JOURNAL OF THE ASIA PACIFIC CENTRE FOR ENVIRONMENTAL ACCOUNTABILITY

VOLUME 9, NO. 3, SEPTEMBER 2003 Contents Page No. Editorial 3 Feature Articles Making environmental disclosure mandatory: the case of Spain Carlos Larrinaga 4 The use of EMS networks by small Swedish firms Patrick Hallinan and Michael Schaper 7 Who is looking after the tobacco industry? Lee Moerman and Sandra Van Der Laan 16 Regular Features Environment Extra! 19 Report on two Eco-tax Conferences in New Zealand and Australia – 30 Comments from Green Budgets Germany

Fourth Asian Pacific Interdisciplinary Research in Accounting (APIRA) 34 Conference Singapore 4 – 6 July 2004

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Copyright, September 2003 ISSN 1442-1224

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EDITORIAL

Welcome to the third edition of the APCEA now taxes on other sources of litter in Journal for 2003. There is a European Ireland; IFRIC’s new accounting flavour to this edition. interpretation on greenhouse gas emissions; the new SB20 list of world’s best The first article is by Carlos Larrinaga from sustainable stocks; the Mays Report the University of Burgos in Spain. It engaging the investment community and its addresses the Spanish response to the market (value) based approach to European Commission Recommendation on sustainability; Defence and public recognition, measurement and disclosure of environmental reporting. environmental issues in corporate annual accounts. Carlos draws attention to the Readers wishing to contribute articles or initial focus on disclosure by electric utilities news, should contact the editor at: and problems associated with lack of Mr Roger Burritt enforcement in relation to the mandatory Editor, APCEA Journal standard introduced in Spain. Email: [email protected] Ph: +61 2 6125 3670 The second article, by Patrick Hallinan and Fax: +61 2 6125 5005 Michael Schaper examines collaborative Articles should be submitted in word format environmental networks and their as an email attachment. A pro forma is relationship with improved environmental available for this purpose on request. performance in the small and medium-sized Articles are subject to independent peer business sector in Sweden. The focus is on review by members of the Editorial Board gaining ISO 14001 certification, based on prior to acceptance for publication. the Hackefors network approach. The authors suggest lessons are available for the Finally, conference news and views are Australian SME sector. reported, along with a report from Carol Tilt on the CSEAR Summer School and some The final article, by Lee Moerman and branch news. Sandra Van Der Laan, examines the context APCEA Editorial Board: of social reporting in the tobacco industry. It considers the uneasy tension between those Roger L Burritt (Editor) – The Australian National with an economic view and parties with a University, Australia social (health) view of the tobacco industry. Lorne Cummings – Macquarie University, Australia Geoff Frost – The University of Sydney, Australia The regular column ‘Environment Extra!’ Kathy Gibson – University of Tasmania, Australia includes information about: a new Barbara Geno – University of the Sunshine Coast, sustainable development reporting Australia committee in New Zealand; carbon dioxide Professor M.R. (Reg) Mathews – Charles Sturt emission labels for new cars in Australia; University, Australia the development of ED114 on Agriculture Gary O’Donovan – University of Tasmania, (Australia); how best to find the wind for Australia those wind farms; first the plastic bag tax, Jean Raar – Deakin University, Australia

3 MAKING ENVIRONMENTAL DISCLOSURE MANDATORY: THE CASE OF SPAIN

Professor Carlos Larrinaga, Universidad Plan (AGAP) for electric utilities (RD de Burgos, Spain. 437/98). Accounting standardisation in Spain is headed by the Government and is Introduction reflected in an accounting code called ‘Plan General de Contabilidad’, following the The fifth European Community programme French model. Second, compulsory of policy and action in relation to the disclosure was clarified and reinforced in environment and sustainable development 2002 through the 25th of March, 2002 (‘Towards Sustainability’) contained a resolution of the Instituto de Contabilidad y number of proposals aimed at improving and Auditorý´a de Cuentas (ICAC – Accounting promoting environmental disclosure by and Auditing Institute), a governmental firms. In this context, in 1995 the standard setting institution linked with the Accounting Advisory Forum prepared a Economy Ministry. consultation document on how companies should report on the different ways that Considering first the AGAP, it is environmental issues could affect their paradoxical, but far from unusual, for the financial figures. ICAC to issue general standards through AGAPs, as is the case with this disclosure Most of the suggestions made by the obligation, which was issued through the Accounting Advisory Forum were later AGAP for electric utilities (RD 437/98). The included in an Interpretative Communication foreword mentions that while this standard and finally in a Recommendation has been introduced in the electric utilities’ (2001/453/CE) on the recognition, AGAP, it is to be regard as generally measurement and disclosure of applicable, on the understanding that the environmental issues in the annual accounts standard is but a clarification of the general and annual reports of companies. A accounting regulation. In addition, this Recommendation in the European regime standard has been introduced in other means that the member States should ensure adapted general accounting plans (water that the companies apply the provisions supply and sewage industry or road transport included in it. facilities).

It is in this context that the Spanish The electricity utilities’ AGAP (RD 437/98) environmental disclosure standard should be requires environmental disclosure in the placed. The regulation has used two notes to the financial statements (called different instruments. First, the disclosure ‘memoria’). The compulsory disclosures are standard was initially enacted in 1998 itemized in a model (see Table 1). Note 4 through the Adapted General Accounting requires the disclosure of accounting policy 4 about environmental assets, expenses and description of the nature and the amount of liabilities. Note 18 involves the disclosure of environmental investments, expenses, expenses on energy saving and efficiency provisions and contingent liabilities. programs. Finally, note 19 requires a

Table 1 Spanish environmental disclosure standard 437/98

(a) Environmental information to be disclosed in the notes to the financial statements (Memoria)†.

Item 4.r Accounting criteria related with environmental actions with environmental impact and saving and energy efficiency programs. It should be disclosed: - Valuation criteria and impacts on the earnings of the company. Particularly, the criteria used for discriminating expenses between current expenses and a higher value of assets should be disclosed. - Description of the assessment and calculation method for the liabilities caused by the environmental impact. Item 18.2 Current expenses related with energy saving and efficiency projects, indicating the amount and their nature Item 19 Information on the environment Description and characteristics of the most significant systems, equipment and installations capitalized, whose aim be the minimization of environmental impacts and the protection and improvement of the environment. It should be included its nature, purpose, accounting value, and its accumulated depreciation. Current expenses with the aim of environmental protection and improvement, distinguishing between ordinary and extraordinary items, including its purpose in every case. Risks and expenses covered with provisions related to environmental actions, with special reference to those derived from current litigation, reparations and others. For every provision it should be disclosed: Initial amount. Accruals. Write downs. Final amount. Contingent liabilities related with environmental protection and improvement, including risks transferred to other entities, method of assessment and contingent factors, with indication of the eventual effects on net worth and on profits. If needed, reasons that impede this assessment must be explained, as well as the minimum and maximum risks (b) Environmental disclosure standard, re-classified 1. Accounting policy in relation to the recognition and valuation of current expenses and environmental assets 2. Accounting policy in relation to the recognition and evaluation of environmental liabilities 3. Expenses on resources saving and efficiency 4. Nature, purpose and accounting value of environmental assets 5. Current expenses 6. Environmental provisions 7. Environmental contingent liabilities (Source: Royal Decree 437/1998)

The abovementioned environmental Larrinaga et al. (2002) showed that only standard came into force in 1998, but about 20% of industrial companies traded on experience reveals that the standard was not the Madrid stock exchange disclosed some being enforced (Larrinaga et al. 2002). minimal information. Several reasons could

5 explain this situation. First, there is a lack of standard pays attention to environmental institutional arrangements to ensure that expenses and liabilities, regardless of the companies apply the standard. Second, it environmental performance of the company. seems that the mechanism (AGAP) used to However, it should be admitted that, enact this standard was not effective. progressively, it is intended that the standard Finally, the AGAP does not include addresses environmental issues in decision stipulations on the recognition and valuation making processes. of environmental expenses, assets and liabilities. It is likely that the lack of The approach adopted by the Spanish guidance on those aspects discouraged standard is that environmental issues can be companies to make environmental successfully integrated in the conventional disclosures. accounting model. The notion of the environment is a very traditional one, based The lack of enforcement together with the on its view as being a resource and European Recommendation lead the ICAC neglecting the notion of sustainable to issue a 2002 resolution. This standard development. Interestingly, the Spanish clarified that environmental disclosure is standard overlooked the specifications made compulsory in the annual accounting of any in the European Commission company, including Small and Medium- recommendation regarding disclosure in the sized Enterprises and non-for-profit management report of information organisations. It should be stressed that this concerning environmental performance and standard is only concerned with the financial the reference to any separate environmental implications of environmental issues. In report. comparison with the Global Reporting Initiative, which is concerned with social The content of the 2002 ICAC resolution is and environmental performance, the Spanish summarised in Table 2.

