ACCT2105 ACCOUNTING IN ORGANIZATIONS AND SOCIETY

ACCT2105 ACCOUNTING IN ORGANIZATIONS AND SOCIETY

Semester 1
Sustainability Reporting Practicing Group
Title of assignment
Report
Bui Thao Vy s3878289
Name and student Nguyen Quynh Tuyet My s3891646
ID Nguyen Thanh Vy s3891627
Ngo Hoang Uyen Vi s3752561
Location RMIT university Vietnam (SGS campus)
Class group Group 13
Lecturer Luu Phuc Vinh
Word count 1429 (exclude cover pages, appendix, and
references)

1
ACCT2105 ACCOUNTING IN ORGANIZATIONS AND SOCIETY

I. Introduction
Coles Group and Walmart are both leading public corporations in retail industry in Australia and US,
respectively as they has opened more than thousands of stores nationally and served a large number of
consumers (Walmart n.d.; Coles Group n.d.).
This essay will give an adequate analysis and evaluation of both companies’ sustainability reports, which
demonstrate the social and environmental outcomes through many key indicators to fulfil businesses’
accountability (Altinay 2016).

I. What are they reporting?

1. Similarities:
Walmart and Coles Group have a similar view on environmental concerns with greenhouse gases (GHG)
reduction and waste- a motivation to seek for better solution, which are provided with persuasive statistics
specific goals as shown in Figure 1 and 2. Furthermore, they share the similarities in emphasizing the
final goal - carbon emission management using alternative energy, resilient sourcing, analyze carbon
pricing and comply with specialists in climate change. Additionally, food and plastic waste are top
solicitous environmental issues. It can be seen that both businesses work with many NGOs to monitor
suppliers’ food waste reduction as well as eliminate unnecessary plastic by choosing eco-friendly
materials to lower plastic usage (Walmart 2020; Coles 2020).
ACCT2105 ACCOUNTING IN ORGANIZATIONS AND SOCIETY

For social reporting, Walmart and Coles show their similarities on two core issues which are human rights
and communities. It is clear that both retailers have a detailed plan for the development of internal
organization, especially the training program for employers and employees. They also enhance the
stakeholder engagement with the commitment to product safety and strategies for supplier management
(Walmart 2020; Coles 2020).
2. Differences:
It can be seen that in environmental reporting, except climate change and food waste, both companies
have also focused on different other issues. While Walmart also tends to take actions on natural systems
like forests, soil and oceans as well as develop the product supply chains, Coles is likely to go into
specific steps for sustainable packaging and recycling progress (Walmart 2020; Coles 2020).
Moreover, the description in the effort of creating working environment linked to human rights, worker’s
health, safety and wellbeing in Walmart and Coles are also strikingly different. Particularly Walmart
report includes a more detailed description in its superior employee treatment about pay equity and non-
discrimination. In contrast, the Coles report covers less detail about discrimination and concentrates
mainly on treatments for disability communities. It can be concluded that Walmart includes a more
detailed plan for internalities compared to Coles (Walmart 2020; Coles 2020).

III. How are they reporting?

1. Similarities:
Both firms’ sustainability reports were publicized on their official website in form of PDF file that
stakeholders are able to download and view easily. The detailed reports of both companies start with an
overview of the organization including their commitment, messages from Executive Board and how they
ACCT2105 ACCOUNTING IN ORGANIZATIONS AND SOCIETY

create the value. At the end of the report, they expose their commitments and additional data such as
tables or graphs (Walmart 2020; Coles 2020).
Indeed, both the reports are guided by reliable framework such as GRI standards. Particularly, GRIs insist
on many issues in the scope of the company annual sustainability report such as emissions, waste and
decarbonization management (GRI 305, 306) in environment reporting together with human rights and
training program in social reporting (GRI 401, 405) (Walmart 2020; Coles 2020). These standards ensure
the quality of the report with a comprehensive image of material topics, their related effects and strategies
(Global reporting organization n.d.).
2. Differences:
However, the overall structures of both companies’ reports are clearly unalike since Coles report relies on
the important areas of their Sustainability strategy: Sustainable communities, products and environmental
practices while Walmart report follows the ESG priorities (environmental, social and governance)
(Walmart 2020; Coles 2020).
Moreover, there are some differences in the way two companies have reported. In particular, Walmart
also exploits Sustainability Accounting Standards Boards (SASB) along with GRI to satisfy the needs of
stakeholders, especially investors since SASB have indicated subcategories in specific industry, which
potentially affect the company’s financial condition (SASB 2017). In the report, SASB standards are
shown through the figures of some environmental expected subsets influencing investors’ decision such
as energy management, food waste or product sources (Walmart 2020). Additionally, by providing
tangible salary payment model, Walmart also demonstrated its serious attitude in creating safe and
equitable working environment, which directly relate to SASB (Walmart 2020). However, Coles gains
ACCT2105 ACCOUNTING IN ORGANIZATIONS AND SOCIETY

stakeholders’ trust By following UN Global Compact principles on community and environmental fields
with strategic goals and solutions to prove their high commitment level.

IV. Why are they reporting?

1. Similarities:
Firstly, retail corporations conduct the sustainability report is not only under the stakeholders’ pressure as
they become more aware of environmental and social impacts but also to maximize the profitability by
seizing opportunities such as investment or good reputation and also better resource utilization leading to
cost reduction (Naidoo & Gasparatos 2018). Secondly, the other purpose of the report is to guarantee
consumer welfare since they can better manage its impacts on food system actors by rule-setting and
(Pulker et al. 2018). Therefore, both retailers are able to become a responsible and trusted organization in
a more sustainable world.
3. Differences:
Nevertheless, there are some regulations of environmental aspect that some large companies have to
disclose in Australia such as GHG and energy consumption based on National Greenhouse and Energy
Reporting (NGER) rule (De Silva Lokuwaduge & De Silva 2020). That is why Coles has reported
carefully with the representation of graphs as shown in Figure 2 (Coles 2020). However, US have no
requirements about specific disclosures as Australia, so in the report, Walmart displays the related topics
and measurements to clarify their commitments to the U.S laws about Clean Water Act and Clean Air Act
(US EPA n.d.). Generally, retailers conduct the report following different regulations in two countries and
their compliance to the laws is trustworthy based on their reporting.

