The ISO 14001 standard, however, does not state specific environmental performance criteria.

Categories of EPIs Examples of EPIs

(ii) Environmental accounting examination of national standards and regulations for environmental financial accounting, and identification of key environmental performance indicators and their relation to financial performance (Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting)

sector specific data including industry agreed EPIs (including eco efficiency based EPIs)

It should be noted that there is a strong relationship between the categories of EPI identified below and those being developed for internal environmental management purposes by the International Standards Organisation (ISO ISO 14031 Environmental Performance Evaluation).

(b) Identification of key environmental performance indicators and their relation to financial performance.

comparability (through standardization of industry relevant and generic EPIs) consistency of measurement

The ISO 14000 series also comprises standards for environmental labelling, environmental performance evaluation, life cycle assessment, and the related terms and definitions.

developing a widely accepted range of standardized environmental performance indicators suitable for external reporting purposes

development of generic environmental impact EPIs, e.g., global warming indicators

75. The above table reveals the diversity in environmental performance indicators.

76. The widespread usage of such EPIs is dependent on there being

Thus, the establishment and operation of ISO 14001 does not, by itself, guarantee enhanced environmental performance.

further development in the area of industry specific EPIs

It concludes by making recommendations for improvements in EPIs if environmental performance is to be reported in a coherent and useful manner. The second chapter is based on the longer background paper, quot Linking environmental and financial performance a survey of best practice techniques quot .

The use of standardized indicators could also stimulate enterprises to improve their environmental and financial performance by comparing them with competitors, that is benchmarking.

to make recommendations concerning the way(s) in which environmental performance is communicated in external corporate reporting and to suggest ways in which the use of environmental performance indicators can be improved

1. Participants considered that EMS standards could be a useful tool to enhance the environmental performance of an organization, as well as to reduce costs through a more efficient use of resources.

ISO 14001 is not a performance standard.

Table 3. Financially relevant ( eco financial ) environmental performance indicators

II. LINKING ENVIRONMENTAL AND FINANCIAL PERFORMANCE

73. The generic categories of environmental performance indicators identified by James and Bennett (1994) provide perhaps a useful synthesis of the current approach to monitoring, measuring and reporting environmental performance.

It reviews best practices used to measure and communicate environmental performance (i.e., EPIs) and how such environmental data are increasingly being used by the financial community to make investment decisions.

GE.97 52240 page The second chapter attempts to go beyond the conventional accounting model and identify key environmental performance indicators (EPIs) and examine their relation to financial performance.

II. LINKING ENVIRONMENTAL AND FINANCIAL PERFORMANCE A SURVEY OF BEST PRACTICE TECHNIQUES 62 83

(i) there is a need to communicate environmental performance in a standardized and coherent way if it is to be useful or relevant to a potential user and

quot ISO 14031.5 Environmental Management Environmental Performance Evaluation quot . Working draft.

a corporate stand alone environmental performance report

In practice, however, a company with an ISO 14001 certified EMS may require specific environmental performance from its suppliers only as far as the supplier apos s performance is likely to have an impact on the firm apos s ability to comply with its stated targets and goals.

The identification and standardization of both generic and industry specific EPIs could guide preparers in providing essential qualitative and quantitative environmental information for inclusion in the annual report.

ENVIRONMENTAL MANAGEMENT STANDARDS,

72. Possibly because of the relative novelty of environmental performance measurement, it appears that there is no one single accepted way of defining or measuring environmental performance.

C. Best practice in measuring and communicating environmental performance

the provision of industry relevant and industry accepted benchmarked environmental performance indicators (including experimentation with eco efficiency indicators and

Environmental performance data re emissions, resource use, efficiency measures

In indicator of achievement (b) (ii), delete against core standards .

81. The need for improved standards of environmental performance data is not restricted to enterprises based in developed countries, nor is it peculiar to the private sector.

segmented environmental performance data (if not provided in the environmental review (see below)

(ii) Updated proposals for workload standards, efficiency and related performance indicators

Indicator of achievement (d) should read (d) Increased cooperation with UNCTAD, WTO and the multilateral environmental agreement secretariats to promote the mutual support of trade and environmental policies .

C. Environmental management standards as a tool of environmental policy

Expert Meeting on Trade and Investment Impacts of Environmental Management Standards, particularly

Investment Impacts of Environmental Management Standards, Particularly the

Large companies are assisting SMEs in implementing EMS and in improving their environmental performance based on common objectives of customers and suppliers.

ENVIRONMENTAL MANAGEMENT STANDARDS, PARTICULARLY THE ISO 14000 SERIES,