AGL Company Limited Sustainability Reporting

Running head: SUSTAINABILITY REPORTING 1
AGL Company Limited Sustainability Reporting
Professor’s Name
Institution Affiliation
Date

SUSTAINABILITY REPORTING 2
Executive Summary
Sustainability involves focusing on long term objectives of an organization. Global
Initiative Reporting is a sustainability reporting organization that recommends a common format
of corporate social responsibility among organizations. Sustainability reports makes disclosures
of social, economic, and environmental responsibilities of an organization. AGL’s sustainability
reports conform to GRI standards. The report is divided in to social, economic, and
environmental disclosures. The legitimacy and stakeholder theories explains the motivational
factors that influenced AGL to disclose its sustainability information. Legitimacy theory argues
that, the company does sustainability reporting to gain acceptance from the society. The
stakeholder theory on the other hand argues that, the company is made up of many stakeholders
who have to be informed concerning the activities of the organization.

SUSTAINABILITY REPORTING 3
Table of Contents Page
Executive summary.........................................................................................................................2
Introduction .....................................................................................................................................4
Question 1 Solution.........................................................................................................................5
Question 2 Solution.......................................................................................................................10
Question 3 Solution.......................................................................................................................12
Question 4 Solution.......................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

SUSTAINABILITY REPORTING 4
Introduction
AGL Energy Limited is an Australian energy company that operates one of the largest
electricity generation portfolio in the country. Among companies Listed in the Australian stock
exchange, AGL is the largest investor in renewable energy. Currently, the company has around
3.6 million customers having been in operation for more than 180 years (Agl, 2018). The energy
sector is a major industry that faces the risk of negative externalities. Negative externalities are
defined as costs incurred by third parties as a result of production activities.Companies should
therefore work towards achieving sustainability in their operations. Sustainability can be defined
as the practice of ensuring continuity by focusing on long term objectives (Kozlowski, Searcy, &
Bardecki, 2015). Focusing on sustainability ensures that organizations do not sacrifice the long
term impact of their operation for short term goals (Uyar, 2017). This research discusses
corporate social responsibility reporting practices of AGL Energy Company. The paper also goes
ahead to present descriptive analysis of sustainability practice in the organization and critique its
level of adherence to Global Initiative Reporting.
The world today is witnessing a paradigm shift in corporate strategies as competition
becomes tighter in business. Organizations are becoming customer-oriented and hence the need
to adopt a sustainability reporting culture that would promote society awareness on the social,
economic, and environmental impacts of companies (Maas, Schaltegger, & Crutzen, 2016). The
orientation of companies towards corporate social responsibility promotes management of
organizations’ social and environmental duties hence improving efficiency of operations and
conservation of natural resources. Firm stakeholders that include; employees, shareholders, and
local communities are interested in sustainability of organizations. Reporting makes information