An Overview of Sustainability Reporting

Practice: Bangladesh Context

A BBA Completion Thesis Paper By:

Rubel Mia

ID: 19144

Dept. of Accounting & Information Systems

University of Dhaka

Email: rubel20003@gmail.com

Date: February 19, 2017

2 | An overview of sustainability reporting practice: Bangladesh Context.-2017

Contents
1. Introduction: ............................................................................................................................. 4
2. Objectives of the study: ............................................................................................................ 4
3. Methodology:............................................................................................................................. 5
3.1. The Sample:....................................................................................................................... 5
3.2. Data Collection: ................................................................................................................ 5
3.3. The Research Method: ..................................................................................................... 5
4. Review of the Literature: ......................................................................................................... 6
5. What sustainability means: ...................................................................................................... 7
5.1. Three Pillars of Sustainability ......................................................................................... 7
5.2. The importance of sustainability: .................................................................................... 9
6. What is sustainability reporting? .......................................................................................... 10
6.1. Historical Background of sustainability Reporting: .................................................... 10
6.2. Necessity of sustainability reporting: ............................................................................ 12
6.3. Barriers to Sustainability reporting:............................................................................. 13
6.4. Users of sustainability report: ....................................................................................... 13
7. Initiatives for sustainability reporting: ................................................................................. 14
7.1. GRI Standards for sustainability reporting: ................................................................ 14
7.2. Triple Bottom Line (TBL) reporting: ........................................................................... 17
7.3. Integrated Reporting: ..................................................................................................... 18
8. Initiatives in Bangladesh: ....................................................................................................... 19
9. Bangladeshi companies under sustainability reporting: ..................................................... 20
10. What is the thinking of the rest? ....................................................................................... 21
10.1. The Survey Report: .................................................................................................... 21
11. Findings: .............................................................................................................................. 25
12. Limitations of the study: .................................................................................................... 26
13. Conclusion and Recommendations: .................................................................................. 26
14. References ........................................................................................................................... 27
3 | An overview of sustainability reporting practice: Bangladesh Context.-2017

“We can’t hope to create a sustainable culture with any but sustainable souls.”

-Derrick Jensen (USA), Endgame: The Problem of Civilization.

Abstract
This dissertation examines the practice of sustainability report inside and outside of
Bangladesh. According to the stakeholder theory of accounting the companies must satisfy
not only to their shareholders but also to the other parties. Sustainability reporting is an
element of this satisfaction. Bangladesh is a developing country. The country achieved its
millennium development goals mostly. Now it is time to achieve the sustainable
development goals. I think the achievement of these goals will be easier if the companies
functioning in Bangladesh report their activity through sustainability reporting. In this study
I examined the need, procedures, guidelines, cost, benefits etc. of sustainability reporting.
My study found that there are very few companies in Bangladesh which are publishing
sustainability report. I did a survey to access the thinking of the employees from some
companies which did not publish any sustainability report yet. The result shows that the
employees are not aware about sustainability reporting. But they expect that there should be
a separate regulatory body for ensuring sustainability reporting in Bangladesh. The specific
regulatory body will set their mission and vision for ensuring sustainability reporting at least
for these companies which are very harmful for sustainability. The study argue that it is high
time to take initiatives in Bangladesh to ensure sustainability reporting for a better future.
4 | An overview of sustainability reporting practice: Bangladesh Context.-2017

1. Introduction:
Now a day’s sustainability is a universal concern. The global society today is neither
achieving ecological nor social sustainability. Environmental pollution, inequity, injustice,
and poverty are encountered by millions of people across the world. Corporate bodies are
still concentrating on maximizing wealth rather than taking the notion of sustainability into
account. Industrial pollution is still a threat to sustainable development in many developing
countries like as Bangladesh. Corporate sustainability disclosure (CSD) is gradually being
increased in developed countries, but it is lagging in developing countries.

As a developing country, Bangladesh should ensure sustainable development. There are

many organization in Bangladesh which are contributing directly or indirectly in this
development process. Bangladesh should keep pace with the others developing countries in
the world to maintain sustainability. To ensure sustainability, sustainability reporting is
mandatory. But sustainability reporting in not mandatory in many countries like Bangladesh.
There are many global initiatives to encourage companies across the world to maintain
special reporting format for ensuring sustainability reporting. The level of social and
environmental disclosure in developing countries is very poor. It is evident that most of the
social responsibility information in the developing countries is still undisclosed.

