- 15 Marks
CR – May 2018 – L3 – SC – Q7 – Sustainability Reporting
Discuss arguments against voluntary environmental disclosures and information required under GRI guidelines.
Question
Some shareholders in Nigeria are becoming increasingly interested in the environmental policies, impacts, and practices of business entities given the activities of some oil and gas and telecommunication companies. However, financial statements have not traditionally provided this information. As a result, there is early indication that some listed companies in Nigeria are beginning to publish sustainability reports complying with the Global Reporting Initiative (“GRI”), an organization set up in 1997, to develop a sustainability reporting framework for businesses. The GRI Sustainability Reporting Guidelines give guidance to entities on how to measure and report on management’s approach to the economic, environmental, and social aspects that impact their businesses.
Required:
a. Identify and explain the principal arguments against voluntary disclosure by business entities of their environmental policies, impacts, and practices.
(8 Marks)
b. Explain the nature of the information that could be disclosed by entities in their external reports concerning the economic, environmental, and social aspects in order to comply with the GRI guidelines.
(7 Marks)
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