Table 2 Environmental disclosure standard (2002 resolution)

Issues considered in the 2002 resolution of the ICAC

Environmental - Definition of operating environmental expenses expenses - Examples of operating environmental expenses: those caused by pollution prevention, waste management, pollution abatement and environmental management. - Treatment of costs that should be partially considered as environmental - Definition of extraordinary environmental expenses - Examples of extraordinary environmental expenses: fines and compensations for pollution Environmental - Definition of assets assets - Recognition: restrictive treatment, linked to future economic benefits. Environmental - Definition of environmental liabilities liabilities - Includes constructive obligations - Similar treatment to the IASB, including contingencies - Treatment of recoveries from third parties - Long term commitments related with assets should be treated as liabilites (Source: 25th of March, 2002 resolution of the ICAC)

In conclusion to this brief presentation on disclosure, it adopts a very conventional the Spanish standard on environmental stand. It is not only similar, but maybe more

6 conservative, than the proposals made by Accountability and accounting other international bodies. However, interest regulation: the case of the Spanish in this standard is related to the fact that it environmental disclosure standard, has been made mandatory, thereby raising European Accounting Review, 11(4), pp. concerns about the important difference 723-740. between regulation and enforcement in social and environmental accounting. Further information: Carlos can be contacted by email at Reference [email protected]. Larrinaga, C.; Carrasco, F.; Correa, C.; Llena, F. and Moneva, J.M. (2002),

THE USE OF ENVIRONMENTAL MANAGEMENT SYSTEMS NETWORKS BY SMALL SWEDISH FIRMS

Patrick Hallinan, Cremorne, Sydney and • Examine the external and internal factors Dr Michael Schaper, School of that lead firms to chose to become ISO Management, Curtin University of certified; Technology. • Determine why member firms used a network system to become ISO certified; Abstract • Identify the problems that they Collaborative networks have become an encountered by participating in a important tool used to increase network; and environmental performance within the small • Assess if the network approach has lead to medium-sized enterprise (SME) sector. to any further joint initiatives amongst One popular technique is the Hackefors members. model, a process devised to implement group ISO 14001 certification in Sweden. Four networks, containing 50 respondent Use of the Hackefors network approach has firms, were surveyed. The study found that since spread rapidly throughout that country, there appear to be a number of factors which where there are now some 24 networks, with affect environmental networks amongst over 450 member firms, using the model to small firms. It is clear that networks can be achieve group environmental certification. used by a variety of firms from different industrial sectors. Several factors influence Given the rapid growth of this networking the decision to adopt ISO 14001, both tool, it is perhaps appropriate to examine external and internal. In general, small firms some of the issues relating to the processes in networks use a group (or team) approach in this system. More specifically, the to gaining certification because they lack purpose of this project was to: many of the resources needed to successfully pursue accreditation alone.

7 Although there are some problems and gaining better access to specialised encountered between network members, inputs and infrastructure. These can lead to most participants appear willing to use the flow on effects, such as increased environmental network for other business- productivity and enhanced competitiveness related purposes. (Human and Provan, 1997; Kassinis, 2001).

Introduction Industrial districts have been the most common situation where SME networks Getting small firms to improve their have been found in the past. Historically, environmental performance is one of the relationships in these networks have been emerging problems in the greening of based on geographical clustering. Often, the management. Whilst most large firms are firms in these networks belonged to the now somewhat aware of their effects on the same sector and contained all the upstream environment, and frequently have at least and downstream processes and services some systems to mitigate such impacts, this involved in the production of a family of is not the case amongst the small business products (Kassinis, 2001). Today, the sector. SMEs are often unaware of their situation is changing. Many different environmental impact and frequently lack industries are discovering that networks are the resources (be it time, money or people) an effective way to approach a variety of needed to implement change. problems. Firms from a wide variety of backgrounds can now be found How can small firms be encouraged to collaborating to achieve common goals in improve their uptake of environmental areas as diverse as product development, initiatives? In Sweden, one approach has quality assurance certification, regional been to focus on inter-firm collaboration, in development, tourism promotion and which small firms operate as a network to sustainability issues (Halme et al., 2000; jointly win environmental management Ammenberg et al., 1999; Henriksen, 1995). system (EMS) certification for the ISO SME networks can now be found in many 14001 standard. This is based on the so- countries around the world, including the called “Hackefors model,” which was Hackefors Environmental Group in Sweden, established in an industrial district outside Alcudia in Spain, Kinsale Chamber network the city of Linköping (Ammenberg and in Ireland, Naturlich in Finland and the Hjelm 2003). Scottish Lace Guild in the UK, to name a few. SMEs and Networks The Hackefors Model Networks are one way that SMEs can increase competitiveness and tackle problem One prominent network model is the so- solving (Henriksen, 1995; Zeleny, 2002; called “Hackefors approach,” a system of Seremetis, 1994). Overall, the literature joint ISO 14001 certification first suggests that SMEs in networks can improve established in 1995 in the Hackefors their effectiveness by taking advantage of industrial district outside the city of economies of scale and scope; sharing Linköping, Sweden. The network was information and knowledge spill-overs; joint designed to help small participating firms to purchasing of education and training; achieve certification by working on the developing increased individual capabilities, assumption that group involvement would

8 be both easier and cheaper for member firms together to form the EMS group. From the (Ammenberg et al., 1999). The original EMS group, a steering committee consisting Hackefors network consisted of 26 small- of seven persons is chosen, who in turn and medium-sized enterprises (SMEs), choose a central coordinator to oversee the drawn from a wide range of business group’s running (see Figure 1). There is also sectors, including the manufacturing, a support group consisting of a number of transportation, construction and graphics individuals from the participating industries. By the beginning of 1999 the companies, who assist the general group was certified according to ISO 14001, coordinator, the steering committee and the and each enterprise within the network had environmental coordinators of each firm. an environmental management system with Proposals for activities are made by the its own ISO approval (Ammenberg and steering committee, and ultimately decided Hjelm, 2002a, 2002b). upon by the EMS group. The steering committee, support group and central The model is primarily based on coordinator together can be compared to the collaboration through an informal network central environmental staff structure found relations, with no contractual obligations in many large industrial organisations between members. The model requires every (Ammenberg and Hjelm, 2002a; company to have an environmental Ammenberg et al., 1999). coordinator; these coordinators come

Figure 1: Organisation of the Hackefors Environmental Group (Ammenberg et al., 1999:28).

Support group Central co-ordinator

Steering committee

EMS group

Enterprise Enterprise Enterprise Enterprise Enterprise

Use of the Hackefors network model has since spread rapidly throughout Sweden, and Given the rapid growth of this network there are now some 24 networks, with over approach, it is perhaps appropriate to 450 member firms, using the model to examine the performance of some of the achieve group environmental certification other networks now using this technique. (Ammenberg and Hjelm, 2002b).

9 More specifically, the purpose of this project Results was to: To illustrate and discuss all of the findings 1. Examine the external and internal from the study undertaken for this project is factors that lead firms to chose to not possible within the limits of this article; become ISO certified; only the most significant contributions have 2. Determine why member firms used a been selected and presented. Statistical network system to become ISO analysis of the results has not yet been certified; undertaken, and will form the basis of 3. Identify the problems that they another work. encountered by participating in a

network; and In total, 68 companies from across the four 4. Assess if the network approach has networks were surveyed, with 50 firms lead to any further joint initiatives (73%) replying. The majority of respondent amongst members. businesses (91%) were small firms with less

than 50 employees. A wide variety of Methodology different industry sectors were represented

(see Table 1). As the table shows, use of the To investigate these issues, a questionnaire Hackefors model is not limited to a specific was designed and pretested on a number of industry or type of firm. This is in marked participants; the final instrument contained contrast to many other SME networks, both closed and open-ended questions. The which have been traditionally industry- survey was then followed by a number of based. interviews with individual environmental co-ordinators from a number of firms. Motivation to Adopt ISO 14001

At present, although some 24 SME networks The pressure to join an environmental in Sweden are believed to be using the management system can arise from both Hackefors approach, no central, exogenous (external) and internal forces. comprehensive database of networks and Both of these were examined in this study. member firms exists. Given the difficulties this created in obtaining contact details, it Respondents were first asked to identify and was decided to use a convenience sampling evaluate the significance of outside factors frame. The final four networks chosen were in pressuring the firm to adopt an EMS those known to the originators of the system (see Figure 2). As can be seen, the Hackefors program, and those willing to study found customers to be the most participate. The resulting sample was drawn important factor influencing small firms to from four different industrial regions within join the certification network. As a number Sweden, all of which surrounded an of researchers have previously suggested, established town or city. In each case, the general consumer population has questionnaires were sent directly to the become more aware of environmental issues environmental co-ordinator of each and now often place higher demands on participating network firm. business (Starkey, 1998). Therefore, it was not surprising to see customers listed as the most significant factor that led companies to enter the network. Another significant

10 pressure came from other businesses that larger firms are now also demanding that held the position of “customer” in a their suppliers become EMS certified. business-to-business transaction: many

Table 1: Industry Composition of Respondents

Industry Examples Rubber, plastic, signs, bio energy, cabinets, drills, Manufacturing machinery. Dentist, veterinarian, advertising, real estate, graphic Service design, security, laminating, chimney sweeping, tyre service. Transport Haulage, road carrying, freight forwarding, shipping.

Service (repairs) Mechanical workshop, electrical repairs, general repairs. Service of electricity distribution, electricity consulting Electric and planning. Recycling Recycling and re-utilisation

Construction Renovations and reconstructions, building.

Car sales, groceries/foodstuffs, telecom products, lighting Retail products, ice machines. Hospitality Provision of materials to restaurants, bakeries, bars etc. Medical Nursing and medical products

Regulations regarding environmental in their decision to “sign up” to ISO aspects such as waste and recycling are certification (see Figure 3). Improving becoming stricter, and this factor ranked company image was regarded as the most second in importance. The relatively low important factor for joining the group score for competitor pressure is perhaps best certification network. This result would explained by the fact that ISO 14001 seem to reflect the idea that implementing certification is still a developing area among an EMS (ISO 14001) can be a way for respondents. However, this area may companies to signal superior environmental become more important in the future as performance to customers, thus possibly more small firms become ISO certified. differentiating themselves from competitors. Interestingly, cost savings were not Firms were then also asked to identify and identified at any point as being a major evaluate the significance of internal factors factor in the decision to adopt ISO.

