Risk and Opportunity Reporting Requirements According to GRI Standards

There are both risks and opportunities that remain linked with the increasing incidences of climate change. Its impacts can be witnessed in alterations of expenditure, operations, and revenue. Based on the disclosure of GRI standards, the reporting requirements are divided into five parts. The first part deals with the identification and classification of threat and opportunity. Impact’s description is involved in the second part. The third part intends to identify the financial implications before any sort of action is undertaken. Methods that can be implemented to manage the opportunity or the threat are included in the fourth part. The last part ensures the cost that is required to implement the appropriate action (GRI, 2018).

Firstly in the case, the threat that is posed towards the company is the bushfire whereas the opportunity that is derived from the outcome of the climate change is that the company, Timberwell Constructions is engaging itself in planning an external town firm. Both the threats and opportunity involved in this case are regulatory as well as physical. Both time and money are going to be affected by the changes that will take place in the occurrence of bushfire.

The case evaluated in the third part exhibits the company to invest $4 million in order to implement the Local Environmental Plan (LEP) amendment. Moreover, according to the Government of South Australia (2009), reducing and removing native vegetation can prevent the occurrence of the bushfire. Thus, the amount that the company is required to pay for the services provided by the town firm is $50,000.

ii) Disclosure 205-3 Confirmed Incidents of Corruption and Actions Taken

The disclosure identifies five distinguishable parts that are required to be reported so that the incidences can be evaluated on that basis (GRI, 2018a). Firstly, the total numbers of corruption incidences of the company that have been found are three. All of the three incidences signify political or legal corruption that is associated with engaging works that inherit disadvantages for the company’s employees (Dimant, 2013). As per the second reporting requirement, the confirmed incidents, which made the company dismiss its employees is only one. Evaluation of the case signifies the fact that in accordance with the third requirement of the disclosure, there is one incident in which the company has terminated its partnerships contract.

Specifically, Timberwell Constructions had a contract with two external consultants and both their contracts were brought to an end by the company. As per the disclosure’s fourth reporting requirement, the number of public legal case that has been filed against the institution or its employees is one. The outcome of the case witnessed that the company have suspended all the five alleged employees and terminated the partnerships contracts with two separate external consultants.

iii) Disclosure 206-1 Legal Actions for Anti-Competitive Behavior, Anti-Trust, and Monopoly Practices

There are specific two reporting requirements in disclosure 206-1. The first point requires an identification of the number of legal actions against the company that is either pending or completed on the basis of anti-competitive behavior and violations that are related to the monopoly legislation and anti-trust. The second requirement requires assessment of the company to evaluate the outcome of the legal action (GRI, 2018b).

Case Study: Threats and Opportunities at Timberwell Constructions

Evaluation of the company’s case, it has been understood that there was a pending case in which the company was sued for exhibiting anti-competitive behavior. The outcome of the case was supposed to be finalized in Federal Court in the next four months. On the basis of the second reporting requirement, it has been witnessed that the company’s senior executives prohibited the contractors and suppliers from involving with the new company. The Australian Competition and Consumer Commission (ACCC) have filed a case reporting the anticompetitive conduct of the company. There is no completed outcome of this legal action because the case has been pending for attaining decision.

B. Environmental Sustainability 

i) Disclosure 302-1 Energy Consumption within the Organisation

This disclosure signifies the reporting requirements of the energy consumption of the institution so as to prepare a sustainability assessment report (GRI, 2018c). The first requirement when implemented on Timberwell Constructions exhibited that its fuel consumption from the non- renewable sources is 1.0 Gigajoule. The fuel consumption of the company from the renewable sources is 0.5 Gigajoules. The third requirement identifies the total electricity consumed by a specific company and Timberwell Constructions for its efficient operations have consumed 2.0 Gigajoules. The energy consumption of the company involved in the fifth requirement is divided into two factors, one identifying the fuel consumed from renewable and non-renewable sources whereas the other is electricity.

The total fuel and electricity consumption of the company is 3.5 Gigajoules. The sixth requirement demands for identification of the assumptions, methodologies, calculations, and standards used. Assessment of the company’s report on the basis of the requirement exhibits the fact that the calculation tool has been utilized to represent the energy consumption table, which was prescribed by the Australian Department of Industry and Science.

ii) Disclosure 304-2 Significant Impacts of Activities, Products, and Services on Biodiversity

This disclosure has two significant reporting requirements. The first necessity requires an identification of the nature that is associated with the indirect and direct impacts of the company on the biodiversity (GRI, 2018d). Negative and positive impacts of the company on some matters are to be referred to as the second point. Evaluation of the company report in accordance with the provided requirement identified the fact that the company had cleared grasslands that had resulted in the reduction of species.

