The report analyses the annual reports of FTSE All-Share companies, all of which now have to comply with the revised company law regulations. These regulations require companies with significant environmental impacts to report them in a Business Review as part of their annual reports and accounts.
Nearly all companies now report on the environment in some way. However, much environmental reporting is still at a very basic level – it may be just a one-word mention of a key phrase that this study was designed to identify. Ninety eight per cent of the companies referred to the environment in 2006, compared to 89% in 2004. In particular, FTSE Small Cap companies have increased their level of environmental reporting since the 2004 report. They now report at a similar level to FTSE 350 companies. Ninety seven per cent of Small Cap companies referred to the environment in 2006, compared to 80% in 2004.