How to produce an environmental report

Environmental reports can have a lot of advantages for your business. Your business may be legally required to provide environmental reports, or environmental information with your products. Even if you do not have to produce a report, there could be significant benefits.

Environmental reports benefits for marketing and stakeholder relations

Customers are increasingly interested in the environmental and social impact of businesses. Producing an environmental report can bring a marketing advantage by demonstrating your business' awareness of its environmental responsibilities. It may also help improve your relationship with key stakeholders, such as investors, suppliers and the wider local community.

Environmental reports benefits for recruitment and retention

Potential job applicants increasingly look at the environmental performance of a business they're thinking about working for.

In addition, you may find it easier to retain your existing staff if you produce a report that clearly demonstrates your environmental performance.

Cost savings from environmental reporting

Environmental reporting should focus your business' attention on environmental performance. Typically, this will result in improved performance, which should lead to cost savings.

Environmental reports benefits for legal compliance

Large and medium companies must produce an annual business review, which must incorporate a fair review of the company's business, and a description of the principal risks and uncertainties facing the company.

This annual review is expected to include some mention of environmental matters, including the company's impact on the environment. For quoted companies, and those that carry on insurance market activity, this is a legal requirement.

Large companies must use environmental key performance indicators to report on environmental matters - where these are necessary to understand the development, performance or position of the company.

UK pension fund trustees must disclose how they have considered social, economic and environmental matters. Companies that disclose this information, for example in environmental reports, are in a better position to be considered in investment decisions by trustees.

Small companies are exempt from the above requirements as long as they meet two of the following criteria:

• turnover not more than £5.6 million
• balance sheet total not more than £2.8 million
• not more than 50 employees