11 Figure 2: Major External Pressures Behind ISO 14001 Certification

5

4 3.73

3 2.70

2.16 2 1.78

1

0 Customers Regulations ISO certified Suppliers competitors n=50; 5-point Likert scale, where 1 = low impact, 5 = high impact

Why Use A Group Approach? resources. These are common problems that many SMEs face when attempting to Respondents were then asked to identify the manage their daily operations. factors leading to their decision to use a group, rather than an individual, approach to Problems Encountered By Network the issue of ISO certification - after all, one Participation of the main reasons for companies to join a network such as the Hackefors model is to The study also attempted to identify the achieve something that may not be possible difficulties that participant firms face when alone. When asked about whether they working as part of a co-operative team. would have been able to achieve ISO 14001 Approximately 30% of participating certification if the network had not existed, companies stated that they did suffer some 55% of the companies answered 'no'. The difficulties within the joint certification two most important barriers identified by groups, although it must be noted here that respondents to solo certification were a lack within the findings it was hard to distinguish of time and a lack of knowledge; other between the drawbacks caused by the joint significant factors included a lack of ISO 14001 certification requirements and financial resources and insufficient human those caused by inter-network relations.

12 Figure 3: Major Internal Pressures Leading to ISO 14001 Certification

5

4.20 4.04 3.84 4 3.65

3.12 3

2

1

0 Better image Relations - New contracts - Impact on natural Relations - other existing customers customers environment network companies

n=50; 5-point Likert scale, where 1 = low impact, 5 = high impact

Companies reported that the process of workloads, and overall, was a big project for group certification required large amounts of a small company (see Table 2). time and resources, increased their

Table 2: Major Difficulties of Joint Certification

Difficulties of joint certification

- Hard to motivate company personnel - Increased bureaucracy - Increase in work - Required more resources than thought - Hard to motivate all companies in the network - Difficult to unite all companies on policy - A big project for a small company - Increased administration

13 Further Collaboration By Network original Hackefors group, where SMEs Members continued to collaborate in many areas (such as training and recycling) after certification Even though the networks studied in the was achieved. The areas where companies survey were established for the sole purpose collaborated further (see Table 3) included: of achieving ISO 14001 certification, over sharing resources to advertise and market one third (39%) of the companies had since themselves; education and training; sharing undertaken further collaboration with other personnel and business contacts; and joint network members. This is similar to the purchasing of raw materials and products.

Table 3: Areas of Extended Collaboration

Areas of extended collaboration

- Training e.g. environmental courses - Manufacturing e.g. of certain equipment - Educating schools - Sharing personnel - Sharing business contacts - Purchasing of certain products and services from each other - Simply making more use of each other - Supplying other companies from the network

In addition to the areas listed above, over standard has been reached. For network two-thirds of the respondents were able to relations to continue, there must be someone make suggestions about areas where further responsible for collective activities, or else collaboration might prove beneficial. This the network will die. This is a shortfall suggests that participants have become more which, ideally, networks should address, so aware of the benefits of network approaches, that there is an ongoing relationship after the and willing to countenance more initial certification objective has been involvement in them in future. Interestingly, reached. whilst only 39% of the companies had collaborated on issues since the group Conclusion certification, a total of 67% believed their As the initial results of this study indicate, businesses could benefit from further there are a number of factors that affect participation within the networks. environmental networks amongst small

firms. It is clear that networks can be used The interviews also revealed that there were by a variety of firms from different some practical problems in maintaining industrial sectors. Several factors influence network links after certification was the decision to adopt ISO, both external and achieved. Such relationships frequently need internal. In general, small firms in networks some guidance and central co-ordination, use a group (or team) approach to gaining but this is usually dismantled once the ISO certification because they lack many of the

14 resources needed to successfully pursue joint environmental management system, accreditation alone. Although there are some Business Strategy and Environment, problems encountered between network Vol.12, No.3, pp. 163–174. members, most participants appear willing to use the environmental network for other Ammenberg, J.; Börjesson, B. and Hjelm, O. business-related purposes. (1999). Joint EMS and Group Certification: A Cost-Effective Route for This study discussed here only examined SMEs to Achieve ISO 14001, Greener small firm networking in Sweden, but it Management International, Winter, No. nevertheless has some relevance to the 28, pp.23-31. Australian context. Although the use of networks within the Australian small Halme, M. and Fadeeva, Z. (2000). Small business sector has been limited to date, it and Medium-sized Enterprises in does appear that there are potentially some Sustainable Development Networks, benefits from adopting models developed in Greener Management International, other countries, such as the Hackefors Summer, No. 30, pp.97-113. approach. Whilst this technique may not be the one “magic bullet” which solves all Henriksen, L.B. (1995). Formal Cooperation environmental problems for small firms, it is Among Firms in Networks: The case of worthy of further investigation by Australian Danish joint venture and strategic policy makers working with the small alliances, European Planning Studies, business sector. Vol. 3, No. 2.

References Human, S.E. and Provan, K.G. (1997). An Emergent Theory of Structure and Ammenberg, J. and Hjelm, O. (2002a). Outcomes in Small Firm Strategic Greening an Industrial District: Manufacturing Networks, Academy of Experiences from Networking Small Management Journal, Vol. 40, No. 2, pp. Enterprises, Paper presented to the 10th 368–403. International Conference of the Greening of Industry Network, 23-26th June, Kassinis, G.I. (2001). Location, Networks Göteborg, Sweden. and Firm Environmental Management Practices, Journal of Environmental Ammenberg, J. and Hjelm, O. (2002b). The Planning and Management, Vol. 44, Connection Between Environmental No.6, pp. 815–832. Management Systems and Continual Environmental Performance Seremetis, P.S. (1994). SMEs in Improvements, Corporate Environmental Technological Networks: Italy, Denmark Strategy, Vol. 9, No. 2, pp. 183 –192. and the UK, European Planning Studies, Vol. 2, No. 3, p. 375. Ammenberg, J. and Hjelm, O. (2003). Tracing Business and Environmental Starkey, R. (1998). Environmental Effects of Environmental Management Management Tools for SMEs : A Systems – A study of networking small Handbook, Luxembourg: Office for and medium-sized enterprises using a

15 Official Publications of the European Communities. For further information contact the authors: Patrick Hallinan at Zeleny, M. (2001). Autopoiesis (Self- [email protected] or Michael Production) in SME Networks, Human Schaper at [email protected]. Systems Management, Vol. 20, No. 3, pp. 201-207.

WHO IS LOOKING AFTER THE TOBACCO INDUSTRY?

Lee Moerman, University of Wollongong, Background Australia Sandra Van Der Laan, The University of Sydney, Australia. On the 24th May 1999 the WHA, the governing body of the WHO, resolved to Introduction commence work on the Framework

Convention on Tobacco Control (FCTC). A On 21st May 2003, after four years of Framework Convention is a legal treaty or negotiation, the World Health Assembly international agreement between states in (WHA) adopted the World Health written form and governed by international Organisation (WHO) Framework law. This convention outlines the general Convention on Tobacco Control. Once objectives of health related and other ratified this framework convention will tobacco issues and is supplemented by ultimately constrain the activities of the protocols. These protocols are treaties or tobacco industry globally. In light of separate agreements entailing more specific increasing litigation and exposure of the legal obligations (WHO, 2000). industry’s strategies to maintain

profitability, will the tobacco industry The objective of this framework convention, remain quiescent on this further threat to as stated in the document is their legitimacy? A weapon in the tobacco …to protect present and future industry’s armoury is to redefine the public generations from the devastating health, policy agenda via a legitimate forum. This social, environmental and economic can include eliciting debate in any credible consequences of tobacco consumption forum and in doing so, attempt to validate and exposure to tobacco smoke (WHO, all points of view (Davidson, 1991), This 2003a p. 7) legitimating forum can include corporate

social reporting (CSR) (Deegan, 2002), as This overarching objective encompasses: practised by British American Tobacco in protecting children, adolescents and 2001/2002, an exemplar for an industry vulnerable communities from tobacco dominated by several large multinational through their exposure to smoking and the corporations (Davidson, 1991: Sethi & marketing of tobacco products; addressing Steidlmeier, 1991). the prevention and treatment of tobacco