2. Objectives of the study:

1. To understand the reporting practice of sustainability.
2. To get idea about the present scenario of sustainability reporting in Bangladesh.
3. To assess the needs, challenges, and opportunities to adopt sustainability reporting
in Bangladesh.
4. To understand the thinking of the employees of those companies which did not
published sustainability report yet.

I have tried my best to get these objectives. I always focused on these objectives at every
step of my research. Hope the thesis paper will achieve these objectives.
5 | An overview of sustainability reporting practice: Bangladesh Context.-2017

3. Methodology:
This is a thesis paper which is mainly a content analysis with a small statistical analysis. The
methodology of this thesis paper is suitable to match the objectives required.

3.1. The Sample:

I have selected some employees from a different organization which did not publish any
sustainability report yet. The sample was selected on the basis of accessibility. There was 30
employee from sample organizations. The sample size appears small but it is done only for
due to time limitation. Though the sample size is small, I hope it is enough to make me to
come to a conclusion and to create an appeal for further study with a rich sample size.

3.2. Data Collection:

The primary data is collected through a questionnaire. I have visited the sample companies
located in Dhaka city and collected data from some employees working in those companies.
The name of these companies follows:
1. Dutch-Bangla Bank Limited (DBBL)
2. Sonali Bank Limited
3. Bangladesh Development Bank Limited (BDBL)
4. Southeast Bank Limited
5. Janata Bank Limited.
6. Sustainable and Renewable Energy Development Authority (SREDA)
7. Orion Pharma
From these companies, 30 people with different job designation responded to my
questionnaire. [The questionnaire is attached at the end]

For collecting secondary data I used different online sources. Mostly I used different online
documents from of Global Reporting Initiative and other documents published by this
organization regarding sustainability reporting. Some other online sources were used for
collecting secondary data. Many reports and papers on sustainability reporting used for study
purposes also.

3.3. The Research Method:

The research method of this study involved an examination, verification, and analysis of the
collected data from different sources. Secondary data was justified and used in this paper
with proper citation. For processing primary data I have used very simple statistical tools.
Microsoft Excel is used for calculating different figures and developing different graphs.
6 | An overview of sustainability reporting practice: Bangladesh Context.-2017

4. Review of the Literature:

A sustainable global economy is not a luxury. Without a sustainable business model,
environmental and social issues will continue to badly impact our economy and compromise
for our future needs. (Khan, 2015)

“Leading standards such as the Global Reporting Initiative have made significant
advancements in setting out the types of information that corporations should publicly
disclose, mandatory sustainability reports will not work as an effective policy mechanism
unless they are placed in a system that can effectively utilize the information and cause
corporations to change their policies and practices”. (Kumar, 2012)

After achieving the millennium development goals Bangladesh in now focusing for attaining
the sustainable development goals. So I think sustainability reporting is a crucial issue for
Bangladesh. “In Bangladesh, some organizations including banking industry have started to
prepare the sustainability report and got high recognition internationally by this time. For
the purpose of assisting, developing, measuring and reporting on the implementation of
CSR/Corporate Sustainability (CS) there is a need for an independent organization in
Bangladesh. Which will take the vision and commitment in implementing and developing
sustainable development through sustainability reporting process”. (Khan, 2015)

Sustainability reporting is very important for the stakeholders to take a decision regarding
any organization. It helps them to know the side effects of the organization and the
organization’s remedies for covering these effects. One study (Ahonen, 2012) indicates that
stakeholders appreciate balanced, reader-friendly sustainability reporting with a life cycle
perspective. The study also indicates that stakeholders expect basic elements from reporting
is encouraging to all reporters: even small amendments can help them meet stakeholders’
expectations for sustainability reporting.
7 | An overview of sustainability reporting practice: Bangladesh Context.-2017

5. What sustainability means:

There is no universally agreed definition of sustainability. The idea of sustainability comes
from the concept of sustainable development which became common language at the
World's first Earth Summit in Rio in 1992.

SustainAbility, which is an organization is working to ensure sustainability. They defined

sustainability as “the ability to sustain” or “the capacity to endure.” The name sustainability
is derived from the Latin word “sustinere” which means hold, sub, up. Sustain can mean
“maintain", "support", or "endure”.

