Management and Environment Accounting Report 2022

Running head: MANAGEMENT AND ENVIRONMENT ACCOUNTING
MANAGEMENT AND ENVIRONMENT ACCOUNTING
Name of the Student:
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Author Note

1MANAGEMENT AND ENVIRONMENT ACCOUNTING
Table of Contents
Introduction...................................................................................................................2
Part A – Critical analysis of Westpac Group................................................................2
Environment and Social impacts of Westpac Group’s operations............................2
Comparison with other firm.......................................................................................3
Key Challenges in complying with GRI.....................................................................3
Benefits of GRI Reporting Standards complained report.........................................4
Part B – Strategic Initiative of Jerry Pty Limited...........................................................5
Balanced Scorecard..................................................................................................5
Break Even Point Analysis........................................................................................6
Conclusion....................................................................................................................6
References...................................................................................................................8

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Introduction
This report is prepped to analyse the environment accounting as well as the
management accounting of the firms. The main focus of the report is to analyse all
the related aspect of environment accounting as well as management accounting. In
the current time environment accounting is very necessary for the firm for the future
sustainability. While, the management accounting is required for the firm to be
operative in current competitive business world. Hence, this report mainly have two
parts, the first part of the report is critical analysis in which report analyse the
external report of Westpac Group to understand the impact of the organisation
operations in environment including the Global Reporting Initiative to understand the
various aspect of the environmental aspect reporting of the firm. While, the second
part of the report is mainly focus in the strategic initiative and it is prepared to
analyse the management accounting of Jerry Pty Limited. This analyse the firm’s
management accounting system of the firm by preparing and analysing the balance
scorecard.
Part A – Critical analysis of Westpac Group
Environment and Social impacts of Westpac Group’s operations
Westpac Group is one of the Australia’s oldest banking company as this one
of the oldest banking group of Australia. Not only that, this is also one out of four
major bank of Australia. Westpac is also one among the largest bank of New
Zealand. The main business of this group includes the various banking as well as
asset management services to the consumers, institutional and business groups.
This Group was founded in the year 1817 with having name Bank of New South
Wales and changed its name in 1982 and become Westpac Banking Corporation
(Westpac, 2019). The Group played the important role in the economy of Australia in
last 200 years. In the basis of the current environment policy report of the group, the
followings are the some important environment impacts of the firm’s operations: -
 The operations of firm negatively impact the environment as the firm
consumes high energy and paper. The uses of the energy and paper directly
affect the environment as energy is limited while the use of paper reduces the
numbers of trees.
 Secondly, the firm emission of the green – house gases by the firm during its
operations also directly impact the environment. As we all know that the
green – house gases are very harmful for our environment as well as the
peoples (Westpac, 2019).
 The investment made by the firm in the energy efficient technologies as well
as firm also tries to develop the system to recycle the materials positively
affect the environment, this not only saves the natural resources but also
save the environment from the harmful emissions.
As per the information provided by the firm in their official website, the followings
are social impact of the Westpac Group’s operations: -
 The firm is investing the leader of tomorrow, the firm positively affect the
society by providing the education, training as well as opportunities to the
people which helps them to achieve their aspirations (Westpac, 2019). In
simple words, the firm positively impact the social aspect by providing
employment to the peoples.

