Environment reports 'good for business'

By LIBBY MIDDLEBROOK

The New Zealand business community is missing opportunities to capitalise from corporate reporting on environmental issues, according to former Australian Environment Minister Ros Kelly.

During the past four years chemical and mining companies throughout Australia have been producing detailed reports about their company's impact on the environment.

Ms Kelly said she was surprised at the lack of similar corporate environment reporting here, which could create competitive advantages across all industries.

"There are some companies that have been doing it for a few years, but it hasn't really caught on much in NZ. I suspect it's because you have a beautiful environment and people take it for granted."

Ms Kelly, who was here last week to visit MPs and business leaders, was a member of the Australian federal Parliament from 1980 to 1994 and is now a group executive for URS Woodward-Clyde, a global engineering, environmental and project management consulting group.

She said environment reporting, which included issues such as emission levels and environment policy, had caught on quickly in Australia following a number of environment disasters within the energy, mining and chemical industries.

Companies found increased efficiencies and improved relationships between business and the community after surveying their company's impact on the environment and releasing the information through public documents.

"These days environmental issues are much more integrated into a company's image, their culture and how they relate to community. The community's attitude towards the environment is changing very quickly; people are more educated and they're demanding a lot more of companies.

"Companies can become more efficient in their operations and they can often regain some trust from the community. It can make it easier to get approval for new projects, too."

About 40 per cent of public companies here are believed to include some form of environmental discussion in their annual reports.

However, in Sweden and Norway, for instance, it is compulsory for companies to report on their environmental performance.

Auckland-based Watercare, which provides water supply and wastewater disposal services to the region, was one of the first to produce a stand-alone environmental report.

Chief executive Mark Ford said this was prompted by the 1994 Auckland water shortages.

"We were the laughing stock of Auckland. During the drought people were throwing things at our cars, people were abusing us." Watercare had re-branded itself professionally and people could see it was objective and honest.

For the past five years the company has won the Institute of Chartered Accountants award for corporate environmental reporting. Each year Watercare produces a simple document outlining its environmental impact and where it plans to improve its performance.

Mr Ford said the reports had improved staff morale and the company's image as well as reducing costs through resource consents meeting fewer objections.

"We have to have the respect of the community otherwise it costs us huge amounts of money through the resource consents process. People look at us now and see that we're open, transparent and willing to be criticised."