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impact. 293 Generally, there is still much confusion about what constitutes a commercial secret and whatARTICLE 19GLOBAL CAMPAIGN FOR FREE EXPRESSIONNevertheless, a few companies have concluded that doing business despite local residents’concerns or in a way that gives them a bad environmental record can, in the long term, put theirbusiness revenues at risk. The importance of a positive public image in maintaining stable profits isbeing recognised by a few pioneer companies. This dynamic has to some degree been triggered by thefact that these Ukrainian companies increasingly have to compete in a globalised market with Westerncompanies, many of which have already adopted standards and policies on accountability andcorporate social responsibility. On a few occasions Ukrainian businesses have been more open todiscussing environmental concerns with activists than the authorities whose responsibility it is toconsider the public interest. For example, in 2006 the Ecological League prepared 13 pages ofcomments on the building of a metal factory in Poltava, but these were ignored by the authorities. TheLeague then continued discussions with the Director of the company directly, who then voluntarilyagreed to implement a number of measures retrospectively to reduce the factory’s environmentalshould be made available under the regulations on accessibility of environmental information, whichadds to the problem of lack of business accountability. 2949,4,* >" 6) The paint factory Lakma in Kyiv and the chemical company Stirol in Donetsk provide some examplesof good practice in information management as part of corporate social responsibility policies.Lakma, a company with 260 employees and only one production site in Kyiv, has adopted anumber of measures to reduce its negative impact on the environment, including by establishing adepartment for environmental protection. 295 Since 2001, it has enhanced its capacity for environmentalmanagement, particularly thanks to the assistance of a German company, Unikum, which providedconsultants and training to measure and control environmental impact. It has also participated,together with five other companies, in a programme on environmental management, funded by theEuropean Commission. 296Lakma has a corporate policy on its website which includes a commitment to minimisingenvironmental impact (point 9). 297 The company follows a certification system, consistent with293 Interview with Tetyana Tymochko, see note 49.294 Interview with Victoria Grankina, see note 291.295 Interview with Elena Giorgevna Paraskevas, Head of Lakma, April 2007.296 Ibid.297 See Lakma’s website (in Russian), http://www.lakma.ua/policy.php.For Internal Use Only. Is Post-Chornobyl Ukraine Ready for Access to Environmental Information?ARTICLE 19, London, 2007(,
ARTICLE 19GLOBAL CAMPAIGN FOR FREE EXPRESSIONinternational guidelines, to measure the environmental impact of its activities, such as emissions andpollution, and to identify causes. The latter might include mismanagement of resources orshortcomings in the production process. The data is used to compile an environmental managementmatrix, in which points are allocated for each production step, representing the estimated damage tothe environment. If a production step has a number of points that exceeds the guidelines, an internalimpact assessment is carried out for this aspect of production. The matrix is reviewed annually, and isused to formulate solutions to reduce the company’s environmental impact. Some of the measuresLakma undertakes are very easy to implement, and may simply involve giving precise instructions tothe employees to keep containers with paint and other chemicals closed to stop the fumes escaping.Lakma’s system is not yet perfect. For instance, although management is aware that thecompany consumes a great deal of water, it does not know the precise amount. In order tosubstantially decrease the company’s environmental impact, it would need to install new equipment,which is only possible with serious investment.While it generates impressive amounts of information that enables it to monitor and managethe company’s environmental impact, Lakma could improve its practice of sharing this informationwith the public. The company has some procedures for external exchange of information; it has drawnup a list of external stakeholders whom it tries to keep informed. In order to provide information on itsactivities, it uses reports, publications and presentations; press releases and press conferences; and itswebsite. It makes public information on the company’s audits, and publishes contact details formembers of the public and the media who wish to request information. Lakma produces an annualpublic report on governance of the company. However, this report does not include a section on theenvironment, and an annual report on environmental aspects, which is also produced, is internal to thecompany, as are the monitoring procedures and the information generated by them. The website doesnot contain any information on environmental impact, other than the policy commitment tominimising it.Another positive example is Ukraine’s biggest chemical company and an important exporterof pharmaceuticals and fertilisers, Stirol. It was built in 1933 and is located in the Donets Basin. Withover 5,000 staff, it is one of the biggest employers in the Donetsk oblast.The company has a vice-president on the environment who is also a member of the managingboard. Stirol is unique in that it employs methods to recover waste and recycle the gases produced, 298thereby breaking the conventional link between greater economic development and increasedemissions. Previously the company used 36 million cubic metres of water. It now recycles sewage298 Interview with Volodimir Andreyevich Karpiy, Media Director of Stirol, April 2007.For Internal Use Only. Is Post-Chornobyl Ukraine Ready for Access to Environmental Information?ARTICLE 19, London, 2007(+
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