16 dependence; promoting a smoke-free packaging and sponsorship (Broughton, environment and tobacco-free economies. 2001, p.4). Building on this image of an More specifically, WHO envisages that the industry capable of self-regulation, BAT protocols could address issues such as produced its first Social Report for the year advertising, package design and labelling, 2001/2002 as an attempt to provide “broader environmental tobacco smoke (passive accountability to stakeholders” and to smoking), agricultural diversification and present “clear evidence of a socially smuggling (WHO, 2000). responsible tobacco company” (BAT, 2002 (a), p.1). At this point it is worth noting the Smoking and tobacco related issues have interesting time line of events. In 1999, worldwide prominence and are publicly WHA commences negotiations on a treaty to contested. For the first time the FCTC will significantly curb the increase of tobacco provide a coordinated, organised and use worldwide and the tobacco industry authoritative effort to comprehensively within two years introduced its own address these issues. In contrast, previous standards and BAT repositions itself to attempts from outside the industry have been appear as a ‘transparent’ and responsible piecemeal and parochial. The stated ultimate corporate citizen. aim of WHO, through the FCTC, is to abrogate the social and health-related risks British American Tobacco, is a major player by the reduction of tobacco smoking with over fifteen percent market share in globally. In so doing, there is recognition of tobacco and tobacco-related products. This the anticipated economic effects of tobacco includes ‘doing business’ in 180 countries, control. In the short to medium term, WHO controlling 250,000 tobacco farmers, expects, those economies relying heavily on running 84 factories in 64 countries and tobacco exports will suffer until agricultural employing 85,000 people globally. From diversification is established. However, direct and indirect tax, governments are WHO argues, that the benefit in terms of estimated to gather £14 billion annually decreased health and social costs will (BAT, 2002(a)). The move into social outweigh the direct economic benefits from reporting has provided an avenue for BAT tobacco cultivation (WHO, 2000). to go beyond the narrow technical aspects of tobacco marketing and enter the dialogue on Industry Pressures more conceptual social issues, by providing a platform in the public policy arena. Organisational legitimacy has been a According to BAT, the ultimate question for pressing issue for the tobacco industry for stakeholders is, who would they prefer to several decades. The FCTC, once formally manage the tobacco industry? BAT ratified, will constrain the tobacco industry identifies the options as, either the legitimate and the multinational corporations that well-run responsible tobacco industry, or operate within it. In a climate of decreasing organised crime, the counterfeiters and the tolerance of tobacco-related issues, a back-door salesman are likely to flourish coalition of tobacco companies launched under the new framework (Broughton, voluntary international minimum Marketing 2001). The management of BAT are, Standards in 2001 (BAT, 2001). According however, in agreement with some of the to the Chairman of British American aspirations of the WHO initiative, but Tobacco (BAT), this initiative was designed question the appropriateness of a global to “raise the bar” in terms of advertising, health organisation to properly address the

17 issues surrounding the whole tobacco 2002(b)) as a “clumsy imposition of first debate. Much of this debate centres on world solutions” threatening self- proprietary rights and the commercial determination and an example of moral and secrets implication of full product cultural imperialism (Broughton, 2001, p 2). disclosure. The WHO, according to BAT, BAT further expands the argument to has not engaged the tobacco industry as an capture the World Bank’s alignment with important player and has excluded it from WHO as the ‘dark side’ of globalisation and the FCTC negotiations (BAT, 2001). BAT an abuse of power (Broughton, 2001). contests the validity of data and the method Although we are in tacit agreement with for calculating the future mortality statistics these sentiments, the championing voice of a generated by WHO, as the basis for multinational corporation relying on an implementing the FCTC. Contesting those overtly dangerous product for economic data and those methods, also undermines the survival is questionable in the extreme. legitimacy of WHO and its objectives. “To debate the question in any serious forum is The global tobacco industry is considered by in itself a victory for the tobacco forces BAT to be indispensable in terms of because it presumes that either side may be employment and taxation revenue. And, the correct” (Davidson, 1991, p. 54) tobacco issue has broader implications. For example, there are significant concerns The Debate regarding smuggling and illegal aspects, agricultural issues such as biodiversity, The conflict and ensuing debate chemical use and deforestation, as well the differentiates the ‘economic view’, which is health issues, which WHO seeks to address the argument taken by the tobacco industry, in the FCTC. In question is whether the and the ‘health or social view’ taken by tobacco industry can self-regulate through WHO. This conflict is exacerbated in the industry standards and corporate social Third World, developing countries in which reporting, and encompass not only the issues surrounding economic development economic, but also the social and political dominate health issues1. The consumption of aspects of the debate. cigarettes in the Third World is increasing through sophisticated mass marketing and Concluding Remarks promotion. Apart from the health issues there is the problem of land degradation, The FCTC is now on the table. Once forty of deforestation and the shift away from food the member states (192) ratify, accept or production to revenue producing tobacco approve the FCTC it is legally binding on crops (Sethi and Steidlmeier, 1991). As one those states and for every other state that of the most heavily taxed commodities, ratifies, accepts or approves from that point. tobacco provides significant revenue from At the time of writing 47 states have become tax, income to farmers, income to processors signatories, indicating political support and a and foreign exchange (Sethi and commitment to abide by the principles until Steidlmeier, 1991). BAT enters this debate ratification (WHO, 2003b). Only Norway by contesting the appropriateness of a “one has become a signatory and also formally size fits all” approach by WHO (BAT, ratified the FCTC. How will the tobacco- industry respond? An initial reaction 1 The social, political and historical implications of indicates that, although excluded from this issue are acknowledged, but are not within the ambit of this paper. negotiations, BAT intends to lobby

18 governments at national level to offer tobacco regulators, World Tobacco proposals and solutions for “real and International Symposium and Trade Fair, workable tobacco regulation” (BAT, 2003). Hong Kong, 8th October. Davidson, D. K (1991) Legitimacy: How BAT’s pre-emptive move into public policy Important is it for Tobacco Strategies? debate via social reporting has provided Business & the Contemporary World, legitimacy for the tobacco industry to Autumn, pp 50-58. contest the appropriateness and validity of Deegan, C., (2002), Introduction – the the FCTC. As Davidson (1991, p.54) legitimising effect of social and asserted “[p]erhaps no move has been more environmental disclosures–a critical to the tobacco industry’s theoretical foundation, Accounting, [legitimation] strategy than its efforts to Auditing and Accountability redefine the public policy agenda” by Journal, Vol.15, No.3, pp 282-311. shifting issues and directing public attention Sethi, S.P.and P. Steidlmeiser (1991) Up away from health to economic issues. More Against the Corporate Wall: modern than a decade later it appears the same corporations and social issues of the strategies prevail with corporate social nineties, Prentice Hall, New Jersey. reporting included in the armoury. World Health Organization (2000) The Framework Convention on Tobacco References: Control: A Primer. British American Tobacco (2001) Our World Health Organization (2003a) WHO Views on the WHO Framework Framework Convention on Tobacco Convention on Tobacco Control- Control, Resolution of the Fifty-Sixth Overview. www.bat.com.uk World Health Assembly, 21st May. British American Tobacco (2002 (a)) Social World Health Organization (2003b) Report 2001/2002. Updated status of the WHO Framework British American Tobacco (2002 (b)) Convention on Tobacco Control. website www.bat.com.uk. British American Tobacco (2003) Response For further information contact Sandra Van to adoption of WHO Tobacco Treaty, Der Laan, Discipline of Accounting and Media Release, 21st May, Business Law, School of Business www.bat.com.uk. Economics and Business Building (H69) The Broughton, M. (2001) The global tobacco University of Sydney, NSW 2006, Australia, industry: the real world choice for or e-mail: [email protected].

ENVIRONMENT EXTRA!

SUSTAINABLE DEVELOPMENT Committee. The specific outputs of the REPORTING COMMITTEE FORMED committee for 2003/04 are noted below - BY ICANZ. points 1 to 6. The Committee’s purpose is to provide on-going leadership and guidance The Institute of Chartered Accountants of on the external reporting and auditing of New Zealand have recently established a sustainable development reporting, with the Sustainable Development Reporting intention of integrating the reporting and

19 auditing of economic, social and development reporting and related environmental measurement within the matters. activities of the Financial Reporting Standards Board (FRSB). For information about the Report of the recent ICANZ taskforce on sustainable The Committee is tasked with the following development reporting, which triggered the outputs: formation of the above committee and its work program, please contact John Dickson (1) Develop 2 research bulletins - one to at [email protected] or the Chair of consider the fit of the current conceptual the Committee, Wendy McGuiness, at framework for the external reporting and [email protected]. audit of information with the wider range of information being externally NEW CHAIRMAN FOR THE FRC, reported and the evolving information AUSTRALIA and accountability requirements of users in relation to financial reports; and one Peter Costello, Commonwealth Treasurer, to provide additional guidance on the has announced the appointment of Mr audit/verification of sustainable Charles Macek as part-time Chairman of the development reports, bearing in mind Financial Reporting Council (FRC). The available guidance and emerging appointment will be for a three year term international guidance; Mr Macek has been a member of the FRC (2) Consider the need for a bulletin since its formal inception in 2000. He is outlining the lessons to date for widely respected for his experience and sustainable development reporting from judgement and has more than 30 years' financial reporting; experience in financial services including insurance, stock-broking, investment (3) Actively follow and participate in management, investment and commercial national and international work on banking in Australia, New Zealand, the sustainable development reporting, United Kingdom, the United States and particularly with Australian bodies; Japan. He is a company director and Chairman of the Sustainable Investment (4) Liaise with other internal and external Research Institute Pty Ltd (SIRIS) – bodies with an interest in sustainable although this does not appear to be development reporting, including the mentioned on the SIRIS web site at Institute’s Sustainability Special Interest http://www.siris.com.au/index.asp. SIRIS Group (SSIG); has been created out of the perceived need for a dedicated, independent and non- (5) Consider the external reporting of exclusive research group that profiles, sustainable development measures by analyses and assesses the environmental and the Institute; and social responsiveness aspects of sustainability. (6) Assist Institute staff in engaging in Government policy development processes which concern sustainable

