Many businesses feel uncertain about the role of sustainability in their annual reporting. While the biggest UK listed companies will soon have to include aspects of sustainability in their reports, smaller ones will still have the choice whether to include such information. However, pressure is increasing as stakeholders and investors are looking for greater company responsibility and ethics.
Experts believe that legislation on sustainability reporting is likely to be implemented for all organisations, regardless of their type or size, by 2015. Accountancy Age reveals why even the smallest businesses should consider strategies for reducing energy consumption and carbon emissions, so that they could be ready for the new criteria when they eventually become law.
Engaging in sustainability reporting should be seen as an opportunity, rather than a challenge, Accountancy Age says. It could be a valuable tool that helps a business stand out as innovative and offering higher value to its stakeholders. Still, many businesses are at a loss where to start with energy efficiency planning and measurement. Sometimes just making employees aware of the actual impact the business has on the environment may be a step forward. A London company has recently reported that by installing a display that shows the levels of energy consumption, it has managed to reduce carbon emissions by 20%.
Reporting on the carbon emission reduction efforts that an organisation makes is key for boosting brand reputation. Moreover, keeping a record of a company´s green efforts will make it easier to plan further and gradually raise the bar for better results, Accountancy Age notes.