Sustainability is the ability to meet the needs of the present without compromising the ability
of future generations to meet their own needs. (GRI, 2011)

Sustainability has often been defined as how biological systems endure and remain diverse
and productive. But, the 21st-century definition of sustainability goes far beyond these
narrow parameters. Today, it refers to the need to develop the sustainable models necessary
for both the human race and planet Earth to survive. (Wikipedia, 2016)

Sustainability is a balancing act. The United Nation’s 1987 Report of the World Commission
on Environment and Development: Our Common Future noted that sustainable
development meets the needs of the present without compromising the well-being of
future generations. In 2000, the Earth Charter broadened the definition of sustainability to
include the idea of a global society “Sustainability is founded on respect for nature, universal
human rights, economic justice, and a culture of peace.”

My opinion in this matter is that sustainability is a process of development which utilize

resources without creating any problem for the future generation. The ultimate goal of
sustainability is to meet the current need without harming the future.

5.1. Three Pillars of Sustainability

In 2005, the World Summit on Social Development identified three core areas that contribute
to the philosophy and social science of sustainable development. These pillars are the
backbone in the world for describing sustainability.
8 | An overview of sustainability reporting practice: Bangladesh Context.-2017

Economic Development

Economic development is about giving people what they want without compromising
quality of life. In the developing world reducing the financial burden is a major challenge.
People get ready for consuming more than their basic life sustaining goods. As a result, the
question of sustainable economic development is arise. There must a good increase in GDP,
reduction in unemployment, balance in inflation rate, and increase in per capita income for
being a developed country. But these development should ensure sustainable economic
development.

Social Development

There are many things in this pillar. Most importantly is awareness of and legislation
protection of the health of people from pollution and other harmful activities of business and
other organizations. In Bangladesh, many companies are directly responsible for the
pollution of Buriganga River. The industry wastages are directly falling into the river. This
is not good for the future generation. The initiatives taken by these company to mitigate
these pollution and remove the problems associated by these pollution are called social
development. Companies should focus on not only business profit but also people’s health
and wellness. It is also about maintaining access to basic resources without compromising
the quality of life. The biggest hot topic for many people right now is sustainable housing
and how we can better build the homes we live in from sustainable material. The final
element is education - encouraging people to participate in environmental sustainability and
teaching them about the effects of environmental protection.

Environmental Protection

Businesses are regulated to prevent pollution and to keep their own carbon emissions low.
There are incentives to installing renewable power sources in our homes and businesses.
Environmental protection is the third pillar and to many, the primary concern of the future
of humanity. It defines how we should study and protect ecosystems, air quality, integrity
and sustainability of our resources and focusing on the elements that place stress on the
environment.
9 | An overview of sustainability reporting practice: Bangladesh Context.-2017

5.2. The importance of sustainability:

Sustainability relates to the choices individuals and government entities make and how those
choices affect the future. For example, polluting water supplies or wasting water reduces the
availability of clean, uncontaminated water for future generations. Sustainability within the
soil supply is also crucial. Without properly caring for soil that produces plant life, food and
natural surroundings for animals and humans, the soil loses the quality to encourage new
growth for crops and natural sources of food.

Sustainability also ensures the existence of species. For example, if clean water and non-
polluted soil are reduced, the risk of species extinction increases. A lack of resources not
only affects species but also the social, environmental and economic conditions of the
population as a whole. Residents and corporations can work to promote sustainability
through practices that include recycling, a reduction of air and water pollution, and a shift
toward green practices to preserve natural resources for future generations.

Sustainability is important for a very simple, very straightforward reason. If we don’t

change, we cannot maintain our quality of life as human beings, the diversity of life on Earth,
or Earth’s ecosystems unless we embrace it. There are indications from all quarters and from
the smallest to the largest scale that sustainability is something we must address. We will
run out of fossil fuels. Thousands if not millions of animal species will become extinct. We
will run out of lumber. We will damage the atmosphere beyond repair.
10 | An overview of sustainability reporting practice: Bangladesh Context.-2017

6. What is sustainability reporting?

A sustainability report is a report published by a company or organization about the

economic, environmental and social impacts caused by its everyday activities. A
sustainability report also presents the organization's values and governance model and
demonstrates the link between its strategy and its commitment to a sustainable global
economy. (GRI, 2011)

