Global Reporting Initiative and Sustainability Practices
The main purpose of this assignment is to consider the sustainability practices which are followed by the business. The companies which are selected for this assignment are Oz Minerals Ltd and Sandfires Resources ltd. Both the companies are engaged in the business of mining and minerals extractions (OZ Minerals, 2018). In present times, a lot of emphasis is put on sustainability practices which are considered as key aspects of business activities. In order to effectively understand the sustainability practices of the business and promote the same, Global Reporting Initiative was introduced.
Global Reporting Initiative (GRI) is one of the standard which focuses on sustainability and the same helps business, governments and other organizations to identify and understand the impact of the activities of the business on significant issues such as climate change, human rights and corruption (Planken, 2013). The report will be focusing on the environmental, economic and social impacts which the activities of the business. As per recent market situation, most of the companies are concerned with sustainability due to the corporate social responsibility which the business needs to follow.
The companies which are selected which are Oz Minerals ltd and Sandfires Resources ltd both are engaged in mining and mineral extraction business are both listed in ASX. As per the annual reports and the sustainability report which is prepared by the management of Oz Minerals ltd, the management is committed towards sustainability practices (Ozminerals.com. 2018). The key activities of the business focus on the impact which such activities have on the environment, business, employee’s welfare. The sustainability makes it clear that the main purpose of the business is to ensure the safety of the employees are ensured and also the environmental considerations are considered. As per the sustainability report which is prepared by the management of Oz Mineral ltd, focuses on portraying to the stakeholders that the business is effectively engaged in the process of value creation considering the financial, social and environmental responsibilities of the stakeholders of the business (Toppinen & Korhonen?Kurki, 2013). The company follows the GRI framework for the purpose of reporting for sustainability practices of the business. The company is committed towards reduction of energy consumption which the business utilizes and thereby ensure that the energy is used wisely. In the environmental context the main source of pollution is the dust which is generated in mining activities for which the management has taken steps to reduce such a pollution which includes proper road maintenance and speed restriction programs. In addition to this, the sustainability report also points out that the business uses non-ozone depletion products in mining activities. The management of Oz Minerals also has restoration program so that the site which was used for mining project is restored.
Sustainability Practices in Oz Minerals Ltd
As per the sustainability report of Sandfires Resource ltd, the management commitment towards sustainability is quite clear (Sandfire., 2018). The management has invested a significant amount of funds in the development of solar projects so as to save the non-renewable resources of the country and this also shows that the business wants to make efficient utilization of energy which does not have any adverse impact on the society. The safety of all employees and contracts are the main the concern for the management of Sandfire Resources. The level of injuries which accidently happen has reduced from previous year in a 12 months period. The purpose of the management of the business is to ensure that the interests of the stakeholders of the business and also engage in the process of value creation considering the sustainable development of the business (Fernandez-Feijoo, Romero & Ruiz, 2014).
Therefore, from the above discussions it is clear that the main purpose for both the companies for following GRI standards is to ensure that the activities which are undertaken by the business are sustainable and appropriate reports are prepared displaying the same.
In case of both the companies, the operations are almost similar even though the products of the companies might be different. The companies which are selected for this assignment belongs to same industry and are basically rivals (Epstein & Buhovac, 2014). As the business operations of such companies are similar, the sustainability report will also be similar:
- Investors and Shareholders: The investors and shareholders are important stakeholders for the business and the sustainability activities of the companies. The potential investors consider the activities of the business and their impacts on the society. In the case of both Oz Minerals ltd and Sandfires Resources, shareholders or investors are considered to be important stakeholders (Eccles, Ioannou & Serafeim, 2014).
- Creditors and Suppliers: The creditors and suppliers of the business are also one of the stakeholders of the business. The sustainability reports provide a distinctive overview of the company’s business which provides the creditors and suppliers with a view of the commitment of the business to ethical practices and sustainable development of the business (Crane & Matten, 2016). The financial statements of both the companies shows that the business has taken credit in one or the other and the same is shown as trade and other payables in the consolidated balance sheet. This shows that the creditors and suppliers have interest in the management of the companies which suggest that they are stakeholders of the business as well.
- Employees: Both the companies employee workers, staff members, supervisors and managers for the purpose of smooth operation of the business and therefore such group of individuals are also affected by the activities and fate of the business and are thus considered to be stakeholders for both Oz Minerals and Sandfire Resources.
There are other stakeholders as well as shown in case of Oz Minerals ltd in the sustainability report which are landowners, Governmental agencies and other support institutions. The key stakeholders for Sandfire Resources are also clients, society, governmental bodies. Group members and other related parties (Sandfire.com.au. 2018).
