EDITORIAL PAGE — Managing environmental risk

It would seem firefighting is still a popular approach to environmental management for many Canadian companies. That, at least, is the conclusion we can draw from a recent survey on environmental management systems prepared by Klynveld, Peat Marwick, Goerdeler (KPMG). The accounting firm found that 57% of respondents did not have an environmental management system, and that these companies prefer to deal with environmental issues on as “as needed” basis.

On the other hand, 76% of this year’s respondents reported having prepared environmental reports, compared with only 60% in 1994. Some sectors, it would appear, are more conscientious than others. For example, all the respondents in the mining industry reported having filed environmental reports.

It appears most companies are somewhat reluctant to disclose information about their environmental programs. KPMG found that while 40% of respondents said they are sensitive to public pressure, only a third of that group made a point of explaining their environment programs to the public. (One explanation for this may be that many companies are still formulating programs for environmental protection, while others have yet to establish a means of measuring their performance in this area.)

An increasing number of firms are hiring environmental personnel. In this year’s survey, for example, 66% of respondents reported having employees with full-time responsibility for environmental protection, compared with only 44% in 1994.

Increasingly, environmental protection is a public concern, and, while much work remains to be done, the mining industry has already taken a leadership role in monitoring and reporting on its progress in this area.

These days, almost every mining company includes an environmental review in its annual report, and many have expanded this section to include information on related programs designed to benefit the local community. The Potash Corporation of Saskatchewan, in its report, refers to its White Springs reclamation centre, a lake-side building that was used for more than 50 community events last year. At the same time, more than 500,000 trees were planted to reclaim mined-out areas at White Springs and Aurora, as part of a 230-acre wetland reclamation project.

Environmental reporting is particularly important for companies that operate in foreign jurisdictions. It is a myth that companies are flocking to places such as Mexico and Ghana in order to avoid operating under the environmental restrictions that exist in North America, for these companies aim to operate abroad with the same high standards they achieve at home.

Annual reports and shareholders meetings are ideal media through which companies can inform the public about their environmental achievements.

Industry organizations have contributed to this effort by presenting awards and otherwise recognizing companies that have made outstanding environmental progress.