Governance Ethics and Sustainability Assessment for Timberwell Constructions

This report assesses the sustainability of Timberwell Constructions, a real estate development company, based on the GRI reporting standards. It evaluates the economic, social, and environmental aspects of the company, including financial implications of climate change, incidents of corruption, legal actions, energy consumption, and impacts on biodiversity. The report aims to provide transparency and build trust among stakeholders and shareholders.

Running head: GOVERNANCE ETHICS AND SUSTAINABILITY ASESSMENT
GOVERNANCE ETHICS AND SUSTAINABILITY ASESSMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................5
Company Overview:........................................................................................................................6
The GRI Reporting Standards.........................................................................................................7
Disclosure 200: Disclosure of Economic Standards....................................................................7
Disclosure 201-2: “Financial implications and other risks and opportunities due to climate
change”....................................................................................................................................7
a. The financial implications of the risk or opportunity before action is taken....................8
b. The methods used to manage the risk or opportunity.......................................................8
c. The cost of actions to manage or mitigate the risks or opportunity..................................8
Disclosure 205-3: “Confirmed incidents of corruption and actions taken”.............................8
a. Total number and nature of confirmed incidents of corruptions......................................9
b. Total number of confirmed incidents in which employees were dismissed or disciplined
for corruption:..........................................................................................................................9
c. Total number of confirmed incidents when contracts with business partners were
terminated or not renewed due to violations related to corruption:.........................................9
d. Public legal cases regarding corruption brought against the organization or its
employees during the reporting period and the outcomes of such cases.................................9
Disclosure 206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly
practices.....................................................................................................................................10
a. Number of legal actions pending or completed during the reporting period regarding
anti-competitive behavior and violations of anti-trust and monopoly legislation in which the
organization has been identified as a participant:..................................................................10
b. Main outcomes of completed legal actions, including any decisions or judgments:......10
Disclosure of Environmental Standards: Disclosure 300..........................................................11
Energy consumption within the organization: Disclosure 302-1:.........................................11
a. Total fuel consumption within the organization from non-renewable sources in joules11
b. Total fuel consumption within the organization from renewable sources in joules:......11
c. Total electricity consumption in Joules..........................................................................11
d. Total energy consumption within the organization, in joules:.......................................12
Disclosure 304-2: Significant impacts of activities, products, and services on biodiversity....12
Disclosure 307-1: Non-compliance with environmental laws and regulations.....................13
Disclosure of Social Sustainability: Disclosure 400..................................................................13

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Disclosure 401-1: New employee hires and employee turnover...........................................13
Disclosure 406-1: Incidents of discrimination and corrective actions taken.........................14
Disclosure 413-1: Operations with local community engagement, impact assessments and
development programs...........................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................17
Bibliography..................................................................................................................................18

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Introduction
The Global Reporting Initiative or the GRI is one of the universally accepted framework
for corporate reporting. The reporting of any organisation is done on the basis of the
sustainability and GRI provides a basic guideline into the repotting of the company standards and
operations with respect to economic sustainability, social sustainability and environmental
sustainability. The GRI lays out a framework that discloses the various clauses and disclosures
regarding Economic Sustainability, Social Sustainability and Environmental Sustainability. The
GRI has laid out the guidelines that are to be followed if an organisation is willing to prepare the
report according to the GRI standards. The GRI is one of the most important reporting initiatives
and provides a framework that minutely regulates all the standards of governance and their
performance based on the attributes mentioned above.
This report will look into the attributes of sustainability of a fictional company
Timberwell Constructions and will create a report for the organisation by evaluating the scenario
of the company and will look into the Economic sustainability, The Social sustainability and the
Environmental Sustainability of the company. The GRI reporting initiative is done to present the
transparency of the company in terms of economic social and environmental and provides the
stakeholders and the shareholders with a report that is based on global standards allows for a
transparent reporting that ensures the trust on the organisation. The report has followed the GRI
manual and have framed the report in accordance with the GRI disclosures and evaluates the
sustainability of the company with respect to the Economic attributes of the company, with
respect to the Social attribute and the environmental sustainability of the company. This report
will be framed based on the Disclosures of 200, 300 and 400 series. The disclosures will include

