CA7013 Sustainability in Global Companies Report Sample

CA7013 Sustainability in Global Companies

Assignment structure

A critical review of the sustainability strategies of two companies as communicated by their sustainability or CSR reporting. This report will compare the levels of engagement in the sustainability challenges and evaluate resilience to potential or actual business risks.

You are free to choose whichever companies you are interested in learning more about. You might want to choose a company that is listed on the GRI database. Not all of them follow the GRI framework but they all use this as their main, but not their only, source of sustainability communication. If you find a different reporting framework that is appropriate, make sure that the companies you look into are following the same. The report is NOT meant to focus on website-only information.

Structuring a Report

A key feature of reports is that they are formally structured in sections. You need to understand the function of each section of your report so that you can structure your information appropriately.

We will have a seminar discussing the report structure specific to this assignment but the following is a basic report structure that you can use as the basic structure of your report adding specific sections where necessary.

Title Page

This should briefly but explicitly describe the purpose of the report (if this is not obvious from the title of the work). Other details you may include could be Module detail, your name, Student ID, the date and for whom the report is written.

Abstract
(Also called the Summary or Executive Summary) The abstract should enable the reader to make an informed decision about whether they want to read the whole report.

The Abstract should briefly describe the content of the report. It should cover the aims of the report, what was found and what, if any, action is called for. Aim for about 1/3 a page in length and avoid detail or discussion; just outline the main points. Remember that the summary is the first thing that is read. It should provide the reader with a clear, helpful overview of the content of the report

Contents (Table of Contents)

The contents page should list the different chapters and/or headings together with the page numbers. Your contents page should be presented in such a way that the reader can quickly scan the list of headings and locate a particular part of the report. You may want to number chapter headings and subheadings in addition to providing page references. Whatever numbering system you use, be sure that it is clear and consistent throughout.

Introduction (use your own headings)

State what the report is about - what is the question you are trying to answer? In the introduction you should explain the rationale for undertaking the work reported on, including what you have been asked (or chosen) to do, the reasons for doing it and a brief background to the study. Also briefly introduce the company you have chosen. It should be written in an explanatory style.

Background or Context (use your own headings)

Describe the background to the subject, what is the history of reporting what are the current challenges and main themes and issues being discussed. For instance: what research has already been done. Why are you being asked to investigate it now? Remember that you need to refer to the academic literature to back up your argument. Explain how you are going to go about responding to the brief. Include a brief outline of your method of enquiry. State the limits of your research and reasons for them, for example, that you will base your discussion on a review of the corporate reporting of your company.
Findings (use your own headings)

This section has only one job which is to present the findings of your research as simply and clearly as possible. Use the format that will achieve this most effectively e.g. text, graphs, tables or diagrams.

Here you will set out the content and scope of the reporting of your chosen company. What do they publish, how do they publish it? What other ways do they communicate their sustainability strategy? Videos? Press releases? Research?Writing in this section should be clear, factual and informative. Save your interpretation of the results for the Discussion section.

Discussion (use your own headings)

This is probably the longest section and worth spending time on. It brings everything together. This is where you analyse the corporate reporting and critically evaluate it. You can use the GRI reporting framework to evaluate against. Or other reports from companies in the same sector. You can show how your findings contribute to a critical respond to the brief. It should be written in a discursive style, meaning you need to discuss not only what your findings show but also provide explanations using evidence from previous research.

Conclusion

Your conclusions should be a short section with no new arguments or evidence. Sum up the main points of your research - how do they answer the original brief for the work reported on? This section may also include recommendations for action if you feel confident enough to give them.

Solution

1. Introduction

This assignment gives detailed information related to the sustainability strategies that organisations are now implementing in their business to effectively perform their social and environmental responsibilities while operating the business within the regional business market as well as in the international business market (Obrenovic et al. 2020). To complete this assignment and highlight the implemented sustainable strategies, Sainsbury and Tesco are two selected organisations. Sainsbury is one of the popular UK-based supermarket chain business organisations, that was established in 1869 in London (Jones and Comfort, 2019). This organisation is operating its business outside of the UK such as in Ireland. Within the international business market, several non-profit international agencies are now highly forcing multinational organisations to implement sustainability approaches while operating their business in the regional business markets as well as the international business markets. As this organisation offers a wide variety of products from clothing items, grocery items and more to electronics and financial services, sustainable sourcing within the business is ensured by this organisation (Smith, 2023). Ethical practices are highly followed by this organisation while souring products and services and this indicates fair trade within its business. This organisation farms 100% own seafood to meet the needs of customers’ consumption of seafood (Sainsburys, 2023). This indicates how this organisation is socially and environmentally responsible for sourcing sustainable seafood including wild-caught fish. To reduce harmful impacts on the environment this organisation is also highly founded in its carbon emission practises and waste reduction approaches within its business. Publishing sustainability reports, financial reports and others, this organisation ensure transparency within its business this is also another sustainability approach to its business. On the other hand, Tesco is another popular UK-based supermarket organisation that opened its business in more than 10 countries (Mohapatra and MV, 2021). Due to the high visibility in the international business market and to improve its reputation within the international business market, this organisation has highly implemented sustainability strategies within its business. This organisation is highly focused on reducing its carbon emission rate to ensure carbon neutrality. Tesco also encourages sustainable agriculture, waste reduction, ethical labour practices, and usage of renewable energy within the business, and incorporates circular economy approaches within its business.

