Environmental Accounting and Corporate Sustainability: A Study of Niko Resource Ltd and Rio Tinto

This report discusses the environmental accounting and accountability of Niko Resource Ltd and Rio Tinto. It includes an article review of Niko's environmental disclosure initiatives and a sustainability report of Rio Tinto. The report also covers the strategies, reporting approach, and contribution of Rio Tinto towards sustainable development.

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Contents
Part 1................................................................................................................................................2
Introduction..................................................................................................................................2
Article review..............................................................................................................................2
Conclusion...................................................................................................................................5
Part 2................................................................................................................................................6
Sustainability report of Rio Tinto................................................................................................6
Contribution of Rio Tinto............................................................................................................6
Rio Tinto Strategies.....................................................................................................................7
Sustainability Framework............................................................................................................8
Reporting approach......................................................................................................................9
References......................................................................................................................................10

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Part 1
Introduction
The aim is to conduct the investigation about the practice of the company due to the social as
well as the environmental influences that can affect the working. The research is carried out
related to the environmental accounting and accountability of the literature. These include the
strengths as well as weakness of the research that are discussed in literature.
Article review
Environmental incidents in a developing country and corporate environmental disclosures
The research is conducted to evaluate the environmental disclosure initiatives of Niko resource
ltd company that is Canada based international oil as well as Gas Company. Niko Company is
involved in the two main environmental blowouts at a gas arena in Bangladesh in the year 2005.
The research is majorly conducted in order to analyse the involvement of the Niko’s disclosure
approach with the community concern that are affecting to the blowouts (Azizul Islam & Aminul
Islam, 2011). Niko’s environmental incident is majorly the reviewed by the researcher with the
help of the communication media, annual reports or any kind of the press release as well as the
social responsibility report for 2004-2007. The results of the research conducted shows that Niko
Company did not reflected nay kind of the non-financial environmental data in the yearly report
or any kind of the communication that shows the negative side of the company. Although, it has
been found that there is no negligence regarding aspects of the financial element as the
disclosure of the contingent liability of the corporation in the annual report. The overall

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behaviour of the corporation is witnessed with the help of the research conducted as well this has
been found that there is need of the clear and transparent disclosure (Kirsch, 2010).
Corporate governance and environmental reporting: an Australian study
The purpose of study is to conduct investigate the relationship that exist among the
environmental reporting as well as the corporate governance attributes of the organisation in the
market of Australia. The researcher has included the view of both the regulators as well as the
company strategists, in which the regulators present in the market are Australian Stock Exchange
(ASX) so that they can control the company’s operations towards the corporate governance and
environmental reporting (Kathy Rao, Tilt & Lester, 2012). Presently, the regulators generally
extend the guidelines that mainly include the consideration of the environment. It has been found
that the companies include the commitment towards the environment in their mission as well as
in the strategies. Thus, it recommended to the consider the effect of the board structure as well as
the composition which is essential as both shows the significant influence on the information
related to the environment that is disclosed by the companies (Ioannou & Serafeim, 2017). The
results of the research reflect that there is positive relationship among the degree of the
environmental reporting and independent as well as the female managements on a board. The
major weakness of the research shows that this study does not supports any particular company
but it talks about the general aspects.
Corporate accountability in the Samarco chemical sludge disaster
In the dynamic environment, the businesses that are in extractive sectors frequently risk that their
actions might main to the tragedies. In the research, the author discover the opportunities of the
business responsibility in tragedies making use of the Samarco Chemical sludge disaster as a

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case study that took place in the year 2015. The study takes the consideration for the normative
values moderately unknown to the disaster community that might benefit in order to increase the
interest on them as well as it lead to the rise in the possible usage of the upcoming disaster
circumstances (Mayes, Pini & McDonald, 2013). The communities as well as the organisation
are dealing with the different challenges relate to MNEs that affect the human rights and
environment in negative manner. The key results of the research include the major measures that
ate taken by national authorities to acknowledge disasters. Further, it has been found that
Organization for Economic Cooperation and Development Guidelines for multinational
companies that makes them to opt for the corporate accountability.
Corporate social responsibility and the parameters of dialogue with vulnerable others
In the research, it include the case study relayed to the company dialogue with the different
vulnerable others. This dialogue with relegated outside groups is rising accessible in the writings
of the business as the key of creation the CSR probable in the specific through the business
teaching (da Costa, 2017). This article include the appraisal of the potentials for and
circumstances that are supporting corporate dialogue along with the marginalized stakeholders
that might take place across the unexpected as well as sudden closure in the month of January
2009 of the AU$2.2 billion BHP Billiton Ravensthorpe Nickel mine in rural Western Australia.
The communication by the corporate emphasis on promoting and conducting the discussion
about the different concepts based on responsibility (Henderson, Peirson, Herbohn, & Howieson,
2015). This study is conducted by the researcher in order to suggest the critical understanding as
well as the declaration, which is related to the corporate dialogues and vulnerable people.
Corporate Social Responsibilities: Alternative Perspectives About the Need to Legislate