The above discussion is concerned with the sustainability practices of Oz Minerals ltd and Sandfire Resource ltd and as the companies belong to the same mining and minerals industry therefore there are various similarities between the reports which are formulated by both the companies. The similarities between the two reports are explained below in point form:
- Both the companies are follow sustainability practices which ensures that the business follow safety measures for the employees of the company. As both the companies are engaged in mineral extraction industry, injuries often occur to workers and thus both the companies have incorporated measures as per sustainability report of 2017 measures which can reduce the incidence of injuries during operations of the business.
- The management of Oz Minerals and Sandfire Resources have the policy of effective waste management and reduction of the same which are generated from the operational activities of the business.
- The management of both the companies are dedicated towards the needs and expectations of stakeholders and have effective policies for corporate governance and corporate social responsibility (Benn, Edwards & Williams, 2014).
- Both the companies have a sustainability committee which looks after the sustainable practices of the business and plays an active role in the management of the company.
The dissimilarities which exist in the reports of both the companies are explained below:
- The report which is formulated by Oz Minerals ltd has shown restoration projects which are undertaken by the management for where exploration or mining activities are undertaken. In the report of Sandfire Resources no such restoration plans are disclosed explicitly.
- The management of Oz Mineral ltd is much more focused on environmental issues whereas the management of Sandfires Resources is focused on operating responsibility, economic development, establishing a safe and secure working place for employees and attaining respect and accountability.
Quality of Information
The information which is provided in both the sustainability reports of Oz Minerals and Sandfires Resources show that both the companies have covered all the essential aspects which are necessary to be covered in the sustainability report of the companies. The sustainability report of Oz Minerals ltd and Sandfires Resources covers all the vital areas such as environmental consideration, employee safety, meeting the expectation of stakeholders and effective governance policies of the business as shown in their respective reports. In addition to this, the reports also contain a detailed explanation of the future considerations and goals of the businesses in terms of sustainable developments of the business.
Sustainability Practices in Sandfire Resources Ltd
Consistency with Relevant Standards of GRI
As per GRI 102 which is on general disclosures, certain important disclosure requirements are set out in the standard which are to followed while preparing sustainability reports of the business. The analysis of the sustainability reports of both the companies reveals that the companies complies with the requirements of GRI standards and all significant disclosures are provided in the sustainability reports of both companies. As per GRI 403, management should focus on occupational health and safety of the workers who are engaged in operational activities and this is clearly followed as shown in the sustainability reports and the same states that the level of injuries has reduced in both the companies due to the efforts of the management. In addition to this, there are certain other standards which have also been followed by the companies as per the sustainability reports.
Meeting the needs of the Stakeholders
The basic expectations of the stakeholders which is common in case of every category of stakeholder is that the business should contribute to the needs of the society as a whole and engage in value creation process. In addition to this, the governance of business should be such that they are accountable for all activities engaged by the same. The management of Oz Minerals Ltd and Sandfires ltd follow sustainability practices and this is done in compliance with the GRI standards which therefore signifies that the needs and expectation of the stakeholders are taken into consideration in all activities of the business and both the business strive to attain the future goals of the business while pursuing sustainable practices.
Reference
Benn, S., Edwards, M., & Williams, T. (2014). Organizational change for corporate sustainability. Routledge.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857.
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
Fernandez-Feijoo, B., Romero, S., & Ruiz, S. (2014). Commitment to corporate social responsibility measured through global reporting initiative reporting: Factors affecting the behavior of companies. Journal of Cleaner Production, 81, 244-254.
Home – Sandfire. (2018). Sandfire.com.au. Retrieved 6 June 2018, from https://www.sandfire.com.au/
OZ Minerals | A modern mining company. (2018). Ozminerals.com. Retrieved 6 June 2018, from https://www.ozminerals.com/
Ozminerals.com. (2018). OZ Minerals 2017 Annual and Sustainability Report | OZ Minerals. [online] Available at: https://www.ozminerals.com/media/oz-minerals-2017-annual-and-sustainability-report/ [Accessed 10 Jun. 2018].
Planken, B. (2013). Global Reporting Initiative. In Encyclopedia of Corporate Social Responsibility (pp. 1254-1256). Springer, Berlin, Heidelberg.
Sandfire.com.au. (2018). [online] Available at: https://www.sandfire.com.au/images/2017_Sustainability_Report.pdf [Accessed 10 Jun. 2018].
Toppinen, A., & Korhonen?Kurki, K. (2013). Global Reporting Initiative and social impact in managing corporate responsibility: a case study of three multinationals in the forest industry. Business ethics: A European review, 22(2), 202-217.
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