ABSTRACT
The language used through the risk management process must be consistent and capable of being understood across the business. The risk management approach is fundamentally consistent with the strategy in environmental management system standards such as ISO 14001. Many organisations in the process industries have been developing and operating their own environmental management systems and conducting environmental audits since at least the 1970s, particularly in the US. These were initially concerned with assuring compliance with relevant legislation. The financial performance of these companies, in terms of Return on Capital Employed (ROCE) and Return on Equity (ROE) was compared initially with the average performance of similar non-green companies and then the best financial performance from the non-green sample. Establishing a link between environmental and financial performance would ensure that the environment could be integrated within mainstream investment decision making.
