Sustainability Reporting And Management Of Brickworks And Boral Limited

Company Overview

Discuss about the Sustainability of Brickworks and Boral Limited.

This paper entails a report analyzing sustainability, performance measurement, ethics and management compensation of two building material firms listed on Australia Securities Exchange. These firms comprises of Brickworks Limited and Boral Limited. The report starts with a brief explanation of the two organization followed by explanation of what sustainability reporting is all about. It is then followed by comparison of the sustainability reporting between Boral and Brickworks limited. It is then wrapped up with a conclusion of which of the firms is more sustainable.

Boral Limited is usually the largest integrated building products and construction materials suppliers and manufacturers across the globe (Boral 2017). Its products include aggregates, asphalt, roofing, timber, cement, concrete, masonry products as well as bricks. Brickworks is usually an Australia-owned firm with long proud and successful history. The company has long unbroken tradition which is said to have started since the Great Depression. Currently, Brickworks is amongst the leading supplier of the building products across the globe (Brickworks 2017).

Sustainability reporting according to research is said to enable different firms to consider their effect of the broader range of the sustainability issues, enhancing them to be relatively more transparent in regard to the opportunities and risks they face. Basically, sustainability reporting is the reporting which is published by an entity regarding the environmental, social and economic effects resulting from its daily operations. Sustainability reporting is also said to present an entity’s governance model and values, and exhibits the link in between its commitment and strategy to the sustainable worldwide economy (Global Strategic Alliances 2017). Additionally, sustainability reporting could assist entities to understand, communicate and measure their environmental, governance, economic and social performance and enable them set their goals and manage the variation more efficiently.  The value of sustainability reporting is that it enables the firms to consider their effects on some of the sustainability issues and enable them being transparent regarding the opportunities and risks. Such increased transparency results in better decision-making, which would in turn assist in maintaining and building trust in the governments and businesses.

Boral is strongly committed to sustainability reporting given that it recognizes that sustainability reporting is crucial to its future success as well as its capacity in building something great. Such implies that providing rewarding, diverse and safe workplace for its staff, minimizing its environmental effects as well as taking socially responsible technique on how it operates has been part of its sustainability tactics (Boral 2017). In addition, Boral has been committed to sustainability reporting in that it has been committed to delivering world-class performance, developing relatively less energy-intensive products and resources for its clients which is aimed at enhancing its sustainable growth and excellence performance.

Sustainability Reporting

Boral is committed to sustainability since for the past three years, the company has tried to comply with the environmental regulations, codes of practice, legislation and standards significant to specific business operations as absolute minimum requirements in every community where the company operates (Boral 2017). Further, the company operations recognize its responsibilities to the shareholders in delivering value as well as long-term sustainability. In fact, the company future is said to rely on its having socially responsible and robust supply chain, reliable and engaged workforce, enduring stakeholder relationship, businesses and environmental impacts which addresses current and future needs. To accomplish its sustainability reporting, in the past three years, Boral have altered its portfolio in delivering better financial incomes and responding to varying world.

Furthermore, Boral Limited recognizes its responsibility to the shareholders in delivering long-term sustainability. The company looks beyond the horizon, pinpointing the opportunities and threats and responding to the technological, societal, commercial and environmental forces. The company has been recognizing that all these aspects could be positive catalyst assisting it in delivering on its uncompromising commitments to the shareholders, communities where it operates, its clients, its fellow staff and environment which it have a responsibility to protect (Boral 2017).

Boral strategy adopted in the last three years to shift to the lower energy-intensive or lower fixed expenses of manufacturing with more balanced mix of the traditional and innovative products, implies continued decline in emissions and energy intensity of its operations and its overall emissions footprints (Boral 2017). In its cements businesses, Boral Limited aims to decrease use of the fossil fuels by up surging the alternative fuels as well as applying the LEAN manufacturing standards. In the USG, the company aims to decrease water consumption as well as emissions vial targeted technique which decreases amount of the water and gypsum use in its manufacturing.

Besides, Boral is committed to sustainability in that its goal is to achieve zero harm and it works toward reduction of adverse environmental effects. In scenarios where eradication is impossible, Boral Limited seek to reduce any harmful impacts from its business operations, meaning that it target performance which is usually better than the environmental laws necessitates (Boral 2017). Health, safety as well as environment are integral components of its daily operations. Each of its division is responsible for leading execution of the respective operations and offering expert coaching. The HSE division offer formal reports on risk, management and performance actions to relevant board on quarterly and monthly basis.