20 Information about this appointment is 3.5 tonnes. The labels previously applied to available from Recent Accounting News and vehicles of up to 2.7 tonnes. Events at http://www.pearsoned.com.au/elearning/acc "With the introduction of new and stricter ounting/default.htm#recent. emission standards over a wider range of vehicles, Australia is moving into line with increasingly stringent international NEW FUEL CONSUMPTION LABEL standards, improving fuel efficiency and ON CARS IN AUSTRALIA reducing greenhouse gas and other noxious emissions," Mr Anderson said. Minister for the Environment and Heritage, Dr David Kemp, and Minister for Transport "The new fuel consumption label is being and Regional Services, Mr John Anderson, introduced in stages. New car models announced, on 1 July 2003, the introduction introduced in Australia between July 1 and of the new Fuel Consumption Label for new December 31, 2003 will be required to car models that lists both fuel consumption display the new label. However, from and carbon dioxide emissions. January 1, 2004, all new vehicles, including models that are already on the market and Dr Kemp said the fuel consumption label imported models, will be required to carry scheme had been expanded to include the label." emission figures for carbon dioxide, a key greenhouse gas, in addition to the current Carbon dioxide is a key greenhouse gas fuel consumption information. produced by fossil fuels. It adds significantly to the enhanced greenhouse "Greenhouse gas emissions from the effect and accelerates climate change. In transport sector are one of the fastest Australia in 2000, road transport accounted growing of any sector in Australia and 90% for 12.9% of Australia's total national of the transport sector's emissions come carbon dioxide emissions. from road transport," Dr Kemp said. For more information about the Fuel "Including carbon dioxide figures on the Consumption Label, visit the website at: label for new models of cars from July 1, www.greenhouse.gov.au/fuellabel/index.html 2003 means consumers purchasing a new car model will be able to compare emissions of different cars as well as their fuel ED 114 - REQUEST FOR COMMENT consumption. ON IAS 41 AGRICULTURE – CHANGING AASB 1037 "Cars with the lowest carbon dioxide emissions are better for the environment, The AASB is proposing to reproduce IAS and car manufacturers are becoming 41 Agriculture without significant increasingly aware of buyer interest in amendments. Whilst there have been a environmental performance of vehicles." number of differences between IAS 41 and its current Australian equivalents, AASB Mr Anderson said the number of vehicles 1037 and AAS 35, as identified by the that will be required to display a label has AASB in the Preface to this ED, the Board also been increased and will now include all has expressed its intention to follow the new 4WDs and light commercial vehicles to IASB. The scope of IAS 41 has been

21 identified as being narrower than the scope Former CSIRO scientists, Dr Keith Ayotte of AASB 1037 as it only addresses the and Dr Nathan Steggel developed what is recognition, measurement and disclosure of seen to be world's best available wind agricultural activities. AASB 1037, in resource technology, WindScape and Raptor contrast, addresses the accounting treatment NL. of self-generating and regenerating assets (SGARAs), which encompasses broader Windscape is believed to be the leading categories of biological assets including wind mapping tool and enables power those related to agricultural activity. The prospectors to find the windiest spots down accounting policy of those assets which fall to property boundaries. RaptorNL identifies outside the scope of IAS 41 will change to how air accelerates and decelerates over the accounting policy required by the complex land features and vegetation. Australian equivalent of the Standard to RaptorNL demonstrates significant which the asset relates. improvements over current industry standard models. IAS 41 contains a rebuttable presumption, allowing biological assets to be carried at "WindLab Systems Pty Ltd uses leading cost less accumulated depreciation and edge science combined with practical accumulated impairment when the fair value industry experience to offer global wind of the biological asset cannot be reliably energy stakeholders intelligence on wind measured. The current Australian position is resources," says the new company's Chief a presumption that the net market values of Executive, Gareth Johnston. SGARAs are always reliably measured. The Mr Johnston says that 87% of global Board has restricted the application of the windpower capacity is currently developed rebuttable presumption only to the initial in Europe, but there is strong interest in the recognition of or newly acquired biological Australian-designed systems. assets. Windpower is one of the fastest-growing and cost effective ways of producing green Information from : Recent Accounting News energy in the world. and Events "Given the scale of development in Europe, http://www.pearsoned.com.au/elearning/acc developers, energy companies, project ounting/default.htm#recent and ED 114 - financiers and governments need to better Request for Comment on IAS 41 Agriculture understand where the wind resource is," says

Mr Johnston.

AUSTRALIAN WINDPOWER GOES "Our technology helps developers to reduce GLOBAL development time, optimise resource and Australian windpower technology is increase yield." reaching out to a global market, as science, technology and industry come together in a Services provided by WindLab can reduce new wind energy consulting company based cumulative impact caused by multiple in Canberra. developers competing for known coastal wind sites. WindLab have mapped and

22 identified over seventy regions including "This demonstrates the Australian most of Australia, says Mr Johnston. Government's commitment to making this country's ICT sector among the best in the "Locally, we have identified a large number world," says Senator Alston, Minister for of development sites with great wind Communications, Information Technology resource in South Australia, Victoria and and the Arts. New South Wales that are located away from sensitive coastal regions," says Mr More information from: Gareth Johnston, Johnston. "These sites could be developed WindLab, 0433 108 391 or Jan Bingley, faster with reduced visual impacts. Two CSIRO, 02-9490 8262 state governments are using our wind mapping services to develop strategic IRELAND, PIONEER OF THE planning. PLASTIC-BAG TAX, PLANS FEES ON " We have signed an MOU with a strategic THREE OTHER LITTER SOURCES partner to provide turnkey development services in Asia and are very excited about DUBLIN, Ireland — Ireland, which has the wind energy potential of India and drawn environmentalists' praise worldwide China," he says. for its taxing crackdown on plastic bags, announced plans Tuesday to introduce CSIRO Chief Executive Dr Geoff Garrett punitive fees on three other key sources of says that WindLab is a great example of litter. Australian science joining forces with Australian industry. The government will introduce a bill this year to levy special taxes on chewing gum "WindLab Systems capitalises on seven packets, receipts from cash machines, and years of leading-edge research at CSIRO polystyrene packing from fast food chains, Land and Water," says Dr Garrett. "Our Environment Minister Martin Cullen world class science combined with announced. WindLab's industry experience makes an unbeatable combination. We can expect "If we are serious about tackling litter, we WindLab to be doing business with groups have got to take bold steps," Cullen said. from farmers and community groups through to major international energy The government said it would consult the companies. targeted industries, environmentalists, and the general public before announcing details "We congratulate the new company and of the fees, which would be the most wide- wish them fair winds and a prosperous ranging of their kind in the 15-nation voyage!" European Union. WindLab's founders and principal equity holders are the CSIRO and business Last year, Ireland imposed a 15 euro cent incubator Epicorp, which is funded by the (17 U.S. cent) surcharge on every plastic Australian Government through its Building bag provided by grocery stores and other on IT Strengths Incubator Program. shops. Use of the once-free bags has plummeted, and they no longer linger as wind-blown litter on Irish streets and rural

23 hedgerows. The money collected has gone May 2003, released proposals for new to an Environmental Fund that plans to accounting requirements for companies spend 35 million euros (US$40 million) this participating in government schemes aimed year on recycling centres. at reducing greenhouse gas emissions. The proposals are open for public comment until Cullen said gum, polystyrene packaging, 14 July 2003. and cash-machine receipts could be removed with the same punitive tax. The proposals are set out in a draft IFRIC Interpretation D1 Emission Rights. They To pay for removing gum on the street, he would require companies to account for the proposed a charge of 5 to 10 euro cents (6 to emission allowances they receive from 12 U.S. cents) per pack. governments as intangible assets, recorded initially at fair value. Emissions of pollutant "I believe that those who use chewing gum would then give rise to a liability for the should pay for its clean-up," said Cullen, obligation to deliver allowances to cover who noted that the 80 million packs sold those emissions. annually in Ireland produced up to 500 tons of gum that has to be scrubbed off the Introducing the draft Interpretation, Kevin pavements. Stevenson, IFRIC Chairman, said: “Emission control schemes that utilise Source: Associated Press, Shawn marketable allowances are becoming Pogatchnik 16 July 2003. Further widespread as a result of the Kyoto information about the Irish plastic bag tax is Agreement and companies are looking for provided by Prof. Frank J. Convery and timely guidance. The IFRIC and the IASB Simon McDonnell, Department of are also intent on eliminating the risk that Environmental Studies, University College, divergent accounting practices will develop Dublin in their paper ‘Applying in this new area. Environmental Product Taxes and Levies - Lessons from the Experience with the Irish In these proposals, we have focused on the Plastic Bag Levy’ presented at The Fourth important common features of the new Annual Global Conference on schemes. We may have to go further as Environmental Taxation Issues, Experience practice develops. At present some and Potential Thursday, held in Sydney companies are not accounting for the assets, between June 5 and Saturday, June 7, 2003 liabilities or government grants involved or (see http://www.law.mq.edu.au/eti/, or at least are very uncertain about the contact Hope Ashiabor for paper details appropriate accounting treatment.” [[email protected]]. In welcoming the draft Interpretation, Sir David Tweedie, IASB Chairman, said: PROPOSED NEW ACCOUNTING INTERPRETATION – GREENHOUSE “It is vital that the IFRIC responds to GAS EMISSIONS emerging issues like gas emission schemes. The accounting matters involved in such The International Financial Reporting schemes are challenging and may need work Interpretations Committee (IFRIC), on 15 beyond the current proposals. I would urge the industries affected by these schemes to