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201-2, 205-3 and 206-1 with respect to the economic sustainability, the disclosures of 302-1,
304-2 and 307-1 will provide the reports with respect to the environmental sustainability and the
disclosures 401-1, 406-1 and 413-1 will report the social sustainability of the organisation. The
report will be framed in accordance with the GRI norms and will follow the guidance of the
manual accordingly.
The report is aimed to provide the stakeholders and the shareholders with an effective
report and provide a confidence building measures to ensure that the company has one of the best
practices that are to be followed. The report will ensure that the stakeholders should be addressed
with adequate information and the reports of the organisation.
Company Overview:
The Timber well constructions is a company that is involved in real-estate development
and develops residential projects in an around the Stanwell Council District. The Development
Company is involved in constructing residential projects and is currently building in the Stanwell
Council district. The company consists of 58 employees which are generally male from different
trades of construction. The company faces issues of employment and employee retention since
the market is highly competitive for these employees they had to employ 12 apprentices since 17
employees in their organisation had left owing to different issues. The company has tried to bring
about a change and has initiated a rostered day off in the monthly cycle and have also created
increment in the compensation structure.

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The GRI Reporting Standards
Disclosure 200: Disclosure of Economic Standards
This section of the report lays down the guidelines for the economic standards and the
evaluation of Timberwell Construction will be done according the standards mentioned here.
This report complies with all reporting requirements for the disclosure of 201-2, 205-3 and 206-1
Disclosure 201-2: “Financial implications and other risks and opportunities due to climate
change”
This disclosure requires the organisation to provide statements and evidences regarding the
impact of climate change and its financial implications within the organisation. This section
states the declarations with regards to the financial risks and opportunities due to climate change.
The GRI 201-2 includes the following disclosures:
1. Description of the risk or the opportunity and the classification of it in terms of physical,
regulatory or other attributes:
With this regard, Timberwell constructions have imminent risks from bush fires in the region
of their operation. One of the proposed sites is vulnerable to bush fire and this a risk due to
physical constraints of climate change.
2. The probable impacts associated with the risks or opportunities:
Timberwell constructions will need to match and maintain higher standards of safety and
implement them into practice. This would require up gradation and modification and would
have a huge financial impact in the organisation. Without these modifications the company is
exposed to risks and dangers of bush fires in the region.

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a. The financial implications of the risk or opportunity before action is taken: A sum
of 50,000.00 Australian Dollars have been fined by the Town planning organisation of
Stanwell District Council and the organisation have been asked to prepare and submit an
environmentally sustainable report plan for the designated project.
b. The methods used to manage the risk or opportunity: The Company has initiated
mitigation techniques and policies have been framed to adhere to guidelines of the
authority. The company has also consulted external firms to assess and formulate the
mitigation strategies of the company(Globalreporting.org 2018).
c. The cost of actions to manage or mitigate the risks or opportunity. The total
estimated cost to manage and mitigate the risks is expected to be approximately Four
Million Dollars which would adequately satisfy the requirements and comply with the
environmental sustainability clause.
Disclosure 205-3: “Confirmed incidents of corruption and actions taken”
In compliance with the 205-3 disclosure, Timberwell constructions is obliged to provide
adequate and correct information regarding cases and incidents of corruption in the organisation
and the following section will review the information provided by the Timberwell construction
accordingly(Globalreporting.org 2018).
a. Total number and nature of confirmed incidents of corruptions:
There have been no incidents of corruption or malpractices in the organisation.
Timberwell construction is however facing a public corruption scandal which is under
prosecution and the company will provide details one the prosecution is complete.