A sustainability report is an organizational report that gives information about economic,

environmental, social and governance performance. Sustainability reporting is not just report
generation from collected data; instead, it is a method to internalize and improve an
organization’s commitment to sustainable development in a way that can be demonstrated
to both internal and external stakeholders. (Wikipedia, 2016)

6.1. Historical Background of sustainability Reporting:

Corporate sustainability reporting has a long history going back to environmental
reporting. The first environmental reports were published in the late 1980s by companies in
the chemical industry which had serious image problems. The other group of early reporters
was a group of committed small and medium-sized businesses with very advanced
environmental management systems. (Wikipedia, 2016)

Additionally, the tobacco industry adopted such reporting a lot earlier than the rest of the
corporate world due to attempts by them to access new investors from the rise of ethical
investing, that occurred at the time. (Zaman & Azizul, 2010)

During the last century, the development of sustainability reporting has reflected the effect
of social and political climates. The companies are now thinking to disclose non-financial
information rapidly than before. The international initiatives for sustainability reporting
creating awareness among the preparers. Many companies now produce an annual
sustainability report and there are a wide array of ratings and standards around. There are a
variety of reasons that companies choose to produce these reports, but at their core, they are
intended to be "vessels of transparency and accountability". Often they also intended to
improve internal processes, engage stakeholders and persuade investors. (Wikipedia, 2016)
11 | An overview of sustainability reporting practice: Bangladesh Context.-2017

Currently, most of the company publish different environmental and social report within the
annual report. But these are not fully reflection of the reporting format suggested by global
bodies. In Bangladesh, the companies publish annual report where they slightly includes the
disclosure related to sustainability. Some companies like Dutch Bangla Bank do a huge
investment in CSR activities. They report these activities in their annual report partially. As
a results the users specifically cannot get the idea about sustainability of this company.

However, now at a time sustainability reporting is a global issue. The whole world is busy
to ensure Sustainable Development Goals for the developing countries within 2030. As a
result, huge emphasis has been given on sustainability reporting. Global reporting initiatives
has developed many reporting standards for this purposes. The largest database for
sustainability reporting is United Nations Global Compact. This organization working
voluntarily to implement universal sustainability principles and to take steps to support UN
goals. It is working with participants from 193 countries from the world for ensuring
sustainable development and sustainability reporting. We can hope that it is very near when
sustainability reporting will be made mandatory for all companies which are under the
countries which are did commitment to make a better world for the future generation.
12 | An overview of sustainability reporting practice: Bangladesh Context.-2017

6.2. Necessity of sustainability reporting:

“Sustainability reporting can help organizations to measure, understand and communicate
they're economic, environmental, and social and governance performance, and then set
goals, and manage change more effectively. A sustainability report is the key platform for
communicating sustainability performance and impacts – whether positive or negative”.
(GRI, 2011)

Sustainability reporting can have a wide range of business benefits.

 Help to identifies inefficiencies and different risk and helps management to take
proper initiatives for solving.
 Help the organization to gain social reputation through different phases of reporting
which meet all categories of stakeholder’s demands.
 A business can attain social support through sustainability reporting. As a result,
investors will be more interested to invest in this company rather than the
competitors.
 Sustainability reporting increases corporate transparency. As a result, good
governance can be ensure in these organization.
 The stakeholders can easily assesse the organization which help them to know how
well the organization is going on.
 Sustainability reporting can promotes stakeholder engagement and
communications.

Sustainability reporting in the corporate setting is an important factor to improve a

company’s green initiatives and its relationship with investors and clients, in-line with
stakeholders’ demand for transparency and accountability. Ernst & Young upholds that
sustainability reporting is “a best practice employed by companies worldwide,” as it can help
improve practices already in place. (Jacob Anderson)
13 | An overview of sustainability reporting practice: Bangladesh Context.-2017

6.3. Barriers to Sustainability reporting:

There remain certain barriers to sustainability reporting. These are as follow.
 Unclear / rapidly evolving reporting standards and frameworks
 Lack of Resources: cost, time, expertise
 New processes may feel uncomfortable, especially stakeholder engagement
 Lack of management support or understanding.
 Fear of risking credibility and reputation, risking misinterpretation.
 Lack of appropriate training and education of management and employees
responsible for report
 Mandating sustainability reporting places companies and stock exchanges at
a competitive disadvantage.
 No clear financial return on investment

6.4. Users of sustainability report:

The need for sustainability report comes from an increasing number of stakeholders. They
are both internal and external.

