Impact of Green Reporting for Business Valuation Study of Rubber Manufacturing SME in Sri Lanka

Sampath P. Dayaratne, G.H. Kulanaga Wickremathillake, Kennedy D. Gunawardana


Key economic players of Small and Medium Scale Industries are eager to provide final products to meet the market demand. But they are not considering the environmental impact on the manufacturing process. This has resulted in climate change which led to global warming. Several researches have been carried out in this regard and mitigation measures have been introduced, but there is not a semblance of implementation of measures in minimization global disposition through green reporting of carbon dioxide emission level. Hence, this research has been carried out considering how green reposting can lead to derive fair business valuation, by doing a case study in the sphere of rubber manufacture. This case study is carried out by applying the net asset value method. Findings have revealed that, energy consumption is associated at the rubber mill itself and emissions connected to productivity of kW/H of energy consumption and emissions from the production of rubber band amounting 1.67 ton CO2-eq/ton product. There is a vital finding from this research — mainly there is no record of environmental impact due to manufacturing process to derive fair business valuation—. Any business valuer could directly benefit from these findings in order to derive fair business valuation methods of price to earnings ratio, net asset value and net present value through green reporting to minimize global warming potential. Also policy makers can develop processes to promote the green reporting as a mandatory requirement for business valuation.

Keywords: Business Valuation, Green Reporting, Energy-Efficiency

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