3MANAGEMENT AND ENVIRONMENT ACCOUNTING
 Secondly, firm also positively impact the society and their social responsibility
by providing the positive working environment to their employee. While, firm
ensures that this must be free from every issues like inequality and all.
 Another social impact of the firm’ operation is that the firm always plays a vital
role in the development of the small firm by providing them required financial
help.
Comparison with other firm
To compare the quality and depth of the social and environment information
provided by the Westpac Group, this report chooses the Common Wealth Bank of
Australia. In the basis of the environment and sustainability report of the both the firm
it can be said both are among the top banking group of Australia and both the firms
are highly concern with their social and environment aspects especially about the
impact of their business operations in the social and environment. Hence, both the
firm responsible disclose their operation related information mainly those which
impact the social and environment aspects. Not only that both firm takes several
initiative to save the environment from the negative impact of their operations and to
do welfare of the social by operating their business accordingly.
The comparing the report of both the firm it can be said that the various
information regarding the impact of the social and environment of their business
have several common information. Those are how both the firm manage direct
environment impacts within the group as well as the indirect environmental impacts.
Both the firm explains their initiative to minimize their negative impact in the
environment (Westpac, 2019). While, there are some differences in the reporting of
the information related to their impact like Westpac separately mention the future
plans of the firm to reduce the negative impact of its operations in the environment
while Common Wealth Bank of Australia does not report separately in their report
and includes this under the same heading of managing direct and indirect
environment impacts (Commbank, 2019).
While, if we talk about the information related to social impact of the firm’s
operation then Westpac Group reported this information in the reports as well as in
the website of the firm while the Common Wealth Bank of Australia does not
reported clearly in their reports. In this regard the information are more clearly
reported by the Westpac Group compare to the Common Wealth Bank of Australia.
By analysing the all the related reports published by both firm, it is ascertain
that Westpac Group report the more clear and quality information regarding the
social and environment impact of its operations compare to the Common Wealth
Bank of Australia.
Key Challenges in complying with GRI
Global Reporting Initiative (GRI) is the standard of reporting the sustainability
information of the firm since 1990s. This standard is rapidly adopted by the firm in
the current timer to report their sustainability. This one of the most trusted and
globally adopted framework for the sustainability reporting. This helps the firm by
various means not only the businesses but this also helps government and others.
The followings are the some key challenges usually faced by the firm while
adopting the GRI in their reporting standards: -

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 It is very difficult choice for the firm as it requires a huge commitment and
effort of the organisation as well as the firm also needs to make sure that
there must be a value in the process of reporting sustainability as per the GRI
(Vigneau, Humphreys & Moon, 2015).
 Adopting the GRI in the sustainability reporting means firm really seems to
work on their reported information not only for the keeping the record.
 The firm needs to revise all its existing policy and procedure to report the
information that is another challenge of adopting GRI.
 This can be make the firm think towards their environment and social apart
from the profit hence sometime few firms face issues in adopting the GRI for
reporting the sustainability.
 Lastly, the requirement of the GRI is vast, for which the firm needs to perform
various activities those activities consumes time as well as money which is
another issues with this reporting standards.
Benefits of GRI Reporting Standards complained report
The sustainability report prepared by the companies in compliances with the
Global Reporting Initiative is beneficial not only for the firm but also for the
stakeholders of the firm. A proper sustainability report prepared in the basis of the
GRI can benefits investors, shareholders and other stakeholders of the firm. The
followings are the some major benefits which the investors, shareholders or other
stakeholders of the firm: -
 Better Communication: - This report helps the investors, shareholders and
other stakeholders to under the risk management policy as well as the
activities of the firm in better way as well as this provides the better
communication platform to the stakeholders to communicate with the
company (del Mar Alonso-Almeida et al, 2015).
 Better relationship: - This sustainability reporting standards improve the
stakeholder’s engagement of the firm which establish strong and better
relationship between stakeholders and firm.
 Internal data management: - This system strengthen the internal data of the
firm so that investors or the shareholders can help in their decision making
process.
 Reveals sustainability strategy: - This report shows the sustainability
strategy of the firm which can guide the investors and other stakeholders to
make sound decisions related to their investment.
 Future planning of Firms: - This provide a brief idea to the stakeholders of
the firm about the future sustainability of the firm which help them to take
investment related decisions.
Apart from the above benefits, the sustainability report compliance with the GRI
helps in several other ways to the investors, stakeholders and other stakeholders.
This mainly shows the sustainability of the firm along with the firm policy and
planning regarding the future sustainability which provides the brief idea about the
sustainability of the firm (Maas, Schaltegger & Crutzen, 2016). This information helps
the stakeholders in making the several decision especially investment related
decisions.

