The advisory group was also told how New Zealand's reputation might be at risk, with the ability to authenticate claims supporting our national brand "increasing in importance".
"The National Government wants to use the clean, green brand but doesn't care that the reality behind it is being eroded by its actions," Green MP Eugenie Sage said.
Ms Sage said the the document noted the need for good reporting, but the Government had "done the reverse" by ditching the report.
Report cards on "environmental indicators" were still being published, and the latest sparked outrage when the Herald revealed how more than half of monitored river sites were unsafe for swimming.
Environment Minister Amy Adams said changes to the Resource Management Act, now before Parliament, would eventually require authorities and councils to monitor the environment "according to specified priorities and methodologies".
"A reliable system will strengthen the credibility of New Zealand's clean, green brand by requiring independent, regular and nationally consistent reporting on the state of our environment, including our waterways," she said.
New Zealand's long-pushed 100 per cent Pure brand also came under further fire when a New York Times article called the image "fantastical".
Last month a Herald-DigiPoll found just over one in 10 Kiwis believe New Zealand can claim to be 100 per cent pure.
Quoted
"Information on our environmental, economic and social state and trends is essential to our ability to authenticate claims supporting our national reputation and to form the evidence base for New Zealand's Green Growth story."
Report to the MoED, 2011.
"The National Government wants to use the clean, green brand but doesn't care that the reality behind it is being eroded by its actions."
Green MP Eugenie Sage
"It is essential that improvements to the quality and accessibility of data in New Zealand are made so that we can debate the issues rather than the integrity of the data." Environment Minister Amy Adams