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Due date November 12th Case 5.1 Page 162 In the Green CASES O.J. Sanders works in the financial reporting section of a large U.S.

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Due date November 12th Case 5.1 Page 162 In the Green CASES O.J. Sanders works in the financial reporting section of a large U.S. phar-maceutical company. The company has recently committed to "go green" and O.J.'s boss wants to add some environ- mental disclosures in the company's annual report. O.J. is charged with recommending the contents of the en- vironmental disclosure. In his research, O.J. learns that U.S. companies have generally lagged European companies in environmental reporting, but that more and more U.S. companies are now disclosing environmental matters. He believes that his company should at least "match the competition" in the disclosures it makes. Toward that end, he obtains the annual report of Roche, a Swiss competitor. O.J. also learns about the G3 sustainability reporting guidelines of the Global Reporting Initiative. Required: I 1. Discuss why financial statement users find environmental disclo- sures informative. 2. Obtain the G3 sustainability reporting guidelines of the Global Reporting Initiative (GRI, www.globalreporting.org). List the environ- mental performance indicators that the GRI recommends for disclosure. 3. How closely do Roche's environ- mental disclosures match the GRI recommendations (see Exhibit 5-3)? What are the areas of nondisclosure? 4. Describe the environmental disclo- sures that O.J. should recommend his company make.

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