Policy and Planning for Sustainable Development

This document discusses the policy and planning for sustainable development, focusing on the Commonwealth Bank of Australia (CAB). It explores the need for sustainability strategy, the development of CAB's sustainability strategy, the benefits for stakeholders, and the draft of CAB's sustainability policy. The document also discusses the actions CAB will undertake to execute the sustainability strategy and the tool by which CAB will measure sustainability strategy achievements.

Running head: POLICY AND PLANNING FOR SUSTAINABLE DEVELOPMENT
POLICY AND PLANNING FOR SUSTAINABLE DEVELOPMENT
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Table of Contents
Introduction......................................................................................................................................3
Business Operations of Commonwealth Bank of Australia........................................................3
Discussion........................................................................................................................................3
Commonwealth Bank of Australia’s need for sustainability strategy.........................................3
Sustainability strategy development of CAB..............................................................................5
CAB Stakeholders’ Benefits in Sustainability Strategy Initiatives.............................................6
Draft of Sustainability policy of Commonwealth Bank of Australia..........................................7
Actions CAB will undertake to execute the sustainability strategy............................................9
Tool by which CAB will measure sustainability strategy achievements..................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
Business Operations of Commonwealth Bank of Australia
Commonwealth Bank of Australia (CAB) is recognized as leading the sector in IT as well
as operations due to its supreme platforms and processes, agile IT infrastructure and innovation
in everything from consumer payments to internet banking and mobile applications
(Commbank.com.au 2019). According to Klettner, Clarke and Boersma (2014), the CAB
efficiently implements sustainability policies and practices through revised group environment
policy, improved funded carbon emissions disclosure, new human rights position statement,
embedded strategy to accountable lending and New Wealth Management Responsible Investing
Framework. Commonwealth Bank recently has announced improved and updated environmental,
social as well as governance (ESG) policies and practices which aid their initiatives of creating a
positive impact through the way in which they execute their business. The vital part of CAB’s
business operations is to comprehensively and consistently studying the lending and investment
decisions in order to realize and evaluate environmental as well as social impacts.
Discussion
Commonwealth Bank of Australia’s need for sustainability strategy
Australian banking industry holds an exclusive position in relation to sustainable
development due to their intermediation purpose between depositors and borrowers. Authors
have claimed that sustainability has been receiving substantial attention as fundamental to the
development of emerging market financial systems (Booth and Whelan 2014). For the Australian
banking sector, such a development signifies increasing demand for superior or better social and

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environmental responsibility and also a new landscape of business prospects. In recent times,
banks in Australia such as CAB have initiated to identify the foremost impact of the sustainable
development over the way of unknown development of the society along with the implicitly over
the procedure of creating the banking value in the upcoming days. At this juncture, to attain
sustainable strategy CAB can adopt digital technology (Islam, Jain and Thomson, 2016).
Digital technology has been preserving utmost dedication for creating accessibility,
affordability and sustainability for financial services in Australia (Islam, Jain and Thomson
2016). CAB can implement digital technology in order to improve efficiency along with reduced
expenses in order to put forward affordable services. Furthermore, artificial intelligence deals
with millions of requests as well as queries from online shoppers on a daily basis, whilst cloud
computing has the capacity to process over 100,000 transactions per second (Klettner, Clarke
and Boersma 2014). On the other hand, CAB can focus on involving youths to its sustainable
strategy development. It is imperative to note that amongst 3.5 billion young people who
comprise around half of the world’s population currently acquire traits for instance idealism and
inventiveness which are well aligned for developing solutions to combat SDG-related challenges.
CAB to successfully implement sustainable strategies comprises of Group Environment
Policy since 2001 that has been revised to realize global initiatives to restrain global warming to
two degrees Celsius along with the need to transition from customary financial models to
reduced carbon as well as renewable options (McGuirk, Dowling and Bulkeley 2014). Through
the restructured policy CAB will be able to articulate its dedication to maintain the transition to a
low carbon economy and established on company’s current commitments to decrease its direct
environmental impacts and further implement inclusive environmental risk management
frameworks to CAB’s lending and investing decisions.