24 take an active part in the IFRIC exposure because, although they are not leaders in process. The Board will be monitoring sustainable business practices, their products developments closely.” - fuel cells - are integral to the transition to a Subscribers to the IASB’s Comprehensive sustainable society. Subscription Service can view the draft Interpretation from the secure online Conclusive research shows that companies services area of the IASB’s Website that outperform on the environment (www.iasb.org.uk). From 16 May the outperform financially. Too often, the complete text of the draft Interpretation will "green" business sector remains a mystery to be freely available from the Website. many of today's investment information sources. Creating the SB20 and The Source: International Accounting Standards Progressive Investor to follow the Board website at companies and news on an on-going basis http://www.iasb.org.uk/cmt/0001.asp showcases and rewards companies that are

well positioned as investments. Many SUSTAINABLE BUSINESSES? subscribers can attest to the benefits of

investing "green" - United Natural and “18 July 2003 NEW YORK, NY - Whole Foods, for example, finished the SustainableBusiness.com announced the second quarter with a return of 43.86%. 2003 SB20 list - The World's Top Sustainable Stocks. The list is presented in The SB 20 List for 2003 - Alphabetical The Progressive Investor newsletter, Order published by SustainableBusiness.com, which tracks this emerging marketplace. • Ballard Power Systems (BLDP)** • Chiquita (CQB)** To choose the 20 companies that make up • Electrolux (ELUX)** the list, SustainableBusiness.com asked five • FuelCell Energy (FCEL)** leading social/ environmental investment • Green Mountain Coffee (GMCR)** advisors to recommend companies that stand • Henkel (HNKG.BE )** out as the world leaders in terms of both • Herman Miller (MLHR)** sustainability and financial strength. • Horizon Organic Dairy (HCOW)**

"Our goal is to create a list that showcases • Itron (ITRI) the top companies leading the way to a • JM Inc. (JM.ST)** sustainable society," says Rona Fried, • Novo Nordisk (NVO) SustainableBusiness.com CEO and Editor of • Novozymes (NVZMF.PK) The Progressive Investor. • Power Integrations (POWI) • STMicroelectronics (STM)** Two types of companies comprise the list. • Swiss Re (RUKN:SWX)** Companies like Electrolux, • Timberland (TBL) STMicroelectronics and Herman Miller are • United Natural (UNFI)** on the list because of their deep • Vestas (VEST.CO)** understanding and commitment to • Wainwright Bank (WAIN) sustainable business practices. Companies • Whole Foods (WFMI)** like Ballard and Fuel Cell are on the list

25 ** Denotes companies on the list in both industries and the quality of life we enjoy and 2002 and 2003. hope to pass to our children.

The first condition for sustainability, therefore, The SB20 judges: is to ensure that our social and economic • Carsten Henningsen: co-founder and institutions are responsive, adaptable, and principal, Portfolio 21 mutual fund; resilient in the face of continuing competition • Jack Robinson: Managing Partner, and challenge in a global economy. The fact that Winslow Management; they have become more so as a result of the • Patrick McVeigh: VP, Investment reforms of recent years has contributed to Research, Lowell, Blake and Associates; Australia's remarkable economic performance • Eric Becker: VP & Portfolio Mgr., and social stability - conditions we must never take for granted. Underpinning our Trillium Asset Management; and sustainability, therefore, is the freedom we • Terry Foecke: Principle, Materials enjoy, our market economy and the enterprise of Productivity. our businesses. A strong economy is the means to creating social cohesion and opportunities for Source: CSR wire the Corporate Social the future. Responsibility Newswire Service at http://www.csrwire.com/article.cgi/1980. A resilient and vibrant economy generating html increasing wealth empowers the Australian people to address the environmental challenges we face. On the back of a strongly performing THE MAYS REPORT: CORPORATE economy the Howard Government is now SUSTAINABILITY - AN INVESTOR investing record amounts to address our nation's PERSPECTIVE key environmental issues - over $2 billion per annum on a whole of Government basis. The Report was launched on 22 September 2003 by the Federal Minister for the This is over double the amount spent in real Environment and Heritage in Australia, Dr terms on the environment by any previous Government in Australia's history. David Kemp. There is the $2.7 billion Natural Heritage Trust Dr Kemp made the following comments at and the $1.4 billion National Action Plan for the launch: Salinity and Water Quality.

This year has seen historic breakthroughs with “I am very pleased to have been asked to launch an extra $500 million to underpin the the report. I see it as a challenging but important sustainability of the Murray Darling Basin, and document for the financial sector to consider. an extra $150 million to address land clearing in Sustainability is a significant and long-term Queensland. matter - and it is set to grow as an issue of corporate, and therefore investor, concern. We are also spending a record $1billion on reducing greenhouse gasses and have established The Howard Government believes that the world's only dedicated greenhouse economic policy and environmental policy are Government agency - the Australian Greenhouse intrinsically related. A strongly performing Office. economy enables us to address costly tasks of environmental remediation and repair. Equally, These programmes illustrate the second way in the wise handling of environmental issues which environment and economy are underpins the long-term profitability of our interlinked. Environmental sustainability is

26 recognised in national policy as the key to the participate. This will help to bring sustainability sustainability and licence to operate of our into focus within a sector that has the capacity to industries. This recognition to a degree reflects, be a driving force for sustainability policies in and to a degree has stimulated a sea change in industry. cultural attitudes towards the environment. Today, the environment is at the centre of At the heart of the report is the issue of what national debate. This has come about through an value corporate sustainability can bring to increasing general awareness of the world we investors, boards and managers. By taking a live - particularly as incomes rise - and by genuine 'market-based' rather than theoretical programmes such as the Natural Heritage Trust approach, the report sheds new light on the which to date has directly involved almost half a business case for corporate sustainability. million Australians in direct, hands on environmental projects. I am confident that the relationship between prosperity and good social and environmental At the political level environmental governance holds at the company level, as it sustainability has become a whole-of- does at the national. Business is increasingly government issue. The Prime Minister leads the finding that the proper handling of social and Sustainable Environment Committee of Cabinet environmental issues underpins profitability. An and the Ministerial Oversight Committee on important aspect of the report is that it shows Energy. Together with national legislative how companies are integrating environmental, reform s such as the Environment Protection and social and economic interests to enhance Biodiversity Conservation Act, the Howard shareholder value. Government has created institutional frameworks, which recognise that many of the Certainly, the Howard government is very aware major decisions of government raise that a healthy economy and healthy environment sustainability issues. This means we are better go hand-in-hand. The substantial environmental placed to make balanced decisions that are good repair programmes I mentioned earlier stem for Australia. from this analysis.

I don't want to dwell on the politics but it is Many environmental indicators show that important to remember that the Opposition and Australia is facing considerable environmental the Greens have opposed us at every turn in our challenges. The Government's State of the mission for sustainability - they opposed the Environment Report, which I launched last year, NHT, opposed the environment protection shows that the degradation of lands and waters legislation, voted against improvements to are a critical concern. Degraded natural renewable energy legislation, voted against the resources not only distress important strengthened national heritage regime, and ecosystems, but also impact the viability of consistently oppose the economic and budgetary whole agricultural systems and rural reforms which are helping to make Australia communities and industries. more resilient and sustainable. At the State level The cost of salinity to the community is we are seeing continual undermining of the significant, as some of the figures quoted in the regional forest agreements which underpin National Action Plan for Salinity and Water sustainable forestry. Quality show. Just in regard to the attack of salt The Howard Government is particularly keen to on infrastructure, more than $6 million is spent work with the private sector in tackling every year on building maintenance related to sustainability issues, and I am pleased that we salinity in South Australia. Salinity causes $9 were able to play a role in the bringing the Mays million damage annually to roads and highways Report together. But more important to me is in south-west New South Wales. Saline water that major financial organisations also chose to damage to household, commercial and industrial water supply in the Queensland Murray-Darling

27 Basin region makes up over 50 per cent of total home', enhanced locally based supply estimated costs - approximately $20 million per enterprises and the stability of local people annum. 'managing their own country'. This will save considerably on operational costs and improve On another tack, the further protection of the the interface of the company with the Great Barrier Reef can be justified simply on the community. The BHP Billiton case study need to protect its World Heritage values. But demonstrates how innovative thinking turned effective protection is also essential for what was a hazardous waste into a revenue sustaining the tourist and fishing industries that stream, and shows that environmental and depend on it. In recognition of this the Howard financial 'win-wins' come from integrated Government is currently taking forward a thinking. proposal to increase the area of highly protected zones on the reef by 6 times their current levels. For Insurance Australia Group [IAG] weather and climate are core business issues. As a result What is clear from these and many other Michael Hawker's company is investing in better examples is that our understanding of the inter- understanding issues as diverse as the relative relatedness of sustainability and the economy is merits of different building materials to deepening. innovative car insurance products that might link premiums to fuel efficiency or distance Within the sphere of industry and business, the travelled. I'll leave Michael to tell you more. immediate focus for many of you, the relationship between healthy economy, To a large extent the enviable lifestyle and environment and society holds just as true. The wealth that most Australians enjoy has been environmental challenge is to essentially 'do built on the use of our country's environmental more with less'. To use resources more and social assets. It is now time for all of us - efficiently, to recycle, to cut waste, to redesign government, business and community - to products and so on. The case studies in the Mays recognise the full value of these assets. Report show how this can be done to commercial advantage at both a company-wide I have made clear how the Howard Government and project level. is making this investment - both directly and through a range of other policy mechanisms. Investa Property Group saved $185,000, or over Furthermore, my Department has a number of 16%, on energy costs at just one commercial partnership agreements with a range of industry property. This was done simply by reducing air sectors. I would welcome further discussion with conditioning operating hours, installing controls the finance sector, and intend to continue the that more efficiently manage after-hours cooperation to date with other organisations lighting, and refitting office space lights with such as the United Nations Environment energy efficient bulbs. Program Finance Initiative.