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This article research is all about the evaluation of proposals to a 2005/06 Australian Government
Inquiry into Corporate Social Responsibility. The motive of foundation of the inquiry is to
evaluate that they should regulate the CSR and accountability or this should be left by identifiers
of market forces. The results of the articles shows the business community devastating help an
anti-regulation method whereby the corporation of the company left with the flexibility in order
to identify their social accountability as well as the responsibilities that should be remained as
supervisory instrument for social responsibility advantages (Deegan & Shelly, 2014). This has
been found that ultimately the government is embraced with the free market perspectives that is
encourage by the communities of the business and take steps in against of the national legislation
that affect CSR.
Environmentally sustainable mining: The case of tailings storage facilities
The research is conducted in order to acknowledge the question when the mining of the company
can be done in the way so that it contain as well as remediates the impact of the environmental as
well as it safeguards the livelihoods of the population that remains local. It reflects that most of
the disasters related to the mining are emphasized on the tailings storage facilities (TSF)
(Schoenberger, 2016). The research majorly evaluates the two or more mines in order to funds
the reason behind the disaster factors. It has been found that major causes of the TSF failure
include the technical as well as the political factors.
Conclusion
In the end of the report, it has been found that CSR continues in a manner so that they can put the
elementary emphasis on the particular considerations of the shareholders. The concept of the

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wealth maximization of the shareholders that makes the corporation to identify and realise that a
much larger sector are contributor of social welfare.
Part 2
Sustainability report of Rio Tinto
The sustainable development reports form the portion of the Rio Tinto’s annual corporate
reporting suit. The report of the company reflects the examples of the contribution of the
company in the sustainable development through the lifecycle of the operations of the
corporation. The business is committed to operate the commercial responsibility with the respect
for the safety as well as the health of employees as well as the communities and the risks as well
as the responsibility of the business locally and in global market. In the year 2017, the
sustainability committee has continues control the major sustainability risk that are majorly faced
by the Rio Tinto company (Rio Tinto, 2017).
According to the committee, they have greeted the Rio Tinto’s freshly expressed purposed and
refreshed the values and firm’s promise to the sustainable development. The committee
contribute effectively in offering the lens for all the Rio Tinto people and they ensure that
company is performing their business operations with full responsibility. The company says that
as the leading international mining as well as the metal group the company plays a dynamic role
in order to play in supporting to form the confident influence for advantage of numerous that
include their people, communities, government, suppliers, and many others (Fonseca, McAllister
& Fitzpatrick, 2014). The aim of the Rio Tinto is to work with those who contribute in reducing
the adverse influences and to portion wealth and benefits of the corporate.

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Contribution of Rio Tinto
Rio Tinto contributes effectively to the sustainable development that is interlinked with all the
commercial results. The company support the business strategy of offering the superior values
for the shareholder through the business life cycle and this is the reason due to which the
strategic focus of the company is on the portfolio, people, as well as the partners (Fonseca,
McAllister & Fitzpatrick, 2014). The company needs to contribute effective in the sustainable
practice because it has been found that the Rio Tinto’s business cycle majorly include
exploration, development, operations, as well as the closure of the assets.
Rio Tinto Strategies
The strategies that are majorly followed by the company are based on the concept of the large-
scale operations as well as the owning concepts. It has been found that the lifelong upstream is
based upon the assets that can easily be diversified for particular of the supplies that are majorly
based on the geographically location positioning. Rio Tinto major focus is on offering and
prioritising safety and health for the people as well as for the community (Rio Tinto, 2017). This
might include the issue because it is essential for the company to give the equal importance to
the government and other stakeholders of the company. The sustainability committee majorly
overseas on the behalf of the board, the process of management processes as well as the policies
that are major intended to achieve the safety, health, security, environment and many other
factors. The area of focus includes:
 Monitor the management that makes the behaviour, systems as well as the processes that
are essential by the policies as well as standards within its scope.
 Review the targets related to the sustainability and metrics that is used to analyse the
practices because this help in evaluating the issues in the practice of sustainability.