Ernst Ligteringen, Chief Executive of GRI, says, “In today’s economy there’s a whole range
of changing expectations from stakeholders. They are investors, employees or wider society.
Different users demand sustainability information from different perspectives, and therefore
accrue different benefits and insights. Investors try to focus on the cost of capital and the
value of brand. Sustainability reporting can motivate the employees when they read out it. It
increase their retention rate. The wider society can look more at companies operation. They
can take their decision more efficiently regarding the organization.
14 | An overview of sustainability reporting practice: Bangladesh Context.-2017

7. Initiatives for sustainability reporting:

United Nations Global Compact, Global Reporting Initiatives (GRI) and some other
remarkable organization have been taken different initiatives for ensuring sustainability
reporting. International conference, national conference, institutional seminar etc. are
regular activities for them. These organization working for increasing awareness and
creating an efficient workforce who can help the reporting entity to ensure sustainability
reporting. Global Reporting Initiatives (GRI) has provided a comprehensive Sustainability
Reporting Framework that is widely used around the world since 1999. The cornerstone of
the Framework is the Sustainability Reporting Guidelines. GRI's Framework has become a
good standard in sustainability reporting in the world. There is others concept developed
internationally for ensuring sustainability reporting. Triple bottom line (TBL) reporting,
integrated reporting etc. are the example of these initiatives.

7.1. GRI Standards for sustainability reporting:

The standards are developed through a global multi-stakeholder process involving
representatives from business, labor, civil society, and financial markets, as well as auditors
and experts in various fields. It was also developed through a close dialogue with regulators
and governmental agencies in several countries. The Guidelines are developed in alignment
with internationally recognized reporting related documents, which are referenced
throughout the Guidelines. (Khan, 2015)

GRI developed some series regarding the different level of reporting activities. These are as
follow:

100: Universal Standards: Under this series, there are 3 standards, the foundation, general
disclosure, and management approach. The foundation level set out the reporting principles
for defining report content and quality. General Disclosures is used to report contextual
information about an organization and its sustainability reporting practices. Management
Approach is used to report information about how an organization manages a material
topically. It is designed to be used for each material topic in a sustainability report.
15 | An overview of sustainability reporting practice: Bangladesh Context.-2017

200: Economic Reporting: Under this series, there are 6 standards which describe the
regulations related to the economic performance, market presence, indirect economic effect,
procurement practice, anti-corruption and anti-competitive behavior.

300: Environmental Reporting: Under this series, there are 8 standards which describe the
regulation related to material use, energy, water use, biodiversity, emissions. There are also
standards regarding environmental compliance and supplier environmental assessment.
These standards protect the environment for the future generation and as a result, the
sustainability is maintained.

400: Social Reporting: The standards under social reporting series talk about the
sustainability regarding the society. These standards specify the regulations regarding
employment, labor-management relation, occupational health and safety, diversity and equal
opportunity for all, non-discrimination, freedom of association and collective bargaining,
child labor, forced and compulsory labor, security practice, rights of indigenous peoples,
human rights assessment, relation with local communities, suppliers social assessment,
public relation policy, customer health and safety, marketing and labeling, customer privacy
management, socio-economic compliance. These standards ensure the sustainability related
to the society and the elements regarding it.
16 | An overview of sustainability reporting practice: Bangladesh Context.-2017

The GRI standards:

Series No of standard Name of the standard

100: Universal 101 Foundation
Standards 102 General Disclosure
103 Management Approach
201 Economic Performance
202 Market Presence
200: Economic 203 Indirect Economic Effect
Reporting. 204 Procurement Practice
205 Anti-Corruption
206 Anti-Competitive Behavior
301 Materials
302 Energy
303 Water
300: 304 Biodiversity
Environmental 305 Emissions
Reporting. 306 Effluents and waste
307 Environmental Compliance
308 Supplier Environmental Assessment
401 Employment
402 Labor-Management Relation
403 Occupational Health and Safety
404 Training and Education
405 Diversity and Equal Opportunity
406 Non-discrimination
407 Freedom of Association and Collective Bargaining
408 Child labor
400: Social
409 Forced and compulsory labor.
Reporting:
410 Security practice
411 Rights of Indigenous Peoples
412 Human Rights Assessment
413 Local Communities
414 Suppliers Social Assessment
415 Public policy
416 Customer health and safety
417 Marketing and labeling
418 Customer Privacy
419 Socio-Economic Compliance
Total 36 Standards
17 | An overview of sustainability reporting practice: Bangladesh Context.-2017

