Environmental Reporting What is Environmental Reporting?... 1 Why Report?... 3 Benefits of Reporting... 4 Environmental Reporting Guideline Principles of Environmental Reporting... 5 Eight-Set Process to preparing an Environmental Report... 6 Annexure Step 1: Assess Rationale for an Environmental Report... 7 Step 2: Identification of Key Stakeholders... 8 Step 3: Identification of Key Environmental Aspects & Impacts... 9 Step 4: Use of Environmental Performance Environmental Performance Step 5: Set Objectives and Targets Step 6: Measure and Evaluate Step 7: Reporting Step 8: Publication and Review... 15

3 INFORMATION SHEET ON ENVIRONMENTAL REPORTING What is Environmental Reporting? Environmental reporting is the communication of environmental performance information by an organisation to its stakeholders. Information on environmental performance includes among others: Impacts on the environment, Performance in managing those impacts, and Contribution to ecological and sustainable development. Nowadays, such information is becoming increasingly important to satisfy the expectations of stakeholders groups like: employees, shareholders, the public, regulators, contractors/suppliers, customers and other interested parties, who have varying objectives and expectations. Sustainable consumption and production activities, for example, must/can be reported, such as buying environmentally preferred goods and services like recycled paper, energy efficient devices etc. Why Report? The main reasons for reporting are: Transparency In line with Sustainable Development objectives, many stakeholders want to integrate environmental and social information in their decision making processes. Information flow increases the visibility of the organisation s activities. As a result, several organisations are voluntarily choosing to be more transparent. Accountability Organisations are becoming increasingly accountable for their actions. For instance, adverse criticism on environmental and social performance can put at risk the significant economic value of good corporate reputation and well-regarded brand. Multi-way Stakeholder Dialogue More and more non-traditional stakeholders (NGOs, media, suppliers/partners, employees, consumers and shareholders) are demanding information in environmental and social performance. Organisations are finding satisfaction and retainment of both traditional and non-traditional stakeholders on their willingness to openly communicate.

4 Benefits of Reporting Some common benefits include: Creation of market opportunities Environmental reporting is closely linked to business performance and raises the profile of an organisation and gains recognition of potential customers. Investors are increasingly choosing to invest in clean and green organisations and may appreciate the availability of public environmental performance information. Indirect improvement in internal environmental performance An environmental report that details resource use, waste discharges and impacts of the organisation s operations can highlight inefficiencies in production processes. Commitment to public environmental reporting will result in increasing internal awareness and focus on improving environmental performance. Increased confidence of investors and other financial institutions Environmental liabilities and risks are increasingly becoming the focus of lending institutions, investors and insurers. It is good business to ensure that these stakeholder groups are kept well informed of the organisation s environmental performance. Improvement of relationships with local communities, regulators & NGOs Local communities will be more tolerant and even supportive of organisations that openly communicate with their stakeholders. Greater control of environmental disclosure Reporting allows organisations to present information on their environmental performance thereby avoiding involuntary disclosure by other parties including media, non-government organisations, etc. This control can enable organisations to ensure that the public is also aware of the measures being taken to improve performance. Increased staff commitment Environmental reporting can raise the environmental awareness and commitment of an organisation s employees and management. Environmental performance may be related to the personal health of employees, the surrounding environment where they reside or simply raise their level of confidence in the organisation by creating a sense of pride.

5 ENVIRONMENTAL REPORTING GUIDELINE Objective of the Environment Report To give practical guidance for the publication of an environmental report Principles of Environmental Reporting Reporting steps are broad and generic and therefore applicable to all organisations regardless of sector or size. The eight steps are grouped under three key phases Plan, Measure and Report & Review. A diagrammatic representation of the three phase/eight step program is presented below. FIGURE 1: THREE PHASE/EIGHT STEP PROCESS TO PREPARE AN ENVIRONMENTAL REPORT PLAN MEASURE 3. Identify Key Environmental Aspects & Impacts 4. Use Environmental Performance 1. Assess rationale for an Environmental Report 2. Identify Key Stakeholders 6. Measure & Evaluate 5. Set Objectives & Targets REPORT & REVIEW 7. Reporting 8. Publication & Review

