IN the wake of the environmental disaster in Cameron Highlands brought about by illegal land clearing, the need for concerted efforts to protect the environment has become more urgent.
The Cameron Highlands tragedy has proven that if we are not going to make peace with the environment, the destruction will be all the more greater in the future.
From what we have fathomed from the Cameron Highlands destruction, we have not learnt from past mistakes and that recommendations on environmental protection had gone unheeded.
Prime Minister Datuk Seri Najib Razak had announced recently that as next year’s Asean chair, Malaysia would advocate sustainable growth and climate action.
As Malaysia is about to embark on a year of global climate action and sustainable economic growth, and pushes for a green agenda, all sectors of our economy should work towards ensuring that the economy and the environment could prosper together.
We can and should demonstrate that sustainable development is not an indulgence but a precursor to success. We need more green industries to provide jobs and help Malaysians gain knowledge so that young entrepreneurs can acquire the skills to support this sector.
As our focus is on sustainable growth and environmentally-friendly development, it is essential for the public and private sectors to develop environmental auditing systems and provide annual reports on the impact of their activities on the environment.
At a time when environmental concerns in the business sector are being given greater focus across the globe, environmental auditing should be an integral part of corporate management. With the advent of the “green corporate culture”, there is a need for businesses to be more conscious of environmental issues. Companies must realise there is more to gain by preserving the environment.
Problems related to illegal land clearing, deforestation, dumping of hazardous waste by irresponsible companies and smoke emissions from factories have, time and again, been reported in the media. Unless those concerned are prepared to address these issues, they will not only have to bear the full brunt of the law, but eventually lose out, as trade barriers fall in the global market.
Environmental reporting is about the company’s disclosure on the impact of its economic activities on the environment. The disclosure may provide vital information for investors to protect themselves from unexpected losses as a result of environmental costs. To the public, such disclosures will enable them to evaluate the social commitments undertaken by the corporate entity.
As has been observed, there is an emerging trend among corporations, particularly internationally, to disclose information on environment policies, objectives and programmes to the public.
Malaysian companies need to improve their environmental accounting as this trend may become an established practice worldwide to govern investment decisions. Hopefully, environmental accounting will lead to a change in the mindset on environmental issues in a company’s top management. Securing profit should not be at the expense of the environment as companies have a social responsibility to inform their stakeholders of the impact businesses have on the environment.
Shareholders must also strive to be aware that profit is not made at the expense of the environment, and that companies should be more responsible for the future generation.
The proposed environmental accounting will no doubt ensure not only greater awareness but also the development of a responsible attitude among chief executive officers towards the impact of their company’s activities on the environment.
Tan Sri Lee Lam Thye, Kuala Lumpur