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Sustainability strategy development of CAB
Sustainability is enhancing boardroom conversations and driving financial organizations
to perceive and function in newly developed ways. However, CAB while creating sustainable
strategy must focus on undertaking actions of implementing specific sustainable strategies which
maintain socially and environmentally responsibility while driving its growth.
Evaluate Stakeholders- CAB must categorize the groups which show tendency of being
influenced by CAB’s business activities directly or indirectly. Additionally, CAB must extend its
strategies to adopt non-traditional stakeholders that will involve future generations. McKinnon et
al. (2015) have noted that it is essential for banks to use a broad perspective in order to consider
the social as well as environmental impact of CAB’s product, services and processes.
Establish Objectives- Incorporation of stakeholder expectations is highly essential for a broad
policy statement which will express a sustainability mission as well as align with specific
objectives socially and environmentally responsibility for each function or unit of the
organization. Reports of Hanlon (2017) have claimed that leading Australian banks such as ANZ
and Westpac Bank have efficiently taken into consideration certain external influences related to
industry standards, technological capacities, legislation, particular interest group concerns as
well as rival strategy. These organizations have evaluated their current business practices with
their competitors in order to ensure that they contribute dimension do not conflict with overall
strategy.
Structure Plan- Leading financial organizations have structurally translated the policy statement
as well as objectives into an operational plan. Kaye and Hawkins(2014) have noted that it is

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highly vital for CAB at this juncture to rethink every aspect of the organization and determine
which systems and processes will require modifications.
CAB Stakeholders’ Benefits in Sustainability Strategy Initiatives
CAB in order to meet their 2014 mission of providing utmost transparency on the indirect
impacts of company’s financial lending have recently disclosed the carbon emissions arising
from its business lending portfolio. Authors have noted that these inclusive insights along with
detailed diagnostics will provide the Commonwealth Bank of Australia with a robust quantitative
foundation in order to distinguish and act on key prospects in order to improve the carbon
performance over time (Manca et al. 2014). There can be observed certain benefits from the
regulators, corporations and international experts’ end due to CAB’s investments in sustainable
banking activities.
In addition to this, with the mounting knowledge regarding sustainability concerns, banks
are attaining developed and enhanced brand value because of their significant contribution to
sustainable banking initiatives. Likewise, CAB planned sustainable strategy of reducing
expenses have been identified as a common development from sustainability which will
significantly be aligned to CAB’s sustainable alignment with its initiatives in energy, climate
change and green facilities (Commbank.com.au 2019). As a result, customers will have the
opportunity to received Growth new products and services which will result to the growth of
CAB’s sustainable efforts.
With CAB due to their planned sustainable strategies will be able to have accessibility to
new geographic markets. Thus with progressed financial inclusion of CAB with its extended
customer reach through investments in internet and digital platforms in addition to the institution

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of physical banking branches in remote areas, customers will be able to receive CAB’s services
at their convenience.
In addition to this, CAB with its aim to integrate sustainability values and principles into
their corporate strategy funding decisions in addition to product or service characterization
procedures, has been highly decisive in advocating as well as promoting environmentally in
addition to socially responsible developments, strategies and enterprises. It is important to note
that women customers of CAB has been benefitting from the innovative products and services
and also has been sustaining the interests of investors with its introduction of green products or
green credit cards) which has successfully aligned to the advocacy of sustainable practices of
CAB (Commbank.com.au 2019).
Draft of Sustainability policy of Commonwealth Bank of Australia
We, the Commonwealth Bank of Australia have strong record in sustainability record in
sustainability. In several ways sustainability has development as a significant part of the
procedures through which we have been executing our business (McGuir, Dowling and Bulkeley
2014). However, at times when we perceive our environment, we can identify several issues
which we have comprehensively stated in our early sustainability reports. Despite the fact that
we are have been aiming to continue with the initiatives we have been rapid in restructuring our
sustainability strategies for instance, sustainable sourcing practices along with liable lending as
well as investment policies, we have been strategically increasing our initiatives on the rising
societal issues where we have exceptional skills and competence to bring about meaningful
change (Commbank.com.au 2019).