6 Eight-Step process to preparing an Environmental Report Assess Rationale for an Environmental Report Identify potential benefits in producing an Environmental Report for your company (Refer to Annex 1) Identify the scope and coverage of the Environmental Report Assess costs and benefits to produce an Environmental Report Identify Key Stakeholders Identify key stakeholders and their needs in an Environmental Report through consultation and feedback mechanisms (Refer to Annex 2) Step 1 Step 2 PLAN Identify Key Environmental Aspects and Impacts Identify key environmental issues and resulting significant environmental impacts (Refer to Annex 3) Use Environmental Performance Identify and prioritise relevant environmental indicators for your company (Refer to Annex 4) Set Objectives and Targets Set appropriate environmental performance objectives and targets (Refer to Annex 5) Measure and Evaluate Collect data for evaluation (Refer to Annex 6) Step 3 Step 4 Step 5 Step 6 MEASURE Reporting In reporting ensure honesty, clarity, neutrality, credibility, continuity, validity, understandability, relevance, completeness and comparability. Independent verification may also provide additional external assurance (Refer to Annex 7) Publication and Review Choose reporting formats and period that suits your company Distribute and use the report appropriately Include a feedback mechanism for queries and further information Review your report annually (Refer to Annex 8) Step 7 Step 8 REPORT & REVIEW

7 Annex 1 Step 1 Question the Need Assess Rationale for an Environmental Report Why Report? Is there an identified or perceived stakeholder need? Is your organisation signatory to a code that acknowledges disclosure of environmental information? Is there a mandatory reporting need? Consider the Costs & Benefits Possible Benefits Improvement of public profile Creation of market opportunities Greater control of environmental disclosure Strengthening of negotiating powers with Stakeholders Raising awareness Gain confidence of investors, insurers and financial institutions Trigger internal improvements in environmental performance External recognition and awards Possible barriers Cost and resource constraints Additional resources to develop framework for measurement and reporting The need to report openly once committed

8 Annex 2 Step 2 Identify Identification of Key Stakeholders Potential stakeholders Employees Shareholders Potential investors Customers Suppliers and contractors Lenders, insurers and owners Local and regional community Media Industry, Professional or business associations Academic and research institutions General public Environmental groups Non-government organisations Consumer interest groups Competitors and joint ventures Government Consult Tools that can be used Surveys and questionnaires Meetings and workshops Market research Direct liaison Feedback mechanisms in reporting Address Measures to engage stakeholders in your Environment Report Choose reporting format(s) Keep the target audience in mind when reporting and address their needs Incorporate details of stakeholder engagement Include relevant contact details and feedback mechanisms in the report

9 Annex 3 Step 3 Initial Review Identification of Key Environmental Aspects & Impacts Organization s stand regarding environment covering Environmental legislative and regulatory requirements Identification of significant environmental aspects and impacts Assessment of existing environmental management practices Evaluation of feedback from the investigation of previous incidents/issues Consideration of stakeholder requirements Identify Aspects & Impacts Environmental aspects and impacts Waste and emissions to environment Impacts on air, water and land Social impacts Use of raw materials and natural resources Environmental amenity issues The organisation s control and influence over the aspect Legal requirements and other codes and guidelines Normal and abnormal operating conditions Environmental policy and corporate requirements Stakeholder requirements Prioritise Prioritisation of environmental aspects and impacts The following aspects should be taken into consideration while prioritising aspects and impacts: The scale of the impact Its severity The probability of its occurrence The duration of the impact If your organisation already has an EMS, then consider the following Review Environment Management System Consideration of significant environmental aspects during review Key stakeholder requirements Feedback received on previous reports Environmental reporting commitments Corporate environmental reporting commitments

10 Annex 4 Step 4 Select Environmental Use of Environmental Performance Factors influencing the selection of environmental performance indicators Environmental policy and corporate requirements Stakeholder requirements Business risks Environmental compliance requirements and due diligence measures Current and past environmental performance Recognised codes, standards and best management practices Management reviews and audit results Industry sector requirements and agreements The level of interaction between your organisations operations and the surrounding environment Key factors of most significance operations should be selected, prioritized and used as Selection Criteria for choosing Environmental Performance. Group & Rationalise Environmental Performance Operational Performance Management Performance Environmental Performance Input Output System Functional Area Materials Energy Water Renewable Logistics Services Non-Product Outputs to air, land & water Logistics Services Environmental Management Policies & Procedures Legal Requirements Environmental Cost & Benefits Corporate Responsibilities & Standards Internal Training & Awareness Purchasing Performance Stakeholder Communication Financial of the State of the Environment, including air, land, water, flora/fauna, habitat, human, aesthetics, heritage and culture

