It is closely tied to basic environmental issues such as regulatory compliance and pollution control as well as to emerging concerns such as liability and product stewardship. External reporting is also closely associated with other environmental management tools such as LCA and full-cost accounting. As a result, it appears highly likely that such reporting will play a key role in driving the transition of companies and industries towards the goal of sustainable production and consumption. It can be a simple document written for informal, internal education or a detailed document for specific target audiences. How a CER is structured and what it contains is dependent on the company preparing it.
Companies prepare reports to inform stockholders of improvements in their environmental records.
Others use it to promote greater corporate responsibility so as to off-set any new regulations or tougher enforcement. This publication demonstrates how companies can use environmental reporting as one tool for building dialogue and cooperation between various partners. A number of organizations are working together to harmonize and simplify indicators, and reduce their number. Such indicators, which first focussed on production processes, are now looking at products and services. The growth and use of environmental management tools, despite their imperfections, are hopeful signs for the future, and UNEP strongly believes they should be used more widely.