Liberal Democrats have agreed to limit demands for more corporate environmental reporting to 'encouraging' businesses to include one-page reports in their annual returns.

The party's Brighton conference rejected activists' pleas for a tougher regulatory approach, with accountant delegate Peter Welch protesting it was 'a scandal' that a voluntary approach was being proposed, adding: 'This is so wet the ink comes off on your fingers.'

But business spokesman Lembit Opik called for a 'light touch' to retain credibility with industry.

He said the proposed policy was not punitive but would reward companies that complied with extra time to file accounts.

A motion passed by delegates complained the Operating and Financial Review required by company law reform legislation would only apply to the 1,300 publicly quoted companies and would only be enforcible by shareholders if a failure by directors to consider the issues involved lead to financial loss.

It called for 'effective, standardised and simple environmental reporting for business' extending beyond those quoted on the stock exchange covering carbon emissions for the current and prior year, with comment, the use of raw materials and sustainable sourcing and environmental policy, including recycling.