7.2. Triple Bottom Line (TBL) reporting:

Triple bottom line (or otherwise noted as TBL or 3BL) is an accounting framework with
three parts: social, environmental (or ecological) and financial. Many organizations have
adopted the TBL framework to evaluate their performance in a broader perspective to create
greater business value. (Wikipedia, 2017)

The phrase “the triple bottom line” was first coined in 1994 by John Elkington, the founder
of a British consultancy called Sustainability. His argument was that companies should be
preparing three different bottom lines. One is the traditional measure of corporate profit the
“bottom line” of the profit and loss account. The second is the bottom line of a company's
“people account”. The third is the bottom line of the company's “planet” account. The triple
bottom line (TBL) thus consists of three Ps: profit, people, and planet. It aims to measure
the financial, social and environmental performance of the corporation over a period of time.
(Economist, 2009)

The concept of TBL demands that a company's responsibility lies with stakeholders rather
than shareholders. In this case, "stakeholders" refers to anyone who is influenced, either
directly or indirectly, by the actions of the firm. According to the stakeholder theory, the
business entity should be used as a vehicle for coordinating stakeholder interests, instead of
maximizing shareholder profit.

One problem with the triple bottom line is that the three separate accounts cannot easily be
added up. It is difficult to measure the planet and people accounts in the same terms as
profits—that is, in terms of cash. The full cost of an oil-tanker spillage, for example, is
probably immeasurable in monetary terms, as is the cost of displacing whole communities
to clear forests, or the cost of depriving children of their freedom to learn in order to make
them work at a young age. (Economist, 2009)
18 | An overview of sustainability reporting practice: Bangladesh Context.-2017

7.3. Integrated Reporting:

Integrated reporting (IR) is a process that results in a periodic communication by an

organization about value creation over time. An integrated report is a concise communication
about how an organization’s strategy, governance, performance, and prospects lead to the
creation of value over the short, medium and long term.

In 2009, The Prince of Wales convened a high-level meeting of investors, standard setters,
companies, accounting bodies and UN representatives including The Prince's Accounting
for Sustainability Project, International Federation of Accountants (IFAC), and the Global
Reporting Initiative (GRI), to establish the International Integrated Reporting Committee
(IIRC), a body to oversee the creation of a globally accepted Integrated Reporting
framework. In November 2011, the Committee was renamed the International Integrated
Reporting Council. (Wikipedia, 2017)

Sustainability reporting can be considered as synonymous with other terms for non-financial
reporting; triple bottom line reporting, corporate social responsibility (CSR) reporting, and
more. It is also an intrinsic element of integrated reporting; a more recent development that
combines the analysis of financial and non-financial performance”. (GRI, 2011)
19 | An overview of sustainability reporting practice: Bangladesh Context.-2017

8. Initiatives in Bangladesh:
The Bangladesh Bank (BB) issued a circular on February 27, 2011 (BRPD Circular No.2)
on Policy Guideline for Green Banking advising banks "to adopt a comprehensive Green
Banking Policy in a formal and structured manner in line with the global norms so as to
protect environment degradation and ensure sustainable banking practices." According to
the BB circular "Green Banking" generally refers to banking practices that foster
environmentally responsible financing practices and environmentally sustainable internal
processes minimizing Green House Gas (GHG) emissions.

Green banking involves two- pronged approaches: firstly, green banking focuses on green
transformation of internal operations of all banks and financial institutions. It means all the
banks or financial institutions should adopt appropriate ways of utilizing renewable energy,
automation and other measures to minimize carbon footprint from banking activities.
Secondly, all banks should adopt environmentally responsible financing; weighing up
environmental risks of projects before making financing decisions and in particular
supporting and fostering growth of upcoming 'green' initiatives and projects. (Khan, 2015)

The department of environment, which is a part of Ministry of Environment and Forest

of Bangladesh is working for regulating the activities for saving the environment for the
future generation. Some small and medium industries are required to take environmental
clearance from this authority.

In recent years, the government has taken some important steps towards protection of the
environment. Adoption of National Environment Policy and formulation of National
Conservation Strategy and the National Environment Management Action Plan are some of
the measures undertaken by the government to integrate environment with development in
a policy framework.

