Environmental Disclosure

Environmental disclosure refers to the voluntary or mandatory communication of information that shall help company’s stakeholders to recognize the impact of business decisions on the environment. Disclosed information usually includes narratives about company’s environmental programs and policies, compliance with local environmental legislation, achievement of environmental certifications or awards, adoption of environmental management systems, description of environmental risks, as well as quantitative information like environmental indicators or measures related to the amount of waste produced, the usage of natural resources, emissions, company expenses, and investments made to reduce possible negative impacts on the environment. This information can be found in annual reports, stand-alone environmental reports, or sustainability reports. In addition, companies may be obliged to disclose specific environmental information to the public, government authorities, or agencies to account for their ecological footprint. For example, in the United States, most manufacturing firms and utilities are required to provide to the Environmental Protection Agency (EPA) annual estimates of toxics released into the environment and the EPA makes this information publicly available.