V. Reflection:
SEV has carried out many important social and environmental activities according to guest lecture, for
environment, to accelerate sustainably, SEV has developed innovative solutions that deliver immediate
and lasting decarbonization to improve climate change. Not only that, but they are also responsible for
resource management by using non-plastic materials to preserve our planet. In terms of workforce and
workplace, SEV creates a fair and engaging work environment for employee development, specifically,
they try to enhance pay equity and talent programs. Moreover, SEV also attempts to support the
community in three different ways. The first strategy is called “Access to energy program” - providing
solar solutions for off-grid communities. Secondly, SEV has an investment fund to dedicate to innovative
energy entrepreneurs. The last activity is “Training and Entrepreneurship” in energy related fields, by
working with NGOs to provide free vocational training, which is extremely successful so far in Vietnam.
Furthermore, in the deep concern for the ecosystem, SEV and the two chosen companies share similarities
in the concern on carbon emission management by using efficiency alternative energy (solar energy).
ACCT2105 ACCOUNTING IN ORGANIZATIONS AND SOCIETY

Besides, minimizing plastic waste is also considered as one of the most significant activities thus they are
using eco-friendly materials in packaging process and free from single-use plastic. In addition, Walmart,
Coles and SEV gradually create safe and equal working environment, donate in social relief as well as
being partner with NGOs to emphasize a great interest in society and sustainable performance.
Particularly, they focus on stability of workplace together with upskilling and generation development. In
relation to community impacts, indigenous financial and educational relief are the most powerful social
activities they have undertaken.
Applied the understanding in the AOS week 2 lecture with the industry speaking, Sustainability Report
plays a significant role for organizations since it shows ethical responsibility in businesses. It is not a
compulsory document, but organizations choose to publicize social and environmental information with
beneficial intention, which SEV does by proving their effort with clear commitments. To meet the
expectation, SEV utilizes reliable framework like SDGS and CSR practice as well as partners with NGOs.
Not only does the industry get advantages from gaining trust, but it also benefits the community to select
suitable products without harming natural habitat, or stock investments.

VI. Conclusion:
In conclusion, in the sustainability reports, there are both similarities and differences in the way Walmart
and Coles have disclosed many social and environmental issues and their detailed plans for sustainable
development. Generally, according to our essay, it cannot be denied that both firms have made effort to
conduct their report with supportive evidence and visualization. In addition, the reflection part also gives
the overview of SEV sustainability activities and the connection with two chosen companies.

VII. Appendix:
 How are they reporting? (Similarities):
For environmental reporting, both companies use the guidance of Task Force on Climate ‐related
Financial Disclosures (TCFD), which are in compliance and applied strictly via third party auditing,
showing authority in their reports with the deep concern about climate-risk and opportunities. In addition,
for the human rights aspect, both create their statement to illustrate their respect to the UN Guiding
Principles on Business and Human Rights (UNGP). By exploiting those standards, there are some similar
salient Human Rights issues between two companies that are identified, related to labor rights, safe &
healthy, and fair & inclusive work environments (Walmart 2020; Coles 2020).

VIII. Reference list:

Altinay, A 2016, ‘Sustainability Reporting’, International Journal of Humanities and Social Science,
November, vol. 6, no. 11, pp. 140–145.
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Coles Group 2020, Sustainability Report, Coles Group, viewed 6 April 2021,
<https://www.colesgroup.com.au/sustainability/?page=sustainability-report>.
Coles Group n.d., About us, Coles Group, viewed 15 April 2021, <https://www.colesgroup.com.au/about-
us/?page=about-us>.
Global reporting organization n.d., Standards, Global reporting organization, viewed 15 April 2021,
<https://www.globalreporting.org/standards/>.
Naidoo, M & Gasparatos, A 2018, ‘Corporate environmental sustainability in the retail sector: Drivers,
strategies and performance measurement’, Journal of Cleaner Production, August, vol. 203, pp. 125–142.
Pulker, CE, Trapp, GSA, Scott, JA & Pollard, CM 2018, ‘Global supermarkets’ corporate social
responsibility commitments to public health: A content analysis’, Globalization and Health, November,
vol. 14, no. 1, p. 121.
SASB 2017, The Evolution of SEC Disclosure-The Materiality of ESG Information and its Use by
Investors, SASB, view 16 April 2021, <https://fsa.sasb.org/wp-content/uploads/2017/03/Workiva-
Webinar.pdf>
De Silva Lokuwaduge, CS & De Silva, K 2020, ‘Emerging corporate disclosure of environmental social
and governance (ESG) risks: An Australian study’, Australasian Accounting, Business and Finance
Journal, vol. 14, no. 2, pp. 35–50.
US EPA n.d., EPA’s Report on the Environment (ROE), US EPA, viewed 15 April 2021,
<https://www.epa.gov/report-environment>.
Walmart 2020, Walmart ESG report 2020, Walmart, viewed 6 April 2021,
<https://cdn.corporate.walmart.com/90/0b/22715fd34947927eed86a72c788e/walmart-esg-report-
2020.pdf>.
Walmart n,d., About Us, Walmart, viewed 15 April 2021, <https://corporate.walmart.com/our-story>.