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Rosemary Radcliffe CBE, Chairman, OFR Independent Working Group:
"Trucost has a well established and robust process which can help boards of directors decide which of their businesses' environmental impacts should be disclosed in their OFR."
The Operating and Financial Review is a new reporting requirement for GB quoted companies designed to provide shareholders with a more complete picture of the company they invest in. It specifically encourages companies to report on non-financial aspects of their business. Companies that face environmental risks and uncertainties, or social, community and employee issues, are required to report on policies and performance to the extent necessary for shareholders to assess the company's strategy and their potential to succeed. So, for example, directors will need to consider how their company is gearing up to operate in a carbon-constrained world, where UK carbon dioxide emissions will need to fall by at least 60 per cent over the next 50 years.
It is the ultimate responsibility of company directors to sign off the OFR content and if they decide not to report on various issues they have to make a statement noting that they had considered these issues in detail and decided they were not material to the business. As is the case for financial accounts, directors are expected to apply "due care, skill and diligence" in the preparation of this report.
The Accounts Modernisation Directive requires similar information to be reported by large unquoted companies across the EU in their directors' report.
Trucost provides business advisory services that enable companies to link environmental performance with financial results so that environmental issues can be compared with other business measures. Trucost helps companies to comply with the OFR reporting regulations by identifying the environmental issues that are significant to their business.
To find out how Trucost can help your company meet the requirements of the OFR, click here
To find out more call +44 (0)20 7321 3833 or email info@trucost.com