8GOVERNANCE ETHICS AND SUSTAINABILITY ASESSMENT
b. Total number of confirmed incidents in which employees were dismissed or
disciplined for corruption:
The Timberwell constructions claims that there had been no issues of dismissal of
employees due to disciplinary grounds or due to malpractices. The organisation claims
that there had been an issue where an employee has been accused and their benefits and
pay have been held till the prosecution.
c. Total number of confirmed incidents when contracts with business partners were
terminated or not renewed due to violations related to corruption:
The company report no incidents of corruption with any of the business partners.
However one case is involved where the contract with the external contractors have been
terminated due to accusations of corruption and malpractices. The contractors have been
relieved of duty(Globalreporting.org 2018).
d. Public legal cases regarding corruption brought against the organization or its
employees during the reporting period and the outcomes of such cases:
There is one allegation of corruption brought against the organisation where five of the
employees are accused to be involved of bribery and corruption. Two external contractors
are believed to be involved in the case. The pay and benefits of the employees have been
suspended till prosecution and the contracts with the external contractors have been
dismissed.

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Disclosure 206-1 Legal actions for anti-competitive behaviour, anti-trust, and
monopoly practices
The disclosure 206-1 relates to information regarding the legal actions with respect to anti-
competitive behaviour and, anti-trust and practices that promote monopoly. This section will
provide the information regarding Timberwell’s legal issues (Globalreporting.org 2018).
a. Number of legal actions pending or completed during the reporting period
regarding anti-competitive behavior and violations of anti-trust and monopoly
legislation in which the organization has been identified as a participant:
One instance of a legal case regarding promoting of monopoly and anti-competitive and anti-
trust behavior has been reported. The organization has been alleged to have been engaged in
activities that create conflict among suppliers, stakeholders and it has been accused that the
company has threatened to end contracts with suppliers and contractors if they were engaged
with other competing firms in the area where the project is being carried out. The case has been
listed by the ACCC or the Australian Competition and Consumer Commission with the Federal
Court which is supposed to hear in the next four months (Globalreporting.org 2018).
b. Main outcomes of completed legal actions, including any decisions or judgments:
The case has been listed and the hearing is due. The complete result of the hearing is supposed to
be delivered in four months’ time.
Disclosure of Environmental Standards: Disclosure 300
This section complies with the Environmental Standards of the GRI and information regarding
the Environmental standards will be provided in this section.

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Energy consumption within the organization: Disclosure 302-1:
All information regarding energy consumption, usage and compliance to energy consumption
will be reported in this section of the report (Globalreporting.org 2018).
a. Total fuel consumption within the organization from non-renewable sources in
joules:
The total consumption of fuel from non-renewable resources is evaluated to be 1.0
Gigajoules per annum. The Timberwell construction consumes a major portion of its energy
from non-renewable resources.
The total fuel consumption from non-renewable resources by Timberwell Constructions amounts
to 1.0 Gigajoules per annum.
b. Total fuel consumption within the organization from renewable sources in joules:
The total fuel consumption of Timberwell Construction from Renewable or cleaner resources is
calculated to be 0.5 Gigajoules per annum.
c. Total electricity consumption in Joules:
The annual electricity consumption of Timberwell Construction is estimated to be 2.0 Giga
Joules and is considerable share of the energy that is used by the company.
d. Total energy consumption within the organization, in joules:
The annual consumption of energy in the organisation is estimated to be 3.5 Gigajoules and is
also a considerate amount of the company energy consumption.

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The organisation commits to reduce its energy consumption from non-renewable resources and
increase the share of energy form renewable sources by atleast 50% by the next financial year.
The Organisations claims them to be a responsible organisation that commits to cleaner and
greener energy consumption (Globalreporting.org 2018).
Disclosure 304-2: Significant impacts of activities, products, and services on
biodiversity
The section will discuss about the compliance of the organisation with respect to the impacts of
the products, services and activities of the organisation.
a. Nature of significant direct and indirect impacts on biodiversity:
The activities of the organisation has created impacts in the environment and has affected the
biodiversity of the region. The activities have also reduced the amount of species and bio habitat
in the site of the construction. The activities and their impacts are listed below:
 Destruction and clearing of coastal grassland of approximately 0.45 hectares which are
critically endangered.
 Habitat reduction and conversion of the Wallum Sedge frogs at Otford Park Development
site which is one of the major projects of the Timberwell constructions.
To comply with the environmental sustainability standards and obligations, Timberwell
Constructions is obliged to restore the grassland which is estimated to cost Timberwell
Constructions a total of $ 440,000.00. The company has also framed an Environmental Impact
Assessment project to act on the habitat restoration of the Wallum Sedge Frogs.