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 Ensure the local as well as the global sustainability (Martínez‐Ferrero, Garcia‐Sanchez &
Cuadrado‐Ballesteros, 2015).
The strategy of the Rio Tinto has evolved from years and to incorporate the prevention as well as
the early intervention there is need to be more proactive in order to form the resilience. It has
been found that the five pillars of the Rio Tinto well-being approach include:
 Personnel awareness
 Leader consciousness
 Positive mental health
 Peer support
 Systematic and non-stop valuation of our workplaces
Sustainability Framework
The sustainability framework is majorly considered as the concept of the development of the
company. It has been found that the only as well as the fundamental needs of the company leads
to the prosperity of the company. It has been found that it is believed that achieving the zero
safety as the health fatalities talks about the safety as well as the health that are preventable. The
approach of the company is to eliminate the disability injury as well as the fatalities, ignoring the
major hazard risks, occupation illness as well as injury and many others (Rio Tinto, 2017). The
major issues are met along with the goals of sustainability of development include:
 Employment
 Environmental issues
 Capacity, health as well as the social inclusion
 Critical risk management (CRM)

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 Issues in managing the long-term health impact
It has been found hat Rio Tinto Company receipts the long-term method to bring the strategy
expansion. The company consider the change in climate as well as the future energy scenarios
for the positioning of business that is required for long-term commitment of the stakeholders
(Fonseca, McAllister & Fitzpatrick, 2014). Most of strategies of company have been advanced
with the old-style vendors to confirm sites that are accomplished in the socially appropriate way.
Reporting approach
Rio Tinto sustainability report get aligns with the council of the international metals and mining
sustainable development framework (Fonseca, McAllister & Fitzpatrick, 2014). It is majorly
prepared in abiding to all the company policies as well the appropriate actions for the regulation
cited majorly in the Global Reporting Initiatives Standards. GRI is a one of the international
independent organisation that is majorly formed as a framework as well as the values for the
sustainability reporting (Rio Tinto, 2017). It has been found that the Rio Tinto’s Group-level
sustainable development report is formed by considering the GRI standards (core options) as
well as the GRI mining as well as the metals sector supplement.

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References
Azizul Islam, M., & Aminul Islam, M. (2011). Environmental incidents in a developing country
and corporate environmental disclosures: A study of a multinational gas
company. Society and Business Review, 6(3), 229-248.
da Costa, K. (2017). Corporate accountability in the Samarco chemical sludge disaster. Disaster
Prevention and Management, 26(5), 540-552.
Deegan, C., & Shelly, M. (2014). Corporate social responsibilities: Alternative perspectives
about the need to legislate. Journal of Business Ethics, 121(4), 499-526.
Fonseca, A., McAllister, M. L., & Fitzpatrick, P. (2014). Sustainability reporting among mining
corporations: a constructive critique of the GRI approach. Journal of cleaner
production, 84, 70-83.
Henderson, S., Peirson, G., Herbohn, K., & Howieson, B. (2015). Issues in financial accounting.
Pearson Higher Education AU.
Ioannou, I., & Serafeim, G. (2017). The consequences of mandatory corporate sustainability
reporting. Harvard Business School research working paper, (11-100).
Kathy Rao, K., Tilt, C. A., & Lester, L. H. (2012). Corporate governance and environmental
reporting: an Australian study. Corporate Governance: The international journal of
business in society, 12(2), 143-163.
Kirsch, S. (2010). Sustainable mining. Dialectical anthropology, 34(1), 87-93.

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Kogel, J. E., Trivedi, N., & Herpfer, M. A. (2014). Measuring sustainable development in
industrial minerals mining. International Journal of Mining and Mineral
Engineering, 5(1), 4-18.
Lozano, R. (2015). A holistic perspective on corporate sustainability drivers. Corporate Social
Responsibility and Environmental Management, 22(1), 32-44.
Martínez‐Ferrero, J., Garcia‐Sanchez, I. M., & Cuadrado‐Ballesteros, B. (2015). Effect of
financial reporting quality on sustainability information disclosure. Corporate Social
Responsibility and Environmental Management, 22(1), 45-64.
Mayes, R., Pini, B., & McDonald, P. (2013). Corporate social responsibility and the parameters
of dialogue with vulnerable others. Organization, 20(6), 840-859.
Rio Tinto. (2017). 2017 Sustainable development report. Retrieved from:
http://www.riotinto.com/documents/RT_SD2017.pdf
Schoenberger, E. (2016). Environmentally sustainable mining: The case of tailings storage
facilities. Resources Policy, 49, 119-128.