US think tank wants ethical accounts
A leading US environmental think tank has called for the global accounting system to include the true ecological cost of economic activity, backing similar initiatives in the UK.
Lester Brown, head of the Washington-based Earth Policy Institute told a press briefing in the US capital that ‘accounting systems that do not tell the truth can be costly’.
The veteran environmentalist said that once the true costs had been calculated they could be added through ‘shifting taxes from personal income to products such as petrol’.
Brown said it was key that the market told the ‘ecological truth’.
The UK white paper Modernising Company Law recommends that directors ‘include the company’s impact on the environment which the government believes every director needs to consider first among equals’.