The recent High Court ruling in August of this year which found that the UK’s regulations governing the collection, treatment and recycling of electrical and electronic equipment were lawful and consistent with the EU Directive, has further increased the pressure on business to be “seen to be green”.Despite the recession, companies need to forge ahead with energy-saving measures, not least because of imminent UK mandatory carbon reduction commitments, and still have to pursue the projection of their green credentials to consumers and clients who are increasingly insisting on that green tinge of virtually every product or service.

Doing all this will create a significant cost for business, unless they get their fixed asset accounting practices in order.The days have gone when a simple, broad statement about green strategies from procurement and recycling to flexible working would suffice.Organisations now have to prove their commitment to environmental issues through information transparency and fully auditable policies.  At the core of this approach has to be consistent and detailed information about the life cycle of all the fixed assets, from country of origin and maintenance schedules to final disposal details.

That requires and assumes a level of fixed asset tracking far beyond what most UK businesses have in place at the moment.Many companies are still using antiquated spreadsheet models to control and manage their fixed assets.  As a result, not many UK businesses can accurately identify the location of equipment relevant to WEEE regulations, confirm when those items were purchased, from whom they were purchased, and how or where they were disposed of at the end of their lives.By using a comprehensive asset accounting software package that links the asset register to a document management system, companies can create the required audit trail as well as gaining valuable insight into the disposition of their own assets so that they can adapt to the demands of the green economy.

Source: admin