Global Renewables has won approval to build a The Howard Government takes the challenge of new waste treatment plant in Sydney to 'mine sustainability seriously. As the Mays Report the waste stream' to produce energy and prompts you to do, business and investors need fertiliser. The facility will recover 17,000 tonnes to consider how sustainability will impact at the of plastic, glass, paper and metals each year, company level. It would simply seem good risk then will separate and clean the organic waste to management to do so. produce renewable energy, and return the carbon to the soil as organic fertiliser. An import insight the Mays Report brings to light is that much of the value to be derived from The benefits emerging from Rio Tinto's corporate sustainability is still under the Aboriginal Employment Program include a category of 'intangibles'. As well as the readily mobile pool of local employees living 'at opportunities to save costs and increase

28 revenues, sustainability is proving to be a good performance. I encourage you to take notice of way to improve a company's intangible assets the issues which are canvassed in this report. As such as brand image, supplier relations, appeal wider use and demand for sustainability to customers and employees, and the information grows, business, society and the development of new markets. It is well environment are set to profit - and those who established that intangible assets are a valuable manage their investments of course... component of business. Some investors recognise that sustainability can be a lead I commend the report to both the financial and indicator of future investment performance business community. The calibre of the names through its relationship to intangible assets and involved - ABN AMRO Morgans, AMP, BT management quality. and IAG - means that it demands attention from the wider investment and business community. Corporate environmental, or Triple Bottom Line [TBL], reporting is one way that businesses can And so, I'd like to officially launch The Mays communicate how they manage broader Report - An Investor Perspective on Corporate environmental and social responsibilities that Sustainability.” aren't immediately reflected in financial data. Source: The Minister’s web site at Only around 10 per cent of the top 500 http://erin.gov.au/minister/env/2003/sp22sep companies in Australia currently produce these 03.html. The full report can be downloaded reports. As the understanding of the linkages at between the three dimensions of sustainability grows, I hope to see this number increase. http://ea.gov.au/industry/finance/publication s/mays-report/. In June this year I launched a guide for reporting against environmental indicators. Copies are available here today along with the Mays report. DEFENCE RELEASES FIRST PUBLIC ENVIRONMENTAL REPORT Conclusion

The Mays Report has found that Australia's 25 September 2003. Canberra. Defence is investment community is yet to realise the full the first Australian Government department benefits associated with leveraging corporate to outline its environmental performance sustainability information to better assess with the release of its Public Environment company performance. Report today, Defence Minister Robert Hill said. In the broader business community the notions of Corporate Social Responsibility and the Triple Bottom Line are gradually becoming The report highlights the significant mainstream. environmental achievements and challenges Defence faces while maintaining and If sustainability information is disclosed by improving the capabilities of the Army, business and understood by financial markets, it Navy and Air Force to defend Australia and has the potential to be a powerful force not only its national interests. Senator Hill said the in driving sustainability, but also by providing release of the report delivered on the greater confidence regarding company risk and return. Government’s commitment to the National Strategy for Ecologically Sustainable The investment community is a fundamental Development. player in moving Australia towards “As one of the largest landowners in sustainability. Analysts now have a growing set of tools to assess companies' sustainability Australia, Defence’s activities can have a

29 significant impact on the environment and The Defence Public Environment Report communities,” Senator Hill said. was developed after the Government endorsed in 2000 voluntary public “Defence is committed to striking the right environmental reporting by private and balance between the need to enhance the public sector organisations under the ADF’s fighting capabilities and looking Department of the Environment and after the environment, our culture and Heritage’s A Framework for Environmental Australia’s natural resources. Reporting – An Australian Approach. “Over the past year, Defence has invested Defence is the first Australian Government some $34 million on environmental Department to release a public management programs to safeguard the environmental report since this framework future of the land it owns and manages in was introduced. the interests of all Australians, the ADF and our national security. “The Public Environment Report highlights The Defence Public Environment Report is the considerable efforts being made by available on the Defence web site at Defence to earn its place as a leader in http://www.defence.gov.au/environment/ sustainable environmental management.”

ECO TAX CONFERENCES – COMMENTS FROM GREEN BUDGET GERMANY

In this edition Anslem Görres, from Green differences: in Germany, the conferences on Budget Germany, provides personal this issue are highly polarized, with the reflections on an International Symposium proponents meeting most often among on Environmental Taxation conference themselves – typically in the academies of about ecotaxes at the Management School, the protestant church – and the detractors The University of Waikato in Hamilton, meeting among themselves in business or New Zealand (29-30 May 2003) and the association surroundings. Things are more Fourth Annual Global Conference on integrative in New Zealand. It is quite Environmental Taxation Issues, Experience natural for academics to meet with and Potential in Sydney, Australia (5-7 representatives from the government and June 2003). the economy. There is less rhetoric and mud-slinging and more of a sort of common IN NEW ZEALAND, THE MOTTO SEEMS TO bond of helplessness. BE, “GOD, MAKE US CHASTE, JUST NOT YET” New Zealanders are afraid that energy taxes will be too great a burden on their long How are we to imagine a Conference on transport routes, and hence on the few Environmental Taxation in New Zealand? export industries they have, such as Does it signify the same thing as in agriculture. The government has only Europe? Let’s begin with the major exacerbated the sense of insecurity. On the

30 one hand, it has already announced the key renewable sources. On the other hand, there data and upper limits for a CO2 tax (based are repeatedly power and water shortages. on a tax review by McLeod Reports 2001) Some of the water fees are flat rates, i.e. not to take force in 2007. On the other hand, it based on consumption. Energy efficiency is has left open most of the questions about considered the worst in the OECD; houses, how this plan will be implemented, for instance, are mostly made of wood and including the possibility of partial subsidies poorly insulated. Hence, people are quite by means of certifications to cover the tax. willing to start thinking about raising prices for power and water. In addition, not only the professional, but also the ethnic heterogeneity of the However, while people basically approve of participants is greater than in Germany. For higher prices for energy and water in theory, example, at the opening of the conference a in practice a fearful wait-and-see attitude is short prayer was directed at “Father prevalent and expressed by the experts with Heaven” and “Mother Earth”, who were the phrase “further research is required”. beseeched to protect the air, the water, and This attitude reminds me of church father the soil. And of course, this prayer was said Augustine, who in his early years quickly in Maori by a Maori researcher from the recognized the virtue of chastity for university. The two young scientists who Christianity in theory and prayed to God to lectured on New Zealand’s largest river, the make him chaste, but just not yet. Waikato, also toggled between Maori and Unfortunately, the scriptures do not explain English. As Maoris, they know that a river whether Augustine also wanted to use the is much more than just an economic time to conduct the further research on resource, and they are convinced that, “ If chastity that was required… we care for the river, the river will care for us.” Overall, around a half a million My point is that what we need today is not Polynesians now live in New Zealand – further research on the effects of ecological more than on all of the other Pacific tax reform, but rather a willingness to act on Polynesian islands combined. Many of the the wealth of knowledge we have. Most of participants are of Malay or Chinese the participants agree that the New Zealand descent; Waikato University makes a government should quickly implement the conscious effort to get students plans it has announced, even if this would undergraduate and graduate students from initially just mean stipulating what the eastern Asia. The drop in matriculations schedule announced will look like in detail. from these countries due to SARS has considerably worsened this year’s budget Almost everyone at the conference called and already led to layoffs. In a sense, for more leadership from Wellington. Hamilton is the Maori capital, for it is the The difference between the New Zealand’s centre of the Maori Kingdom, which was British tradition and the anti-tax tradition in only founded in 1860. the US makes itself clear, for instance, in the open acceptance of the “Crown’s” Due to the large number of dams for claims for tax revenue from natural hydropower and the use of geothermal resources. For New Zealanders, the idea that power, New Zealand already gets more the government is a representative of the than 25 percent of its power from commonwealth and not just – as American

31 conservatives would have it – a kind of The sessions were as follows: robber of private property is nothing new for New Zealanders, who have a long Thursday 29 May tradition of social welfare. Long before Britain, the colony of New Zealand had Session 1 – A World View granted women the right to vote and Chair: Professor Frank Scrimgeour established state-funded old-age pension • The Experience of Europe – plans. And of course, semantics is an issue. (international guest) What would sell best: green taxes, eco- • Commentary - (OECD) taxes, or something else? My proposal – “resource efficiency taxes” – met with great Session 2 – The New Zealand Context approval. Resource efficiency just Chair: Stephen Tindall, NZ Business somehow sounds more modern than the Council for Sustainable Development old-fashioned idea of “saving”. • A Maori View of Resource Taxation – Hemi Rau, Tainui I also felt like I had been sent back to • The Carbon Tax Debate in NZ Europe at the opening of the conference a) the agricultural perspective when the New Zealand Herald wrote (29 b) a transport overview May 2003) about a study of the Boston c) renewable energy Consulting Group that simulated a solution to Auckland’s traffic problems: a petrol Session 3 – Government Perspectives price of two NZ dollars per litre and a city Chair – Environment Waikato toll fee of five dollars. Today, a litre of • A Local Government View unleaded costs around one dollar, i.e. • Considerations for Central around 50 euro cents. Of course, the Government consultants emphasized that such a) a Treasury view considerations were merely speculative. b) a Ministry for the Environment Likewise, New Zealand’s automobile club view duly condemned such propositions and c) a Department of Conservation view claimed that new roads were the remedy for d) a private sector view traffic congestion. And anyway, at the moment the government of Prime Minister • An agenda for policymakers Helen Clark has too many other problems Professor Ken Piddington to be making more enemies with energy taxes. Her critical stance on Bush’s Iraq Symposium dinner policy (“We wouldn’t have had this war if Speaker – Professor Mike Pratt Gore had won”) has upset Americans, and the free trade agreement between New Friday 30 May Zealand and the US has been put off indefinitely. For the time being, New Session 4 –Environmental Tax Research Zealanders will thus have to make do with Chair: Professor Gary Hawke, Victoria the theoretical contemplation of the virtues University of energy taxes in lieu of the absence of • The Effectiveness of a Carbon Tax such in practice. After all, we can always on Fuel Consumption become chaste later… Sandra Barns, Waikato University