Boral Limited Sustainability Reporting

It is the Boral Limited’s policy to comply with the relevant environmental regulation, codes, legislation and standards as absolute minimum need in every community it operates. The company recognizes compliance with effective management and site-based planning of the sensitive sites is crucial to its capacity to operating and its reputation. It is committed to reduction of the greenhouse gas emissions, efficient utilization of the energy, recycling and minimizing waster material, effective use of recovered and virgin resources, conversation of water as well as prevention of pollution. The company is also committed to constructive, open engagement with the relevant communities surrounding its main operations and in protecting the biodiversity values around and at its facilities. Boral has strengthened its internal controls in improving compliance with the increasingly stringent legislation requirements within Australia. It is evident from Boral sustainability reporting that for the last three years, the company has improved in sustainability reporting with penalties reducing from $250,000 to $30,000 in 2017 (Boral 2017).

Table 1: Fines Imposed to Boral Limited

Source: Boral (2017).

Boral is committed to being socially responsible firm. It recognizes that it require to meet all the stockholders’ expectation by managing the site operations so as it does not negatively effects on the community amenity. It also requires meeting all its stockholders’ expectations by proactively engaging with communities in delivering back to relevant communities more than jobs. Boral limited main approaches is mainly to engage with the stockholders and planning strategically in managing and mitigating effects across full life cycles of its processing and extraction sites (Boral 2017). Its quarries are usually managed responsibly, taking the whole-of-life technique from the development approval through end-use and rehabilitation development and planning. Boral is considered as a crucial section of construction supply chain within the market. Therefore, as it continue to establish more efficient means to conduct its operations and respond to the external disruptions and changes, the company recognizes influential responsibilities it can and require to play in delivering some sustainable solutions for its suppliers, clients and the general community (Boral 2017).

Brickworks seem to have strong commitments to sustainability report which is attributed to its capacity to adapting to varying community needs. Furthermore, the commitment to sustainability which is more importantly evident today’s climate-challenged than needs of conserving its precious resources. Further, the company is said to have taken the sustainability challenge and has been actively been pursuing some reforms to its processes and products, from quarry through its delivery of building sites from factory flows to sales of offices (Brickworks 2017). Besides, Brickworks has been committed to encouraging respect and concerns for environmental and emphasizing each staff’s responsibility for the environmental performance.

Additionally, Brickworks is committed in sustainability in that it has developed greenhouse gas as well as energy reduction tactics in ensuring that it constantly strive to decrease its impact on environment. This is aimed at doing more with less: higher quality, reduced energy consumption, higher output, lower emissions as well as fewer raw materials. The company has been continuously executing innovative practices in reducing some of its environmental effects (Brickworks 2017). Brickworks recognizes sustenance of strong culture driven by talented and diverse individuals which is considered crucial to its long-term success. The company focuses on sustaining its strong culture by strengthening and revitalizing its behaviors and core values in visual, simple and more memorable way. The company also strives attracting the right employees with right skills in order to continue innovative and growth-oriented. Besides, there has been comprehensive strategic review over the last three years on the company policies aimed at legislative compliance and provision of some solid foundation which are consistent and in line with the organization’s values (Brickworks 2017).

Brickworks strategy or policies adopted in the last three years include shifting lower fixed expenses of production with more balanced mix of the traditional and innovative products, implies continued decline in emissions and energy intensity of its operations and its overall emissions footprints. The company also aims to reduce utilization of fossil fuels by up surging the alternative fuels as well as applying. Therefore, Brickworks is transparent in terms of its set policies and is also transparent in reporting any terms of breaches of its policies. This is evidenced on the fact that the company ensures that its entire staff is well informed of the environmental obligations via different training sessions.

Each of its facilities has upgraded on its lighting to the LED globes, variable speed drives and replacing the electric motors with the super-efficient types. Furthermore, the company is progressively replacing the inefficient hydraulic systems with the solar PV systems. It is also using heat recovery systems in the brick manufacturing products.