However, the company’s report when assessed as per the second requirement exhibited effects on the ecological community. The area which has been affected by the company is about 0.45 hectares of coastal grasslands. Hence, it can be said that there is a scope of reversibility in this case as the company has been asked by the Department of the Environment and Energy to implement a rehabilitation plan that made the company pay about an amount of $440,000.

iii) Disclosure 307-1 Non-Compliance with Environmental Laws and Regulations

Considering this section of the disclosure, it is important to understand that the company is actually following the GRI standards or not. Therefore, it is imperative for the company to present its report on the basis of the requirements of this disclosure of non-compliance with environmental laws and regulations (GRI, 2016). There are two basic needs that are involved in the disclosure. The first requirement includes identification of the non-monetary sanctions and fines that have been paid by the company on the basis of its non-compliance with environmental regulations and laws. It is further divided into three parts.

Incidents of Corruption and Actions Taken

The first part requires detection of the total value of the money that is being spent on fines. Recognition of sum total of non-monetary sanctions is involved in the second part and the third part demands detection of the cases that have been filed against the company on the basis of the dispute resolution techniques (GRI, 2018e). Furthermore, the second requirement demands, reporting of a brief statement so that it can be assured that the company has not been recognized with any kind of non-compliance with the environmental regulations (Shaffer, 2018).

The report presented by Timberwell Constructions, when assessed on the basis of the first requirement reveals the fact that the total monetary value of the firm that is associated with the fine is $4 million. Moreover, there were no such cases that were finalized or sorted by implementing dispute resolution methods. As per the second requirement of the disclosure and analysis of the company, it has been witnessed that there is no situation of non-compliance exhibited by the company in this context. Moreover, according to Van der Oost, Beyer & Vermeulen (2003), environmental risks should be averted properly as it can pose huge threats towards proper functioning of the ecological system as well as in the business operations. Irrespective of the fact that the company was not found guilty in this respect, the above-mentioned aspect needs to be considered for a better future.

C. Social Sustainability 

i) Disclosure 401-1 New Employee Hires and Employee Turnover

The reporting requirement that is involved in this disclosure is of two types. The first part requires an identification of the total rate and number of employees that are hired during the reporting period of the company in terms of region, age group, and gender. Recognition of the rate and the total number of employee turnover in the company’s course period is included essentially in the second part (GRI, 2018f). In this context, the company’s report assessed on these two requirements has illustrated the point that the company has hired 12 new employees during the course of the reporting period.

Moreover, the employee turnover of the company on the basis of its report has presented the fact that the company has lost 17 of its employees and that is the sole reason behind the company’s hiring new employees so that work balance is maintained within the company (GRI, 2018f). Furthermore, the employers of a company must understand the fact that maintaining a balanced work-place is essential so that the operations of the company can actually be efficiently executed. The enhanced rate of employee turnover can put a company and the employer into a problem thereby posing threat to its long-term sustenance (Taitel, Haufle, Heck, Loeppke & Fetterolf, 2008).

ii) Disclosure 406-1 Incidents of Discrimination and Corrective Actions Taken

This disclosure consists of two distinctive parts. The total number of situations in which incidents of discriminations took place is signified by the first requirement. The second credential of the disclosure requires recognition of the status of the actions that had occurred on the basis of four things. They are, incident explored by the company, implementation of remediation plans’ results and lastly confirmation of the fact that the incident needs no focus any longer (GRI, 2018g). Similarly, in the case of Timberwell Constructions, it has faced one case of discrimination during its reporting period and thus it satisfies the first requirement of the disclosure. The second reporting need and analysis of the company’s report has proved that the incident of discrimination has been examined by the institution after being alleged by Dennis McCabe. He was an employee of the company.