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Part B – Strategic Initiative of Jerry Pty Limited
Balanced Scorecard
The Balanced Scorecard is used by the firm as a strategic planning as well as
the system of managing the activities of the firm. This is vastly use in communicating
the plans of the management in what they are focused and trying to achieve, to align
everyday work of the firm, to develop new product as well as services including the
monitoring of the firms performance (Akkermans & Van Oorschot, 2018).
The above Balanced Scorecard some major initiative of the firm in all the four
aspect those are Financial, Learning and Growth of the firm, Customers and Internal
Business Process. The financial aspect of the firm includes the two major needs of
the firm those are higher profit margin and reduce overhead expenses. It is very
important of all the firm to reduce the overhead expenses and focus in maximizing
the profit margin of the firm (Busco & Quattrone, 2015). As the profitability is very
important for every business to be operative. Hence, in the financial section the firm
needs to focus in maximizing the profit margin and reducing the overhead costs.
In the learning and growth aspect of the firm, they need to focus in learn and
develop the advance skills and knowledge to be competitive in the market. Further,
the skill and knowledge of the employees are also very important for the growth of
the firm (Hansen & Schaltegger, 2016). Hence, firm also needs to focus in the
growth and development of their employees.
Financial
 Higher Profit Margin
 Reduce Overhead Expenses
Learning and Growth
 Development of Skills and
Knowledge
 Employee Growth and
Turnover
Internal Business Process
 Cross – Sell Products
 Improving Operational
Efficiency
Customers
 Increasing Customer
Satisfaction
 Increase Customer Loyalty
Balance
Scorecard

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The other important aspect of every business is its customers. The growth
and development of the firm fully depends on their customers hence it become
important for the firm to focus in their customers. Firm can increase their customer
engagement by increasing the customer satisfaction and loyalty in their product and
services. Lastly, in respect of the internal business process, firm needs to focus in
their level of efficiency in their operation along with the cross – sale product.
Break Even Point Analysis
160 180 200 220 240
$-10,000.00
$-
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
$70,000.00
$80,000.00
Break Even Point
Revenue Fixed Cost Variable Cost
Total Expensess Profit
The Break Even Analysis is one of the important and reliable tool to assess
the desirability of pursuing the new initiative as this fully analyse the cost of the
product including the fixed and variable cost of production and accurately estimate
about the profitability of the initiate (Kampf, Majerčák & Švagr, 2016). Hence, this
help the management to make decision in the basis of the calculation.
Here, the initiative of the firm to produces new product will be beneficial for
the firm if firm is able to sale more than 200 products. As 200 unit is the break - even
point for the initiative in the basis of the resources available with the firm. Further,
firm also needs to minimize its cost of production to maximize the high profit margin
(Liu & Santos, 2015). However, as 200 units is the break – even point of the initiate
that means firm needs to sale at least 200 units to be safe from the loss as if firm
sales 200 units that means neither firm is suffering loss nor profit.
Conclusion
Lastly, the paper concludes that the Westpac Group of Australia mainly
negatively impact the environment while social impact of the firm is mainly positive.
While, comparing the quality and depth of information reported by Westpac in their
report with the quality of the information reported by the Common Wealth Bank of
Australia, it is noticed the quality of the Westpac is better than the Common Wealth
Bank. Further, the report analyse that the sustainability report of the firms with
compliance with the GRI is beneficial for the investors, stakeholders and other
stakeholders of the firm. While, the second part of the report states that the financial,
customers, internal process and learning and growth of a firm are the mainly

7MANAGEMENT AND ENVIRONMENT ACCOUNTING
important aspects and they need to focus to increase the efficiency in this areas for
which they can use balanced scorecard. Lastly, the report states that break – even
analysis one of the important tool for assessing the desirability of pursuing any new
initiative.

8MANAGEMENT AND ENVIRONMENT ACCOUNTING
References
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policy.pdf
del Mar Alonso-Almeida, M., Marimon, F., Casani, F., & Rodriguez-Pomeda, J.
(2015). Diffusion of sustainability reporting in universities: current situation
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Liu, J., & Santos, G. (2015). Decarbonizing the road transport sector: Break-even
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Maas, K., Schaltegger, S., & Crutzen, N. (2016). Integrating corporate sustainability
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Stacchezzini, R., Melloni, G., & Lai, A. (2016). Sustainability management and
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Vigneau, L., Humphreys, M., & Moon, J. (2015). How do firms comply with
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469-486.

9MANAGEMENT AND ENVIRONMENT ACCOUNTING
Westpac. (2019). Company overview | Westpac. Retrieved 22 September 2019, from
https://www.westpac.com.au/about-westpac/westpac-group/company-overview/
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https://www.westpac.com.au/docs/pdf/aw/EnvironmentalPolicy.pdf
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