The company has been subjected to the NGERS with the emissions for 2016 being as shows in the Table 2 below.

Table 2: Brickworks Compliance

Source: Brickworks (2017).

With above improvement in its sustainability, Brickworks has been awarded as winner of WA Infinity Waste Award for it recycling programme which was introduced to its roofing division. It was also rewarded for NSW GreenGlobe Award for the Landfill Gas Project.

The company has well-structured remuneration policies with strategic alignment and review of the reward. Recognition in the company is usually undertaken to reinforce and celebrate the firm’s culture. In fact, Brickworks has repositioned and evolved its programs in rewarding and recognizing staffs that demonstrate the desired behaviors and values.

By comparing Boral sustainability with Brickworks, Boral seems to rate higher than Brickworks. This is based on the facts that Boral Limited sustainability policies are more transparent than Brickworks as a result of its act of being in compliances with the sustainability policies. Unlike Brickworks, Boral ensure that all its policies are followed to the letter to ensure that it has delivered value and sustainable performance. Furthermore, given the fact that both businesses engage in high environmental impact businesses, there is need to lie down better sustainability measures to deal with environmental issues that might affect their operations and the community to which they operate.

Conclusion

This paper entails a report analyzing sustainability, performance measurement, ethics and management compensation of two building material firms listed on Australia Securities Exchange. These firms comprises of Brickworks Limited and Boral Limited. The report starts with a brief explanation of the two organization followed by explanation of what sustainability reporting is all about. It is then followed by comparison of the sustainability reporting between Boral and Brickworks limited. It is then wrapped up with a conclusion of which of the firms is more sustainable. Sustainability reporting according to research is said to enable different firms to consider their effect of the broader range of the sustainability issues, enhancing them to be relatively more transparent in regard to the opportunities and risks they face. It is found that Boral is strongly committed to sustainability reporting given that it recognizes that sustainability reporting is crucial to its future success as well as its capacity in building something great. Such implies that providing rewarding, diverse and safe workplace for its staff, minimizing its environmental effects as well as taking socially responsible technique on how it operates has been part of its sustainability tactics. Boral is committed to sustainability since for the past three years, the company has tried to comply with the environmental regulations, codes of practice, legislation and standards significant to specific business operations as absolute minimum requirements in every community where the company operates. On the other hand, Brickworks is committed in sustainability in that it has developed greenhouse gas as well as energy reduction tactics in ensuring that it constantly strive to decrease its impact on environment. This is aimed at doing more with less: higher quality, reduced energy consumption, higher output, lower emissions as well as fewer raw materials. Based on these analyses, it is evident that Boral Limited is more committed to sustainability reporting than the Brickworks. This is evidenced by various measures Boral Limited has undertaken in comparison to Brickworks in dealing with sustainability issues. In other words, Boral Limited rate higher in relations to the sustainability issue in comparison to Brickworks.

References

Brickworks (2017), Brickworks environment sustainability; viewed at 10^th May 2018 from: https://www.brickworks.com.au/environment-sustainability/

Brickworks (2017), Brickworks Limited Annual report 2017; viewed at 10^th May 2018 from: https://www.brickworks.com.au/pdf/AnnualReporttoShareholders.pdf

Boral (2017), Boral our commitment to sustainability; viewed at 10^th May 2018 from: https://www.boral.com.au/our-commitment/sustainability

Boral, 2017, Boral environmental compliance and performance; Viewed at 17^th May 2018 from;https://www.boral.com/sites/corporate/files/media/field_document/Boral%20Review%202017%20-%20Environmental.pdf

Boral (2017), Boral sustainability report; viewed at 10^th May 2018 from: https://www.boral.com/community-sustainability/sustainability-report

Boral (2017), Boral managing sustainability; viewed at 10^th May 2018 from: https://www.boral.com/sites/corporate/files/media/field_document/Boral%20Review%202017%20-%20Managing%20Sustainability.pdf

Boral (2017), Boral sustainability overview; viewed at 10^th May 2018 from: https://www.boral.com/sites/corporate/files/media/field_document/Sustainability-Overview-2017.pdf

Global Strategic Alliances (2017), About sustainability reporting; viewed at 10^th May 2018 from: https://www.globalreporting.org/information/sustainability-reporting/Pages/default.aspx

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order