Who should audit green reporting?
There’s a green buzz in the air again and even though the debate is somewhat fledgling, it already seems like much has changed. Where before the expectation was that green individuals would pressure companies to change, it appears to me that the reverse is beginning to take hold.
Uncertainty around the economy, house prices and job security has kicked the ball firmly back into the corporate court.
As one of the highest profile accountants in the sustainability debate told me this week, these factors – and, perhaps most importantly, a lack of government leadership and clarity on the issue - has already caused a consumer greenlash.
So it begas the question: Will companies respond?
Well, if they don’t, my concern is that unless tangible progress is made on the corporate front, cynicism will set in there too.
CFO Magazine in the States reports that about one in three of the 2,200 global executives who responded to a recent McKinsey survey say they place more importance on climate change than on most other global trends, motivated most often by reputation/brand-management concerns.
But those are words, not action. And while some organisations, not least The Sunday Times, are looking to recognise those companies that are taking a lead, rooftop wormeries are not going to change the world. The change that is required is more fundamental. And more profound.
I’ve been involved in a number of discussions this year about whether there is enough independent verification of sustainable reporting claims made by companies.
My view is that there is not. And I’m certainly not alone in that.
So I was gratified and troubled in equal measure to read yesterday that very few large companies are seeking authoritative verification for their sustainability reports.
Communications agency Black Sun says the majority of assurances are conducted by specialist environmental consultancies with only 13% done by an accountancy firm.
Now this could sound like special pleading for accountants, and an argument that only they are equipped to carry out these assessments. That’s not my point, though I expect it to be made by others.
I do believe though that it highlights the lack authority, independence and transparency in a fandamental aspect of the sustainability debate - and at an absolutely crucial point in time.
Investors, customers and other stakeholders deserve a reliable measure. But where will it come from?
The Financial Services authority doesn't feel right. Neither does the Auditing Practices Board. But is there another existing agency equipped to do so? The EC, perhasps? Or does it require a new body - and another layer of bureaucracy?
I'm not sure I have the answer. But I hope someone does.
Whatever happened to proofreading? Like auditing, another neglected skill.
Posted by Neville Reid | June 4, 2008 11:49 AM
A new car (adult jokes) a tramp opened a new car on the road rides, a friend stopped him and asked him how he get that car, he explained: "One day I sat in the street doing what I want to do , a pretty girl asked me, 'like the car?' I go in, and the car open to the suburbs, she put the car stopped, we all come out, she said: 'kiss me!' So I kissed her, and she really is a stunner, and then she began to undress, until the rest of a pair of underwear she said to me: 'I belong to you something!' I think she's a pants I wear high, so I took the car. "
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