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Navigating Social and
Environmental Reporting for a
Growing Surfing Business
The Global Reporting Initiative (GRI)
The Global Reporting Initiative (GRI) is a non-profit organization that provides a comprehensive framework for organizations to report on their economic, environmental, and social performance. Entities that comply with GRI guidelines report on the following five key social and environmental performance aspects:
Social Performance Aspects
Labor Practices and Decent Work Human Rights Society Product Responsibility
Environmental Performance Aspects
Materials Energy Water Biodiversity Emissions, Effluents, and Waste
Carbon Emission Reporting for a Mining
Company
As the CFO of a large mining company in China facing a new carbon emission cap, the following information should be collected for management purposes:
Total carbon emissions from the company's operations, including direct emissions from owned or controlled sources (Scope 1) and indirect emissions from the generation of purchased energy (Scope 2). Detailed data on energy consumption, including the types and quantities of fuels and electricity used. Information on any carbon reduction initiatives or technologies implemented by the company. Projections of future carbon emissions based on production forecasts and planned operational changes.
This information is important for the company to understand its carbon footprint, identify opportunities for emission reductions, and develop
strategies to comply with the new government regulations. It can be used for management purposes such as setting emission reduction targets, evaluating the effectiveness of mitigation efforts, and informing investment decisions in more energy-efficient technologies.
Stakeholder Accountability through Reporting
Stakeholders can hold management accountable through the published reports on financial, social, and environmental performance. By accessing and analyzing these reports, stakeholders can:
Evaluate the company's financial health and profitability. Assess the company's social and environmental impact, including its treatment of employees, community engagement, and environmental stewardship. Identify any discrepancies or inconsistencies between the company's stated policies/commitments and its actual performance. Engage with the company to address any concerns or issues raised by the reported information. Make informed decisions about their relationship with the company, such as whether to invest, work for, or purchase from the organization.
The transparency and accountability provided by comprehensive reporting empowers stakeholders to hold management responsible for the company's overall performance and impact.
DC Surf Co. Case Study
Background
De and Claire, former university classmates, have decided to start a surfing equipment and apparel business called DC Surf Co. They initially set up the business as a partnership but later restructured it as a company. The business has experienced rapid growth, expanding from surfboards to a full range of apparel and accessories. To fund further expansion, DC Surf Co has decided to list on the Australian Stock Exchange.
Key Events and Decisions
De has started labeling his locally made surfboards as "designed and made locally in Australia" in response to negative media attention on a competitor's overseas manufacturing practices. De and Claire have hired additional staff to keep up with demand, but some manufacturing mistakes have led to product returns. The popularity of DC Surf Co's t-shirts has led to stock shortages and a temporary decrease in customer ratings. De wants to expand into board shorts, but Claire is concerned about the seasonality of the product.
