SUSTAINABILITY DEVELOPMENT

& ENVIRONMENTAL
MANAGEMENT

GROUP 1
 CORPORATE
SUSTAINABILITY What is Sustainability?

Based on concept of sustainable

development, which is the development
‘meet the needs of the present without
compromising the ability of future
generations to meet their own needs’

What is Corporate
Sustainability?
An approach aiming to create long-term
stakeholder value through the
implementation of a business strategy.
Video source:
Youtube
https://www.youtube.com/
watch?v=ltBUjzuncQ4
 BENEFITS OF CORPORATE
SUSTAINABILITY

Achieving cost Meeting customers’ Enhancing credibility,

savings needs trust, and brand
reputation

Improving employee
Raising market
engagement and
standards
talent acquisition
3 PILLARS OF SUSTAINABILITY

ENVIRONMENT

ECONOMIC
SOCIAL
Does business only
need to focus only 1
pillar to achieve
sustainability?
 Video source:
YouTube/Swiss
Learning Exchange
https://youtu.be/ijSSe6686
5w
 The organization must deliver its goods and
services in a sustainable manner by fulfilling
these 3 pillars areas because they are
interconnected to achieve sustainability.
SUSTAINABILITY REPORTING

WHAT? WHY?
measures &
Non-Financial
COMMUNICATE
reporting
BE TRANSPARENT
ees impact by GOALS, PERFORMANCE &
companies's activitie IMPACTS OF SUSTANABILITY
s
ISSUES

WHO? HOW?
Various types of ADOPT GRI
organization FRAMEWORK

based on ANNUAL REPORT

materiality impacts STAND-ALONE REPORT
 HISTORY SR IN MALAYSIA
<2006 2015 2016
2006

Listing requirement by Bursa Bursa Malaysia launched its Mandatory to all public listed
Voluntary basis in companies
Malaysia Sustainability Framework
their annual report
No comprehensive guideline
regarding ‘what’ and ‘how’ to
disclose the information
TRANSPARENCY HOLISTIC
REVIEW

THE IMPORTANCE
OF SUSTAINABILITY
REPORTING

DEVELOP BUILD TRUST

STRATEGY
 SUSTAINABILITY REPORTING
1

t e d a r e a s
1 Contribu
Goals
2
pr og r e ss
&
3 3 Activities
U N S D G s
4 17

4
SUSTAINABILITY REPORTING
APPENDIX
SUSTAINABILITY FRAMEWORK (1)
GLOBAL REPORTING
INITIATIVE (GRI)
FRAMEWORK
SUSTAINABILITY
FRAMEWORK
GLOBAL REPORTING
INITIATIVE (GRI)
FRAMEWORK

Sustainability reporting with the GRI Standards. (2017, May 4). YouTube.
https://www.youtube.com/watch?v=6LkrhalWIMc
 FOUR KEY ELEMENTS
IN THE FRAMEWORK

Sustainability Reporting Indicator Protocols

Guidelines
1 Consist of Principles for defining report
2 Provide definitions, compilation guidance,
and other information to assist report writers.
content and ensuring the quality of reported
information.

Sector Supplements Technical Protocols

3 Complement the Guidelines with 4 To provide guidance on issues in reporting.

interpretations and guidance on how to apply
them in a given sector.
 EXAMPLE ASPECTS AND
PERFORMANCE INDICATOR
 SUSTAINABILITY FRAMEWORK (2):
INTERNATIONAL INTEGRATED REPORTING
FRAMEWORK

BENEFIT OF SUSTAINABILITY REPORTING

INTERNATIONAL
INTEGRATED
REPORTING
FRAMEWORK
What is Integrated
Reporting
A clear explanation of how an
organization's strategy, governance,
performance, and prospects, in the
context of its external environment,
influence the development,
preservation or destruction of value
over the short, medium, and long
term.
 C
V R Financial Manufactured Intellectual

A E
L A Social

U T Human &
Relationship

E I
O
Natural
N
OBJECTIVE
To establish Guiding

Principles and Content

Elements that govern the

overall content of an

integrated report, and to

explain the fundamental

concepts that underpin

them.
 Guiding A B C
Principles Strategic focus and

Connectivity Stakeholder
future orientation of information relationships

D E F

Materiality Conciseness Reliability &

completeness

G
Consistency & comparability
Content Element

Organizational overview &

1 external environment 4 Risks and opportunities

2 Governance
5 Strategy & resource 7 Outlook
allocation

3 Business model
6 Performance 8 Basis of preparation
& presentation
BENEFIT OF SUSTAINABILITY
REPORTING

Improvement
of risk Increased
Enhancing
management innovation &
brand
building
value &
consumer
confidence reputation
 SUSTAINABILITY
& STAKEHOLDERS
 SUSTAINABILITY AND STAKEHOLDERS

CUSTOMERS
STAKEHOLDERS & THEIR
GOVERNMENT & INFLUENCE OVER
REGULATORS ENVIRONMENTAL & SOCIAL
PRACTICES

INVESTORS

THE MEDIA

EMPLOYEES
MANAGEMENT ACCOUNTING
& SUSTAINABILITY
REPORTING
 MANAGEMENT ACCOUNTING &
SUSTAINABILITY REPORTING

Hence the existence

Increased in Essential for
of sustainability
sustainability management
accounting and the
reporting accountants to include
role of management
sustainable issues into
accounting in
the facilitation process &
preparing
take an active role in
sustainability
sustainable development
reporting
SUSTAINABILITY IN ACCOUNTING

Source link:
https://youtu.be/-E729qU9f-Y
Role of management accounting in preparing sustainability reporting

ENVIRONMENTAL
MANAGEMENT ACCOUNTING
ENVIRONMENTAL MANAGEMENT SYSTEM

consist of management include

accounting systems I have seenrecycling
companies systems
succeed and
systems to monitor
and fail due to how they and control
and practices that liquid, material and atmosphere
provide information approached workplace diversity.
discharge system and waste
about the
can collaborate in real-
With Canva Presentations, you
environmental impact time with your teammates or co-presenters. Share
International standard:
tasks and work simultaneously to create a powerful
of an organisation’s

presentation.
activities.

IMPLICATION FOR
MANAGEMENT
ACCOUNTING OF By failing to include
INCREASED environmental impacts ,
management
SUSTAINABILITY accounting potentially
REPORTING provides insufficient
information to decision-
makers to make
informed decisions
 CONCLUSION

- Requires organisations to consider the interrelated impacts

of their activities

- To improved financial performance through the adoption of

more efficient workflows and process redesign

- Measure and communicate the economic, environmental

and social impact caused by an organisation's activities.