Figure 1: Sustainability Reporting Rate Country basis
(Source: Singhania and Sain, 2021)

2. Background and Current Status of Sustainability Reporting

The term sustainability refers to the practices that help to fulfil the current generation's requirements without affecting future generations' requirements. Moreover, this concept is highly prioritised on society, environment and economic elements while making a decision. The disruption of the environment, economy and society due to unethical and irresponsible practices while operating the business is the reason for the urgency to implement sustainability within the business operations that help in improving business performances by attracting more environment-conscious people, generating more revenue, and improving reputation within the market (Leal Filho et al. 2023). Most large-scale business organisations are now implementing sustainable approaches within their business and using sustainability frameworks in sustainable strategies. In 1987, the triple bottom line framework was established by John Elkington and within this framework people, planet and profit are the three dimensions that help organisations in sustainable reporting while operating their business (Pereira and Martins, 2021). The ESG framework has highlighted the importance of environmental, social and governance aspects within the sustainability report. Using this framework within the business has the potential to obtain valuable information related to the implemented environmental initiatives, social initiatives and performance on corporate governance within its business. Presently, it has been noticed that people also acknowledge sustainability importance and purchase products from companies that maintain sustainability within their business operations.

United Nations published the Brundtland Report of 1987 and within this report, sustainability development is the prime focus (Hajian and Kashani, 2021). This is highlighted as the main concept of sustainability such as to fulfil the present needs without compromising future generation needs. GRI stands for Global Reporting Initiatives and is popularly used in sustainable reporting. This framework is associated with several guidelines that highlight social, environmental and economic aspects and following these guidelines in the decision-making process by organisations can ensure sustainable reporting within its business. GRI is linked with Sustainable Development Goals (SDGs) created by the United Nations and the incorporation of these goals in GRI makes more easier for organisations in sustainability reporting (Elalfy et al. 2021). Both of the organisations, Sainsbury and Tesco are highly focused on implementing sustainable approaches within their business. Such as the implementation of ethical practices, fair trade approaches, labour practices, sustainable sourcing, carbon emission reduction and more that ensure suitability practices in their business. Using these frameworks within their strategic implementation helps make the implementation easier for MBA assignment expert.

3. Content and Scope of the Reports on Sustainability

The report for sustainability in Sainsbury's was published in 2022 and has presented various sustainability-related matters elaboratively. In recent years, the challenges imposed upon the environment and society are greater than it ever has been, as stated by Sainsbury's. The organisation has shown its concern about the food products and the way it has been produced recently. The company is focused on providing the best quality, quantity and taste in food products and helping people to eat better (Sainsbury’s Sustainability 2022). The sustainability plan of Sainsbury's has been stated as "Plan For Better" by the organisation. there are three interlocking pillars in the plan Better for the planet, Better for you and Better for everyone.

Figure 2: Sainsbury Pillars
Source: Sainsbury’s Sustainability 2022

The company has shown its heritage of 150 years by delivering quality food, of great value across countries and communities. It has also held its position at the top in the British supermarket. The company has kept its belief in the availability of delicious and healthy food for everyone. Sainsbury's is concerned about the change of climate all around the world and thus focuses on improving the food system to make a better planet. The company also emphasizes encouraging its stakeholders and customers to decrease their impacts on the environment by choosing sustainable practices (Sainsbury’s Sustainability 2021). The colleagues of Sainsbury’s have been demonstrated as critical to the business's long-term success through sustainable practices in the supply chain. Through social initiatives, Sainsbury's has been impacting the lives of people and communities to change the way they live.

Figure 3: Corporate Responsibility and Sustainability governance structure
Source: Sainsbury’s Sustainability 2022

The annual report of the UK’s leading retail brand, Tesco has provided elaborated facts about various matters of the massive corporate environment among which, sustainability has been focused massively as well. the company published its sustainability report in 2023 which has followed most of the GRI framework's components impressively. Tesco has also shared its concern about climate change and that the supply chain is one of the biggest contributors to it. the food sector has been stated responsible for more than a third of emissions of greenhouse gas. Thus, Tesco is committed to reducing its emissions by 2050 and showing enough efforts through Group operations to become carbon neutral by 2035 (Tesco PLC 2023). Tesco has shown transparency in its sustainability report which could be justified through the details provided on energy consumption and greenhouse gas emissions.

Figure 4: Greenhouse gas emissions and energy consumption
Source: Tesco Annual Report 2023

Tesco has also been transparent in TCFD (Task Force on Climate-related Financial Disclosures) in its annual report. Through the report, the company has provided its governance system for sustainable goals that are related to the environment, society and economy at the same time (2023). The structure of the board and implementation of the management level have been elaborated in the report.

