Messages
Proposals
Get Urgent Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework Writing
100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support
Background
of Comparative Analysis
of Woolworths and BHP for Climate Change Initiative and Disclosure
The world is facing various kinds of
challenges in the recent era, and one of such challenges is the issue of climate
change. The activities of people, as well as, the conduct of businesses are
badly affecting the climate and environment of planet Earth in so many ways. It
is important for everyone to understand that they can leave it to others to say
that climate change is not their business; rather it is something, which
affects everyone around the world. If the global average temperature will rise
in such a rapid speed, then life will be difficult to live. The world will have
to face many natural disasters if everyone is not ready to take responsibility.
The responsibility on the shoulders of businesses around the world is very
large. The business conduct and activities performed by the business
organization have been affecting the climate in a vast majority, and if these
organizations are ready to take initiatives to reduce their negative impact,
then things can get better. The world can meet the goals of keeping the
environment and climate-safe for everyone to survive
It is important to look at the
sustainability efforts made by both companies to see how things are moving
forward, and in which direction. First of all, Woolworths’ climate and
sustainability-related efforts are going to be highlighted. The company has been
focusing on its sustainability efforts to makes sure that they become as green
as possible reducing their impact on climate and environment. Their
sustainability strategy has focused on five major elements such as reducing
plastic, food waste, energy efficiency, sustainable sourcing, as well as,
animal welfare. However, the focus will be given to energy efficiency and the
reduction of plastic waste. As per the sustainability report of Woolworths, the
company has opted for plastic bag free strategy, and since then, the phased out
a number for plastic bags is 3 billion. They also came up with a plastic
straw-free strategy and managed to remove straw up to 134 million. They are
also involved in recycling the plastic, and more than 380 tonnes of plastic has
been recycled so for with their RedCycle recycling program. They have also made
a strategy to increase their energy efficiency. Around 800 supermarkets of
Woolworths are using LED lighting which is an efficient solution for lighting.
The group has so many buildings to manage their business, and around 50000
solar panels are installed to be used in these buildings to fulfill energy
needs. The company has made an Energy Management Center, which looks for new
opportunities to make possible reductions in the use of energy
On the other hand, BHP has also
focused on its sustainability efforts, and came up with a variety of
initiatives in this regard. They have included sustainability in the list of
their core values so that they can become environmentally responsible. The CEO
of the company has said in a statement of its sustainability report 2019 that
“Sustainability has long been hardwired into all the decisions we make, the
actions our people take, and the processes adopted by our business across the
globe” It shows their commitment towards the sustainability and climate change.
According to the 2019 sustainability report of the company, they have invested
around $400m for their Climate Investment Program so that efforts to make a
positive impact on climate are accelerated. The company knows the importance of
water so they are trying to minimize the impact of water. The withdrawal of
freshwater for the company was 1% lower when it is compared with the water use
of 2017. They are doing efforts to minimize the level of greenhouse gas
emissions to reduce their climate impact. That’s why energy-efficient and low
emission technologies are being used by the company. The greenhouse gas
emission in 2019 was 3% lower as compared to the emission of 2017. The
operational GHG emission in 2018 was 16.5m tonnes, which was observed at 14.7m
tonnes in 2019. These numbers are showing that BHP is doing whatever possible
to show compliance with the issue of climate change
The above disclosures given both for
Woolworths and BHP are provided in their sustainability reports, which they
publish each year, and continue to update their sustainability efforts on a
regular basis. Looking at the facts and figures, it is evident that specific
quantitative data has been provided with proven numbers to show their
sustainability strategy. The qualitative statements are also there but the
primary focus is to give numbers with proven results. The overall strategy of
both companies looks very much similar, but there is one major difference,
which can be identified through their sustainability reports. The major
difference is that BHP is more focused on reducing their greenhouse gas
emissions, whereas the strategy of Woolworths is focused on other variety of
areas such as energy efficiency, plastic waste, food waste, etc. So, they both
need to look at those areas, which are less focused, so that they can show more
positive intent towards sustainability and climate change.
Hans Hoogervorst is the chair of the
IASB (International Accounting Standards Board). In his speech made in 2019
during the Climate-Related Financial Reporting Conference, which was held in
the UK, and he talked about various elements and streams of sustainability
reporting.
There
are two streams for the sustainability report;
·
GRI
·
SASB (sustainability accounting standard board)
The
GRI is the primary which is also focused on the external company impact of the
society along with the planet and the multi-stakeholder perspective. Whereas on
the other hand the 2nd stream SASB and the CDSB (“climate disclosure standard board”) as
well as the (TCFD) “Taskforce for
climate-related financial disclosure”. All these permits the company which
is also explain a potential for the financial; sustainability impact of problem
where the company itself. For the reviewed management of commentary the 2nd
stream is much more relevant and the guidelines which is related to term
“border financial information” and its aim to provide the context interoperation
for financial statement through the primary user and its named as the provider
and the investor of capital.
The
two major parts of sustainability reporting as per Hans Hoogervorst is
Corporate Social Responsibility, as well as, exaggerated expectations for
reporting sustainability. It means that the basic thing for showing your
company’s sustainability efforts is to give a detailed view of your corporate
social responsibility efforts. Looking at both companies' findings, it can be
said that both are giving a view of sustainability by showing their corporate
social responsibility. The second thing is not to over-exaggerate the
sustainability reporting, which gets it away from reality. After looking at the
sustainability efforts of both companies, it can be said that expectations made
by both companies are not exaggerated; rather they have made realistic
expectations
Looking at overall efforts, reporting standards and reports, it can be said that a variety of changes are required in making proper disclosures with realistic goals and results. The companies should make sure that their climate change disclosures are crystal clear in providing their objectives in a realistic manner so that future expectations can be made accordingly. Making wrong expectations with wrong and exaggerated will not only mislead the public and governments, but all other stakeholders will also be misled, which is not a good thing for the integrity of an organization. It is important to look at the sustainability reporting standards provided by the report of AASB-AUASB. When standards will be followed by these two companies, they will have to make changes in their current practices to keep things on the right track.
BHP. (2019). BHP Sustainability Report 2019.
Retrieved April 15, 2020, from https://www.bhp.com/-/media/documents/investors/annual-reports/2019/bhpsustainabilityreport2019.pdf
Conerly, B. (2019). Business Strategy For Climate
Change. Retrieved April 15, 2020, from
https://www.forbes.com/sites/billconerly/2019/10/19/business-strategy-for-climate-change/#5beafd1e53e8
IFRS. (2019). Speech: IASB Chair on what
sustainability reporting can and cannot achieve. Retrieved April 15,
2020, from
https://www.ifrs.org/news-and-events/2019/04/speech-iasb-chair-on-sustainability-reporting/
Woolworths. (2020). Sustainability. Retrieved April 15, 2020, from https://www.woolworths.com.au/shop/discover/sustainability
Discuss your homework for free! Start chat