32 o Commentary (Oil Environment Protection Authority were Company) and discussion among the most prominent speakers. We • Taxes and Water Management? were thus able to make a lot of new contacts Dan Marsh, Waikato University and gain a lot of new readers and authors o Commentary (Murray Doak, for the English newsletter Ministry of Agriculture and GreenBudgetNews. Forests) and discussion • Taxing the Ski Industry The speeches and discussions clearly Frank Scrimgeour showed that the level of knowledge and o Commentary (Department of decision-making differs greatly from Conservation) and discussion country to country, with the discussions in • Taxation options for oil/gas and Europe being quite advanced in comparison. Minerals. Ken Piddington On the other hand, in other parts of the o Commentary (Mike Underhill, world, the problems to be solved are much WEL Energy) and discussion different: for example, the low income levels in developing countries make it hard Session 5 – Policy Research Priorities to tax energy and water, and there is often for NZ not sufficient information about the industrial sector, so that taxes there would Chair: Professor Arthur Grimes, Waikato be extremely inefficient. University

• Open Discussion In addition, the types of environmental taxes differ greatly: while Germany is Further information from our contact at the mostly focusing on taxing energy in its APCEA (Waikato) branch - Professor Mike Ecological Tax Reform, Australia taxes Pratt at [email protected]. water, Ireland plastic bags, and Canada is thinking about how to use taxes to maintain A REPORT ON OUR EXPERIENCE biodiversity. AT THE ECOTAX CONFERENCE IN SYDNEY Here, too, the conference produced a broad range of approaches. The experience in From the 5th to the 7th of June, the Fourth various countries was discussed, including Annual Global Conference on ways to use environmental taxes in Environmental Taxation Issues, Experience agriculture, the connection to climate and Potential took place in Sydney. 150 change and renewable energy, and quite people from 25 countries attended, making theoretical issues such as models for this year’s conference the largest one yet. environmental effects and discussions about Most of those taking part were scientists the double dividend. and politicians or from public administration and NGOs; they presented The openness of the presentations and most their latest research findings and practical of the attendants made for interesting talks experience in various sessions. For in the breaks across all age and hierarchy instance, Dr. David Kemp, Australia’s boundaries. The issue of GreenBudgetNews Environmental Minister, Dr. Jean-Philipp we were able to present at the Conference Barde, the Environmental Director of the Dinners met with great interest, so that the OECD, and Dr. Kerry Schott of Australia’s

33 conference paid for itself in this respect as http://www.law.mq.edu.au/eti/program.htm. well. And the feeling of being part of a The 5th conference will take place next year worldwide movement and effort with a from the 9th to the 11th of September in common goal despite the numerous Pavia (contact mailto:[email protected]). differences between the participants was very motivating. For further information contact Green The Sydney conference web site and Budget News at [email protected] program is located at [Förderverein Ökologische Steuerreform e.V.]

CONFERENCE

FOURTH ASIAN PACIFIC researchers the world over. Some of the INTERDISCIPLINARY RESEARCH most prolific researchers from the United IN ACCOUNTING CONFERENCE Kingdom, Europe, North America, the Singapore 4 – 6 July 2004 & APIRA 2004 Asia-Pacific region, and many other Emerging Scholars’ Colloquium countries are represented in APIRA's (2 – 3 July 2004) International Editorial Committee. A strong interdisciplinary program of research papers Organised by Singapore Management and forums addressing the relationships University between accounting, auditing and (Supporting Organisation: Nanyang accountability and their social, institutional, Business School, Nanyang Technological economic and political environments will be University) included in the program.

In association with Accounting, Auditing This interdisciplinary accounting & Accountability Journal conference is dedicated to the advancement of accounting knowledge and practice. It The triennial APIRA conference now provides a platform to discuss the moves to the “Lion City” Singapore, interaction between accounting/auditing and following on from its predecessors in their social, economic, institutional and Sydney (1995), Osaka (1998) and Adelaide political environments. (2001). APIRA is the premier interdisciplinary accounting research Conference sessions and papers will critique conference in the Asia – Pacific region, contemporary theory and practice, examine rotating in a three year cycle with the historical and interdisciplinary dimensions European IPA and the New York CPA of accounting, debate policy alternatives, conferences. and explore new perspectives for understanding and change in the accounting With a reputation for academic rigor, and discipline. the participation of accountancy's foremost thinkers, APIRA 2004 promises to attract Papers may explore policy alternatives and strong representation from accounting provide new perspectives for understanding

34 the accounting discipline, covering the o Accounting and the Home following themes: o Methodological and Theoretical Issues o Accounting Communication o Intellectual Capital o Knowledge Management APIRA 2004 will be held at the Grand o Risk Management Hyatt Singapore, and its associated o Corporate Governance Emerging Scholars’ Colloquium (2 – 3 o Social and Environmental July) will be held at the beautiful Bukit Accounting Timah campus of Singapore Management o Critical Financial Analysis University. The conference’s plenary o Accounting and Gender and/or speakers on the subjects of corporate Feminist Theories governance and management control will o Accounting and Accountability in include Professors Niamh Brennan the Public Sector (University College Dublin), Trevor Hopper o Non-profit Organizations' (University of Manchester), and Ken Accountability Merchant (University of Southern o Accounting Policy and Standard California). Setting o Corporate Regulation and For full conference and colloquium Accountability details, access the SINGAPORE APIRA o Accounting Professions website at o New Forms of Accounting and http://www.accountancy.smu.edu.sg/Apir Auditing a/index.htm o Auditing and Accountability: or using www.Google.com, type in Professional and Business Ethics “APIRA 2004”. o Accounting in the Third World o Accounting and the Public Interest o Critical, Explanatory, Oral and For further enquiries, please contact: Visual Approaches to Accounting Ms Adelene Ang History Singapore Management University o Critical and Ethnographic Case Email: [email protected] Studies of Accounting in Action o Accounting and Management or Planning and Control o International Accounting and Professor Lee D Parker Globalisation The University of Adelaide o Accounting and Technology Email: [email protected] o Accounting and Culture

35 CSEAR SUMMER SCHOOL

13th CSEAR Research Summer School environmental accountability issues. This 2003 provided an important opportunity for academics to interact with people who deal The 13th CSEAR Research Summer School with organisations first hand, and allowed was held in Dundee on September 1-3, networks and contacts to be developed in 2003. As in previous years the conference order to help support the cause for social began with a ‘research methods’ session, and environmental accountability. which this year focussed on two areas – theory and research design. Professor Rob The CSEAR conference was once again a Gray presented two short plenary sessions resounding success and the papers presented on each area then participants broke into showed an abundance of exceptional talent discussion groups. This format was very coming up in the area of social and successful and feedback, particularly from environmental accounting, with a number of early researchers, was that these exciting PhD projects being undertaken. discussions were extremely helpful. Papers were also presented by more experienced researchers and the mix made This year, the final day of the conference for a lively and scholarly conference. overlapped with the BAA Scottish Accounting Group Conference, with a For more information on CSEAR visit plenary session by Roger Adams from the www.gla.ac.uk/departments/accounting/cse ACCA. The option for CSEAR participants ar or email [email protected]. The to attend BAA sessions and vice versa was CSEAR Summer School ‘Down Under’ will most beneficial. also be held in 2004, details will be available at a later date. The conference also included a practitioners’ forum, where speakers from Carol Tilt Amnesty International, Traidcraft, and the Flinders University UK pensions fund were invited to provide their perspectives on social and

36 BRANCH NEWS

Branch News from the management and as basis for External Environmental Management Ecological Accounting (reporting to Studies Institute (Buenos Aires, stakeholders). Some of the main formats of reporting, for instance the Greenhouse Argentina) Protocol, were also discussed.

On 6th August an Executive Seminar on In the evening, the main challenges of Accounting and Finance for the management accounting and investment Environment was held. This one-day analysis for corporate sustainability were seminar, the first of this kind in Argentina considered. "The Boeing Company: was part of the Annual Program on Environmental Assessment Mitigation Sustainability and Business of Costs", another case prepared by World Environmental Management Studies Resources Institute and translated by EMSI, Institute (EMSI). addressed the accounting problems created

by a remediation impact required for the The Seminar was attended by a group of construction of a new Boeing plant in the environmental leaders from some of the United State. most important industrial companies in the country. Finally, a session was given on financial

analysis from an environmental perspective, The Seminar started with a critical with a focus on how environmental issues consideration of traditional accounting in can affect the value of a company in the new sustainability era. Pros and cons of financial markets. financial accounting were presented as one of the main pressures for corporate Those in attendance appreciated the seminar accountability. very because it raised many issues in

accounting and finance for corporate The group discussed the "Western Oil & sustainability that have been unheard of in Gas Company: Strategic Financing for Argentina before. Energy Efficiency" case - a business case on energy efficiency prepared by World Note also that Professor Adrián Zícari has Resources Institute and translated by EMSI. moved from the Institute and that the new This was the first time that this case has representative for APCEA (Center for been discussed in Spanish. Studies of Corporate Sustainability, Buenos

Aires) is Professor Miguel Angel Gardetti Later, Life Cycle Analysis and Internal at [email protected]. Ecological Accounting were considered as powerful tools for environmental

37