Author(s)

R. Sjöblom & S. Lindskog

Abstract

The second largest asset to a company may well be its good reputation. Environmental liabilities warrant special attention in this regard since they may well constitute the largest uncertainty in an annual report, and it is not seldom discovered that they have been underestimated. The purpose of the paper is to compile and present a road map as to how to meet the legal and other requirements, and to analyse the alternatives of proactive and reactive approaches. The legal requirements are to be found in various pieces of legislation, on different topics, and with a highly varying degree of detail. It is found that general statements, including the polluter pays principle, together with the requirements on annual reporting provide a good basis for developing a company strategy. Further information about how to plan for decommissioning and restoration, including financial planning can be found in various recommendations and standards from e.g. IAEA, OECD/NEA and ASTM, and support on cost methods is available from AACE and ISPA. More detail can be found in various open sources such as journal articles, conference proceedings and books. It is concluded that a proactive strategy, which includes early technical and financial planning, is associated with the lowest overall costs, and can eliminate many of the otherwise potentially very troublesome cost raisers. It is also concluded that with proper planning, funding is to be made using untaxed assets. Using taxed assets can constitute an efficient road block against proper decommissioning and remediation actions. It is concluded that a proactive and proper management of environmental liabilities – if properly communicated – can constitute an important asset in terms of raised confidence among share holders, customers, interested parties and others. Keywords: Sweden, environmental liability, decommissioning, remediation, nuclear, reputation, asset, cost calculation, financing.

Keywords

Sweden, environmental liability, decommissioning, remediation,nuclear, reputation, asset, cost calculation, financing.