We can see that the initiatives are for protecting the environment, increasing the living
standards for all. But these initiatives are not fully for ensuring sustainability reporting.
20 | An overview of sustainability reporting practice: Bangladesh Context.-2017

9. Bangladeshi companies under sustainability reporting:

As sustainability reporting is not mandatory. So it is expected that the practice will be very
less. It is not clear about how many listed companies in Bangladesh is publishing a
sustainability report. Due to lack of appropriate data, we cannot say about the actual scenario
in Bangladesh.

The companies in Bangladesh are formed and regulated by company act 1994. All the public
limited companies in Bangladesh are bound to publish the annual report at the end of every
financial year with a view to disclosing the financial results and financial position with some
others supplementary reports.

Sustainability reporting provides extra benefits to the company. So it is generally considered

that the companies will report sustainability matters willingly. So sustainability reporting is
not mandatory for these companies. As results, these company which is concerned with
public relation and wants to create a good image to the public are providing sustainability
report willingly. Most of the companies disclose their CSR activities within the annual
report.

As far I know there are some companies which have published sustainability report
separately from their main annual report. There are some companies which have published
a sustainability report. These are as follow:

No: Company Name Year of First Publication

1 British American Tobacco Company Limited 2007
2 Bank Asia Limited 2012
3 Robi Axiata Limited 2014
4 Grmeen Phone Limited 2014
5 Prime Bank Limited 2015
21 | An overview of sustainability reporting practice: Bangladesh Context.-2017

10.What is the thinking of the rest?

We found that some companies started to publish a sustainability report. What is the thinking
of the rest companies in Bangladesh?

10.1. The Survey Report:

To get the idea of the employees regarding sustainability reporting I did a survey in those
companies which did not publish any sustainability report yet. I went there with my
questionnaire. I asked them regarding the current scenario and their future thinking about
sustainability reporting. The participants were from a variety of designation. They were
different from their age, gender and job experience.

Gender Designation
Vice President

Assistant Director

30%
Deputy Director 2
6
6
Principal Officer

Senior Principal Officer

3
9
70% Senior Executive 3
1
Officer
Senior Officer
Male Female

The designation has significance in their response. I have collected their perception regarding
sustainability reporting through a questionnaire. They were asked 6 question in this
questionnaire. They have put their opinion independently.
22 | An overview of sustainability reporting practice: Bangladesh Context.-2017

Question-1: How much do you know about sustainability reporting?

By this question I wanted to know how much they know the term. As sustainability is a new
term it was expected that many of them will be unable to say something about the term. The
result was as follow. Among 30 participants the answer was as like in the graph. This result
indicates that, as sustainability reporting is a newly term about 60% responder know little
about this. The result shows that 3% responder is expert in sustainability reporting. There
was 20% with enough knowledge, 3% was with huge knowledge. But 14% replied that they
don’t know about sustainability reporting.

LEVEL OF THEIR KNOWLEDGE

Huge Expert Don't Know
3% 3% 14%
Enough
20%

Little
60%

Question-2: Have you attended any course/seminar/meeting/workshop regarding

sustainability reporting?

The result shows that there is a lack of enough awareness regarding sustainability reporting.
Only 30% responder who has attended course/seminar/meeting/workshop indicates that it is
a less important topic for arranging such program and attending these.

Yes No Can't Remember

3%
30%

67%
23 | An overview of sustainability reporting practice: Bangladesh Context.-2017

Question-3: What you think? Is your company going to publish a sustainability

report in future?

The result was surprising that 15 responders said yes. But the actual scenario of these
organization is that they do CSR activities and report these activities partially in their annual
reports. The actual expectation is that the company will use a specific format for reporting
sustainability. But they are not doing so. But we can hope that the employees are ready to
associate the company for publishing a sustainability report.

NO OPINION 6

NO 9

YES 15

0 2 4 6 8 10 12 14 16

Question-4: What do you think? Who will be benefited from sustainability reporting?

The results show that there is a strong support that both the reporting company and the
stakeholders will be benefited from the sustainability reporting. As far we know that GRI
and other organizations have discussed the benefits of sustainability reporting from all
perspective. I also believe that both the company and the stakeholders will be benefited from
sustainability reporting.

