Social Environmental and Governance Analysis of Commonwealth Bank of Australia

Running head: SOCIAL ENVIRONMENTAL AND GOVERNANCE ANALYSIS
SOCIAL ENVIRONMENTAL AND GOVERNANCE ANALYSIS
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SOCIAL ENVIRONMENTAL AND GOVERNANCE ANALYSIS1
Executive Summary
The Australian Commonwealth Bank, being a leading multinational bank, has certain
responsibilities towards the global community. Several environmental, social and corporate
governance practices have been adopted by the organization to ensure an adherence to global
environmental and governance oriented laws. The significant objective of this report is to
analyze the sustainability report presented by the organization and infer its policies and
measurement indicators. Moreover, the report also analyzes the organization’s compliance
with the Global Reporting Initiative. An evaluation of the sustainability report also presents
how the ESG practices align with the strategies of the organization. In conclusion, it has been
mentioned how the Commonwealth Bank of Australia aims at building sustainable
relationship with its stakeholders.

SOCIAL ENVIRONMENTAL AND GOVERNANCE ANALYSIS2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Social and Environmental performance.................................................................................3
Strategies, policies and guidelines.....................................................................................3
Reasons for adopting social and environmental practices.................................................4
Measurement indicators and Performance criteria.............................................................4
Global Reporting Initiative....................................................................................................5
Corporate Governance Framework........................................................................................5
Aspects of Corporate Governance in Commonwealth Bank Australia..................................7
Policies and guidelines.......................................................................................................7
Reasons for adoption of Corporate Governance................................................................8
Measurement indicators and Disclosure Information........................................................8
Strategies compliance with ESG practices.............................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

SOCIAL ENVIRONMENTAL AND GOVERNANCE ANALYSIS3
Introduction
An analysis of the social, environmental and corporate governance strategies adopted
by an organization is essential to the evaluation of their efficient operation. These criteria,
collectively called the Environmental, Social and Governance (ESG) forms the standard
according to which socially conscious investors may choose to identify potential investments
in the organization (Lokuwaduge & Heenetigala, 2017). The social aspect determines how
the organization tackles its relationships with employees, customers, suppliers and the
community at large. The environmental aspect determines the steps taken by the organization
towards environmental sustainability. The corporate governance aspect deals with
organizational leadership, shareholder rights and others (Tricker & Tricker, 2015). This
report will provide an analysis of the social, environmental and corporate governance report
of the selected organization, Commonwealth Bank of Australia.
Discussion
The Commonwealth Bank of Australia, being a multinational bank, provides various
services like retail business, funds management, superannuation, institutional banking,
insurance and broking services across Asia, United Kingdom, New Zealand and United States
(Commbank.com.au, 2019).
Social and Environmental performance
Strategies, policies and guidelines
The Commonwealth Bank of Australia has incorporated in various policies like
Carbon Disclosure Project and Climate-related Financial Disclosure. The strategies used by
the Commonwealth Bank include reduction of emissions through investments in advanced
and sustainable technology, respecting the human rights of the customers and employees,
complying with laws relating to the environment and encouraging compliance with