Deborah Evans, head of corporate reporting and assurance at LRQA, said: "The business and investment community need non-financial reporting systems which allow them to accurately assess the real risks and how business is reducing them. Investors don't need data dumps and greenwash, but that's what many are still getting.

"Material data, properly validated and focused on the real business risks, is what's required. Some companies, such as BT Group are making real strides in this area, others need to take a closer look at what the leaders are doing."

The 'Big Four' Accounting firms admitted concerns the current model for reporting was broken and that particularly in the area of non-financial reporting new models were required to better capture the real risks and drivers of business value.

"The critical issue for business is applying materiality principles to non-financial reporting," continued Evans. "We strongly recommend that those responsible for delivering non financial reporting adopt and evolve their materiality processes," said Evans.

Businesses seeking to refine their non-financial reporting should review current global best practice and, in particular, may wish to study the practical methodologies and frameworks created by others.

LRQA recently co-authored a review of reporting best practice with think-tank AccountAbility and BT Group. The report looked at a number of global corporations, including LRQA's client BT Group, to identify emerging best practice in this area as well as a framework for materiality.

Evans has also produced a podcast on the issue of non-financial reporting which can be heard at:

http://www.businessassurance.com/display/BAC/2006/11/09/The+need+for+materiality

Called 'Materiality Report: Aligning Strategy, Performance and Reporting' is available free at:

www.businessassurance.com/display/BAC/Materiality+Report

Notes to Editors:

LRQA is a leading business assurance company providing verification, certification and training services to a wide range of organization around the world. LRQA helps clients use management systems to reduce their risks and improve their business. LRQA is a member of the Lloyd's Register Group.

The Lloyd's Register Group is an independent risk management organization that works to help improve its clients' quality, safety, environmental and business performance throughout the world, because life matters. Its expertise and activities cover railways, shipping, oil and gas, and other asset-based industries. The research quoted above was conducted by ICM research in August 2006 amongst 350 global managers responsible for management systems in their organizations.

BusinessAssurance.com is the world's first online management systems community. It enables the creation of better management systems through global collaboration and knowledge sharing, and offers an opportunity for users across the world to work together to build an online knowledge base for the industry.

Research Methodology:

350 interviews were conducted with Directors and Senior Managers that had managerial control or input into the way managements systems are used. Fifty interviews were conducted in each of seven national markets; China, Japan, US, UK, France, Spain and Netherlands. All companies had more than 1,000 employees and were certified to at least one international management standard in quality, health and safety or environment.