Legal Actions for Anti-Competitive Behavior, Anti-Trust, and Monopoly Practices

The remediation plan that has been implemented in this case is the renewal of anti-discrimination policy along with providence of proper training to its employees. The company has abided by the orders of the Fair Work Commission and implied all the necessary actions. After the implementation of the policy, this issue was resolved to a certain extent. In this regard, Verloo (2006) stated that the incidents of multi inequalities shown on the employees hamper the working environment as well as the respect of the individual on whom the discrimination is exhibited by the other members. Hence, it is essential to understand the terms and conditions of the non-discrimination act and implement it accordingly (Verloo, 2006).

iii) Disclosure 413-1 Operations with Local Community Engagement, Impact Assessments, and Development Programs

This particular disclosure has one specific requirement, which involves the identification of impact assessments, local community engagement and development programs. All of these also require the utilization of some methods. They are “gender impact assessment and social impact assessment on the basis of the participatory processes” (GRI, 2018h, 7). The second factor involves “ongoing monitoring and environmental impact assessments” (GRI, 2018h, 7). Public disclosure to the assessments is included in the third part.

Based on the requirements of the local communities the programs that are held by some programs are to be focused in the fourth part. The fifth need identifies stakeholder management plans. Processes and consultation committees that involve the vulnerable groups are put forward in the sixth part. The seventh and the eighth part involve recognition of work councils and formal grievances of the local community (GRI, 2018h).

Understanding from the above points, an analysis of the company report has been done. It has been understood that the company has performed social assessments with regards to the needs of the local community for social housing. In the case of environmental assessment, the company has complied with Local Environmental Plan (LEP) so that particular areas of Stanwell Council can be identified as bushfire prone to avoid any kind of serious incidences. Furthermore, the company is planning another site that can serve the interests of the local people. For this, the organization body assigned to deal with the impact of the action is LEP. In this context, it has been opined by Van Aalst, Cannon & Burton (2008) that, adaption to continuous environmental changes requires the need for engagement of the local community so that their actions can resolve the enhanced issues to a large extent.

Thus, increasing awareness and involvement of the local community can actually minimize the risk assessment to a greater level (Van Aalst, Cannon & Burton, 2008). Therefore, in the given case also the issue of bushfire is required to be minimized so that no further damage can be caused. Hence, the company has extended help to the local community to eliminate the increasing problem of bushfire and climate change.

References

Dimant, E., 2013, ‘The nature of corruption: an interdisciplinary perspective’, Economics, pp. 2-47.

Government of South Australia, 2009, ‘Reduce the impact of bushfire’, Department of Water, Land and Biodiversity Conservation, pp. 4-22.

GRI, 2016, ‘Consolidated set of GRI sustainability reporting standards 2016’, Globalreporting.org, pp. 004-416.

GRI, 2018, ‘GRI 201: Economic performance 2016’, Globalreporting.org, pp. 3-12.

GRI, 2018a, ‘GRI 205: Anti-corruption 2016’, Globalreporting.org, pp. 3-9.

GRI, 2018b, ‘GRI 206: Anti-competitive behavior 2016’, Globalreporting.org, pp. 3-6.

GRI, 2018c, ‘GRI 302: Energy 2016’, Globalreporting.org, pp. 3-12.

GRI, 2018d, ‘GRI 304: Biodiversity 2016’, Globalreporting.org , pp. 3-10.

GRI, 2018e, ‘GRI 307: Environmental compliance 2016’, Globalreporting.org, pp. 3-6. Shaffer, G.L 2018, Creating the sustainable public library: The triple bottom line approach, ABC-CLIO, California.

GRI, 2018f, ‘GRI 401: Employment 2016’, Globalreporting.org, pp. 3-9.

GRI, 2018g, ‘GRI 406: Non-discrimination 2016’, Globalreporting.org, pp. 3-6.

GRI, 2018h, ‘GRI 413: Local communities 2016’, Globalreporting.org, pp. 3-9.

Taitel, M.S., Haufle, V., Heck, D., Loeppke, R. & Fetterolf, D., 2008, ‘ Incentives and other factors associated with employee participation in health risk assessments’, Journal of Occupational and Environmental Medicine, vol.50, no. 8, pp. 863-872.

Van Aalst, M.K., Cannon, T. & Burton, I., 2008, ‘Community level adaptation to climate change: the potential role of participatory community risk assessment’, Global environmental change, vol. 18, no. 1, pp. 165-179.

Van der Oost, R., Beyer, J& Vermeulen, N.P., 2003, ‘Fish bioaccumulation and biomarkers in environmental risk assessment: A review’, Environmental toxicology and pharmacology, vol. 13, no. 2, pp. 57-149.

Verloo, M., 2006, ‘Multiple inequalities, intersectionality and the European Union’, European Journal of Women’s Studies, vol. 13, no. 3, pp. 211-228.