11 Environmental Performance Core Materials Additional Total materials used Percentage of recycled materials and wastes used Direct and Indirect Energy Consumption Total materials use Energy Water Biodiversity Total energy saved due to conservation and efficiency improvements Initiatives to provide / use energy-efficient products and services Initiatives to reduce indirect energy consumption Total volume of water recycled and reused Total water discharge and quality Location and size of land owned, leased, or managed in, or adjacent to protected areas Description of significant impacts of activities on protected areas Total amount of waste by type and destination Total number and volume of significant spills Greenhouse gas emissions and NOx, SOx and other significant air emissions Initiatives to manage environmental impacts of products & services and extent of impact reduction Percentage of products recycled Emissions, Effluents and Waste Products and Services Ares of habitats protected or restored Programs for managing impacts on biodiversity All production, transport, import or export of any waste deemed Hazardous as per Basel Convention Water sources and related habitats significantly affected by discharges of water and runoff Compliance Incidence and fines or non-monetary sanctions for, non-compliance with environmental regulations Transport Significant impacts of transportation used Environmental Stewardship Sensitisation campaigns for organisation s staff (if any) Sponsor any environmental activities at local or national levels Celebration of environmental activities Overall Total environmental protection expenditures by type

12 Annex 5 Step 5 Objectives and Targets Set Objectives and Targets Possible factors to consider in setting your objectives and targets Environmental policy and corporate requirements Stakeholder, financial, operational and business requirements Business risks including significant environmental aspects Environmental compliance requirements and due diligence measures Current and past environmental performance Use of best available technology where economically viable, cost effective and judged appropriate Financial issues Recognised codes, standards and best management practices Management review and audit results Industry sector requirements and agreements Commitment to pollution prevention Those key factors of most significance to your operations should be identified and prioritised and used as Selection Criteria for developing your objectives and targets, and setting time lines where possible. Set Time Lines Time lines Setting suitable time lines for the objectives and targets assists both in triggering internal improvements and in external recognition of commitment to continuous improvement Track Progress Best practice measures in environmental performance evaluation The following best practice environmental reporting measures should be considered in tracking progress: Review objectives and targets for each reporting period with the aim of continuous improvement Report within the Environment Report on progress against established targets and time lines, and provide a summary on progress achieved Consider changes to environmental aspects 1

13 Annex 6 Step 6 Collecting Measure and Evaluate While collecting data consideration must be given to: Data reliability & availability Quality control and assurance Scientific and statistical validity Monitoring periods Data identification, storage, retrieval and disposition procedures Aligning monitoring and reporting periods, where required Data Collating Analysing Data may be collected from Monitoring/measuring records Regulatory reports Inventory/production, financial, accounting and purchasing records Environmental audit reports State of the environment reports Government and research agencies Suppliers and subcontractors In analysing and converting data give consideration to All relevant and reliable data to avoid bias Data validity and traceability Adequacy and completeness Data aggregation and transcription processes Objectives and targets Data produced by others in the industry sector Data trends Information Communicating In communicating the results give consideration to: Stakeholder requirements Trends in performance Legislative and regulatory compliance Absolute and relative indicators Data quality Case studies Data comparability, continuity and completeness Assumptions and metrics used Objectives and targets Qualitative characteristics in reporting Results

14 Annex 7 Step 7 Relevance Reporting The information must be relevant to the decision-making needs of stakeholders Reliability Information must be reliable, free from bias and material error Comprehensibility Information presented must be in a readable and understandable manner to the primary user groups Neutrality Reporting must be neutral to ensure that the Environment Report does not influence decisions or judgments by selective presentation of information Completeness Completeness in coverage reduces the risk of bias. It is also good practice to define the organisation s position in relation to the environment as well as its key environmental aspects Comparability Consistency in measurement of data and presentation of information are necessary to ensure comparability internally, between sites and within the sector Timeliness The report should reflect recent performance, be clear about the reporting period covered and the reason for choosing the reporting period and/or frequency of reporting Credibility & Verification Credibility arises from honest reporting, but can be further enhanced by involving external stakeholders in the report review process, and/or seeking independent verification/review by qualified external parties.

15 Annex 8 Step 8 Publication and Review Plan Reporting period Consideration must be given to: Stakeholder requirements Financial reporting cycle Monitoring periods Any existing reporting requirements Resources required Reporting format Consider: Stakeholder requirements Use formats such stand-alone hard copy, CD-ROM, electronic, newsletters, Internet, video and multi-media Summary report versions for wider distribution Publish Distribute Review Publishing the Environment Report Give consideration to: How stakeholders will receive the publication Keeping operational personnel involved throughout the publishing process Distribution and use of the Environment Report Consider: How stakeholders will receive the publication Releasing the report internally Ensure that staff are aware of the Environment Report Make stakeholders aware (e.g. through displays, presentations, web-site) Actively use the report in public relations, strengthening community relations, creating market opportunities, meeting reporting requirements Obtaining feedback and reviewing Give consideration to: Cost-free and easy feedback possibilities Nominating appropriate contacts Evaluating, responding to and using feedback received Changing environmental performance indicators, objectives, targets, and stakeholder needs for next reporting cycle