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Disclosure 307-1: Non-compliance with environmental laws and regulations
The organisation will report all information related to noncompliance of environmental rules and
regulations. The section will also include the financial costs that have been imposed upon the
company due to noncompliance with the environmental laws of the company. The company has
been imposed with fines and charges for noncompliance and these will be reported in this section
of the report (Globalreporting.org 2018).
a. Total monetary value of significant fines:
Timberwell constructions have been slapped with a fine of $200,000.00 Australian Dollars due
to the reduction of coastal grassland which has been an endangered. In addition to this the
Company has been asked to initiate a rehabilitate programme in accordance with the Local
Environmental Plan which would cost the organisation approximately $440,000.00 Australian
dollars. The total amount of compensation including fines and the rehabilitation project would
cost the company a total of 640,000 Australian Dollars.
Disclosure of Social Sustainability: Disclosure 400
The Social Sustainability of Timberwell Constructions will be reported in this section which
involves information regarding the employee hiring, turnover and retention rates. The disclosures
will discuss in detail about the clauses of 401-1, 406-1 and 413-1.
New employee hires and employee turnover: Disclosure 401-1
As per the company reports, Timberwell Constructions currently has a strength of 58 employees
and are only male. The company have recently faced attrition and 17 employees have left the
company and the employee is now in a position to hire 12 new apprentices. The turnover rate is
calculated to be 29% which have been on grounds of better alternatives and job satisfaction. The

13GOVERNANCE ETHICS AND SUSTAINABILITY ASESSMENT
company is looking forward to address the issues of turnover and have brought some changes
into the employee policies to retain their employees (Globalreporting.org 2018).
Disclosure 406-1: Incidents of discrimination and corrective actions taken
There had been incidents of discrimination and employee attrition has occurred due to such
incidents. The section will report the number of incidents and the corrective actions taken by the
organisation.
a. Total number of incidents of discrimination during the reporting period:
The has been a case of discrimination in the company and one case has been registered by an
employee who have resigned on the grounds of discrimination received from co-workers on
grounds of age. He was the only employee over the age of 50.
b. Status of the incidents and actions taken
The company in order to take action against the incident have compiled as per the norms of the
Fair work Commission, Australia and has compensated the employee with sum of 4,400
Australian Dollars. The company has now committed to review the work culture and bring in
policies that do not allow discrimination on any grounds. The company is dedicate bring
employee friendly policies in the future to adhere to standards of the Fair Works Commission
Australia (Globalreporting.org 2018).
Disclosure 413-1: Operations with local community engagement, impact assessments and
development programs.
The organisation has taken adequate care to engage in activities that include local communities,
in assessments of environmental impacts and taking adequate actions to compensate the damages
that have been done. The initiative of the rehabilitation programme as per the LEP and the

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actions to restore the habitat of the flora are some of the activities that the organisation has
engaged itself in. the company has committed to invest in cleaner sources of fuel and reduce the
impact on the impact of non-renewable resources by consuming energy from responsible
sources.
Conclusion
The GRI is one of the major reporting standards and the Timberwell Constructions GRI reporting
gives an idea about the initiatives and the current scenario of the company with respect to the
Social, Economic and Environmental sustainability. This Reporting allows the stakeholders and
the consumers to get informed about the responsibility, obligation and the stand of the
organisation that include the interests of the environment and the stakeholders.

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References
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