THE ROLE OF ENVIRONMENTAL RISK MANAGEMENT AND REPORTING: AN EMPIRICAL ANALYSIS

Abstract

In recent years, there have been significant developments in the field of environmental risk assessment and management. Its role in the corporate setting has been strengthened by claims that financial results and corporate reputation can be significantly improved through environmental management. Risk assessment and management provides one of the most comprehensive and cost-effective mechanisms for managing environmental issues and has subsequently led to the adoption of risk-based environmental management. This research examines the current discussion in the field of environmental risk management and undertakes a survey of 112 UK companies to ascertain how environmental risk assessment is perceived and what role it has in environmental management, including environmental reporting and accounting. The paper concludes that whilst there have been some positive developments in the area, companies, governments and regulators still have work to do in ensuring the adoption of best practice.