Figure 5: Structure of the board and implementation of the management level
Source: Tesco Annual Report 2023

Through its concern towards sustainability, Tesco has focused on implementing clear risk management strategies in its operations which has been mentioned in the sustainably report transparently. The efforts on sustainability at Tesco are focused on its approach towards creating and maintaining long-term value for colleagues, customers, communities, and the planet as well. the targets towards sustainability at Tesco have been summarised in three clear statements. The company committed to reducing market-based emissions by 2025 by 60%. The company determined to become carbon neutral by 2035 and by 2050 become net zero across the value chain of Tesco (Tesco PLC 2023).

Figure6: Total Emission Footprint
Source: Tesco Annual Report 2023

4. Comparison of Sustainability Reports

The framework standardised by GRI will be used to compare the sustainability reports in this section of the report. The companies chosen for the comparison are Sainsbury’s and Tesco which have provided a document of the GRI index along with its sustainability report. In this section, two tables will be used to show the comparison.

Table 1: Environmental Topics

Among the environmental elements, Sainsbury's has not mentioned its concern and practices towards biodiversity and assessment of supplier environment whereas Tesco has not mentioned its usage of water resources.

Table 2: Social Topics

5. Conclusion

Through the comparison between Sainsbury’s and Tesco, the result showed that the sustainability efforts of Tesco are equally focused on environmental and social goals whereas Sainsbury's are focused more on social goals.

References:

Elalfy, A., Weber, O. and Geobey, S., 2021. The Sustainable Development Goals (SDGs): a rising tide lifts all boats? Global reporting implications in a post SDGs world. Journal of Applied Accounting Research, 22(3), pp.557-575. https://www.emerald.com/insight/content/doi/10.1108/JAAR-06-2020-0116/full/html

Hajian, M. and Kashani, S.J., 2021. Evolution of the concept of sustainability. From Brundtland Report to sustainable development goals. In Sustainable resource management (pp. 1-24). Elsevier. https://doi.org/10.1016/B978-0-12-824342-8.00018-3

Jones, P. and Comfort, D., (2019). An exploratory case study of resilience and the leading retailers in the UK. International Journal of Management Cases, 21(4), pp.5-18.https://www.circleinternational.co.uk/wp-content/uploads/2021/01/21.4.pdf#page=5

Leal Filho, W., Trevisan, L.V., Eustachio, J.H.P.P., Rampasso, I.S., Anholon, R., Platje, J., Will, M., Doni, F., Mazhar, M., Borsatto, J.M.L.S. and Marcolin, C.B., (2023). Assessing ethics and sustainability standards in corporate practices. Social Responsibility Journal, (ahead-of-print). https://www.emerald.com/insight/content/doi/10.1108/SRJ-03-2023-0116/full/html

Mohapatra, P. and MV, N.K., (2021). Accounting Scandal at Tesco. IUP Journal of Accounting Research & Audit Practices, 20(4).https://web.p.ebscohost.com/abstract?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=0972690X&AN=154703778&h=hgAEjpjJLCkCc

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Obrenovic, B., Du, J., Godinic, D., Tsoy, D., Khan, M.A.S. and Jakhongirov, I.,(2020). Sustaining enterprise operations and productivity during the COVID-19 pandemic:“Enterprise Effectiveness and Sustainability Model”. Sustainability, 12(15), p.5981.https://doi.org/10.3390/su12155981

Pereira, T.H.M. and Martins, H.C., (2021). People, planet, and profit: A bibliometric analysis of triple bottom line theory. J. Mgmt. & Sustainability, 11, p.64. https://heinonline.org/HOL/LandingPage?handle=hein.journals/jms11&div=10&id=&page=

Sainsbury’s Sustainability (2021) Sustainability Update 2020/21 – Sainsbury’s. Available at: https://www.about.sainsburys.co.uk/sustainability/plan-for-better/reports-policies-and-standards/2021/sustainability_update_2021 (Accessed: 07 December 2023).

Sainsburys (2022) Better for the planet – Sainsbury’s. Available at: https://about.sainsburys.co.uk/sustainability/better-for-the-planet (Accessed: 07 December 2023).

Singhania , M. and Sain, N. (2021) Institutional framework of ESG disclosures: Comparative analysis of ... Available at: https://www.tandfonline.com/doi/full/10.1080/20430795.2021.1964810 (Accessed: 07 December 2023).

Smith, H.W., (2023). GUPPI In Supermarket Mergers: the UK’s Asda/sainsbury Case. Antitrust Economics at a Times of Upheaval, by J. Kwoka, T. Valleti and L. White (Editors), Forthcoming. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4370797

Tesco PLC (2023) Communities and planet a little better every day. financial ... - tesco plc. Available at: https://www.tescoplc.com/media/u1wlq2qf/tesco-plc-annual-report-2023.pdf (Accessed: 07 December 2023).