The Company

The Stakeholders

No Opinion

The Company & the stakeholders

0 5 10 15 20 25
24 | An overview of sustainability reporting practice: Bangladesh Context.-2017

Question-5: Should sustainability reporting be mandatory or voluntary?

It was a very crucial question. We can see that there is a strong support to make it mandatory
for the companies. But there were some supporters who supported it to be voluntary. There
was also some responder who was unable to put any opinion.

MANDATORY OR VOLUNTARY?

17

7 6

MANDATORY VOLUNTARY NO OPINION

Question-6: What do you think? Who is responsible for ensuring sustainability

reporting?

We can see that 14 participants think that the regulatory bodies should take the responsible
for ensuring sustainability reporting. The others opinion also indicates that the others
decision makers of an organization can’t avoid the responsible.

WHO IS RESPONSIBLE FOR.

The regulatory bodies 14

CEO 6

The government 4

BODs 3

Managers 2

No Opinion 1

0 2 4 6 8 10 12 14 16
25 | An overview of sustainability reporting practice: Bangladesh Context.-2017

11. Findings:
This is a content analysis. In this study, we can find the theoretical background, the historical
perspectives, the rules and regulations, the guidelines, the berries, the benefits of
sustainability reporting. Sustainability reporting is a global initiative. Recent rapid change
in climate made this topic more important in the world. So we should focus on Bangladesh
also.

In Bangladesh, the scenario is upgrading. Some companies started to publish a sustainability

report. Some companies started it very early. The economy of Bangladesh is very fast
comparing to the other developing countries. We are planning to be a developed country by
2041. This development should not be one time development. This development should be
sustainable.

The survey result shows that about 60% employee know little about sustainability. This
scenario is not good. There is less opportunity for the employees to attend a seminar
regarding sustainability reporting. About 67% employee did not participate any seminar
regarding sustainability reporting yet. But there is enough hope among the employee that
their company will publish sustainability report very soon. Among 30 participants 17
participants think so. Among 30 participants 20 participants think that the publication of
sustainability report will be beneficial for both the company and the stakeholders. There is
a strong support for making sustainability report mandatory. Among them, 17 participants
think so. Among them, 14 participants think that the regulatory bodies should take the
responsibility to ensure sustainability reporting practice.

But in Bangladesh, there is no specific regulatory body who can ensure sustainability
reporting. Now it is a demand to establish a specific division under Bangladesh Bank or any
other body whose vision will be to ensure sustainability reporting practice.
26 | An overview of sustainability reporting practice: Bangladesh Context.-2017

12. Limitations of the study:

The study I conducted may have some limitations. These can be summarized as follow:

 Lack of previous good experience in a study like this.

 The sample selection was not done appropriately due to lack of accessibility to the
population.
 The sample size was small due to time limitation.
 Lack of appropriate data due to lack of specific authority for sustainability reporting
in Bangladesh.

13. Conclusion and Recommendations:

Sustainability reporting is not mandatory in Bangladesh. It is a voluntary disclosure. The
reporting entity gets many extra benefits from this kind of reporting. Most of the companies
are not preparing sustainability report due to the higher cost of implementation than the
benefit. Policymakers around the world have already taken remarkable steps to make
sustainability reporting a standard practice to reach sustainable development. Thousands of
organizations in the world are now reporting on their economic, social and environmental
performance.
The government of Bangladesh has to encourage all that if the businesses and all other
organizations monitor and report data on their sustainability performance, they will have the
vital information needed by executives to manage risk and identify sustainable opportunities.
The government should adopt a uniform reporting practice to prepare sustainability reporting
by all organizations for ensuring a level playing field, transparency, innovation, flexibility,
better regulation and progress towards sustainability. (Khan, 2015)

The rise in sea water level is a result of climate change. The climate change is a result of
environment pollution. Bangladesh should take strict action to protect the environment. So
it is high time the government should take action to bind these companies which are polluting
the environment. The other organization which is doing business in the society should show
their responsibility toward the society. They can do it through sustainability reporting.
27 | An overview of sustainability reporting practice: Bangladesh Context.-2017

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GRI, 2011. Sustainability Reporting Guidelines, s.l.: s.n.

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Khan, M. T. A., 2015. Sustainability Reporting: A dream to create the future. The Financial Express.

Kumar, K., 2012. Sustainability Reporting Practices in India: Challenges and Prospects , s.l.: s.n.

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