Cut costs, draw investors with â€˜greenâ€™ reporting, Sri Lankan firms told
ECONOMYNEXT – Sustainability reporting, in which companies communicate their impact on issues like climate change, can help Sri Lankan firms cut costs and improve their image while offering market opportunities, an expert said.
Sena Peiris, former director of the National Cleaner Production Centre, said sustainability reporting or ‘green’ reporting enables firms to create a positive image of themselves, helping draw investors, and enhancing brand value and reputation.
It also enables businesses to comply with tax, labour, and environmental requirements while tracking internal performance on resource use, he told a forum on climate opportunities for business.
The disclosures also help open up more markets opportunities, with ‘green consumers’ considered a 209 billion US dollar market in the United States.
Business scenarios are changing with businesses no longer depending on profit alone, Peiris told the forum held by Biodiversity Sri Lanka, a national platform promoting strong engagement of the corporate sector in biodiversity and environmental conservation.
“Businesses have obligations to minimise damage to the environment caused by them,” Peiris said.
“Businesses are responsible to create social value in addition to economic value.”
Customer and employee expectations are also changing, Peiris said.
Adopting sustainability reporting can help companies cut costs and reduce carbon footprint by tracking internal performance on resource use with resources like water, energy and raw materials becoming scarce and expensive.
“Social vigilance on business operations are increasingly tough,” Peiris said.
Sustainability reporting also enables companies to benchmark with competitors and the sector they are in and better communicate with shareholders and potential investors and financial institutes.
(Colombo/February 01/2019 – SB)