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With our initial focus to improve participation to magnetize extensive range of customers
and talented employees through sustainable practices we will:
Ensuring our employees to be representative of the community:
At this juncture, with overall employee participation considerably high, we at CAB
require to recognize and encourage participation between groups who are underrepresented in the
workplace (McGuirk, Dowling and Bulkeley 2014).
With these strategies in mind, we aim to shed light on:
 Raising the involvement and attaining capacity of groups who are positioned at the
underrepresented of the company through career access, progress as well as flexible work
practices.
 Support the financial and extensive benefits and interests of women over the age of 40
years across all the levels of the company.
 Promote the efficiency reimbursements for Australia comprising of a diverse as well as
representative employee base.
Provide solutions which will aid customers acclimatize to environmental challenges
We have realized that our customers will require access to advanced and innovative
products and services which will aid them to act responsive to the demands of increasing
environmental challenges (Islam, Jain and Thomson 2016).
 We, at the CAB will launch one product or service every year in order to help our retail
clients attain environmental concerns.
Reduce our environmental footprint:

8POLICY AND PLANNING FOR SUSTAINABLE DEVELOPMENT
We, at CAB will continue to serve our part in decreasing the environment effects of our
own business operations. We have lessened our rate of emissions by more than 35% between
2012 and 2016. We have further aimed to reduce by over 25%. Furthermore, while CAB has
attained significant pace in lessening our footprint, there can be witnessed several avenues which
can be attained by us through efficient sustainable practices (Klettner, Clarke and Boersma
2014).
We will be aiming to reduce our environmental impact by
 Move eight of CAB’s Sydney locations to Barangaroo, which has been recognized as
Australia’s primary significant carbon neutral community.
 In addition to this, we will be lessening our company’s electricity utilization for retail as
well as commercial sites by around 15% per square metre.
 Furthermore, we have been aiming to create our personal data centres and develop its
efficiency by focusing on a power usage effectiveness ratio (PUE) of 1.6.
 Additionally, we will decrease our utilization of office paper by 5%.
Actions CAB will undertake to execute the sustainability strategy
(2-3 years)
Evaluate Opportunities and risks
CAB to understand its pace of sustainable strategy must conduct extensive evaluation on
market observations and avenues and also assess actions of its competitors aiming for sustainable
development (Cohen 2018). It is crucial for a financing organization like CAB to identify
procedures through which it can progress towards the idea and strategies of sustainability. At this

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stage, any organization must identify areas which can have the propensity to impede its business
value and purposes.
Identifying correct position of Policy Implementation
Efficiently creating correct position of Policy Implementation primarily characterize that
CAB needs proper sourcing in its business for planning sustainable policy. As a result, the
organization should establish value and review for all its stakeholders. By efficiently undertaking
this action, financial organizations like CAB it will be able to form an efficient operating strategy
concerned with sustainable development.
Setting up Sustainable Strategy (4-5 years)
The aim of long term sustainable strategy, CAB must establish overall strategic
framework to put together value and significance for its business and stakeholders. It is highly
crucial for financial organization like CAB to make its operation diagonal in order to align with
the company’s structure (Kaye and Hawkins 2014). Furthermore, performing auxiliary analysis
is also vital for maintaining its growth and advance.
Tool by which CAB will measure sustainability strategy achievements
Screening Evaluation
The screening approach would efficiently determine implications of undertaking the
Sustainability Assessment and Management approach. Bray et al. (2017) have noted that if it is
determined that this process will be implemented, the screening tool will aim to offer certain
degree of direction on the suitable analytical tools to pertain and on the suitable extent of depth
in addition to aspect of analysis considered necessary.

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Conclusion
CAB is of the principle that establishing sustainable policy will facilitate CAB to in
efficiently consolidating on these achievements and further guarantee uninterrupted realization of
the benefits which the planned strategies will bring. The company has been highly dedicated in
supporting sustainable banking standards and principles to influence economic, ecological and
social indicators and further encourage the sustainable development of Australia.

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